Group figures Download G R O U P F I G U RE S KEY FINANCIAL PERFORMANCE INDICATORS: EARNINGS RATIOS 1) Revenue EBITDA EBIT EBITDA margin EBIT margin in m€ in m€ in m€ in per cent in per cent 2016 1,343.0 198.4 122.3 14.8% 9.1% 2017 1,533.0 218.9 132.5 14.3% 8.6% 2018 1,559.6 252.5 161.2 16.2% 10.3% 2019 1,520.1 240.8 131.7 15.8% 8.7% 2020 1,530.4 233.5 107.2 15.3% 7.0% OTHER FINANCIAL FIGURES: EARNINGS RATIOS 1) Earnings after taxes Earnings after minorities BALANCE SHEET RATIOS Balance sheet total Equity Equity ratio Working capital employed 2) Net debt 3) Gearing 4) CASH-FLOW AND CAPEX Cash flow from operating activities Cash flow from investing activities Free cash flow 5) Cash flow from financing activities in m€ in m€ 2016 89.0 52.1 2017 83.9 44.7 2018 114.2 67.5 2019 95.7 54.5 2020 69.5 34.9 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 in m€ in m€ in per cent in m€ in m€ in per cent in m€ in m€ in m€ in m€ 1,423.8 1,465.2 1,353.9 454.9 32.0% 245.2 364.6 80.1% 2016 167.8 -158.8 9.0 139.2 528.6 36.1% 238.4 375.0 70.9% 2017 161.3 -154.0 7.3 -118.0 550.8 40.7% 245.3 323.3 58.7% 2018 85.5 -102.1 -16.7 -63.3 1,613.9 618.6 38.3% 274.2 395.8 64.0% 2019 257.4 -165.7 91.6 -20.6 1,686.0 654.1 38.8% 181.5 312.4 47.8% 2020 312.8 -147.0 165.8 -104.7 Capital expenditure 1) 6) in m€ 143.1 176.3 165.1 148.9 150.2 VALUE CREATION ROCE (Return on capital employed) 7) ROE (Return on equity) 8) ROIC (Return on invested capital) 9) 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 in per cent in per cent in per cent 13.9% 21.2% 11.7% 13.9% 17.1% 10.4% 16.6% 21.2% 13.6% 12.7% 16.4% 10.6% 9.7% 10.9% 7.7% STOCK EXCHANGE RATIOS 10) Share price as of December 31; SIX Swiss Exchange 11) Number of shares 11) Market capitalization 12) Earnings per share 13) Book value per share 13) 14) 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 in CHF in m shares 5.35 225.39 7.39 225.39 60.60 22.54 54.00 22.54 71.10 22.54 in m CHF 1,205.82 1,665.61 1,365.84 1,217.09 1,602.50 in € in € 2.31 20.18 1.98 23.45 2.99 24.44 2.42 27.45 1.56 29.02

4 Revenue (in m€) PIERER Mobility (continued operation) Pankl (discontinued operation) 1,533 1,560 1,343 EBIT (in m€) PIERER Mobility (continued operation) Pankl (discontinued operation) 161.2 132.5 122.3 1,168 2016 1,354 1,462 1,520 2017 2018 2019 1,530 2020 110.5 121.9 128.7 131.7 2016 2017 2018 2019 107.2 2020 EBITDA (in m€) PIERER Mobility (continued operation) Pankl (discontinued operation) 252.5 218.9 198.4 Employees (number as of the reporting date) PIERER Mobility (continued operation) Pankl (discontinued operation) 5,887 5,069 172.3 193.1 211.0 240.8 2016 2017 2018 2019 233.5 2020 3,555 4,194 4,303 4,368 2016 2017 2018 2019 4,586 2020

6 H I G H L I G H T S 2 0 2 0 A C T I V E M A N A G E M E N T O F C O V I D -19 C R I S I S 100% take over of GASGAS Motorcycles GASGAS complements its product portfolio with a sporty range in the highend e-mountain bike sector Outstanding success in MotoGP strengthens brand awareness worldwide COVID-19 crisis is changing mobility behavior towards „Powered Two-Wheelers“ (PTW) Production capacity ramp up allowed to hire +218 additional employees, bringing the total number of employees to 4,586 Tenth record year in a row! Unit sales in the Business Year 2020: 326,471 Motorcycles and E-Bikes (previous year: 322,092)* 270,407 motorcycles sold of the KTM, HUSQVARNA and GASGAS brands (previous year: 280,099) 56,064 e-bikes sold of the HUSQVARNA E-Bicycles and R RAYMON brands Strong market share gains in North America and Australia +12.7% Market share in established markets (+170 bsp) Registrations: Europe +15%, North America +31%, Australia/New Zealand +43% Market share: Europe 13.3% (+130 bps), North America 11.9 (+200 bps), Australia/New Zealand 19.3% (+350 bps) Full integration of e-bike business (PEXCO) – Booming e-bike business: increase unit sales +33.5% * including non-consolidated e-bikes in the previous year amounting to 41,993 units

8 DNA P I E R E R M O B I L I T Y CONTINUED GROWTH ~15% sales unit CAGR since 1992 resulting in EUR 1,530 million revenue in 2020 PREMIUM BRANDS strong brands secure sustainable profitability and cash flows HIGH INNOVATION RATE Research and Development expenses are around 9% of revenues PIONEER IN POWERED TWO-WHEELER (PTW) ELECTRIFICATION Svartpilen 125 MY21 © R. Schedl

10 I N T R O D U C T I O N BY T H E E X EC U T I V E B O A RD The PIERER Mobility Group can look back on a challenging yet very successful financial year in 2020. The biggest challenge was to minimize the risks arising from the COVID-19 pandemic for employees and at the same time to safeguard production capacities. By actively managing the COVID crisis and with the high level of demand for Powered Two-Wheelers (PTWs), we were able, particularly in the second half of the year, to make up for a significant part of the lost production and sales volumes from the spring lockdown. Taking into account the motorcycles sold by our partner Bajaj in India and Indonesia, more than 270,000 motorcycles of the KTM, Husqvarna Motor- cycles, and GASGAS brands were sold worldwide and the market position in the major motorcycle sales markets (> 120cc) was further consolidat- ed. In addition, the e-bike division delivered extraordinary sales growth of more than 33% by selling around 56,000 e-bikes of the HUSQVARNA and R Raymon brands. As the largest European manufacturer, with a broad product range of offroad and street motorcycle models, the very high demand for powered two-wheelers, both in the leisure and sports segments as well as in urban traffic in particular, was well covered. This was made possible primarily thanks to the sufficient levels of stock that dealers had available which acted as a buffer despite the production shutdown. The pandemic and the social distancing associated with it further strengthened the consistent trend toward PTWs. An equally important step on the path to growth was the full acquisition of the shares in GASGAS Motorcycles in July 2020, which was positioned as the third Group brand in the offroad segment (trial segment). Another highlight of the past year was the complete integration and realignment of the e-bike business model. The structure was reorganized in order to establish the foundations for meeting the growth targets as part of the global expansion. PIERER E-Bikes GmbH, which was founded in the first half of 2020, acts as the central parent company in the e-bike business. In terms of the product range, the focus in this segment is on further technical development and quality enhancement for the products of the Husqvarna E-Bicycles and R Raymon brands. In order to complete the product range, a third brand, GASGAS, is being established. COURSE OF BUSINESS In the past 2020 financial year, the Group further expanded its presence in the key motorcycle sales markets with its three motorcycle brands. In a growing environment, this entailed an increase in market share to 12.7% (previous year: 11.0%). In Europe, despite the tough national lockdown measures in some regions, the mo-torcycle market grew above the already high level of the previous year, and was up 4%. In the same period, new registrations of KTM, Husqvarna and GASGAS increased by around 15%. This means an increase in market share to 13.3% (previous year 12.0%). Although the overall market (+30.2%) as well as the PIERER Mobility Group (+33.0%) grew in Germany, further gains in market share were made in Spain (11.9%), Italy (10.1%), Great Britain (11.9%) and France (9.1%), despite a slight decline in the overall trend. In the USA and Canada, interest in our products exceeded overall demand, resulting in a significant increase in market share to 11.6% in the US market (previous year 9.4%). In Australia, the motorcycle market is also growing strongly and generated a market share of around 20% (previous year 15.8%). India, our most important future market, was hit hardest by the COVID-19 crisis. Nevertheless, Bajaj managed to sell over 60,000 motorcycles of the KTM and Husqvarna Motorcycles brands and outperform the Indian premium motorcycle market. The 2020 financial year was characterized by a large number of motor- cycle models successfully making the transition to series production: the presentation of the naked bike street motorcycle models KTM 890 DUKE R, KTM 1290 SUPER DUKE R and the KTM 790 ADVENTURE R RALLY, availa- ble in limited numbers, as well as the new KTM 1290 SUPER ADVENTURE R/S. The start of production of the first GASGAS offroad models is particularly noteworthy. Another focal point was the start of production of the revised Vitpilen / Svartpilen models. After the initial ramp-up in Austria, their industriali- zation was also realized at the production site in India. While Mattighofen has so far exclusively produced the 401 models of the naked bike in the entry-level segment, the relocation of production and the simultaneous broadening of the model portfolio with a 250 cm³/125 cm³ version aims to deliver a strategically important expansion of our customer base, especially in the emerging markets of India and South America. The sensational successes in motorsport should also be highlighted. With three MotoGP™ victories and a further five podium finishes, KTM achieved an extraordinary result in what was only their fourth racing season. These successes in the premier class of motorcycle sport are a milestone in the history of KTM and are therefore leading to a further increase in awareness of the brand worldwide. In the e-bike segment, activities focused on establishing the Husqvarna E-Bicycles and R Raymon brands and further developing the product range. In addition, 2020 was a key turning point for the world‘s oldest bicycle brand. Husqvarna E-Bicycles advanced to the forefront of the industry together with Shimano by jointly launching a new generation of motors (EP 8) on the market.

12 B O D I E S O F T H E C O M PA N Y E X EC U T I V E B O A R D Stefan Pierer CEO Appointed until December 31, 2023 S U P E R V I S O R Y B O A R D Josef Blazicek Chairman of the Supervisory Board Elected until the end of the Annual General Meeting deciding on the ratification of the 2020 financial year Ernst Chalupsky Deputy Chairman of the Supervisory Board Elected until the end of the Annual General Meeting deciding on the ratification of the 2020 financial year Friedrich Roithner CFO Appointed until December 31, 2023 Alfred Hörtenhuber Member of the Supervisory Board Elected until the end of the Annual General Meeting deciding on the ratification of the 2022 financial year Klaus Rinnerberger Member of the Supervisory Board Hubert Trunkenpolz Appointed until December 31, 2023 Elected until the end of the Annual General Meeting deciding on the ratification of the 2024 financial year Viktor Sigl Appointed until December 31, 2023

14 In its first meeting on January 30, 2020, the Supervisory Board approved the budget for the 2020 financial year, which had to be revised due to the early complete takeover of the e-bike segment in December 2019. The new medium-term planning was also presented to the Supervisory Board. In the (telephone) meeting on March 20, 2020, the Supervisory Board dealt primarily with the discussion and resolution on the audit and adoption of the 2019 annual financial statements, the management report 2019, and the 2019 consolidated financial statements, the consolidated management report 2019, the corporate governance report and the sustainability report (non-financial report pursuant to Section 267a of the Austrian Commercial Code (UGB)). Due to the COVID-19 situation and the fact that measures in relation to events were still unclear, it was not pos- sible to pass any resolutions regarding the Annual General Meeting at the meeting on March 20, 2020. A further (telephone) meeting was therefore scheduled for March 26, 2020 at which the Supervisory Board considered the agenda and proposed resolutions, as well as the COVID measures for the Annual General Meeting. The two March meetings were dominated by coronavirus. The Supervisory Board was in ongoing consultation with the Executive Board by telephone since the situation and measures were changing regularly and therefore presented a constant need for a read- justment of response. Due to the situation, no face-to-face meetings were held and resolutions were mainly discussed by telephone and passed by circular. There was also close coordination regarding the Annual General Meeting in May 2020. The Supervisory Board therefore refrained from holding another Supervisory Board meeting in the second quarter. The meeting on July 28, 2020 focused on the course of business in the first half of 2020 and the outlook for the full year of the PIERER Mobility Group, the reports of the Group companies, capital market issues and the financial status. Furthermore, a capital contribution and the capital increase of the acquired 35 percent equity holding in DealerCenter Digital GmbH were decided upon. At the Supervisory Board meeting on November 11, 2020, the business development (Q1-Q3/2020) and the outlook for the full year of the PIERER Mobility Group were reported on. In addition, the Group companies and their financial status were reported on. The last meeting of the 2020 year under review took place on December 18, 2020 and dealt with the course of business after 11 months and the outlook for the 2020 financial year as a whole. The Group companies and the financial status were also reported on at this meeting. In addition, the Supervisory Board discussed the inclusion of an opting-out clause in accordance with Swiss takeover law in the Articles of Association of PIERER Mobility AG. The 2021 budget was also presented and discussed. The final budget was approved in a Supervisory Board meeting in February 2021. Every member of the Supervisory Board attended at least half the meet- ings in the 2020 financial year. AUDIT COMMITTEE The Audit Committee monitors in particular the accounting process, the effectiveness of the internal control system and the risk manage- ment system, as well as the final audit of the financial statements, the independence and qualification of the auditor and their services, including the commissioning of additional non-audit services. The Audit Committee consisted of three members in the 2020 financial year. The Chairman of the Committee is the Member of the Supervisory Board Klaus Rinnerberger (financial expert). In addition, in the 2020 year under review the Audit Committee included the Chairman of the Supervisory Board Josef Blazicek and the Deputy Chairman of the Supervisory Board Ernst Chalupsky. The Audit Committee held two meetings in the year under review. The Audit Committee dealt in detail with individual specialized issues and subse- quently reported its findings to the Supervisory Board. Moreover, during the year the Audit Committee was in continuous dialog with the Executive Board and the auditor with regard to the significant topics of the annual and consolidated financial statements. In particular, discussions on the status and on important issues in the final audit were held with the au- ditor. The Executive Board was regularly asked for additional information on their reports and recommendations were given. The meeting in March 2020 focused on the in-depth discussion of all topics in connection with the 2019 annual financial statements and consolidated financial state- ments. In addition, the appointment of the auditor for the 2020 annual financial statements and consolidated financial statements was initiated and submitted by the Supervisory Board - based on the recommendation of the Audit Committee - to the Annual General Meeting on May 15, 2020 as a proposal to be voted on. At the meeting in December 2020, the auditor provided an overview of the planned process and the focal points of the audit for the 2020 financial year. Furthermore, the approval of the non-audit services of the auditor and its network in the 2021 financial year up to an amount limit was approved in accordance with the Audit Law Amendment Act 2016 and Regulation EU/537/2014. Since the Supervisory Board consists of no more than six members, the tasks of the Remuneration and Nomination Committee are fulfilled by the entire Supervisory Board. ANNUAL AND CONSOLIDATED FINANCIAL STATEMENTS AND MANAGEMENT REPORT KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungs- gesellschaft, Linz, (“KPMG”) was appointed by the Annual General Meeting of PIERER Mobility AG on May 15, 2020 as auditor of the financial statements and consolidated financial statements for the 2020 financial year. The Chairman of the Supervisory Board commissioned KPMG to conduct the audit. The annual financial statements and the management report for the 2020 financial year were audited by KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Linz, together with the consolidated financial statements and the consolidated manage- ment report for the 2020 financial year. The audit did not give rise to any objections and the annual and consolidated financial statements for the 2020 financial year were granted an unqualified audit opinion. The auditor confirmed that the company’s annual financial statements as at December 31, 2020 are consistent with applicable laws, that they give a true and fair view in all material aspects of the net asset and financial position as at December 31, 2020, that the company’s earnings position for the financial year ending on this reporting date is in accordance with the regulations under Austrian company law, and that the management report is consistent with the annual financial statements. Furthermore, the auditor also certified that the consolidated financial statements are consistent with applicable laws and give a true and fair

16 RE A DY T O R A C E RI G H T F R O M T H E S TA R T KTM is Europe’s leading high-performance manufacturer of premium powered two-wheelers for street and offroad use based in Mattighofen, Austria. To describe KTM’s brand philosophy in one phrase is simple: READY TO RACE. Long before any thought of producing compe- tition motorcycles, KTM founder Hans Trunkenpolz and his son Erich were heavily involved in motorsports themselves. Originally running an automotive repair and spare parts fabrication workshop in Mattighofen, Austria, the family business soon ex- panded to include the sale of motorcycles. By the 1950s they had developed their own motorcycle design, with the first production models released in 1953 under the KTM name, competing suc- cessfully in local races from the very start. The KTM name stands for Kronreif, Trunkenpolz, (the two original founders) Mattighofen (the town in which it all started and in which it continues to this day) and has been synonymous with the distinct READY TO RACE mentality since day one. Over the years KTM has built a reputation as a fierce competitor on racetracks around the world. READY TO RACE is the brand’s main identifying feature and hundreds of World Championship titles are the ultimate proof of KTM’s irrefutable racing attitude. The brand’s remarkable success on the world stage is reflected in every product it creates and each direction it takes. With an established unrivaled presence in the offroad segments, KTM has progressed to become one of the world’s most innovative manu- facturers of street motorcycles, and now aims to be the world’s biggest manufacturer of sport motorcycles while further expand- ing its position in the two-wheeled electric vehicles market. GLOBAL BRAND DEVELOPMENT Besides its superb products and the distinct and bold READY TO RACE philosophy, the foundation of the brand’s success is rooted in its brand values. PURITY, PERFORMANCE, ADVENTURE, and EXTREME lie at the heart of all of KTM’s endeavors and every product and activity is rigorously measured against them. A distinct brand positioning and consistent brand communication epitomize the phenomenal alacrity and motivation with which KTM identifies the expansion opportunities that are present all over the world – and takes advantage of them immediately through a series of targeted actions. The growing global KTM brand presence, along with the brand’s continued focus on racing and impressive gains in the street segment, are all part of its steady expansion worldwide. The successful launch of the new KTM 890 ADVENTURE, KTM 890 ADVENTURE R and the KTM 390 ADVENTURE alongside the KTM SX-E 5 model enabled KTM to take a decisive step forward towards the cultivation of new target groups. MOTORSPORTS AS A CENTRAL COMMUNICATION INSTRUMENT In addition to its continued dominance of international offroad championships as demonstrated by Tom Vialle’s authoritative FIM MX2 Motocross World Championship title, KTM has meanwhile become a highly respected brand in the road racing sector. The 2020 FIM Moto3TM World Championship title and eight podiums including three wins in the extremely hard-fought and highly prestigious MotoGPTM class exemplify KTM’s strenuous efforts in 2020 and stake a serious claim to be a winning brand even in the most prestigious and fiercely contested racing series. The ambitious objectives of the group will in future therefore go hand-in-hand with the motorsports strategy, as this has a direct impact on KTM’s global sales activities. Motorsports is and remains the central medium for communicating the brand and increasing public awareness.

18 READY TO RACE P U R I T Y P E R F O R M A N C E

20 M O T O R S P O R T READY TO RACE is a motto and mantra for KTM. The phrase and the concept define KTM’s passion for innovation through competition and the desire to excel. This company-wide philosophy has been present through eighty years of history striving to make the most rewarding motorcycling experiences for customers, riders and race fans. Through Enduro, Motocross, Rally, Road Racing and Supercross, KTM have amassed no less than 314 FIM World Championships and have increased their prolificacy in the last ten years thanks to six core principles: leadership, the best staff in the right positions, optimum innovation and performance-technology for the track, key technical associations, collective belief and character, and investment in athletes. KTM race teams, frequently supported with excellent partners like Red Bull, WP Suspension, Pankl, Motorex and Akrapovič are infused with a thirst for glory and a hunger for excellence. This demand has established the company as one of the most proactive and unbeatable motorcycle sport brands in the world today. MOTOCROSS The initial bright shoots of KTM’s competitive success lie in Motocross. Russian Gennadij Moiseev was the company’s first world champion while Heinz Kinigadner’s two titles in the 1980s contributed an impor- tant racing chapter for the firm. The first American winner was Trampas Parker and by the time Shayne King and Joel Smets were adding regular trophies to the cupboard at Mattighofen during the turn of the century, KTM were cemented as a major player in the FIM Motocross World Championship, AMA Motocross and other national series around the globe. In the last two decades KTM have coated FIM Grand Prix in orange. They claimed victory in the inaugural year of the MX2 class in 2004 with the KTM 250 SX-F and have won every season except for 2005-2007 and 2015 thanks to nine riders. When Tony Cairoli joined the Red Bull KTM Factory Racing team in 2010 he would bring the premier class crown – MXGP – to the factory for the first time. The legendary Sicilian managed to triumph both with the KTM 350 SX-F and the KTM 450 SX-F. Both Cairoli, teammate Jeffrey Herlings and 19 year old starlet Jorge Prado continue to build a legacy for KTM at the sharp end of FIM MXGP World Championship competition. Cairoli and Herlings decimated the 2018 MXGP term; allowing only one Grand Prix to escape their grasp from 20 rounds while the graduation of Prado in 2020 meant that Red Bull KTM were the only team in MXGP to celebrate Grand Prix victory with all of their athletes. KTM’s continuing blend of brilliance and emerging youth can be seen in the six-rider spread of the 2021 Red Bull KTM Factory Racing line-up. Alongside Cairoli, Herlings and Prado and their joint combination of 15 titles is the latest MX2 #1 Tom Vialle. Austrian hopeful Rene Hofer and new rookie and former European and Junior World Champion Mattia Guadagnini are the other MX2 runners. SUPERCROSS KTM reorganized their efforts in the AMA Supercross at the beginning of the decade and the decision to create a structure at Murrieta in southern California was inspirational. Ryan Dungey delivered KTM’s first 450 Supercross victory in Phoenix, Arizona in 2012 and would rule the division for three years as the KTM 450 SX-F became a class-lead- ing motorcycle. The team would fight for the crown with Marvin Musquin and then witness Cooper Webb clinch the title in his first sea- son in 2019. Webb pushed hard to defend his crown in the ‘interrupted’ 2020 campaign and classified a close second. ENDURO | OFFROAD | RALLY Other spoils have followed suit in the worlds of Enduro, Offroad and Rally; names like Blazusiak, Coma, Cervantes, Despres, Garcia, Knight, Lettenbichler, Salminen, Sunderland, Walker, Walkner and many more have made an impact on the results sheets but also the development arch of Austrian machinery to remain at the top of the disciplines. KTM’s speed and reliability in arguably the hardest offroad race of them all – the Dakar Rally – has led to a record 18 consecutive victo- ries between 2001 and 2019 thanks to eight different individuals. In a complicated year for competition in 2020 KTM still enjoyed success with Red Bull KTM Factory Racing’s Manuel Lettenbichler taking victory at the notoriously difficult Red Bull Romaniacs hard enduro. Teammate Josep Garcia, also took a domestic victory in the Spanish E2 Cham- pionship. In 2021 the Dakar rally was back in the Middle East for the second consecutive year and entered by Red Bull KTM Factory Racing’s three rider line-up of Toby Price, Sam Sunderland and Matthias Walkner, along with rookie Daniel Sanders who joinend the KTM Factory Racing team as part of KTM’s junior rally program.

22 Svartpilen 250 2020 © R. Schedl

24 TOP-CLASS, INNOVATIVE PRODUCT RANGE Husqvarna Motorcycles remains committed to fulfilling a progressive vision of street motorcycling. From returning to the street segment with the 701 Supermoto and 701 Enduro in 2015 to the introduction and subsequent expansion of the exciting Vitpilen and Svartpilen family, Husqvarna Motorcycles is now broadening their thrilling street line-up with the Norden 901, a unique travel motorcycle that features a twin-cylinder engine, advanced rider ergonomics and high performance based on years of rally experience, in a distinct modern design. The explicit focus on product development is a consequence of the clear commitment to establish the Husqvarna Motorcycles brand across the world as a feisty and serious manufacturer in the road motorcycle segment. The brand strategy has been refined to better focus on street-oriented customers, considering its potentially huge sales pros- pects. At the same time, the commitment and the presence of the brand in the offroad sector is consolidated and strengthened by further innovations, such as 2-stroke fuel in- jection technology and advanced connectivity that allows riders to tailor the performance of their motocross motorcycles according to their riding skills and track conditions. ELECTRIC MOBILITY The company also introduced yet another striking product innovation to emphasise the immense importance of encouraging the riders of tomorrow in the offroad segment. Not- withstanding its lightweight design, the Husqvarna EE 5 mini motocross has a serious role to play as an entry-level motorcycle for children. With a purely electric powertrain system developed by Husqvarna Motorcycles’ R&D, plus the very latest in control elec- tronics, the EE 5 underpins the brand’s promise to deliver ground-breaking technology and performance to the world of motorcycling. Husqvarna Motorcycles’ forward-thinking approach matched to innovative, cutting-edge technology will form the foundation with which the brand will tackle electric mobility and sustainability challenges in 2021 and beyond. Extensive R&D and design efforts will be concentrated in developing urban e-mobility solutions for the near future, stimulating the imagination of the global community, and offering a tantalising insight into the dynamic future activities of a brand that is constantly at the forefront of innovation. SIMPLE YET DISTINCT MOTORCYCLES, UNIQUELY PACK AGED FOR AN ACCESSIBLE DYNAMIC RIDE

26 Zach Osborne Husqvarna FC 450 Pala MX 2020 © Simon Cudby M O T O R S P O R T Motorsport is an integral part of the Husqvarna brand’s 118-year history and a driving factor in the continued development of its class-leading production motorcycles. Husqvarna Motorcycles remain resolute about achieving success at the highest levels of two-wheeled motorsport. FACTORY RACING Introducing the global Rockstar Energy Husqvarna Factory Racing team in 2015, Husqvarna Motorcycles solidified its position as a dominant force in all offroad racing activities. World Championship titles, race victories and success across the globe have all contributed to unforgettable motorsport triumphs. SUPERCROSS | MOTOCROSS Following a historic 2018 season in which Jason Anderson claimed the AMA 450SX Championship title, Jason, together with teammates Dean Wilson and Zach Osborne, enjoyed a podium sweep at the final round of the 2020 season. Encouraged by his first 450SX victory, Zach went on to dominate the AMA Pro Motocross 450 class to capture his, and Husqvarna Motorcycles’, first ever 450MX title. The 2020 FIM Motocross World Championship saw a career-best season for FC 250 mounted Jed Beaton. Consistent results and a moto win placed him fourth overall in the final MX2 championship standings. 2019 MX2 runner-up Thomas Kjer Olsen overcame injury to win two MX2 Grands Prix and climbed onto the podium a further four times. In the MXGP class, injuries for both Pauls Jonass and Arminas Jasikonis saw their seasons brought to a premature end. ENDURO | OFFROAD | RALLY Beginning 2020 with the Dakar Rally, two-time FIM Cross-Country Rallies World Champion Pablo Quintanilla secured a personal-best second place overall result. Quintanilla’s impressive performance also marked the highest-ever finish for Husqvarna Motorcycles at the world’s toughest rally. Husqvarna Motorcycles saw Billy Bolt make history by becoming the first ever Word Enduro Super Series champion in 2018. In 2020, bouncing back from injury in the best possible way, Billy showed what he is capable of and secured the FIM SuperEnduro World Championship title for Rockstar Energy Husqvarna Factory Racing. Facing a reduced calendar of races in 2020, Graham Jarvis topped the Sea To Sky event in Turkey before he and his teammate Alfredo Gomez both claimed podium results at the Romaniacs Hard Enduro Rallye. Establishing himself as one of the most celebrated EnduroCross racers, Colton Haaker successfully defended his AMA EnduroCross title with a repeat series victory in 2020, making it his fourth career championship win. ROAD RACING Successfully returning to international road racing in 2020, Husqvarna Motorcycles claimed their maiden FIM Moto3TM World Championship race victory with Romano Fenati. Making history in their first season, the Sterilgarda Max Racing Team look forward to more success in 2021.

28 PERFORMANCE OFFROAD MOTORCYCLES THAT PUT THE FUN BACK INTO RIDING! Within the offroad motorcycle segment, GASGAS are known the world over for their high-level successes in trial and enduro, and as a brand that thrives on passion and fun. Growing quickly to become a central player in the trial scene during the 1980s, GASGAS’ technical expertise and commitment to competition saw them rewarded with numerous FIM trial and enduro world titles. Acquired and re-activated by PIERER Mobility AG in July 2020, and by using the group’s high-performance technical platform, GASGAS Motorcycles successfully launched 23 new performance offroad models across the trial, enduro and motocross segments. Expecting to sell 12,500 units in their first year of business, GASGAS are focused on producing motorcycles that are exciting and inclusive, allowing riders to GET ON THE GAS! A PROUD SPANISH HERITAGE GASGAS celebrate their Spanish heritage, embracing a daring and expressive character while applauding those who share a passion for motorcycling. This positive attitude and love of having fun is reflected in the brand’s robust product line-up, built to provide riders with the utmost enjoyment without any fuss. OFFROAD SPECIALISTS WITH FRESH ENERGY While all trial, enduro and motocross bikes deliver proven performance for serious offroad fun, GASGAS prefer to celebrate and encourage the riders, the real offroad heroes as they see it! The ‘enabler’ brand within PIERER Mobility AG, GASGAS encourage all riders to get involved in all offroad disciplines, to join their friends and GET ON THE GAS! Well-known within the trial and enduro worlds, GASGAS bring fresh energy to the motocross scene, welcoming everyone to join in the action. A COMPREHENSIVE OFFROAD MODEL LINE-UP GASGAS are positioned to be very different to the two other mo- torcycle brands within PIERER Mobility AG - KTM and Husqvarna Motorcycles. Utilizing the group’s shared-platform technology, GASGAS bikes deliver proven performance, which together with their no-nonsense approach means all bikes deliver vibrant styling and an overall simplicity. With complete trial, enduro, cross country and motocross line-ups, they offer a truly compre- hensive model range, from fun-filled, entry-level 50cc minis to awesome 450cc 4-strokes. A CLEAR FOCUS ON THE FUTURE What follows the re-launch of GASGAS Motorcycles is a clear focus on further establishing the brand, expanding the global dealer network and pursuing new motorsport goals. Successfully competing in the TrialGP World Championship, MXGP World Championship and international enduro events in 2020, GASGAS will officially step into the high-profile AMA Supercross Championship and the AMA Pro Motocross Championship in the United States in 2021. In addition, GASGAS will take the exciting step into international road racing for the first time ever. Competing in the thrilling Moto3™ World Championship, GASGAS will partner with the Spanish Aspar Team, with Spanish riders, creating a meaningful and powerful connection with the brand’s Spanish heritage and underlining GASGAS’ clear plans for the future. Whole Lineup GASGAS Launch

30 PERFORMANCE & INNOVATION FOR PREMIUM SUSPENSION COMPONENTS WP Suspension GmbH is one of the world's leading manufac- turers of premium suspension components in the powered two-wheeler and sports car sector. Due to the closeness to motor sports and the influence of the feedback of the latest motor sports stars, WP Suspension presents itself as a con- stantly growing and innovation-driving force behind numerous successful series in professional motor sports as well as in amateur sports. The WP Suspension brand, with its worldwide recognition as a specialist in motor sports with a strong development potential, relies on the close networking within the group, which has enabled WP Suspension to benefit from a wide range of syner- gies in recent years and to significantly increase its efficiency in the last financial year. Through the intensified and sustaina- ble expansion of the basis of the globally active company, WP Suspension has been able to secure a pioneering position in the market and, by means of innovative development work, to stabilize this position. INNOVATIVE PRODUCT DEVELOPMENT Motorsport in all its facets is characterized by rapid change. Through direct contact with numerous successful teams in motorsport, WP Suspension has the ability to incorporate the latest experiences from the racetrack into product develop- ment and to address the fast-moving demands with innovative ideas. Due to intensive efforts in research and development, WP Suspension dominates in a highly competitive market. The course has also been set for the 2021 fiscal year to maintain the global pioneering position and to significantly strengthen the resources for the development of the latest technologies. This ensures that the brand will live up to its claim PERFORMANCE&INNOVATION in both the "Offroad" and "Street" sectors and will support professional racers as well as hobby-motorcyclists worldwide with premium suspension systems. SUCCESSES IN MOTORSPORTS Thanks to the tireless development work and high quality- standards, WP Suspension has been able to establish itself clearly as a successful brand in offroad motorsport, and hardly any racing series is dominated without the partici- pation and support of WP Suspension. Several titles won with WP components, such as Tom Viale's world championship title in the 2020 FIM MX2 or Courtney Duncan's world champion- ship title on Kawasaki in the 2020 FIM WMX convince of the technical superiority in motorsport. Since entering the MotoGPTM 2012, riders in the road segment have also been able to write their own success story with products from WP Suspension. In 2020, WP Suspension became part of Brad Binder's MotoGPTM debut victory in the Red Bull KTM Factory Racing team and Miguel Oliveira secured another first place in MotoGPTM shortly afterwards with suspension components developed by WP. The crowning glory of WP Suspension 2020 in the street segment, however, came with Albert Arenas (Gaviota Aspar Team Moto3) winning the Moto3TM World Championship. EXPANSION AND DEVELOPMENT OF SALES AND MARKETING In 2020, the sales department continued to focus on expand- ing and developing the global WP Suspension dealer network. Despite the less than optimal conditions for many sectors of the economy, the sales structures of WP Suspension GmbH 2020 succeeded in acquiring additional sales partners and increasing the number of WP Authorized Centers to over 140 worldwide. In 2020 the foundation was also laid to optimize the sales structures not only quantitatively but also qualitatively. The restructured marketing and the resources gained in this respect enable the company to support the dealer network with brand and product-specific marketing campaigns and to assist them with newly defined standards for brand communication. For 2021, this development paves the way for WP Suspension to strengthen its pioneering position in the market and to open up the brand to additional potential customer groups.

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34 SERIES TRANSITIONS FIRST GASGAS OFFROAD PRODUCT RANGE HUSQVARNA STREET SEGMENT The unforeseen and far-reaching effects of the COVID-19 pandemic once again put our high degree of flexibility and problem-solving ability to the test. While we as an international organization initially have been very severely restricted in our activities, the past financial year was still characterized by numerous models being successfully transferred to series production under the Group brands KTM and Husqvarna Motorcycles. The start of production of the first GASGAS offroad models under the leadership of PIERER Mobility AG is particularly noteworthy: After intensive development work, a comprehensive portfolio of Enduro and Motocross models was put into series production at the Mattig- hofen site and delivered to end customers in the most important core markets just about a year after the announcement of the takeover of the Spanish motorcycle manufacturer. This success could only be achieved thanks to our sophisticated platform strategy, the primary objective of which is to optimize the performance of all installed components while at the same time ensuring a high degree of material efficiency and cost effectiveness. The GASGAS model portfolio expands the product line-up of the KTM and Husqvarna Motorcycles Group brands in the offroad segment, and is primarily aimed at new customer groups in the entry-level segment. KTM STREET SEGMENT Apart from this particular noteworthy exception, the 2020 financial year was primarily characterized by the ramp-up of series production of numerous road models. Thus, at the beginning of the year, the two stra- tegically important naked bike models — the KTM 890 DUKE R in the mid-range segment, and the KTM 1290 SUPER DUKE R in the premium segment — went back into series production and were presented to the international trade press before the coronavirus pandemic broke out across Europe. While the KTM 890 DUKE R is a comprehensively revised version of the basic model presented in 2018 in terms of the engine and chassis, after around four years of development, the new KTM 1290 SU- PER DUKE R can be described as a fundamentally new development and spearhead of the model portfolio. Another focal point of the first quarter was the series ramp-up of the KTM 790 ADVENTURE R RALLY special model, which is available in limited numbers. This model not only differs from the standard version in terms of a wide range of design and equipment features but, in particular, due to its high-performance chassis from WP Suspension, which means it is strongly geared toward the needs of customers who regularly expose their vehicles to extreme offroad conditions. In the product range of the Husqvarna Motorcycles Group brand, the transition to series production of the revised Vitpilen and Svartpilen models is particularly noteworthy. The industrialization of this bike is now realized at the production site in India following the initial ramp-up in Austria. While our Austrian production site in Mattighofen has so far exclusively produced the most powerful variant of the naked bike in the entry-level segment with a displacement of 401 cc, the relocation of production capacities and the simultaneous broadening of the model portfolio with a 250 cc and a 125 cc variation represents a strategically important expansion of the customer base, especially in the emerg- ing markets of India and South America. The special Husqvarna 701 Enduro LR model introduced at the beginning of 2020 is based on the Husqvarna 701 Enduro of the same name and supplemented the 2020 model portfolio as a special model in the mid-range segment with a significantly increased tank volume of around 25 l. From now on, the tank volume of the 701 Enduro can be expanded with an additional fuel tank from the Husqvarna Motorcycles Technical Accessories catalog. For the development of this model optimized for touring, it was necessary to adapt the subframe of the chassis to a large extent and to subject it to a comprehensive strength analysis. MODEL RAMP-UP IN THE MID-RANGE AND PREMIUM SEGMENT KTM AG, as a technology-oriented manufacturer of high-performance motorcycles in the premium segment, always focuses on reducing the noise and exhaust emissions of its vehicles with combustion engines. The consistent further development of the thermodynamic system on a variety of our models represents a central component of the research and development activities of the past year. The most important series transitions in this area include the KTM DUKE models in the displace- ment variants of 125 cc to 390 cc, which comply with the latest Eu- ropean and international emission standards, as well as the top model KTM 1290 SUPER DUKE R. Other vehicles, such as the touring-oriented KTM ADVENTURE models in the displacement variants 250 cc and 390 cc have also been equipped with further refined components and their emission levels have again been significantly optimized. In addi- tion to far-reaching changes in the area of electronic fuel injection and thermodynamic optimization of combustion, the development activities in this area also included, in particular, emissions reduction through further development of exhaust gas aftertreatment. The second half of the year also saw a number of other model ramp-ups from the mid- range and premium segment. This includes the reworked derivatives of the KTM 690 ENDURO, 690 SMC and Husqvarna 701 Enduro and 701 Supermoto equipped with the 690 cc single-cylinder engine, as well as the series ramp-up of the KTM 890 ADVENTURE R/S models.

36 © KTM E-TECHNOLOGIES K T M E-T EC H N O L O G I E S N E W D I R EC T I O N T O M E E T T H E C H A L L E N G E S O F E L EC T R I C M O B I L I T Y: K T M T EC H N O L O G I E S H A S B EC O M E K T M E-T EC H N O L O G I E S True to the motto “DRIVEN BY THE NEW”, KTM E-TECHNOLOGIES GmbH, based in Anif near Salzburg, develops electric vehicles for today and to- morrow - inspiring, efficient, reliable and meeting high safety standards. Offroad or even on the way to work through urban areas, maximum fun while riding or driving is guaranteed. The issue of electric mobility has never been as high profile as it is today, as more and more people are discovering the benefits of electric powertrains: impressive power delivery, extremely easy operation, environmentally friendly energy consumption and pleasantly quiet. As the demand for development services in the field of electric mobility increasingly grew within the PIERER Mobility Group, the strategic decision was taken in mid-2020 to bring together all development activities relat- ing to the electric drivetrain in KTM E-TECHNOLOGIES. For this purpose, the Salzburg site is being expanded to create a development center for e-mobility. Offices, workshops and state-of-the-art test benches are being created over an additional 7,780 m² of floor space. The workshops started operating back at the end of 2020 and the remaining space was occupied in February 2021. KTM (E-)TECHNOLOGIES was established in 2007 when a small group of engineers with a keen interest in motorsport transformed the vision of the X-BOW super sports car into series production at KTM. The X-BOW with its lightweight carbon fiber chassis was way ahead of its time and is considered a milestone in KTM's history. Since this project, the experi- enced team has proven itself as PIERER Mobility AG’s strategic develop- ment service provider in many exciting and challenging projects. In 2010, for example, they played a key role in the development of the “XL1”, Volkswagen's 1-liter car, with their expertise in lightweight construction. This also heralded the start of electric mobility, which continued in 2012 with the development of the AUDI e-bike “Wörthersee” and in the years that followed with many more “electric” projects. This saw the company grow continuously and it now boasts around 130 highly qualified employees. As early as 2014, KTM AG launched the “Freeride-E” electric motorcycle, its first purely electrically powered production bike. The trend toward sus- tainable and low-emission drives has now accelerated, not least thanks to continuous technological advances, especially in the area of battery storage technology. In line with this trend, KTM E-TECHNOLOGIES has also worked very hard in recent years on many e-mobility projects and built up know-how, resources, and infrastructure in this area. As a service provider, the company still continues to work with third-party customers on strategic projects. The group of partners and customers includes automotive OEMs and suppliers as well as companies from other industries, such as mechanical engineering, aviation and electronics. Thanks to the activities across different industries, the company and its customers benefit from broad know-how and the possibilities of technol- ogy transfer. SPECIALISTS IN THE DEVELOPMENT OF E-VEHICLES The challenges in developing successful electric vehicles are complex and multifaceted. KTM E-TECHNOLOGIES has many years of experience in vehicle architecture and holistic development methods for designing vehicles that have low costs and offer a great benefit to the customer. It has a range of skills in the core areas of component and whole vehicle development. This applies in particular to requirements management, technology and concept development, simulation, prototype construction, testing and industrialization. It conducts research and development work with a strong application orientation and focuses on products with the highest possible potential marketability. The main focus is on products with low-voltage drive systems and maximum continuous power of up to 11 kW and peak power of up to around 20 kW. The current product range extends from e-bikes, e-scooters and light motorcycles licensed for use on the road to various sports vehicles for off-road use. The company works closely with KTM AG and other companies in the PIERER Mobility Group, as well as with external partners and universities.

38 @ KTM E-TECHNOLOGIES BROAD ELECTRICAL, ELECTRONICS AND SOFTWARE EXPERTISE The areas of expertise in hardware and software of the highly qualified “E/E” team are wide-ranging, extending from hardware and on-board network development and system architecture to networking and communication between the individual EE components. Experience is particularly important when it comes to the functional safety of the E/E system. In the area of human-machine interfaces (HMI), modern interaction and information concepts are being developed, and they are based on the Group's future-oriented digitalization strategy. The technological development of E-components and software is extremely important. The use of highly specific and developed components based on application-specific requirements also has a major influence on the competitiveness of electric two-wheel- ers, just as it does on vehicles with combustion engines. This is particularly true of the electric motor, the power electronics and the battery system, including the control unit (BMS). This makes it possible to achieve high efficiency and customized vehicle characteristics in combination with a high level of reliability and safety. Last but not least, these components contribute sig- nificantly to adding value. In addition to the technical aspects, this “modular” development involves in particular the creation of cross-model platforms at the component level with uniform interfaces and maximum application flexibility. The benefits of this are high scalability, cost optimization and rapid availability. LEADING LIGHTWEIGHT CONSTRUCTION, MATERIALS AND SIMULATION KNOW-HOW KTM E-TECHNOLOGIES is one of the leading companies when it comes to lightweight construction and the use of composite ma- terials such as carbon composites or hybrid material combina- tions. What makes it successful is that it can handle the entire product development process from technology and component development, structure and process simulation, to industrializa- tion. There is also a very great level of expertise in the additive manufacturing of plastics. The trend across different sectors toward energy saving and sustainability means there is a growing demand for innovative lightweight design solutions. Economical lightweight con- struction is also an important component for electric vehicles because it ensures that they are efficient with their often heavy batteries and ultimately also deliver impressive driving dynamics. To meet these requirements, the focus is on making the most targeted use of materials, based on the motto of “the right ma- terial in the right place”. The combination of a standard material and local reinforcement with a high-performance material is the goal. This allows a high level of mechanical performance and a high degree of integration to be achieved cost-effectively. Examples of use are structural and semi-structural applications such as battery housings or subframes of motorcycles as well as passenger compartments of light vehicles. The potential of lightweight technology has been impressively demonstrated, for example, by the use of a new carbon composite swingarm in the 2020 MotoGP season. A major strength of KTM E-TECHNOLOGIES is its high level of expertise in the field of virtual development and the scope for re- alistic high-performance simulation. This includes, among other things, highly dynamic assignments for crash, aerodynamics and thermodynamics simulation. Virtual simulation methods are also used to evaluate the extent to which different concepts meet mechanical, thermal and electromagnetic requirements. These methods are particularly valuable for designing and optimizing battery systems for the specific requirement profiles of e-ve- hicles. Developments can therefore be designed and optimized virtually at an early stage and without the use of hardware. This delivers reductions in development times, minimizes risk, improves product characteristics and reduces costs. In order to be able to test the developments under realistic conditions, fully functional prototypes are built in the company's own workshops. Supported by a professional set-up of test benches, sensors, data loggers and analysis tools, the prototypes can then be tuned, tested, and validated. This is an important step in deliv- ering persuasive products, especially for new e-vehicle concepts with specific requirement profiles.

40 P I E RE R E- B I K E S E-mobility is booming - and the year 2020 delivered an extra boost to the (e-)bike business, which was growing strongly even without the coronavirus. The global COVID-19 pandemic has significantly altered consumers' demands for good solutions when it comes to individual transport and sport. Against this backdrop, the demand for bikes and e-bikes has risen sharply. And PIERER E-Bikes GmbH (the e-mobility division of PIERER Mobility AG has been operating under this name since mid-2020) has also been able to secure its position in a highly competitive market during this challenging period with its two established brands Husqvarna E-Bicycles and R RAYMON. To make the issue of electric mobility accessible to an even broader target audience, an additional brand was added to the portfolio: GASGAS. From spring 2021, the Spanish brand will manage a complete e-bike fleet under the umbrella of PIERER E-Bikes GmbH and, with the specialist motorcycle trade, will exploit a sales channel that has so far been largely untapped in the bicycle industry. HUSQVARNA E-BICYCLES 2020 was a decisive turning point for Husqvarna E-Bicycles. Along with Shimano, the world's oldest bicycle brand became a first mover. Together with the very first drive manufacturer, it launched a new generation of motors worldwide: the EP8. More power, more range, more performance for a sporty target group! The new mid-mounted motor will be used in all top models in the offroad segment in the 2021 collection year and, with the E-Tube Project App, it also addresses another important megatrend - the desire for individualization. This is because the app allows the system settings to be adapted to the conditions of the tour and saved in- dividually in up to two profiles. In all other categories - from youth e-bikes to classic city models - the focus was on continuity and modern understatement. The complete collection impresses with a Nordic minimalist design with silhouettes full of character! R RAYMON Fast, young and wild - these are the attributes that R RAYMON claims to embody. The brand is a classic fast follower when it comes to innovations, technology and design. The very first drive partners are the powerful, mid-mounted motors from Yamaha. R RAYMON never ceases to focus on the demands of the bicycle trade as well as consumers and offers an unbeatable range in terms of value for money. Within a very short time, the newcomer established itself as a major player in the market with a full range that caters for all wishes. Both in its classic bikes and in the e-bike range, R RAYMON offers numerous options for beginners and professional athletes like Johannes Fischbach or Korbinian Engstler. And it was this very flexibility which ensured that R RAYMON performed well above market expectations in 2020. GASGAS The Spanish motorcycle brand GASGAS is starting a new chapter in the field of e-mobility. Starting in 2021, it will have its own e-bike product line for the first time. This will allow even more off-road enthusiasts to share in the off-road fun, with a solid collection that will provide plenty of action, or be the ideal training companion. All e-bikes are equipped with powerful Yamaha mid-mounted motors. The new GASGAS e-bike collection comprises a total of twelve models and therefore covers the four most important segments (Enduro, All Mountain, Cross Country, Trekking/Urban) in the bike sector. Young up-and-coming riders will also have the opportunity to shake up the trails and gravel tracks on bikes with 26-inch wheels featuring the original GASGAS design. In terms of sales, the motorcycle trade is the main target - this will allow PIERER E-Bikes GmbH to continue to consistently expand its activities in the area of two-wheeled electric mobility one step at a time. STILL ON COURSE FOR EXPANSION In many respects, 2020 was a multi-faceted year - despite the global COVID-19 pandemic, the area of electric mobility really did excel. Even in this challenging past financial year, the sales targets that were set were achieved, and the process of making the division more international was also successfully advanced. In a first step, the focus was on the expansion of EU markets - from January 2021, there will now be a further push to expand into North America. PIERER E-Bikes GmbH has therefore come a great deal closer to fulfilling its vision of becoming a global player in the field of electric mobility. Without losing sight of the coun- try-specific characteristics in the process. In terms of distribution channels, the company has opted for independence and differen- tiation. With GASGAS, access to the specialist dealer market was expanded to include another channel into the motorcycle trade.

42 M A K I N G D I G I TA L I N N O VAT I O N & T R A N S F O R- M AT I O N M E A N I N G F U L A N D S U S TA I N A B L E S H A P I N G T O M O RR O W ’ S B I K I N G E X P E RI E N C E Digitization is not a new development; it has been going on for decades. Therefore, for many of us, digitalization still means using the steadily new technologies to increase efficiency in our companies. But the digital world has much more to offer. Today most innovations are based on digital developments. Software seems to eat the world. This resulted in a unprecedented success of big Tech-companies, whose market capitalization is larger than many stock indices. Many new technological developments speeded up the change processes in product development, commerce and process optimization. Some of them are connectivity, artificial intelligence and many new software technologies in general. Connectivity is a topic for everybody, not only in smart homes, where the devices of family members can be connected to each other, but also commodities and vehicles started networking. But what would innovation be without bringing a new experience to our sales partners and customers? Today's innovation landscape goes far beyond considering just the product. It increasingly requires that customer experiences and services are taken into account when it comes to development. In this regard, more transparency and the direct involvement of our dealers and customers in the relevant processes are required. Our Scouting specialist are working on a continuous exchange of assessments and trend analyses to document social and cultural changes. In this way, they create the groundwork basis for the development of new concepts.The vision of our product developers is to develop convincing portfolios, that demonstrates the innovation potential across the entire customer journey (online and onsite) with targeted communication and services. Data science methods are used to create added value from new and existing data sources. Based on these findings business modeling aims to boost our products and services to take the motorcycling experience to a new level. So software development and data science become to a key factor for innovation, which resulted in investments in KTM Innovation GmbH, Avocodo GmbH and other companies to ensure a skill set for the upcoming challenges.

44 E M P L OY E E S A S A S U C C E S S FA C T O R EMPLOYMENT TREND In 2020, around 83% of the employees of the PIERER Mobility Group were employed in Austria. The proportion of female employees was around 22%. Within the framework of the KTM_academy, the Group is embracing its dual training program with the aim of increasing the 170 apprentices currently undergoing training to 185 in 2021, as well as improving employee training. As of December 31, 2020, the Group had 4,586 employees worldwide (previous year: 4,368), of which 3,822 were in Austria. EDUCATION AND TRAINING Finding qualified employees and retaining them in the company over a long period of time poses a significant challenge, particularly for rural sites. Every employee in the PIERER Mobility Group forms part of the large team that drives the success of the company with dedication and enthusiasm. Attractive jobs offering exciting challenges and opportunities for training and career progression give employees the chance to demonstrate and expand on their skills. Due to the high technical requirements, highly trained employees are especially important. In particular in terms of the growth course, risks may arise if key staff leave the company. In terms of education and training, 2020 was also dominated by the coronavirus pandemic. By complying with the strictest safety measures and switching to online training, the PIERER Mobility Group was largely able to maintain its training. Following the positive experiences of adopting e-learning, webinars and other online training, the focus will continue to be on this type of training in the future. Furthermore, we will focus on exchanging knowledge internally through experts. PIERER Mobility has very deliberately defined its employees as the fourth pillar of its success alongside globalization, innovation and brands in the company and is intensively expanding this pillar by expanding the training and further training it offers. As personal development is now defined by massive changes in an age of digitalization, a modern and web-based learning management system (“KTM_academy training portal”) was launched in 2019 and optimized further in 2020. This makes the training and education of KTM AG employees even more attractive, efficient and transparent. The new tool is also the platform for all e-learning courses. In the operating companies of the Group, training and education is delivered by atten- ding external and in-house training sessions that are specifically tailored to the needs of KTM and KTM Technologies GmbH. In 2020, we were also largely able to safeguard the training and education of our employees by switching the training courses to an online format. For example, in-house training courses such as “Leadership” and training courses in the area of project management were partly conducted in person (compliance with the strictest safety regulations and testing of the participants) or switched to interactive online formats. @ KTM

46 In 2020, a new concept for street rider safety training (KTM Riders Academy) was developed. With the introduction of the specially designed KTM street rider training in the area of research & development (R&D), we want to ensure that KTM employees regularly complete training in order to be able to react expertly and correctly on a daily basis and especially in dangerous situations. The training courses themselves were developed together with R&D and are precisely geared to the needs of our employees and are graded in 3 levels. The focus here is on those employees who regularly ride motorcycles in a work context. STEM PROFESSIONS To support women in STEM professions, KTM AG has already implemen- ted several measures (Girl‘s Day, technical apprenticeship) that are constantly being expanded. Every year, KTM invites interested girls to gain an insight into the company‘s technical training. In addition, the PIERER Mobility Group‘s subsidiaries are seeking joint projects with universities and technical colleges. These range from various research projects and activities in the context of joint student research projects to specific academic courses (KTM Digital Intrapreneurship MBA, KTM Young Pionee- rs College) as well as business/science cooperations (Johannes Kepler University, Wels University of Applied Sciences). In addition to addressing current issues such as sustainability, these activities also promote a clo- ser working relationship with the training institutions in order to combat the lack of skilled staff and introduce joint measures if necessary. OCCUPATIONAL SAFETY & EMPLOYEE HEALTH The PIERER Mobility Group is concerned with guaranteeing the safety of its employees at all times. Statistics are collected on accidents in relation to the cause, type, quantity, place/department and days on which the employee concerned was absent for the purpose of taking appropriate improvement measures. In order to achieve continuous improvement in the area of health and safety, preventive measures are taken to safeguard general safety in the workplace and employee health. These include fire safety briefings, machine safety, promotion of health in the workplace, general occupational health services (acute first aid, vaccination advice and vaccination, maternity leave, eyesight tests), integration of employees with impairments, as well as precautions to ensure suitable and ergono- mic workplaces, conflict management in the workplace and resolution of psychological stress. Due to the outbreak of the coronavirus pandemic, special measures were taken to protect employees and prevent a possible risk of infection at the company sites from spring onward, for example: establishment of a dedicated COVID team with its own COVID hotline; in-house contact tra- cing with rapid isolation, usually before any contact from the authorities; hygiene guidelines, mandatory masks at the workplace, capability to mea- sure people’s temperature; working from home / office splitting; regular testing and establishment of a dedicated test station; internal traffic light system; preventive medical check-up including COVID antibody test. APPRENTICES DIVERSITY The PIERER Mobility Group regards it as particularly important for all employees to be treated with fairness and respect. In order to counteract the risk of unequal treatment, we create a working environment characte- rized by mutual trust, in which each individual is treated with dignity and respect, and in which people from diverse cultures and with different per- sonal backgrounds are valued equally. As an international Group, PIERER Mobility values the diversity that is reflected in the origin, culture, langua- ge, and ideas of the employees. To promote and support the integration of foreign employees, there is cooperation with “Hotspot Innviertel” and with ITG (Innovations- und Technologietransfer Salzburg GmbH). In addition, measures are actively being taken to promote integration at all levels. To this end, a defined number of jobs are given to individuals with physical and/or mental disabilities. As of December 31, 2020, 48 individuals with disabilities were employed in total within the PIERER Mobility Group. Apprentice training forms an important aspect of HR strategy, as the employees make a significant contribution to the company’s success. This is why KTM will be investing around €2.5 million in the expansion of its apprentice workshop in the next few years. This will create the founda- tions for significantly increasing the number of apprentices to 200 within the next two years. As of the reporting date of 12/31/2020, we employed around 170 apprentices (previous year: around 160) who were training in 15 vocational training programs. It is a central aim to continue to employ apprentices when they have completed their training. This satisfies the company‘s requirement for specialized staff and at the same time helps enable young people to have a good start to their professional life. In 2020, 33 employees who had completed training were integrated into various specialized areas in KTM AG. The cornerstone of apprentice training is our in-house apprentice work- shop (KTM_academy). This is where the basic training in all technical apprenticeship trades and special training programs is delivered, and it enables our future technicians to familiarize themselves with the company as much as possible. Apprentices rotate through the various specialist departments in which they are trained. The aim is to enable the apprentices to obtain a qualification in their specialist area at high-school diploma level through specific additional courses offered by KTM. The KTM_academy offers employees the opportunity to pursue an appren- ticeship with a high-school diploma, university entrance qualification courses, foreman training and, subsequently, an academic career through dual study. Furthermore, a guarantee of a permanent job remains in place for apprentices who successfully complete their training.

48 S U S TA I N A B I L I T Y AT P I E R E R M O B I L I T Y Our understanding of sustainability is based on the materiality analysis which was conducted for the first time in the 2017 financial year and included selected employees of the subsidiaries. On the basis of our ongoing communication with our stakeholders during the year, we have since reviewed the key topics at least once a year to ensure that they are up to date and have been able to leave them unchanged. There have been some recent develop- ments, both in terms of society as a whole and in terms of general policy, which prompted us to revise and conduct the materiality analysis in 2020. In addition to assessing the impact of our business activities on the environment and society, the key topics were also assessed to determine their influence on stakeholder decisions and actions, with the following result: ENVIRONMENTAL INTERESTS RESPECT FOR HUMAN RIGHTS Research and development Pollutant emissions from vehicles (emissions)* Efficiency in the use of materials (waste, recycling management)* Alternative drive technologies (including electric mobility)* Energy efficiency * Local employment: responsible procurement* PREVENTING CORRUPTION AND BRIBERY Business compliance (combating corruption, data protection) Business compliance (combating corruption) Occupational safety and employee health Fair pay and labor standards (diversity and equal treatment) * SOCIAL AND EMPLOYEE CONCERNS Occupational safety and employee health Training and further education of employees Local employment: jobs * Fair pay and labor standards (diversity and equal treatment) Data protection* Road safety* Product quality and safety/ costumer health and safety Research and development *New material topic which was included in 2020 as part of the materiality analysis. A detailed description of the individual topics as well as corresponding activities and processes can be found in the non-financial section, which is also published this year as a separate sustainability report and is available online at https://www.pierermobility.com/en/sustainability/sustainability-reports VALUE CHAIN As a manufacturer of motorcycles for off-road and street use and as a developer of products and designs for (e-)bikes, the PIERER Mobility Group integrates an extensive part of the value chain. This starts with creating products in the area of research and development and extends from purcha- sing, through production which in some cases is also done internally, to sales and distribution. FOCUS OF SUSTAINABILITY ACTIVITIES IN 2020 New mobility solutions for the L category The research and development projects that are currently being advanced are working on improving mobility solutions. For example, electric drives and battery electric energy storage systems are being developed and optimized for specific applications. One example is the research project “E-Motion” which was launched in 2020 and will run for 3 years. In this project, eleven partners from industry and academia are jointly developing L-category electric two-wheelers specifically for the young generation (16-18 years) and older generation (50+). These cost-effective, energy-efficient and comfortable electric two-wheelers are designed to provide users of conventional vehicles with a viable and environmentally friendly alternative with a reduced footprint for their daily commute.

CHF PMAG - indexed Swiss All Share - indexed 50 140 130 120 110 100 90 80 70 60 50 40 01.2020 02.2020 03.2020 04.2020 05.2020 06.2020 07.2020 08.2020 09.2020 10.2020 11.2020 12.2020 S H A RE & I N V E S T O R RE L AT I O N S The current share capital of €22,538,674 is divided into 22,538,674 no- par bearer shares with voting rights, where every ordinary share has an equal stake in the share capital. The shares of PIERER Mobility AG have had a primary listing in the International Reporting Standard of the SIX Swiss Exchange since November 14, 2016 (opening price of CHF 4.90*). The shares of PIERER Mobility AG were accepted into the Swiss Perfor- mance Index (SPI) of the SIX Swiss Exchange on March 29, 2017. Since March 3, 2020, the shares of PIERER Mobility AG have also been listed on the Regulated Market of the Frankfurt Stock Exchange (General Standard). The admission to the Regulated Market of the Frankfurt Stock Exchange was overseen by Stifel Europe Bank AG (formerly MainFirst Bank AG), which also acts as the designated sponsor in Xetra trading. Baader Bank AG is the specialist on the trading floor of the Frankfurt Stock Exchange. * Price per share before share consolidation in the ratio 10:1 in April 2018 PERFORMANCE OF THE PIERER MOBILITY SHARE The global spread of the coronavirus had a massive impact on the stock markets in the spring of 2020, resulting in major price losses on the stock exchanges. As a result, the PMAG share also fell sharply. It was able to recover significantly during the year and recorded a rising price trend until the end of the year. The PMAG share closed at CHF 71.1 on the last trading day of the 2020 financial year (12/30/2020). The highest closing price on the SIX Swiss Exchange during the reporting year was CHF 71.9; the lowest was CHF 25.0. The market capitalization as at 12/31/2020 was CHF 1,602.5 million. RESEARCH COVERAGE As of September 30, 2020, trade in the shares of PIERER Mobility AG on the Official Market of the Vienna Stock Exchange was terminated. On its own initiative, Wiener Börse AG has included the shares of PIERER Mobility AG in the "global market" of global companies with effect from October 1, 2020. The support provided to PIERER Mobility AG by investment banks is an important component of the company's comprehensive investor relations work, and is of particular importance to how investors perceive and rate the PMAG share. In addition to the coverage by Bank Vontobel AG, there is a cooperation in place with three other analyst firms. Since its initial analysis in June 2019, M.M.Warburg & CO (AG & Co.) has also consistently

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56 C O R P O R AT E G O V E R N A N C E R E P O R T 2 0 2 0 The shares of PIERER Mobility AG have been listed on the SIX Swiss Exchange (SIX) in the International Reporting Standard since November 14, 2016 (ISIN AT0000KTMIG02). In addition, the shares of PIERER Mobility AG have been listed on the regulated market (General Standard) of the Frank- furt Stock Exchange since March 3, 2020. Until September 30, 2020, the shares of PIERER Mobility AG were additionally listed on the Vienna Stock Exchange (Official Market). 01 A D H E R E N C E T O T H E A U S T R I A N C O D E O F C O R P O R AT E GOV ERN A N CE (Ö CG K ) The Austrian Code of Corporate Governance provides Austrian stock corporations with a framework for managing and monitoring their company. The Code aims to establish a system of management and control for companies and groups that is accountable and geared towards creating sustainable, long-term value. It is designed to provide a high degree of transparency for all stakeholders of a company. The Code is based on the provisions of Austrian stock corporation, stock exchange, and capital market law, the EU recommendations regarding the re- sponsibilities of members of Supervisory Boards and the compensation of company directors, as well as the OECD Principles of Corporate Governance. Since 2002, the Code has undergone a number of revisions. The present Corporate Governance Report is based on the most recent version of the Code, which was adopted in January 2021. The Code can be accessed by the public at www.corporate-governance.at in its currently valid version. PIERER Mobility AG (formerly KTM Industries AG) is fully committed to the Austrian Code of Corporate Governance in its current version. This commit- ment by PIERER Mobility AG is voluntary and aims to boost shareholder confidence and to constantly optimize the high internal legal, behavioral and ethical standards of PIERER Mobility AG. The Corporate Governance Report for the 2020 financial year is publicly available on the homepage of the company (www.pierermobility.com) in the section Investor Relations > Corporate Governance > Corporate Governance Report. As a result of this commitment, PIERER Mobility AG has to comply with more than just the legal requirements (“L-Rules”). This voluntary self-imposed obligation means that it must explain non-compliance with the so-called C-Rules (“comply or explain”) which go above and beyond the legal require- ments. In accordance with this part of the Austrian Code of Corporate Governance, PIERER Mobility AG explains its nonconformity with C-Rules of the Code as follows: “C-Rule 18”: In light of the company’s size, no separate internal audit department has been set up. However, the company has established an internal control and reporting system which enables the Executive Board to identify risks and quickly implement an appropriate response. The Supervisory Board, particularly the Audit Committee, is kept regularly informed about the internal control mechanisms and risk management in place across the group. Further information on risk management can be found in the notes to the consolidated financial statements as at December 31, 2020. “C-Rule 27”: The variable annual compensation components are unlimited in terms of their amount. The variable remuneration takes financial criteria into account. “C-Rule 36”: In view of the Corona crisis, the Supervisory Board held three meetings in the first quarter. In the second quarter, the Supervisory Board and the Management Board coordinated their activities on an ongoing basis by telephone, as the situation and measures changed regularly and therefore always had to be coordinated anew. Due to the constant close coordination between the Management Board and the Supervisory Board, a Supervisory Board meeting was not held in the second quarter of 2020. The Supervisory Board strives to continually improve its organization, work procedures and efficiency. An explicit self-evaluation did not take place during the financial year under review. “C-Rules 39, 41 and 43”: As the Supervisory Board of Pierer Mobility AG consisted solely of four members during the 2020 financial year, a Remuner- ation and Nomination Committee, as well as a committee that is authorized to make decisions in urgent cases, has not been established, as it would not lead to an increase in the efficiency of the Supervisory Board’s work. The tasks of the Remuneration and Nomination Committee are fulfilled by the entire Supervisory Board. “C-Rule 49”: The conclusion of contracts with members of the Supervisory Board, by means of which such members are committed to performing a service for the company outside of their activities on the Supervisory Board in return for remuneration not of minor value, shall legally require the

58 C O M P O S I T I O N O F T H E E X E C U T I V E B O A R D : In the financial year 2020, the Executive Board of PIERER Mobility AG consisted of the following members (C-rule 16 of the ÖCGK): Name Year of Birth Stefan Pierer born 1956 Position Initial Appointment Member of the Executive Board (CEO) June 2, 2015* End of the current term of office December 31, 2023 Friedrich Roithner born 1963 Member of the Executive Board (CFO) June 2, 2015** December 31, 2023 Hubert Trunkenpolz born 1962 Member of the Executive Board January 1, 2018 December 31, 2023 Viktor Sigl, MBA born 1974 Member of the Executive Board December 19, 2019 December 31, 2023 Areas of Responsibilities strategic overall management product management quality management purchase supply chain international projects finance (Group)accounting tax affairs legal affairs risk management sales marketing customer service joint ventures human resources organisation IT * Stefan Pierer has been a member of the Executive Board of CROSS Industries AG (FN 261823 i) since April 30, 2005. In the Annual General Meetings of BF HOLDING AG (FN 78112 x) and CROSS Industries AG on April 22, 2015 the resolution was passed to merge CROSS Industries AG as the transferring company with BF HOLDING AG as the acquiring company within the framework of a universal succession. With effect from June 2, 2015 CROSS Industries AG was merged into BF HOLDING AG. At the same time, the name of the acquiring company (FN 78112 x) was changed to CROSS Industries AG. Since June 2, 2015 Stefan Pierer is therefore member of the Executive Board of CROSS Industries AG (now PIERER Mobility AG). ** Friedrich Roithner has been a member of the Executive Board of CROSS Industries AG (FN 261823 i) since June 23, 2010. In the Annual General Meetings of BF HOLDING AG (FN 78112 x) and CROSS Industries AG on April 22, 2015 the resolution was passed to merge CROSS Industries AG as the transferring company with BF HOLDING AG as the acquiring company within the framework of universal succession. With effect from June 2, 2015 CROSS Industries AG was merged into BF HOLDING AG. At the same time, the name of the acquiring company (FN 78112 x) was changed to CROSS Industries AG. Since June 2, 2015 Friedrich Roithner is member of the Executive Board of CROSS Industries AG (now PIERER Mobility AG). STEFAN PIERER (CEO) Professional Career: After graduating from the Montan University in Leoben, Austria (Business and Energy Management), Stefan Pierer began his career as a sales assistant at HOVAL GmbH in Marchtrenk in 1982, where he continued as a sales manager and authorized signatory. In 1987, he founded the PIERER Mobility Group, where he acts as majority shareholder and member of the Executive Board. He has been shareholder and member of the Executive Board of the KTM AG since 1992. In 2011, he established Pierer Industrie AG, where he is sole shareholder and Chairman of the Executive Board. Further main functions within the Group: Chairman of the Executive Board of KTM AG Membership of supervisory boards or comparable functions in other foreign and domestic companies, excluding companies included in the consolidated financial statements: Chairman of the Supervisory Board of Pankl Racing Systems AG Member of the Supervisory Board of SHW AG Chairman of the Supervisory Board of Pankl AG (formerly Pankl SHW Industries AG) Member of the Supervisory Board of Schwäbische Hüttenwerke Automotive GmbH Chairman of the Supervisory Board of Westpark Wels AG Member of the Board of Directors of swisspartners Group AG Member of the Board of Directors of Pierer Swiss AG

60 W O R K I N G P R O C E D U R E S O F T H E S U P E R V I S O R Y B O A R D : During the 2020 financial year, the Supervisory Board diligently performed the duties and tasks incumbent upon it under Austrian law, the Articles of Association, the Austrian Code of Corporate Governance (ÖCGK), and the Rules of Procedure. All members of the Supervisory Board and its committees are free and independent according to the terms of the Austrian Code of Corporate Governance. The Supervisory Board held a total of six meetings during the 2020 financial year. In view of the Corona crisis, the Supervisory Board held three meetings in the first quarter. In the second quarter, the Supervisory Board and the Management Board coordinated their activities on an ongoing basis by telephone, as the situation and measures changed regularly and therefore always had to be coordinated anew. Due to the constant close coordination between the Management Board and the Superviso- ry Board, a Supervisory Board meeting was not held in the second quarter of 2020. The meetings lasted approximately two to two and a half hours on average. In addition, two Audit Committee meetings were held; the meetings lasted approximately one hour on average. In its meetings in the financial year 2020, the Supervisory Board dealt with project monitoring, business development and business planning (forecast, budget and multi-year plan- ning), including non-financial performance indicators. In addition, the Supervisory Board focused in its meetings on discussing and passing resolutions on the review and approval of the 2019 annual financial statements, the review of the 2019 consolidated financial statements, the agenda and the proposed resolutions for the 23rd Annual General Meeting, the financial status and Executive Board matters. The report by the Supervisory Board on the 2020 financial year provides further details. The Supervisory Board also dealt with compliance management and corporate governance of the company. In accordance with the Articles of Association, the Supervisory Board has elected a Chairman and a Deputy Chairman and has appointed an Audit Committee in order to comply with legal requirements. The Supervisory Board meetings were conducted by the Chairman, or, in the event that he was unable to attend, by his representative. Members of the Supervisory Board receive the agenda that has been agreed with the Chairman 14 days before each meeting, together with compre- hensive information concerning each point included on the agenda. In urgent cases, the Chairman of the Supervisory Board is permitted to shorten that period, provided he can provide evidence that all Members of the Supervisory Board have been informed of this. In the event that the above-men- tioned period is shortened, and if not all Members of the Supervisory Board are present or represented, only those points on the agenda that resulted in the notice period being shortened shall be addressed. A quorum of the Supervisory Board shall be present when all Members of the Supervisory Board have been duly invited and at least half of the elected members, but no fewer than three members, including the Chairman or his Deputy, participate in the meeting in person. Supervisory Board decisions shall be made on the basis of a simple majority of the votes cast; in the event that votes are tied, the Chairman of the Supervisory Board shall cast the deciding vote. The Supervisory Board shall be entitled to request written reports from the Executive Board at any time with regard to company affairs and manage- ment issues. As a general rule, the Executive Board shall also participate in meetings of the Supervisory Board and the Audit Committee, unless the Chairman of the Supervisory Board states otherwise. Members of the Executive Board do not possess any voting rights. During the Supervisory Board meeting, the Members of the Executive Board will provide a comprehensive explanation of the course of business and the personal and financial development of the Group. Lengthy discussions take place between the Executive Board and the members. Resolutions concern- ing investments, acquisitions and other requests made in accordance with the rules of procedure of the Executive Board represent an additional focus for each Supervisory Board meeting. The committees formed by the Supervisory Board shall carry out their tasks on behalf of the Supervisory Board. Each committee must comprise at least 2 members. For each committee formed, the Supervisory Board shall appoint a chairman from among the members of that committee. The rules of procedure of the Supervisory Board shall apply with regard to the notice period, the meetings and resolutions of a committee. The Supervisory Board shall also be entitled to task an individual member with the supervision and auditing of individual business transactions. That member of the Supervisory Board must report to the Supervisory Board with regard to its activities.

62 The Audit Committee is responsible for the auditing and preparation for the establishment of the annual financial statements, the proposed distribu- tion of net income and the management report, as well as the auditing of the consolidated financial statements and the corporate governance report. The Audit Committee makes a proposal for the selection of the auditor and presents the proposal of the Supervisory Board to the Annual General Meeting for voting. In line with C-Rule 81a of the ÖCGK, the Audit Committee must establish a mutual line of communication with the financial auditor in a meeting. The Audit Committee of PIERER Mobility AG held two meetings during the 2020 financial year, in which a representative of the certified public accoun- tant also participated. Since the Supervisory Board consists of no more than six members, the tasks of the Remuneration and Nomination committee are fulfilled by the entire Supervisory Board. I N D E P E N D E N C E O F T H E S U P E R V I S O R Y B O A R D : A member of the Supervisory Board shall be deemed to be independent if said member does not have any business or personal relations with the company or its Executive Board that constitute a material conflict of interests and are therefore capable of influencing the behavior of the member. Ernst Chalupsky is partner and general manager of Saxinger, Chalupsky & Partner Rechtsanwälte GmbH. The PIERER Mobility Group is advised by Saxinger, Chalupsky & Partner Rechtsanwälte GmbH on legal affairs. The advisory services are provided in accordance with standard market terms and conditions. The independence of the Supervisory Board members is defined by the following guidelines: Criterion 1: The Supervisory Board member was not a member of the Executive Board or a top executive of PIERER Mobility AG or a subsidiary of the company during the previous five-year period. Criterion 2: The Supervisory Board member does not or did not maintain any business relationships with the company or a subsidiary of the company in the previous year of a scope which may be considered significant for the Supervisory Board member. This also applies to business rela- tionships with companies in which the Supervisory Board member has a considerable economic interest, but not to performing roles on committees within the Group. Approval of individual transactions by the Supervisory Board pursuant to L-Rule 48 of the Austrian Code of Corporate Governance does not automatically disqualify the Supervisory Board member from being independent. Criterion 3: The Supervisory Board member was not an auditor of the company, a shareholder or employee of the auditing company during the previous three years. Criterion 4: The Supervisory Board member is not a member of the Executive Board of another company, in which a member of the Executive Board of PIERER Mobility AG serves on its Supervisory Board. Criterion 5: The Supervisory Board member has not been on the Supervisory Board of the company for more than 15 years. This does not apply to Supervisory Board members, who are shareholders with a direct investment in the company or who represent the interests of such a shareholder. Criterion 6: The Supervisory Board member is not a close family member (direct descendant, spouse, common law spouse, parent, uncle, aunt, sibling, niece or nephew) of a member of the Executive Board of the company or of people who fulfill one of the other criteria described above. According to C-Rule 54 of the Austrian Code of Corporate Governance, the Supervisory Board of the company shall include at least one independent member delegated by the shareholders who is not a shareholder with a share of more than 10% or who represents such a shareholder’s interests. This requirement of C-Rule 54 has been met, since no member of the Supervisory Board is a shareholder with a share of more than 10% or who represents such a shareholder’s interests. The members of the Supervisory Board of PIERER Mobility AG admit to the criteria of independence according to C-Rule 53 and declare themselves independent.

64 COMPOSITION OF THE SUPERVISORY BOARD Concept: The Supervisory Board is composed of professionally and personally qualified s personnel. In the process the structure and business activities and expert balanced composition of the PIERER Mobility Group must be considered. A minimum of one financial expert must hold a seat on the Supervisory Board. Wherever possible, the Supervisory Board should include a total of 2 members with international experience or special expertise in one or more of the markets outside Austria that are of importance to the PIERER Mobility Group. Wherever possible, the Supervisory Board should include a total of one member, who, by virtue of his / her prior experience, has a detailed knowledge of PIERER Mobility AG. Aspects relating to diversity within the Supervisory Board should be taken into account, with regard to the age structure and the representation of both genders on the Supervisory Board. Greater attention must be devoted to these criteria, the larger the membership of the Supervisory Board becomes. Objectives: The objective of the diversity concept is to populate the Supervisory Board with individuals that complement one another based on their differing pro- fessional and life experience. It is necessary to ensure that the Supervisory Board as a whole possesses the highest level of experience and specialist training in order to monitor the business activities of PIERER Mobility AG and that of the PIERER Mobility Group in a critical manner and from as many different angles as possible. Implementation: Nominations for election to the Supervisory Board that are submitted to the Annual General Meeting should take account of the criteria laid down in the Diversity Concept. The objectives of the Supervisory Board with regard to its membership will not restrict the voting freedom enjoyed by the Annual General Meeting. Results in the reporting period: In the 2020 financial year, the Supervisory Board proposed to the 23rd Annual General Meeting that Klaus Rinnerberger, who would have left the Su- pervisory Board at the end of the 23rd Annual General Meeting, be re-elected to the Supervisory Board. The election proposal of the Supervisory Board was made on the basis of the requirements of Section 87 para 2a AktG and the Corporate Governance Code and took into account the qualifications and experience of Klaus Rinnerberger and the excellent cooperation with him to date. At the end of the 2020 financial year, the Supervisory Board will consist of 4 members who meet the requirements of the concept. 0 5 A U D I T S A N D E X T E R N A L E VA L U AT I O N KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, FN 269725 f, Kudlichstraße 41, 4020 Linz, was appointed by the 23rd Annual General Meeting to serve as the auditors of the consolidated financial statements and annual financial statements of the company for the financial year from January 1, 2020 until December 31, 2020. In addition to this function, KPMG and partner offices around the world also sporadically provide tax and financial consulting services on behalf of the Group. The auditor’s expenses are made up as follows: Audit of the consolidated financial statements (including subgroups) and audit of the annual financial statements of all individual companies EURk 112 (previous year: EURk 461). Other services amount to EURk 511. The figures relate to the continued business activities of the group (previous year’s figures have been adjusted). In accordance with C-Rule 62 of the Austrian Code of Corporate Governance, the company commissions an external evaluation of compliance with the C-Rules of the Code regularly, every three years. PIERER Mobility AG has commissioned lastly Oberhammer Rechtsanwälte GmbH to evaluate the 2018 financial year. The complete report, including the results of the evaluation of the financial year 2018, is available on the Company’s homepage (www. pierermobility.com) under Investor Relations > Corporate Governance > Evaluation. The next external evaluation will be conducted in 2022 for the 2021 financial year.

66 R E P O R T P U R S U A N T T O T H E D I R E C T I V E O N CORPORATE GOVERNANCE (DCG) OF THE SIX SWISS E XCHANGE As an Austrian company listed in Switzerland, PIERER Mobility AG (formerly KTM Industries AG) is subject to the rules of the Directive on Information relating to Corporate Governance of the SIX Swiss Exchange (the “Swiss Directive on Corporate Governance”). The Swiss Directive on Corporate Governance is available at https://www.ser-ag.com/dam/downloads/regulation/listing/directives/DCG-en.pdf. PIERER Mobility AG draws your attention to the fact that the company has been established under Austrian law and that the names, responsibilities and duties of organs of the company may therefore diverge from the rules applicable in Switzerland. In consequence, only Austrian legal terminology will be used in what follows. Companies that are not constituted in accordance with the Swiss Code of Obligations are required to fulfill the stipula- tions of the Swiss Directive on Corporate Governance, which are formulated with close reference to the Code of Obligations, in a manner analogous to Swiss companies. A short description of Austrian organizational structure therefore follows: Executive Board: The Executive Board is responsible for the general management and representation of the company; it is the sole organ of general management and representation. The Executive Board is not bound by any instructions from the shareholders or the Supervisory Board; rather, it acts under its own responsibility and without being under orders. Only when undertaking certain extraordinary transactions is the Executive Board required to obtain the consent of the Supervisory Board. Where the Swiss Directive on Corporate Governance requires details of the “management”, details regarding the Executive Board will be provided accordingly. However, the function of the Executive Board does not precisely match that of the “management” in a Swiss company. Supervisory Board: The Supervisory Board appoints, dismisses and oversees the Executive Board. Its consent is also required for certain legal transactions. Where the Swiss Directive on Corporate Governance requires details of the “board of directors”, details regarding the Supervisory Board will be provided accordingly. However, the function of the Supervisory Board does not precisely match that of the board of directors of a Swiss company. Annual General Meeting: The Annual General Meeting, as the highest board of the company, appoints and dismisses the members of the Supervi- sory Board and appoints the auditor. Where the Swiss Directive on Corporate Governance requires details of the “general meeting of shareholders”, details regarding the General Meeting will be provided accordingly. Differences exist between Austrian and Swiss law with respect to general meetings. 1. G R O U P S T R U C T U R E A N D S H A R E H O L D E R B A S E 1.1. GROUP STRUCTURE PIERER Mobility AG, with registered office in 4600 Wels, Edisonstraße 1, Austria, has had its primary listing on the SIX Swiss Exchange since Novem- ber 14, 2016 (ISIN: AT0000820659, Security Number: 504.289). PIERER Mobility AG has a share capital of EUR 22,538,674, divided into 22,538,674 voting bearer shares of no par value. Every share has an equal stake in the share capital. The object of PIERER Mobility AG is in particular to act as a holding company, with a particular focus on the acquisition and administration of industri- al companies and holdings in such companies, the management of companies and holdings forming part of the PIERER Mobility Group, the implemen- tation of the activities of Pierer Industrie AG in the field of mobility (Mobility) and the performance of services for these companies (group services), as well as corporate advisory services in general. This corporate object of the company is laid down in Section 2 of the articles of association, which can be found on the PIERER Mobility AG website (https://www.pierermobility.com/wp-content/uploads/2021/03/2021-02-26-Articles-of-Association_PIERER-Mobility-AG.pdf). Management of the PIERER Mobility Group is carried out by a management team that includes divisional managers who are responsible for managing a particular product group within the framework of the strategy set by the Executive Board. Divisional managers report directly to the Executive Board of PIERER Mobility AG. PIERER Mobility AG is the parent company of the PIERER Mobility Group. The PIERER Mobility Group is Europe’s leading “Powered Two-Wheeler” man- ufacturer with a focus on highly innovative premium motorcycles and electric mobility for two-wheeled vehicles. The PIERER Mobility Group is divided

68 List of the active non-listed subsidiaries A detailed list of the active non-listed subsidiaries of PIERER Mobility AG can be found in the schedule of equity holdings (pages 181 - 183). 1.2. SIGNIFICANT SHAREHOLDERS The shareholder structure of PIERER Mobility AG as at Tuesday, December 31, 2020 was as follows: Pierer-Group: PTW Holding AG Pierer Industrie AG Pierer Konzerngesellschaft Free float treasury shares 60.00% 2.14% 3.35% 33.65% 0.86% As at the reporting date of December 31, 2020, the Pierer Group thus held approximately 65,49% of the share capital and voting rights of PIERER Mobility AG. PIERER Mobility AG is not aware of any other shareholders holding over 3 percent of the company’s voting rights, whether directly or indirectly. Notifications of significant shareholders and shareholder groups made to PIERER Mobility AG and the Disclosure Office of SIX Swiss Exchange AG pursuant to Art.120 et seq. of the Financial Markets Infrastructure Act (FinfraG) can be viewed on the publications platform of the Disclosure Office at https://www.ser-ag.com/de/resources/notifications-market-participants/significant-shareholders.html#/. 1.3 CROSS-SHAREHOLDINGS There are no cross-shareholdings. 2 . C A P I TA L S T R U C T U R E 2.1 CAPITAL As at the reporting date, the share capital of PIERER Mobility AG was EUR 22,538,674 and was fully paid-up. The share capital of PIERER Mobility AG is divided into 22,538,674 bearer shares of no par value, each of which represents an equal interest in the share capital. The shares grant the rights that are due to stockholders under the Austrian Stock Corporation Act. These include in particular the right to payout of the dividend resolved upon at the Annual General Meeting as well as the right to vote at Annual General Meetings. On the reporting date of December 31, 2020, PIERER Mobility AG held both, conditional capital and authorized capital. The amount of the authorized capital is EUR 11,269,337; the amount of the conditional capital EUR 25,000,000. 2.2 AUTHORIZED AND CONDITIONAL CAPITAL IN PARTICULAR Authorized capital: As at the reporting date, PIERER Mobility AG had an authorized capital 1. 1 Source: Articles of Association of PIERER Mobility AG, which is available to view on the website: https://www.pierermobility.com/wp-content/uploads/2021/03/2021-02-26-Articles-of-Association_PIERER-Mobility-AG.pdf

70 The corresponding provision of the Articles of Association in § 5a Conditional Capital reads as follows: § 5a Conditional Capital In accordance with § 159 (2) Z 1 AktG, the share capital of the Company is increased by up to EUR 25,000,000.00 by issuing up to 25,000,000 no-par value bearer shares of common stock (no-par value shares) to be issued to creditors of financial instruments in accordance with § 174 AktG, which are issued by the Company using the authorization granted at this Annual General Meeting. The capital increase may only be carried out to the extent that the creditors of the financial instruments exercise their conversion and/or subscription rights to shares of the Company. The issue price and the exchange ratio shall be determined in accordance with recognized financial mathematical methods and the share price in a recognized pricing procedure. The newly issued shares of the conditional capital increase are entitled to dividends to the same extent as the existing shares of the Company. The Executive Board is authorized, with the approval of the Supervisory Board, to determine the further details of the implementation of the conditional capital increase. The Supervisory Board is authorized to resolve on amendments to the Articles of Association resulting from the issue of shares from the conditional capital. 2.3 CHANGES IN CAPITAL IN THE LAST THREE REPORTING PERIODS The consolidated equity of PIERER Mobility AG was EUR 550.8 million at December 31, 2018, EUR 618.6 million at December 31, 2019 and EUR 654.1 million at December 31. December 2020. Information on changes in equity is set out in the consolidated statement of changes in equity in the Annual Report (pages 118 - 119). At the Annual General Meeting of PIERER Mobility AG on April 26, 2018, a share consolidation was resolved at a ratio of 10:1. In addition to the re- demption of two shares in order to even out the existing share capital of the company, the shares were consolidated at a ratio of 10: 1. As a result, the number of issued shares decreased from 225,386,742 to 22,538,674. The share capital thus changed from EUR 225,386,742 to EUR 22,538,674. At the extraordinary general meeting of PIERER Mobility AG on October 4, 2019, a resolution was passed to launch a share buyback program and to buy back up to 7,404% (corresponding to 20% of the free float) of the share capital of PIERER Mobility AG. The acquired bearer shares can be used both as consideration for the acquisition of companies, for resale and for reducing the share capital by redeeming treasury shares. The repurchase of own bearer shares commenced on 22 October 2019 and will last until 21 October 2021 at the latest. Bank Vontobel AG was commissioned by PIERER Mobility AG to carry out this share repurchase. On April 6, 2020, PIERER Mobility AG announced by means of an ad-hoc publication that the Executive Board has decided to temporarily suspend the ongoing share buyback program of PIERER Mobility AG with effect from April 7, 2020. As part of the buyback program, a total of 224,043 no-par value shares were acquired via the stock exchange. This corresponds to approximately 0.99 percent of the company’s share capital. Of these treasury shares, 30,703 shares (corresponding to around 0.13 percent of the share capital) had been sold by the reporting date. 2.4/2.5 SHARES AND PARTICIPATION CERTIFICATES/DIVIDEND-RIGHT CERTIFICATES As at the reporting date, the share capital of PIERER Mobility AG was EUR 22,538,674 and was fully paid-up. The share capital of PIERER Mobility AG is divided into 22,538,674 bearer shares of no par value, each of which represents an equal interest in the share capital. PIERER Mobility AG has issued no participation certificates or dividend-right certificates. The following rights attach to shares in PIERER Mobility AG: Rights over assets: Right to dividends / Right to participate in profit Every shareholder has the right to the distribution of a dividend from the net profit disclosed in the annual financial statements. Under the Company’s Articles of Association 3, the Annual General Meeting of PIERER Mobility AG is entitled to exclude all or part of the balance sheet profit from distri- bution. Should the Annual General Meeting thus resolve to exclude the profit from distribution, the shareholder shall have no claim to it, even if the company has achieved a profit during the past financial year and disclosed it on its statement of financial position. 3 The Articles of Association are available to view on the PIERER Mobility AG website: https://www.pierermobility.com/wp-content/uploads/2021/03/2021-02-26-Articles-of-Association_PIERER-Mobility-AG.pdf

72 general debate. Shareholders can submit questions electronically - also during the virtual shareholders’ meeting - until the chairman of the meeting announces the end of the general debate. Right of petition Pursuant to § 109 of the Austrian Stock Corporation Act, shareholders whose cumulative holdings reach 5% of the share capital may demand in writing that certain points be placed on the agenda of the Annual General Meeting and announced. Each agenda point thus moved must include a proposal for a resolution and provide grounds. The petitioning shareholders must have held the shares for at least three months before the petition is submitted. The shareholders’ demand must reach the company no later than the 21st day before an Annual General Meeting, or no later than the 19th day before any other General Meeting (§ 109, paragraph 2 of the Austrian Stock Corporation Act). Pursuant to § 110 of the Austrian Stock Corporation Act, shareholders whose cumulative holdings reach 1% of the share capital may submit proposed resolutions on each point of the agenda to the company in text form and demand that said proposals be made available on the company’s website together with the names of the shareholders concerned, the grounds for the proposal and the opinion, if any, of the Executive or Supervisory Board. The demand shall be valid if it reaches the company no later than on the seventh working day before the Annual General Meeting. Where the proposal is for the election of a member of the Supervisory Board, the declaration of the nominee as per § 87(2) of the Austrian Stock Corporation Act shall be submitted in place of the grounds for the proposal. Pursuant to § 119 of the Austrian Stock Corporation Act, every shareholder has the right to propose a motion on any point on the agenda at an Annual General Meeting. Where a motion is proposed at the Annual General Meeting itself, there is no requirement to provide grounds. Right to information / Right of inquiry Pursuant to § 118 of the Austrian Stock Corporation Act, information on matters concerning the company is to be given to every shareholder on demand at the Annual General Meeting, insofar as such information is necessary for the factual assessment of a point on the agenda. The right to information allows information to be obtained on the company’s position and serves as a basis for the company’s decision-making. In principle, the obligation to provide information is incumbent on the Executive Board only, not on the Supervisory Board, except as regards matters that concern the Supervisory Board alone. Information need not be provided if, according to reasonable commercial judgment, it is of a nature that may cause substantial harm to the company or an affiliated company, or if providing it would be a criminal offense. Further, information need not be provided where it has been constantly availa- ble in question-and-answer form on the company’s website for at least seven days before the start of the Annual General Meeting. Right to speak Every shareholder has the right to express his opinion at the Annual General Meeting. The Annual General Meeting is the shareholders’ forum for infor- mation and discussion. The chairman of the Meeting may restrict the right to speak from the start of the meeting or as required. The right to speak as such may not be set aside entirely. Voting rights Every shareholder has a right to vote at the Annual General Meeting in proportion to his shareholding. The Articles of Association 5 cannot generally grant a shareholder more votes than he has shares; however, it is permissible to restrict voting rights for equity holdings inter alia exceeding a certain size. Shareholders may exercise their voting right in three ways: they may vote for a motion, vote against the motion, or abstain. Voting rights in respect of specific resolutions are suspended in certain cases of a shareholder’s conflict of interest. Where the law does not prescribe a different majority, the Annual General Meeting shall pass resolutions by simple majority of the votes cast and, in those cases where a majority of the capital is required, by simple majority of the share capital represented. 5 The Articles of Association are available to view on the PIERER Mobility AG website: https://www.pierermobility.com/wp-content/uploads/2021/03/2021-02-26-Articles-of-Association_PIERER-Mobility-AG.pdf

74 taking up the same position at INVESTMENTBANK AUSTRIA AG in 1991, where he was inter alia a director of Bank Austria Securities Ltd. in New York. From 1997 to 2000, he was Head of Syndications at ICE Securities Ltd. in London. Subsequently, until 2003, he was managing shareholder at OCEAN Equities Ltd. From 2000 he worked in various positions within the QINO Group. In addition, Josef Blazicek is vice chairman of the supervisory board of Pierer Industrie AG (Austria). Josef Blazicek has no material business relationship with PIERER Mobility AG or any group company of PIERER Mobility AG. Josef Blazicek has been a member of the Supervisory Board since 2008. He currently serves as Chairman of the Supervisory Board of PIERER Mobility AG. His term of office will expire at the end of the Annual General Meeting ruling upon the financial year 2020. Ernst Chalupsky (born 1954), Austrian citizen, is an attorney and partner in the international law firm of SCWP Schindhelm. Ernst Chalupsky studied at the Johannes Kepler Universität, Linz and trained as an attorney at a highly reputed partnership in Upper Austria. He has been a practicing attorney in Wels since 1982. He was a partner in the firm of Chalupsky & Gumpoldsberger, which merged in 2000 with Saxinger & Baumann to form SCWP. Ernst Chalupsky completed a master’s degree in European and International Commercial Law at the Universität St. Gallen in 1996 - 97. In addition, Ernst Chalupsky is chairman of the supervisory board of Pierer Industrie AG (Austria). Ernst Chalupsky has been a member of the Supervisory Board since 2014. He currently serves as Deputy Chairman of the Supervisory Board of PIERER Mobility AG. His term of office will expire at the end of the Annual General Meeting ruling upon the financial year 2020. Ernst Chalupsky is partner and general manager of Saxinger, Chalupsky & Partner Rechtsanwälte GmbH. The PIERER Mobility Group is advised by Saxinger, Chalupsky & Partner Rechtsanwälte GmbH on legal affairs. The advisory services are provided in accordance with standard market terms and conditions. Ernst Chalupsky has no material business relationship with PIERER Mobility AG or any group company of PIERER Mobility AG. Klaus Rinnerberger (born 1964), Austrian citizen, studied law in Vienna and began his career in 1987 as an auditor and consultant at Arthur Andersen & Co. He subsequently performed a variety of management roles in the automotive industry, including serving on the Executive Boards of Magna Automobiltechnik AG and Magna Steyr AG. In 2009, he joined the Executive Board of Polytec Holding AG, serving as CEO of the Peguform Group after its separation from Polytec until 2011. In addition, Klaus Rinnerberger is member of the Executive Board of Pierer Industrie AG (Austria). Klaus Rinnerberger has no material business relationship with PIERER Mobility AG or any group company of PIERER Mobility AG. Klaus Rinnerberger has been a member of the Supervisory Board since 2015. His term of office will expire at the end of the Annual General Meeting ruling upon the financial year 2024. Alfred Hörtenhuber (born 1955), Austrian citizen, graduated from high school in 1975 and began his career as an assistant salesman at K. Rosen- bauer KG in Leonding, later rising to be Head of Exports for Western Europe. He completed his management training at the MZSG St. Gallen and the IMD Lausanne. In 1985, he joined the Miba Group, initially as a marketing manager. In 1990, he became a member of the Executive Board at Miba Sintermetall AG, with responsibility for marketing, research and development. In 1998, he became CEO of the Miba Friction Group and a member of the Executive Board of Miba AG Holding. Alfred Hörtenhuber has been a member of the management team of the PIERER Mobility Group since February 6, 2008. Alfred Hörtenhuber was a member of the Executive Board of PIERER Mobility AG from June 2, 2015 to December 31, 2017. Alfred Hörtenhuber has no material business relationship with PIERER Mobility AG or any group company of PIERER Mobility AG. Since April 26, 2018, Alfred Hörtenhuber is member of the Supervisory Board of the company. His term of office will expire at the end of the Annual General Meeting ruling upon the financial year 2022. SIGNIFICANT OTHER FUNCTIONS OF THE MEMBERS OF THE SUPERVISORY BOARD

76 3.5.1 Allocation of tasks within the Supervisory Board Please refer to the Report under the Austrian Corporate Governance Code (Composition of the Supervisory Board, page 61). 3.5.2 Members list, tasks and area of responsibility for each committee of the Supervisory Board The Supervisory Board has established an Audit Committee from among its members. For reasons of efficiency, since the Supervisory Board of PIERER Mobility AG is made up of no more than 6 members, the tasks of a compensation committee and appointments committee are fulfilled by the full Supervisory Board. Please refer to the Report under the Austrian Corporate Governance Code (Committees of the Supervisory Board, pages 61 - 62). 3.5.3 Working methods of the Supervisory Board and its committees Please refer to the Report under the Austrian Corporate Governance Code (Working Methods of the Supervisory Board, pages 60- 61). 3.6 DEFINITION OF AREAS OF RESPONSIBILITY Responsibility for the management of an Austrian Aktiengesellschaft lies with the Executive Board. Neither the Supervisory Board nor the Annual General Meeting has a right to issue instructions to the Executive Board. However, under the Austrian Stock Corporation Act, the Executive Board is required to obtain the consent of the Supervisory Board before entering into certain extraordinary transactions. The Executive Board consults with the Supervisory Board on the strategic direction of the company and discusses the implementation status of the strategy with the Supervisory Board at regular intervals. The duty of the Supervisory Board is to appoint and dismiss the Executive Board and in particular to review the ongoing activities of the Executive Board. To this end, the Executive Board informs the Supervisory Board of its activities on a regular basis. The Supervisory Board held a total of six meetings during the 2020 financial year. The meetings lasted approximately two to two and a half hours on average. Two meetings of the Audit Committee also took place; these meetings lasted approximately one hour on average (see also the Report under the Austrian Corporate Governance Code, Working methods of the Supervisory Board, pages 60 - 61). 3.7 INFORMATION AND CONTROL INSTRUMENTS VIS-À-VIS THE EXECUTIVE BOARD PIERER Mobility AG does not have its own risk management system. In light of the company’s size, no separate internal audit department has been set up. However, the company has established an internal control and reporting system which enables the Executive Board to identify risks and quickly implement an appropriate response. The Supervisory Board, particularly the Audit Committee, is kept regularly informed about the internal control mechanisms and risk management in place across the group. Under the internal control and reporting system, identifiable risks in numerous areas of the business are captured and evaluated on an ongoing basis; material results are assessed by the Executive Board and brought to the attention of the Supervisory Board. Further information on risk management can be found in the notes to the consolidated financial statements as at December 31, 2020. The company’s management information system collates a large number of performance indicators from various areas of the PIERER Mobility Group, as well as comprehensive financial information. The system makes this data available electronically to the company’s management in a predesigned format. The Supervisory Board receives monthly and quarterly reports based on information in the management information system.

78 Membership of supervisory boards or comparable functions in other foreign and domestic companies, excluding companies included in the consolidated financial statements: Chairman of the Supervisory Board of Pankl Racing Systems AG Member of the Supervisory Board of SHW AG Chairman of the Supervisory Board of Pankl AG (formerly Pankl SHW Industries AG) Member of the Supervisory Board of Schwäbische Hüttenwerke Automotive GmbH Chairman of the Supervisory Board of Westpark Wels AG Member of the Board of Directors of swisspartners Group AG Member of the Board of Directors of Pierer Swiss AG FRIEDRICH ROITHNER (born 1963), Austrian citizen, graduated in business studies from the University of Linz and subsequently worked as an assis- tant auditor, with a focus on auditing and tax, at an international accountancy firm. From 1992 onwards, he was employed by Austria Metall AG, where he was a member of the Executive Board from 2002 to 2006. Since the end of 2007, Friedrich Roithner has been part of the management team at the PIERER Mobility Group. Friedrich Roithner is Chief Financial Officer of the PIERER Mobility AG. Further main functions within the Group: Chairman of the Supervisory Board of KTM AG Chairman of the Supervisory Board of KTM Components GmbH Chairman of the Supervisory Board of abatec group AG Membership of supervisory boards or comparable functions in other foreign and domestic companies, excluding companies included in the consolidated financial statements: Member of the Supervisory Board of Pankl Racing Systems AG Member of the Supervisory Board of SHW AG Member of the Supervisory Board of Pankl AG (formerly Pankl SHW Industries AG) Member of the Supervisory Board of Westpark Wels AG HUBERT TRUNKENPOLZ (born 1962), Austrian citizen, started his career after graduating from the Johannes Kepler University Linz (Business Admin- istration) at ISA Audivisual Communication Corp. as marketing manager and subsequently at TRUMAG as sales manager/managing director. He has been at the PIERER Mobility Group since 1992 and a member of the Executive Board of the KTM Group since 2004. Hubert Trunkenpolz also became a member of the Executive Board of KTM AG in 2007 and of PIERER Mobility AG in 2018. Further main functions within the Group: Member of the Executive Board of KTM AG Membership of supervisory boards or comparable functions in other foreign and domestic companies, excluding companies included in the consolidated financial statements: None. VIKTOR SIGL, MBA (born 1974), Austrian citizen, graduated from the Johannes Kepler University in Linz with a degree in Business Administration and started his professional carrier at KPMG in the field of financial auditing and tax consultancy. In 2005, after completing his tax consultancy examinations and an MBA program at the University of Toronto, Viktor Sigl joined voestalpine AG to become head of Corporate Tax & Finance Advisory. Before joining the KTM AG, he was commercial director in the field of international industrial assembly. Since December 19, 2019, Viktor Sigl is in the Executive Board of PIERER Mobility AG. Further main functions within the Group: Member of the Executive Board of KTM AG Vice Chairman of the Supervisory Board of KTM Components GmbH Membership of supervisory boards or comparable functions in other foreign and domestic companies, excluding companies included in the consolidated financial statements: None.

80 EXECUTIVE BOARD Friedrich Roithner COMPANY POSITION STILL SERVING abatec group AG Chairman of the Supervisory Board HDC GmbH (formerly PF Beteiligungsverwaltungs GmbH) K KraftFahrZeug Holding GmbH (company dissolved) Managing Director Managing Director KTM AG KTM Components GmbH Pankl Racing Systems AG Chairman of the Supervisory Board Chairman of the Supervisory Board Member of the Supervisory Board Pankl AG (formerly Pankl SHW Industries AG) Member of the Supervisory Board Pierer Beteiligungs GmbH PIERER IMMOREAL GmbH Managing Director Managing Director Pierer Industrie AG PTW Holding AG SHW AG W Verwaltungs AG (company dissolved) Westpark Wels AG Member of the Executive Board Member of the Executive Board Member of the Supervisory Board Chairman of the Supervisory Board Deputy chairman of the Supervisory Board Member of the Executive Board Member of the Supervisory Board GASGAS Motorcycles GmbH HDC GmbH (formerly PF Beteiligungsverwaltungs GmbH) Husqvarna Motorcycles GmbH Managing Director Managing Director Managing Director Husqvarna Motorcycles North America, Inc. Managing Director KTM AG KTM Canada, Inc. KTM Immobilien GmbH (formerly KTM Motorrad AG) KTM Japan K.K. KTM North America, Inc. KTM Österreich GmbH KTM Sportcar GmbH PIERER E-Bikes GmbH Member of the Executive Board Managing Director Member of the Executive Board Managing Director Managing Director Managing Director Managing Director Managing Director Hubert Trunkenpolz Viktor Sigl, MBA KTM Sportmotorcycle Deutschland GmbH Managing Director KTM Sportmotorcycle GmbH W Verwaltungs AG (company dissolved) Managing Director Deputy chairman of the Supervisory Board GASGAS Motorcycles GmbH Husqvarna Motorcycles GmbH KTM AG Managing Director Managing Director Member of the Executive Board Yes No No Yes Yes Yes Yes Yes Yes Yes Yes Yes No No No Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes

82 6 . S H A R E H O L D E R S ’ PA R T I C I PAT I O N R I G H T S 6.1 VOTING RIGHTS RESTRICTIONS AND REPRESENTATION PIERER Mobility AG has 22,538,674 shares of no par value in issue. Each share confers one vote. There are no shares with preferential rights and no restrictions on the shares in issue. The principle of “one share – one vote” thus applies. Voting rights may be exercised by proxy. Proxy authorization must be granted in text form to a specific person and forwarded to PIERER Mobility AG, which must retain or traceably record it. There are thus no restrictions on voting rights in the articles of association, no group clauses and no rules on granting exceptions. 6.2 QUORUMS REQUIRED BY THE ARTICLES OF ASSOCIATION Where the law does not prescribe a different majority, the Annual General Meeting shall pass resolutions by simple majority of the votes cast and, in those cases where a majority of the capital is required, by simple majority of the share capital represented. The Articles of Association of PIERER Mobility AG7 do not set more stringent voting requirements than those set by the Austrian Stock Corporation Act. 6.3 / 6.4 CONVOCATION OF THE ANNUAL GENERAL MEETING OF SHAREHOLDERS, INCLUSION OF ITEMS ON THE AGENDA The provisions regarding the convocation of the Annual General Meeting do not diverge from the provisions of the Austrian Stock Corporation Act 8. Convocation should be issued no later than the 28th day before an Annual General Meeting, and no later than the 21st day before any other General Meeting. Convocations are published in the “Wiener Zeitung”, made known via a European dissemination system and made available on the website of PIERER Mobility AG. Annual General Meetings are normally convoked by the Executive Board of the company. The Executive Board is also obliged to convoke a General Meeting if shareholders holding at least 5% of the share capital submit a written demand for convocation, stating the grounds for the demand and presenting an agenda and a proposed resolution for each point thereon. The articles of association may modify this statutory requirement by relaxing the formal requirements or reducing the minimum size of the shareholding required to demand convocation of a General Meeting. The Articles of Association of PIERER Mobility AG currently contain no such provisions that deviate from the statutory requirements 9. The petitioning shareholders must have held their shares for at least three months before submitting the petition and retain them until a decision on the petition is made. If the convocation is not issued by the Executive Board, the Executive Board is obliged to assist as necessary with the proper convocation of and preparation for the General Meeting. 6.5 SHARE REGISTER PIERER Mobility AG has only bearer shares in issue. It therefore does not maintain a share register. 7. C H A N G E S O F C O N T R O L A N D D E F E N S E M E A S U R E S 7.1 DUTY TO MAKE AN OFFER The Articles of Association of PIERER Mobility AG do not contain any rules regarding opting out or opting up as defined by the FinFraG as of December 31, 2020. 7 The Articles of Association are available to view on the PIERER Mobility AG website: 8 The Articles of Association are available to view on the PIERER Mobility AG website: 9 The Articles of Association are available to view on the PIERER Mobility AG website: https://www.pierermobility.com/wp-content/uploads/2021/03/2021-02-26-Articles-of-Association_PIERER-Mobility-AG.pdf https://www.pierermobility.com/wp-content/uploads/2021/03/2021-02-26-Articles-of-Association_PIERER-Mobility-AG.pdf https://www.pierermobility.com/wp-content/uploads/2021/03/2021-02-26-Articles-of-Association_PIERER-Mobility-AG.pdf

84 8 . A U D I T O R S 8.1 DURATION OF MANDATE AND TERM OF OFFICE OF THE LEAD AUDIT PARTNER KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Linz, was appointed by the 23rd Annual General Meeting to serve as the auditor of the consolidated financial statements and separate financial statements of the company for the 2020 financial year. KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft was first appointed as group and company auditor for the short accounting period from 10/01/2014 to 12/31/2014. The lead audit partner is Mr. Helge Löffler, who first fulfilled this role for the short accounting period from 1/1/2019 to 12/31/2019. 8.2 AUDIT FEE Please refer to the Report under the Austrian Corporate Governance Code (Audit and External Evaluation, page 64). 8.3 ADDITIONAL FEES Please refer to the Report under the Austrian Corporate Governance Code (Audit and External Evaluation, page 64). 8.4 INFORMATION AND CONTROL INSTRUMENTS PERTAINING TO THE AUDITOR OF THE FINANCIAL STATEMENTS During the reporting year, the auditor attended two meetings of the Supervisory Board and two meetings of the Audit Committee. The auditor is moni- tored and evaluated at regular intervals by the Audit Committee of the Supervisory Board. The Audit Committee makes a proposal for the selection of the auditor and presents the proposal of the Supervisory Board to the Annual General Meeting for voting. The Audit Committee must also meet with the auditor to establish a mutual line of communication. The Audit Committee must also approve non-audit reviews by the auditor (auditor of the consolidated financial statements). Finally, the independence and activities of the auditor are reviewed and monitored, particularly with regard to the additional services provided to the audited company. The compensation paid to the auditor is reviewed regularly for conformity to market terms and conditions. The lead audit partner for the company rotates every 7 years (internal rotation). By virtue of the implementation of Regulation (EU) No. 537/2014 of April 16, 2014 on specific requirements regarding statutory audit of public-interest entities, PIERER Mobility AG must change its auditor by the 2024 financial year at the latest (external rotation). 9. I N F O R M AT I O N P O L I C Y The company maintains an investor relations area on its website at https://www.pierermobility.com/en/investor-relations/overview/ . This is freely accessible and serves as a permanent information source. All important information can be obtained here, as well as documents on the course of business and the share price (price data, shareholder structure, reports, financial calendar, AGM documents). With effect from May 2, 2017, the shares of the company moved to the standard market auction segment in the Official Market of the Vienna Stock Exchange. As a result, only annual and half-yearly financial reports had to be compiled and published. In the 2020 financial year, the shares of PIERER Mobility AG were admitted to the regulated market of the Frankfurt Stock Exchange. The Company’s shares have been listed in the General Standard of the Frankfurt Stock Exchange since March 3, 2020. On the other hand, in the 2020 financial year, the 23rd Annual General Meeting resolved, upon the proposal of the Executive Board, to apply for the revocation of the admission of the shares of PIERER Mobility AG to the Official Market (Amtlicher Handel) of the Vienna Stock Exchange. Based on this application, the admission of PIERER Mobility AG shares to the Official Market (Amtlicher Handel) of the Vienna Stock Exchange was revoked with effect as of the end of September 30, 2020 by notice dated June 22, 2020. Therefore, the shares of PIERER Mobility AG are no longer listed on the Official Market of the Vienna Stock Exchange since October 2020.

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88 M A N A G E M E N T R E P O R T O N T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S A S O F 12 / 31 / 2 0 2 0 O F P I E R E R M O B I L I T Y A G , W E L S 1. P E R F O R M A N C E O F T H E P I E R E R M O B I L I T Y G R O U P COMPANY The PIERER Mobility Group is Europe‘s leading „Powered Two-Wheeler“ (PTW) manufacturer. The Group‘s motorcycle brands KTM, HUSQVARNA Motorcycles, and GASGAS make it one of Europe’s technology and market leaders, especially in the premium motorcycle segment. The product range of the PIERER Mobility Group includes PTWs equipped with the latest generation of combustion engines, and emission-neutral vehicles with innovative electric powertrains such as the KTM Freeride E, the electric minicycles as well as e-bikes from the Husqvarna E-Bicycles, R Raymon, and GASGAS E-Bicycles brands. All drive technologies - from combustion engines to electric motors - are incorporated into series production. As a pioneer in electric mobility for two-wheelers in the low-voltage range (48 volts), the Group, together with its strategic partner Bajaj, has put in place the foundations for assuming a leading global role. The complete takeover of the e-bike business (PEXCO) at the end of December 2019 was another important step in intensifying our activities in the bike electric mobility segment as well. In the medium term, the aim is to develop into a major global player in this sector. Thanks to our innovative strength, we see ourselves as a technology leader in the two-wheeler sector in Europe. The partnership with Bajaj, India’s second largest motorcycle manufacturer, strengthens the company’s competitiveness in global markets. The shares of PIERER Mobility AG have had a primary listing in the International Reporting Standard of the SIX Swiss Exchange since November 14, 2016. The shares of PIERER Mobility AG were accepted into the Swiss Performance Index (SPI) of the SIX Swiss Exchange on March 29, 2017. Since March 3, 2020, the shares of PIERER Mobility AG have also been listed on the Regulated Market of the Frankfurt Stock Exchange (General Standard). As of September 30, 2020, trade in the shares of PIERER Mobility AG on the Official Market of the Vienna Stock Exchange was terminated. DEVELOPMENT OF SALES AND REVENUE IN THE 2020 FINANCIAL YEAR In the 2020 financial year, PIERER Mobility AG was able to continue its growth and achieved record sales of €1,530.4 million. This equates to an increase of around €10 million compared to the previous year, despite a 2-month interruption in motorcycle production caused by bottlenecks in the supply chain. With a total of 326,471 motorcycles1 and e-bikes in the 2020 financial year, the PIERER Mobility Group delivered its tenth record year in a row. With 212,713 KTM motorcycles sold, 49,046 HUSQVARNA motorcycles also sold and with 8,648 GASGAS motorcycles already being sold, sales of 270,407 motorcycles (2019: 280,099 units) were achieved. The high level of demand meant that the second half of 2020 succeeded in making up for a significant proportion of the production and sales volumes that were lost due to the COVID-19 lockdown in the spring. In addition, the e-bike division was able to deliver exceptional sales growth of more than 33% by selling 56,064 e-bikes (2019: 41,993, non-consolidated) of the HUSQVARNA and R RAYMON brands. In Europe, sales to dealers were around 100,000 motorcycles and 56,064 e-bikes. Around two thirds of the motorcycles (approx. 170,000) were sold to the network of dealers in markets outside Europe, in particular in North America, India, and Australia. The implementation of the global product strategy as well as the expansion into further Asian and South American markets were continued with a consistent focus over the past financial year. MARKET POSITION EXPANDED GLOBALLY The powered two-wheeler (motorcycle, scooter, electric bike) was already gaining in importance before the coronavirus crisis, particularly in individual transport in urban areas. The pandemic has exacerbated this sustained trend owing to social distancing and ensured rising sales figures in both the global e-bike and motorcycle markets. The above-average demand for Powered Two-Wheelers (PTWs) from the PIERER Mobility Group can be explained as follows: as the only European motorcycle manufacturer offering a full range of motorcycles and with a broad product range of off-road and street motorcycle models, the Group was able to cater for the growing demand for alternative means of mobility in the leisure and sports segment and especially in urban transport. A key success factor was that, in addition to high-end and mid-range models, attractive products were also offered in the entry-level range from 125 to 400 cm³. An important step on the growth path was the full acquisition of the shares in GASGAS Motorcycles GmbH in July 2020. GASGAS will be positioned as the third Group brand in the offroad segment and here, in particular, as the world market leader in the trial segment. 1 including the motorcycles sold by KTM partner Bajaj in India and Indonesia

90 COVID-19 PANDEMIC The management responded actively to the effects of the COVID-19 pandemic. Motorcycle production was interrupted for two months from mid-March to mid-May due to disruptions in the supply chain from northern Italy and Spain. For this period, the company applied for short-time working for around 3,000 employees. Alongside the temporary suspension of production, a rigorous cost saving program was launched. Among other things, part of the planned interruption to the business operation in August was brought forward, accumulated annual leave and time in lieu was reduced, and a large number of cost items were scrutinized and savings made in some cases. The shutdown, of course, also meant that motorsport and marketing activities were reduced significantly. In contrast to production, product development continued to work almost at full capacity during the shutdown. This prevented negative effects on model development and future product ranges. The network of dealers was supported by the temporary extension of payment terms and with local logistics to and from end customers. This ensured the continued existence of the network of dealers and avoided bad debts. The supply of spare parts to end customers was guaranteed at all times. Management was able to significantly minimize the impact of the coronavirus crisis on the company by taking proactive action. Working in close coor- dination with all suppliers, a new production plan was established in mid-April and vehicle assembly in Austria was fully resumed on the company’s own initiative from mid-May after the early termination of short-time working. Following a detailed analysis of the retail market, the production pro- gram for the second half of the year was significantly increased, thus compensating for a substantial part of the shortfall in the first half. Production in the second half of the year was again running at almost full capacity. In order to be able to identify and resolve potential risks even earlier in future, the supplier risk assessment has been revised and the corresponding risks have been reassessed for each country. A comprehensive prevention concept was developed to minimize the risk posed by the COVID-19 pandemic particularly for the employees, and to ensure that production capacities are maintained. Various precautions were taken to protect the health of the employees. These include rules for maintaining safe distances, the regular disinfection of work areas, and hygiene measures, such as wearing mouth and nose protection masks in defined areas. At the end of the holiday shutdown in August, more than 2,000 employees were specifically given a quick test and a permanent drive-in test station was opened. Flexible home working options were also offered to employees. In order to improve the liquidity situation, a special COVID credit line (KRR) of €60 million was taken up from Österreichische Kontrollbank (OeKB) in April 2020. The credit line from OeKB was not utilized as of the reporting date of December 31, 2020. The liquidity of the company was secured sustainably at all times during these crisis months due to the strong equity base and long-term secured external financing. On this basis, the manage- ment was able to concentrate fully on the operational measures to deal with the challenges. 2 . EC O N O M Y A N D M A R K E T D E V E L O P M E N T According to the assessment by the International Monetary Fund (IMF) of January 2021, global economic output will grow by 5.5% in 2021. For indus- trialized countries, a growth rate of 4.3% for 2021 and 3.1% for 2022 is forecast. Growth of 4.2% is expected for the euro area in 2021. For 2022, the IMF anticipates global economic growth of 4.2%, and for the euro area growth of 3.6%. For emerging markets and developing economies, a growth in economic output of 6.3% and 5.0% is expected for 2021 and 2022, respectively. For China, a growth rate is forecast of 8.1% for 2021 and 5.6% for 2022. India is also expected to develop positively, with economic output expected to increase by 11.5% in 2021 and by 6.8% in 2022. While recent vaccine approvals give hope of a turnaround in the fight against the pandemic, new mutations and renewed waves of infection are cause for concern. With this in mind, the current assessments of the International Monetary Fund (IMF) of January 2021 are subject to great uncertainty.

92 3 . F I N A N C I A L P E R F O R M A N C E I N D I C AT O R S KEY FINANCIAL PERFORMANCE INDICATORS: EARNINGS RATIOS Revenue EBITDA EBITDA margin Result from operating activities (EBIT) EBIT margin OTHER FINANCIAL FIGURES: EARNINGS RATIOS Earnings after taxes Earnings after minorities BALANCE SHEET RATIOS Balance sheet total Equity Equity ratio Working capital employed 1) Net debt 2) Gearing 3) CASH-FLOW AND CAPEX Cash flow from operating activities Cash flow from investing activities Free cash flow 4) Cash flow from financing activities Capital expenditure 5) VALUE CREATION ROCE (Return on Capital Employed) 6) ROE (Return on Equity) 7) ROIC (Return on Invested Capital) 8) in € million in € million in % in € million in % in € million in € million in € million in € million in % in € million in € million in % in € million in € million in € million in € million in € million 2019 1,520.1 240.8 15.8% 131.7 8.7% 2019 95.7 54.5 CHANGE IN % 0.7% -3.0% -18.6% 2020 1,530.4 233.5 15.3% 107.2 7.0% 2020 69.5 3.9 CHANGE IN % -27.4% -35.9% 12/31/2019 12/31/2020 1,613.9 618.6 38.3% 274.2 395.8 64.0% 2019 257.4 -165.7 91.6 -20.6 148.9 1,686.0 654.1 38.8% 181.5 312.4 47.8% 2020 312.8 -147.0 165.8 -104.7 150.2 CHANGE IN % 4.5% 5.7% -33.8% -21.1% CHANGE IN % 21.5% -11.3% 80.9% >100% 0.9% 12/31/2019 12/31/2020 12.7% 16.4% 10.6% 9.7% 10.9% 7.7% in % in % in % 1) Working capital employed = inventory + trade receivables - trade liabilities 2) Net financial debt = financial liabilities (current, non-current) - cash 3) Gearing = net financial debt/equity 4) Free cash flow = cash flow from operating activity + cash flow from investing activity 5) Additions from property, plant and equipment and intangible assets according to schedule of investments; excluding lease additions (IFRS 16) 6) ROCE: EBIT / average capital employed; capital employed = property, plant and equipment + goodwill + intangible assets + working capital employed 7) ROE = net result after tax/average equity 8) ROIC = NOPAT / average capital employed; NOPAT = EBIT - taxes

94 Including the models sold in India and Indonesia by our partner Baja, 270,407 motorcycles were sold in the 2020 financial year (-3.5% compared to the previous year). Around 36% of the motorcycles were sold in Europe. A further 23% were sold in India and Indonesia by our partner Bajaj, 19% in North America including Mexico, and 22% in the remaining global regions. UNIT SALES BY REGIONS FY 2020 36.0% Europe 19.5% North America Indien / Indonesien (über Baja) (incl. Mexico) 22.8% India / Indonesia (by Bajaj) 21.7% remaining global regions E-BIKES REVENUE BY REGIONS FY 2020 53.7% Europe 26.4% North America (incl. Mexico) 19.9% remaining global regions In the 2020 financial year, revenue of €112.5 million was generated in the e-bikes segment. This represents an increase in revenue of around 49% compared to the same period of the previous year. Due to the initial consolidation of the e-bikes segment at the end of December 2019, the previous year’s figures are not included in the earnings figures of the PIERER Mobility Group. A total of 56,064 Husqvarna and R Raymon e-bikes were sold in the past financial year. Sales of non-e-bikes are distributed exclusively under the R Raymon brand and amounted to 17,213 units in the first half of the year. In 2020, e-bikes or non e-bikes were sold almost exclusively in Europe, with Germany currently representing the largest market with around 84% of sales. The EBITDA for 2020 is €6.5 million and the EBIT is €2.2 million. Both operating figures are well above the budgeted expectations. The very positive development of the e-bike market is also mainly related to the COVID-19 pandemic, which so far has had a very positive impact on the sales trend in the whole bicycle industry. After the two-month lockdown in spring 2020, the two-wheeler trade experienced a boom due to a change in mobility behavior. This gave the already positive trend an additional boost. The global COVID-19 pandemic has significantly altered consumers’ demands for good solutions when it comes to individual transport and sport. The PIERER E-Bikes division was able to take advantage of this and, with its two established Husqvarna E-Bicycles and R RAYMON brands, hold its own in a highly competitive market and continue on its growth path. As a result, no short-time working had to be applied for within this segment in the 2020 financial year. UNIT SALES BY REGIONS FY 2020 86.7% DACH region 12.8% remaining Europe 0.6% remaining global regions REVENUE BY REGIONS FY 2020 87.5% DACH region 11.9% remaining Europe 0.6% remaining global regions

96 After taking the cash flow from financing activities of €104.7 million into account, liquid funds increased by €57.4 million (including foreign currency effects of €-3.7 million) to €218.3 million compared to December 31, 2019. The liquidity requirement to secure the operating business was ensured throughout the entire company. Due to the strong equity base and long-term financing, sufficient liquidity reserves remain permanently available. INVESTMENTS In the current financial year, investments4 of €150.2 million were made in the PIERER Mobility Group (previous year: €148.9 million). As a result of the lockdown in the second quarter, there were temporary delays in investment and development projects. These were made up for in the second half of the year. Over the year as a whole, the COVID-19 crisis did not result in any cutbacks in investment projects. The investments break down into devel- opment projects (including tools), property, plant and equipment and intangible assets as shown below: 148.9 in EUR million 150.2 in EUR million 11.5 intangible assets 19.4 property, plant and equipment 118.0 R & D (incl. tools) 23.5 intangible assets 15.8 property, plant and equipment 110.9 R & D (incl. tools) FY 2019 FY 2020 The proportion of investments in development projects (including tools) out of the total investments (74%) is below the previous year’s figure of 79%. The consistently high investments in series product development represent one of the key success factors of the PIERER Mobility Group. The investments in the infrastructure (property, plant, and equipment) make up 10% (previous year: 13%) of total investments. Due to the intensive investment program over the last few years, investments in the infrastructure declined in the current financial year. Another 16% previous year 8%) is attributable to intangible assets (trademark rights, IT, licenses). The increase in intangible assets is due to the acquisition of the GASGAS trademark rights amounting to approximately €14 million. 4 . N O N - F I N A N C I A L S TAT E M E N T The company drew up a consolidated non-financial report for the PIERER Mobility Group in accordance with Section 267a of the Austrian Commercial Code (UGB) for the 2020 financial year. This contains information on concepts, non-financial risks, due diligence processes, and results and perfor- mance indicators relating to environmental, social and employee interests, observance of human rights, and the tackling of corruption and bribery. This report was audited by the Supervisory Board in accordance with Section 96 of the Austrian Stock Corporations Act and is available online at https://www.pierermobility.com/en/sustainability/sustainability-reports. 4 excluding lease additions (IFRS 16)

98 the Austrian production site in Mattighofen has so far exclusively produced the 401 models (Svartpilen, Vitpilen) of the naked bike in the entry-level segment, the relocation of production capacities and the simultaneous broadening of the model portfolio with a 250 cm³ and a 125 cm³ version represents a strategically important expansion of the customer base, especially in the emerging markets of India and South America. The special Husqvarna 701 Enduro LR model introduced at the beginning of 2020 is based on the Husqvarna 701 Enduro of the same name and supplemented the 2020 model portfolio as a special model in the mid-range segment with a significantly increased tank volume of around 25 l. KTM AG, as a technology-oriented manufacturer of motorcycles in the premium segment, always focuses on reducing the noise and exhaust emissions of its vehicles with combustion engines. The consistent further development of the thermodynamic system on a variety of our models represents a central component of the research and development activities of the past year. The most important transitions to series production in this area include the KTM DUKE models in the displacement variants from 125 cm³ to 390 cm³, which conform to the latest European and international emission stand- ards, as well as the top-of-the-range KTM 1290 SUPER DUKE R model. Other vehicles, such as the 250 and 390 KTM ADVENTURE, were also equipped with further refined components and their emission levels have been significantly optimized again. In addition to far-reaching changes in the area of electronic fuel injection and thermodynamic optimization of combustion, the development activities in this area also included, in particular, emissions reduction through further development of exhaust gas aftertreatment. The second half of the year also saw a number of other model ramp-ups from the mid-range and premium segment. This includes the reworked derivatives of the KTM 690 ENDURO, 690 SMC and Husqvarna 701 Enduro and 701 Supermoto equipped with the 690 cm³ single-cylinder engine, as well as the series ramp-up of the KTM 890 ADVENTURE models. In addition to the series development of a comprehensive GASGAS offroad product range, one of the most outstanding projects of the past financial year was the testing and series transition phase of the most important model in the full-size travel segment, the new KTM 1290 SUPER ADVENTURE R/S. The successor model to the series-produced vehicle of the same name underlines the technological skill of KTM AG above all in terms of the latest safety and assistance systems, including for the first time an adaptive cruise control system, comprehensive KTM MY RIDE functions, and an ergonomic concept which is at the top of its class. With a project duration of around four years and the involvement of a large part of the entire development team, the development of this model, alongside the KTM 1290 SUPER DUKE R presented at the beginning of 2020, represented one of the most complex series development projects of recent years. E-BIKES In the further development of the product range of the Group brand Husqvarna E-Bicylces, the focus was on developing a brand-specific riding experience. To do this, it was necessary to adapt the subframe of the chassis to a large extent and to subject it to a comprehensive strength analysis. In addition to the specific product experience, particular attention was also paid to improvements in the areas of safety, performance and technology. The knowledge gained is gradually being incorporated into the portfolio and will form the basis for the design of future frame platforms. If you look at the product range strategy itself, further positive effects can be achieved by extending the product life cycles themselves. This strategy has been successfully practiced for a season in the bike and e-bike segment of the R RAYMON and Husqvarna E-Bicycles brands with so-called takeover or Allstars models. 2020 was a key turning point for the Husqvarna E-Bicycles brand. Along with Shimano, the world’s oldest bicycle brand has become a pioneer in the industry. Together with the well-known drive manufacturer, a new generation of motors was launched on the market with the EP 8. The new mid-mounted motor will be used in all top models in the offroad segment in the 2021 collection year and, with the E-Tube Project App, it also address- es another important megatrend which reflects the customer’s desire for individualization. Thanks to the app, the system settings can be adapted to the conditions of a bicycle tour and saved individually in up to two profiles. In all other categories, from youth e-bikes to classic city models, the focus was on continuity and modern understatement. The R RAYMON brand is synonymous with the attributes “fast, young and wild” and offers good value for money. The brand is a classic fast follower when it comes to innovations, technology and design. The very first drive partners are the powerful, mid-mounted motors from Yamaha. With a full range, R RAYMON established itself as a major player in the market within a very short time and offers numerous options for beginners and profes- sional athletes in both the classic bike sector and the e-bike range.

100 Risk Identification Risk Assessment Risk Control Reporting + Monitoring Structured recording of opportunities and individual risks in the sectors Implementation of risk workshops Identification takes place, among other things, by means of the standard risk catalog Failure mode and effect analysis Extent of damage and probability of occurrence Control of the overall risk position by influencing opportunities and individual risks Control of the effectiveness of measures Continuous monitoring Collection, evaluation, forwarding of information Reporting Risk management established at the level of KTM AG regularly carries out risk analyses for selected production and sales locations. Only risks outside the consolidated statement of financial position and the consolidated income statement are presented. RISK MITIGATION Depending on the impact on the company, efforts are made to minimize or avoid risks by taking appropriate measures or, in certain cases, to deliber- ately take such risks. RISK ASSESSMENT The aim of risk assessment is the continuous, qualitative and quantitative evaluation of all opportunities and risks that are identified in order to prioritize risk management measures. Opportunity and risk assessment at PIERER Mobility Group should meet the following requirements: Objectivity: The assessment should be based on objective standards where possible. Comparability: To allow the opportunities and risks to be compared with each other, a quanttative assessment is carried out using uniformly defined values (where reasonable and possible). ASSESSMENT METHODOLOGY Opportunities and individual risks are assessed on the basis of their probability of occurrence and their significance for the Group’s net assets, finan- cial position and earnings position. This assessment is based on information about (a) risks that have actually occurred in the past, (b) benchmark values from the industry or (c) realistic expert estimates prepared by the company itself.

102 SECTOR-SPECIFIC RISKS Restrictions relating to motorcycling The revenue of the Group depends, inter alia, on the possible offroad uses of the motorcycles and is therefore considerably influenced by the national legal framework regulating offroad motorsport, motorcycle registration and driver’s licenses in the countries where the vehicles are sold. Due to the introduction of the Euro 5 emissions standard on January 1, 2020, updating the entire Motorcycle Street product range to comply with the new regula- tory requirements is the focus of R&D activities and will be completed in 2020. Over the course of the 2020 calendar year, all models intended for the EU area and for operation on public roads were newly type-approved in accordance with the “Euro 5” regulations or their type approval was raised from “Euro 4” to “Euro 5” by means of an amendment. Series production of the first “Euro 5” model took place in July 2020 (sample series of KTM 890 Ad-venture models). The last “Euro 4” model for the EU area was produced in December 2020. From January 1, 2021, only “Euro 5” vehicles will be produced for the EU area and for operation on public roads. Procurement risk In view of the current developments on the national and international markets, the procurement risk faced by the KTM Group mainly involves the timely introduction of suitable measures to ensure the supply of parts if suppliers become insolvent or supply bottlenecks materialize. To minimize risk and ensure the availability of materials, the KTM Group places great emphasis on using predetermined criteria to carefully select new suppliers and on sustainably collaborating with existing suppliers and/or further developing such cooperation in stable supplier relationships with a long-term approach. In order to be able to identify and manage potential risks even earlier in the future, for example from possible bottlenecks caused by the COVID-19 pandemic, the supplier risk assessment was revised and corresponding risks were reassessed for each country. The E-Bikes Group has several suppliers from different countries for e-bikes in its portfolio in order to reduce the risk of dependency as far as possible and to increase the stability of the supply chains. Appropriate storage capacities allow cur-rent fluctuations to be balanced out. Research and development, racing Technical innovations and the introduction of new products make a significant contribution to the PIERER Mobility Group’s position in the market. To this end, new trends must be identified promptly. To counteract the risk, our own products’ innovative capacity must be ensured. Racing achievements are not only an important marketing instrument for the company but also form the basis for product development and set standards for series devel- opment. Valuable experience is gained whenever products can be tested under racing conditions at racing events. We pursue a very intensive R&D strategy in order to further expand our role as a leading technology pioneer and also to keep pace with our major competitors. This also explains the relatively high re-search budget - currently around 9%. IT RISKS Within the PIERER Mobility Group, an IT security and risk management system is operated with the aim of making it possible to recognize and manage company-relevant risks in the area of information security. For further information on IT risks, please refer to the Notes to the Consolidated Financial Statements (Chapters VII) of PIERER Mobility AG. FINANCIAL RISKS For further information on the risk report and on financial instruments, including the specific measures to mitigate risks posed by the use of financial instruments (e.g. hedges of foreign currency positions with futures, swaps, etc.), please refer to the Notes to the Consolidated Financial Statements (Chapters VII and VIII) of PIERER Mobility AG.

104 7. D EC L A R AT I O N P U R S U A N T T O S EC T I O N 24 3 A ( PA R A . 1) O F T H E A U S T R I A N C O M M E R C I A L C O D E ( U G B) 1. The share capital is EUR 22,538,674, and is divided into 22,538,674 bearer shares with voting rights, where every ordinary share has an equal stake in the share capital. The shares grant the rights that are usually due to stockholders under the Austrian Stock Corporation Act. These include the right to payout of the dividend resolved upon at the Annual General Meeting as well as the right to vote at the Annual General Meeting. The shares of PIERER Mobility AG have been listed on the SIX Swiss Exchange (SIX) in the International Reporting Standard since November 14, 2016 (ISIN AT0000KTMIG02). In addition, the shares of PIERER Mobility AG have been listed on the Regulated Market (General Standard) of the Frankfurt Stock Exchange since March 3, 2020. Until September 30, 2020, the shares of PIERER Mobility AG were additionally listed on the Vienna Stock Exchange (Official Market). In the 2019 financial year, 108,015 treasury shares were acquired. In the 2020 financial year, another 116,028 treasury shares were acquired and 30,703 treasury shares were sold, which were deducted from the nominal capital of EUR 85,325. The change of EUR 2,974,742.21 in uncommitted capital reserves from EUR 197,736,363.91 to EUR 194,761,621.70 results from the acquisition of 116,028 and sale of 30,703 treasury shares in the 2020 financial year. The share buy-back program was temporarily suspended as of April 7, 2020. On January 20, 2021, the share buy-back program of PIERER Mobility AG was ended early. On January 21, 2021, the company decided to offer its treasury shares for sale to selected institutional investors and/or strategic business partners as of February 8, 2021. 2. The Executive Board is not aware of any restrictions in respect of voting rights or the transfer of shares. 3. As far as the company is aware, the following had a direct or indirect equity holding of at least 10% in the share capital of PIERER Mobility AG as at Thursday, December 31, 2020: PTW Holding AG: 60.00% (direct equity holding); Pierer Industrie AG: 2.14% (direct equity holding) and 60.00% (indirect equity holding); Pierer Konzerngesellschaft mbH (direct and indirect equity holding): 3.35% (direct equity holding) and 62.14% (indirect equity holding). 4. There are no shares with special control rights. 5. There is currently no employee participation scheme in place 6. There are no additional provisions with respect to members of the Executive and Supervisory Boards above and beyond what is required by the law. 7. Authorizations to issue or repurchase shares: The following resolutions were adopted during the Annual General Meeting of April 27, 2017: a) The authorization of the Executive Board, subject to the agreement of the Supervisory Board, to is-sue financial instruments in the sense of Section 174 of the Austrian Stock Corporations Act (AktG) until April 1, 2022, particularly convertible bonds, participating bonds and special dividend rights, with a nominal total of EUR 150 million, which may also grant pre-emption rights and/or option of ex-change on the acquisition of up to 25 million shares in the company and/or are organized in such a way that they may be reported as equity, also in multiple tranches and in different combinations. b) The Executive Board may use the conditional capital and/or treasury shares to fulfill options of ex-change and or pre-emption rights. c) The issue amount and issue conditions of the financial instruments are to be set by the Executive Board, subject to the agreement of the Supervisory Board, whereby the issue amount is to be determined according to recognized mathematical methods used in finance and the price of shares in the company in a recognized pricing procedure. d) The Executive Board is authorized to exclude the pre-emption rights of shareholders to financial instruments in the sense of Section 174 AktG with the agreement of the Supervisory Board.

106 The following resolutions were adopted during the Extraordinary General Meeting of October 4, 2019: a) In accordance with Section 65 (1) 8 of the Austrian Stock Corporation Act, the Executive Board is authorized for a period of 30 months to acquire treasury shares in the company both on the stock exchange and over the counter, also excluding the shareholders’ quota-based tender rights, and, if necessary, to redeem these shares with the approval of the Supervisory Board without having to refer the matter to the Annual General Meeting again beforehand. The trade in treasury shares is excluded as the purpose of the acquisition. The proportion of shares to be acquired may not exceed 10% of the share capital. The equivalent value per share to be acquired may not be more than 20% below or above the average unweighted closing price on the SIX Swiss Exchange over the past 10 trading days. The authorization may be exercised wholly or partially, or in multiple smaller amounts and for the pursuit of one or more purposes, by the company, its affiliated companies or for the account of the compa- ny by third parties. The Supervisory Board is authorized to pass amendments to the Articles of Association that may arise due to the redemption of shares. b) For a period of five years, the Executive Board is authorized, with the consent of the Supervisory Board, to sell or use treasury shares in a way other than on the stock exchange or through a public offer for any legally permissible purpose, including the exclusion of the shareholders’ proportional purchase right (exclusion of subscription right) and to determine the conditions of sale. The authorization may be exercised in whole or in part or in multiple smaller amounts and for the pursuit of one or more purposes. 8. Any agreements on the part of the company which would take effect, change or cease to apply in the case of a change in the controlling interest in the company as a result of a public takeover offer, or the effects thereof, will not be disclosed by the company due to the fact that it would considerably harm the company. 9. There are no compensation agreements between the company and its Executive Board and Supervisory Board members or employees in the case of a public takeover bid. 8 . M A I N F E AT U R E S O F T H E I N T E R N A L C O N T R O L S Y S T E M P U R S U A N T T O S EC T I O N 24 3 A ( 2 ) O F T H E A U S T R I A N C O M M E R C I A L C O D E ( U G B) The internal control system of the PIERER Mobility Group has the task of ensuring the correctness and reliability of financial reporting, compliance with the legal and internal regulations relevant to the company, as well as the effectiveness and efficiency of operational activities, including the protection of assets from losses due to damages and malversations. Internationally accepted frameworks for internal control systems (e.g. COSO framework) have been considered in designing the elements of the internal control system. The system comprises: Group-wide requirements for financial reporting Segregation of duties as an organizational measure System-based and process-dependent controls Process-independent controls The PIERER Mobility Group is committed to the continuous development and improvement of the internal control system. To this end, its functionality is regularly monitored through process and data analyses as well as independent auditing activities. The main features of the internal control system with regard to the financial reporting process are presented below. CONTROL ENVIRONMENT The organizational structure of the PIERER Mobility Group forms the basis for the control environment and the internal control system within the company. When it comes to the organizational structure in (Group) financial reporting, there are clear areas of competence and responsibility at the various management and hierarchical levels of the Group. This applies on the one hand to the Group head-quarters in Wels, and on the other hand to the Austrian sites in Mattighofen and Munderfing and all international subsidiaries. Treasury and Business Process Finance are part of the Group’s operating divisions, and the tasks and responsibilities are clearly divided up here as well.

108 Other central instruments of risk monitoring and control are the company-wide guidelines on dealing with significant risks, the planning and con- trolling processes, and ongoing reporting. The guidelines include the setting and control of limits and procedures to limit financial risks, as well as strict adherence to the principle of dual control for the approval of invoices and payments. The Group’s internal control system is also based on precise information about the processes for accounting and financial reporting and also includes their upstream business processes. The effectiveness of the internal control system is reviewed by management in such a way that the results, which are transmitted to management in the form of a condensed report, are analyzed, evaluated and commented on by management. The Executive Board and the Audit Committee are informed annually about the assessment of the effectiveness of the internal control system in financial reporting. In the event of significant changes in the effectiveness of the internal control system, a report is submitted immediately to the Executive Board and, if necessary, to the Supervisory Board. 9. O U T L O O K BUSINESS DEVELOPMENT The objective of the PIERER Mobility Group is to continue to sustainably expand its market share in the global motorcycle markets in 2021, despite the COVID-19 crisis, and to achieve market leadership in Europe. This will be supported, among other things, by the full integration of GASGAS as a third brand and the further development of the network of dealers. The integration of the e-bike activities into PIERER E-Bikes GmbH, which was newly founded in January 2020, was successfully implemented in the past financial year. In the medium term, it intends to develop into a major global player in this sector as well. In addition to the e-bike segment, a stronger focus will be placed on electric mobility in the scooter segment in the coming years. A joint 48 volt electric two-wheeler platform in the 4 to 11 kW power range was developed with the strategic partner Bajaj. In Anif near Salzburg, an electric mobility center is being developed, with investments already being made in the buildings and infrastructure in 2020. Up to 300 employees will focus on the issue of electric mobility in the future. The effects of the coronavirus crisis in 2021 will be closely monitored. Negative impacts on business operations are constantly responded to with targeted measures. As well as safeguarding production capacities, the focus will continue to be on increasing efficiency and productivity as well as the supply chain. For the first half of the year, challenges are expected in the international supply chains, as capacity and delivery bottlenecks at individual suppliers and in international transport logistics could result in delays to deliveries. To protect the health and safety of employees, precautionary measures such as distance rules and hygiene measures such as the wearing of face coverings in defined areas and the disinfection of work areas have been implemented. Work is also underway to establish a vacination line within the company. Despite the COVID-19 pandemic, research and development expenses (before capitalized development costs) remain at a high level, which is 9.0% (previous year: 9.1%) of revenue. For the 2021 financial year, the company expects revenues of between EUR 1,800 - 1,900 million, an EBIT margin of between 8 - 9% and an EBITDA margin of over 15%. MOTORCYCLES The COVID-19 pandemic caused significant disruption to supply chains and resulted in revenue shifts and temporary restrictions on access due to the legally required temporary closure of the retail trade in many countries. Nevertheless, the motorcycle retail market, especially in the USA and Australia, but also ultimately in Europe, has performed surprisingly strongly. This has mainly been due to a change in the mobility and leisure behavior of end customers. The KTM and Husqvarna Motorcycles brands were able to benefit from this exceptionally well and gain further market shares.

110 MOTORSPORT KTM will also be represented in various international racing series in 2021. In addition to the famous world championships in the offroad segment and the Dakar Rally, the focus in 2021 will once again be on the premier class of motorcycle sport, the MotoGP. The Red Bull KTM Factory Racing team will enter its fifth season with the new rider pairing of Brad Binder and Miguel Oliviera. Also in 2021, the KTM Tech3 Team, consisting of riders Danilo Petrucci and Iker Lecuona, will be a customer team with equal ranking riding KTM machines. The GASGAS brand, which was acquired in the 2020 financial year, will expand motorsport activities in 2021. As well as participating in various Motocross and Enduro world championships, a factory team for the Supercross series in the USA and an involvement in Moto3TM are planned. INVESTMENTS Thanks to the high levels of investment in capacities and infrastructure in recent years, and the relocation of the small-engine Husqvarna Motorcycles street models to the strategic partner Bajaj, the required production capacities in Austria are secured for the next few years. The largest single investments for 2021 include, in particular, the expansion of the existing logistics center and the construction of a coating facility at the component plant in Munderfing, where series production is scheduled to start in the first quarter of 2022. Despite the COVID-19 crisis, investments in the (further) development of existing and new models as well as in electric mobility have top priority. Expenditure on investments in research and development will therefore remain at the already high level of previous years. FINANCIAL POSITION During the 2020 financial year, the liquidity and financial position were strengthened further. In addition to the existing financing, various working capital credit lines in sufficient amounts are available for the 2021 financial year. In the 2021 financial year, the emphasis will continue to be on generating free cash flows and sustainably increasing efficiency. Wels, Friday, March 12, 2021 The Executive Board of PIERER Mobility AG Stefan Pierer Friedrich Roithner Hubert Trunkenpolz Viktor Sigl

112 C O N S O L I D AT E D S TAT E M E N T O F F I N A N C I A L P O S I T I O N A S AT D E C E M B E R 31, 2 0 2 0 EURk Assets: Non-current assets: Goodwill Intangible assets Property, plant, and equipment Investments accounted for using the equity method Deferred tax assets Other non-current assets Current assets: Inventories Trade receivables Receivables and other assets Tax refund claims Cash and cash equivalents Notes No. 12/31/2020 12/31/2019 21 22 23 24 25 26 27 28 29 30 131,034 426,835 356,219 13,252 11,518 3,137 941,995 298,744 144,887 81,621 517 218,270 744,039 1,686,034 130,311 391,954 326,497 13,628 10,000 5,470 877,860 321,642 175,196 73,230 5,100 160,864 736,032 1,613,892

114 CONSOLIDATED INCOME STATEMEN T F O R T H E F I N A N C I A L Y E A R F R O M 1 / 1 / 2 0 2 0 T H R O U G H 12 / 31 / 2 0 2 0 EURk Revenue Production costs of the services provided to generate the revenue Gross profit from sales Selling and racing expenses Research and development expenses Administration expenses Other operating expenses Other operating income Earnings from at-equity holdings Result from operating activities Interest income Interest expenses Other financial and investment income (expenses) Result before taxes Income taxes Profit or loss for the financial year thereof owners of the parent company thereof non-controlling shareholders Notes No. 2020 2019 8 9 10 11 12 13 14 15 16 16 16 17 1,530,382 -1,103,550 426,832 1,520,135 -1,074,120 446,015 -192,216 -23,391 -102,645 -164 5 -1,180 107,241 1,629 -15,213 -2,833 90,824 -21,369 69,455 34,911 34,544 -214,893 -23,690 -84,208 -1,415 11,381 -1,484 131,706 3,026 -16,974 78 117,836 -22,124 95,712 54,495 41,217 Undiluted (=diluted) earnings per share (EUR) 18 1.56 2.42

116 C O N S O L I D AT E D S TAT E M E N T O F C A S H F L O W S F O R T H E F I N A N C I A L Y E A R 1 / 1 / 2 0 2 0 T H R O U G H 12 / 31 / 2 0 2 0 EURk Operations Profit or loss for the financial year Interest expenses / interest income + (-) + Tax expenses Notes No. 2020 2019 69,455 13,584 21,369 16 17 + Depreciation/amortization of property, plant and equipment and intangible assets 22, 23 126,289 + (-) Addition (reversal) of non-current liabilities for employee benefits (-) + Profit (loss) from equity consolidation (-) + Profit (loss) from the sale of fixed assets + (-) Other non-cash expenses (income) 15 VI + Interest received - Interest payments - Tax payments + Dividends received Gross cash flow - (+) Increase (decrease) in inventories - (+) + (-) Increase (decrease) in trade receivables, advance payments, other current and non-current assets Increase (decrease) in trade payables, advance payments and other current and non-current liabilities Increase (decrease) in the net current assets -100 1,180 2,471 5,060 1,621 -14,807 -4,087 606 222,641 17,128 25,618 47,432 90,178 Cash flow from operations 312,819 257,380 95,712 13,948 22,124 109,084 1,339 1,484 971 -35,733 2,958 -16,368 -10,424 997 186,092 58,451 12,989 -152 71,288

118 C O N S O L I D AT E D S TAT E M E N T O F C H A N G E S I N EQ U I T Y EURk Balance as of January 1, 2020 Adjustments in accordance with IAS 8 (deferral of research grants), net of tax Balance as of January 1, 2020 after adjustments Profit or loss for the financial year Other comprehensive income Total comprehensive income Transactions with shareholders Dividends to third parties Acquisition/disposal of shares to subsidiaries Changes to the scope of consolidation Gains and losses on hedging transactions and hedging costs reclassified to inventories Acquisition of own shares Disposal of own shares Miscellaneous Balance as of December 31, 2020 EURk Balance as of January 1, 2019 Profit or loss for the financial year Other comprehensive income Total comprehensive income Transactions with shareholders Dividends to third parties Acquisition/disposal of shares to subsidiaries Changes to the scope of consolidation Gains and losses on hedging transactions and hedging costs reclassified to inventories Acquisition of own shares Miscellaneous Balance as of December 31, 2019 Notes No. 2 31 18, 31 31 7 31 31 Notes No. 31 18, 31 31 7 31

120 N O T E S T O T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S F O R T H E 2 0 2 0 F I N A N C I A L Y E A R VI. NOTES ON THE STATEMENT OF CASH FLOWS .......................... 151 VII. RISK REPORT ..........................................................................152 36. Risk management ............................................................152 37. Market risks .....................................................................152 38. Sector-specific risks ........................................................153 39. IT risks .............................................................................154 40. Financial risks ..................................................................154 41. Other risks ....................................................................... 161 VIII. FINANCIAL INSTRUMENTS AND CAPITAL MANAGEMENT .........162 42. Basic principles ...............................................................162 43. Classification and fair value ............................................163 44. Set-off of financial assets and liabilities .........................168 45. Hedges .............................................................................169 46. Capital management ....................................................... 174 IX. LEASES ................................................................................... 175 47. Leases as lessee (IFRS 16) .............................................. 175 48. Leases as lessor (IFRS 16) ...............................................177 X. EXPLANATIONS REGARDING RELATED PARTIES AND THE CORPORATE BODIES ................................................177 49. Related party disclosures ................................................177 50. Corporate bodies of PIERER Mobility AG .......................... 179 51. Executive Board and Supervisory Board earnings ........... 179 XI. EVENTS AFTER THE BALANCE SHEET DATE ............................180 XII. GROUP COMPANIES (SCHEDULE OF EQUITY HOLDINGS) ......... 181 XIII. APPROVAL OF THE CONSOLIDATED FINANCIAL STATEMENTS ...........................................................................183 I. GENERAL INFORMATION..........................................................121 1. Company information .......................................................121 2. Principles of financial reporting ......................................121 3. Newly applied standards and interpretations ...................122 4. Standards and interpretations to be applied 5. Estimates and uncertainties in judgments and assumptions ....................................................................123 in the future .....................................................................122 II. SCOPE OF CONSOLIDATION .....................................................125 6. Consolidation principles and methods .............................125 7. Changes in the scope of consolidation .............................125 III. SEGMENT REPORTING .............................................................127 IV. NOTES TO THE CONSOLIDATED INCOME STATEMENT ..............129 8. Revenue ..........................................................................129 9. Cost of sales ....................................................................129 10. Selling and racing expenses .............................................130 11. Research and development expenses ..............................130 12. Administrative expenses ..................................................130 13. Other operating expenses ................................................ 131 14. Other operating income .................................................... 131 15. Earnings from at-equity holdings ..................................... 131 16. Financial and investment income.....................................132 17. Income taxes ....................................................................132 18. Earnings per share and proposal on the appropriation of earnings .................................................133 19. Expenses for the auditor of the financial statements .......133 20. Employees ........................................................................134 V. NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION ...............................................................134 21. Goodwill ...........................................................................134 22. Intangible assets .............................................................135 23. Property, plant and equipment .........................................137 24. Investments accounted for using the equity method .......139 25. Deferred tax assets ..........................................................140 26. Other non-current assets ................................................. 142 27. Inventories .......................................................................142 28. Trade receivables .............................................................143 29. Current receivables and other assets ..............................143 30. Cash and cash equivalents ..............................................144 31. Consolidated equity .........................................................144 32. Financial liabilities ...........................................................146 33. Liabilities for employee benefits ...................................... 147 34. Other current and non-current liabilities and trade payables ................................................................. 149 35. Provisions ........................................................................150

122 income statement, the grant is recognized by means of a reduced depreciable amount over the useful life of the asset. The effect on equity as of January 1, 2020 can be seen in the equity reconciliation. An adjustment was only made for the current year, as it was not feasible to determine the adjustment amounts for prior periods due to the lack of data available to do this. 3 . N E W LY A P P L I E D S TA N D A R D S A N D I N T E R P R E TAT I O N S The table below shows the standards and interpretations mandatorily applied for the first time that had also already been endorsed by the European Commission as of 12/31/2020: First-time application January 1st 2020 New or amended standards and interpretations Amendments to IAS 1 and IAS 8 – Definition of materiality Amendments to the references to the conceptual framework for financial reporting Amendments to IFRS 9, IAS 39 and IFRS 7 – Interest rate benchmark reform Amendments to IFRS 3 - Definition of a business First-time application June 1st 2020 New or amended standards and interpretations IFRS 16 COVID 19-Related Rent Concessions Published by the IASB October 31st 2018 March 29th 2018 September 26th 2019 October 22nd 2018 Published by the IASB May 28th 2020 All amended standards and interpretations are either not relevant to the PIERER Mobility Group or have no material impact. 4 . S TA N D A R D S A N D I N T E R P R E TAT I O N S T O B E A P P L I E D I N T H E F U T U R E The table below shows the changes to standards and interpretations which have already been endorsed by the European Commission, but the appli- cation of which was not yet mandatory as of the reporting date and which were also not applied ahead of schedule: First-time application January 1st 2021 New or amended standards and interpretations Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 – Interest rate benchmark reform phase 2 Published by the IASB August 27th 2020 Amendments to IFRS 4 – Extension of the temporary exemption from IFRS 9 November 21st 2012 The IASB and the IFRIC have passed further standards and interpretations, application of which was not mandatory during the 2020 financial year and/or which have not yet been endorsed by the European Commission. These are the following standards and interpretations: New or amended standards and interpretations IFRS 17 Insurance Contracts Amendments to IFRS 17 and extension of the temporary exemption from the application of IFRS 9 (amendments to IFRS 4) Amendments to IFRS 3 – References to the framework concept IAS 1 – Classification of liabilities as current or non-current Amendments to IAS 16 Property, Plant and Equipment - Revenue before intended use Date of appli- cation of IASB January 1st 2023 Published by the IASB May 18th 2017 January 1st 2023 June 25th 2020 January 1st 2022 May 14th 2020 January 1st 2023 January 23rd 2020 January 1st 2022 May 14th 2020 Amendments to IAS 37 Onerous Contracts – Settlement costs of contracts January 1st 2022 May 14th 2020 Improvements to IFRS 2018 – 2020 Amendments to IFRS 1, IFRS 9, IFRS 16 and IAS 41 January 1st 2022 May 14th 2020 EU-Endorsement? No No No No No No No The PIERER Mobility Group assumes that there will be no material effects on the consolidated financial statements due to the standards to be applied in the future.

124 Development costs Development costs are capitalized in accordance with the accounting policies described above. The initial capitalization of costs is based on as- sumptions made by the management to estimate the future economic benefit of the expenses incurred and the technical feasibility of the developed product or process as well as its marketability. IMPACT OF THE COVID-19 PANDEMIC Going concern: In preparing the consolidated financial statements, management is responsible for assessing the company's ability to continue as a going concern. In the opinion of the management of PIERER Mobility AG and taking into account all available information about the future, which covers at least twelve months after the end of the reporting period, there are no indications to deviate from the assumption of a going concern. Although the out- break of the COVID-19 crisis has had and is having a negative impact on the group's business operations for PIERER Mobility AG (especially during the 1st half of 2020), thanks to a secured liquidity and equity situation (liquid funds according to the statement of cash flows of EURk 218,270 and equity as of 12/31/2020 of EURk 654,119), management has made the assessment that there are no uncertainties regarding the business as a going concern. Individual estimates: From an accounting and valuation perspective, COVID-19 may impact many areas of the consolidated financial statements of PIERER Mobility AG or increase estimation uncertainties and make it more difficult to make judgments. The following points are particularly affected: Impact on the recoverability of goodwill and intangible assets of indeterminate useful life: The COVID-19 pandemic is a potential trigger for examining the need for impairment losses and for performing impairment tests. In this regard, see Note 21 Goodwill. Potential impact on lease accounting: There were no changes to the terms or other components of the contract, which is why the relief option under IFRS 16 was not exercised. Possible increase in bad debt losses due to the COVID-19 crisis: Due to the positive development of the retail market, no significant impairment losses are expected. The assumptions used to calculate the default risk of trade receivables and other assets not impaired by creditworthiness (expected credit loss) were checked. There is also an ongoing review of the creditworthiness of customers and collateral is required. See also Chapter VIII. “Financial instruments and capital management”. In cash flow hedge accounting, assessments are made regarding the occurrence of future cash flows. The planning of future cash flows has been updated due to changed sales and order volume planning as a result of the COVID-19 pandemic. The slightly changed foreign currency exposures are the basis for currency hedges according to current circumstances.

126 CHANGES IN THE FULLY CONSOLIDATED ENTITIES Additions to the scope of consolidation: With effect from January 1, 2020, KTM Immobilien GmbH acquired 80% of the shares in KTM MOTOHALL GmbH, Mattighofen from PIERER IMMOREAL GmbH, Wels, thus increasing its interest from 10% to 90%. The following assets and liabilities were acquired: EURk Non-current assets Current assets Non-current liabilities Current liabilities Net assets Addition of non-controlling interests Fair value of previously recognized shares Goodwill Consideration Cash and cash equivalents acquired Net cash outflow from the acquisition 41,335 1,351 -16,111 -24,991 1,584 -158 -1,455 110 -80 403 323 The shares previously held were already measured at fair value in accordance with IFRS 9. The goodwill amounting to EURk 110 is based on the earning and synergy potential of the company that, according to IFRS, cannot be assigned to individual items that can be capitalized. The full amount of the goodwill is assigned to the “KTM” cash-generating unit. As part of the company acquisition, fair values for trade receivables amounting to EURk 869 were acquired. The receivables that are likely to be uncollectible must be regarded as immaterial. Within the KTM Group in the current financial year, KTM Racing GmbH, Mattighofen and GASGAS Motorcycles Espana S.L.U. (formerly: Canepa Invest- ments, S.L.), Terrassa, Spain, were also newly founded and fully consolidated. In the E-Bikes segment, Husqvarna E-Bicycles GmbH (now: PIERER E-Bikes GmbH) was newly founded in the first half of the year with effect from February 25, 2020. The restructuring and integration of PEXCO GmbH within the newly founded company PIERER E-Bikes GmbH was completed in 2020. PIERER E-Bikes GmbH is wholly owned directly by PIERER Mobility AG. With effect from April 30, 2020, 100% of the shares in bikes&wheels 2 Radhandels GmbH, Wels (formerly: (4) SPORTS Gesellschaft mbH, Wels) were acquired by PIERER E-Bikes GmbH. The following assets and liabilities were acquired: EURk Non-current assets Current assets Non-current liabilities Current liabilities Net assets Goodwill Consideration Cash and cash equivalents acquired Net cash outflow from the acquisition 221 1,016 -720 -1,039 -522 569 -48 15 -33

128 None of the segments are reliant on external customers as defined in IFRS 8.34. Trade between the segments takes place under the usual market con- ditions. The segment key performance indicator EBIT represents operating earnings before financial results and income taxes. The investments relate to additions from property, plant and equipment and intangible assets (excluding lease additions in accordance with IFRS 16). The earnings accounted for using the equity method are included in the EBIT pursuant to the structure of the consolidated income statement. Working capital employed corre- sponds to the sum of inventories and trade receivables less trade payables as of the reporting date. Net debt corresponds to the sum of current and non-current financial liabilities (including lease liabilities) less cash as of the reporting date. Segment information for the financial year 2020 and financial year 2019 can be divided into the described segments as follows: 2020 EURk Revenues (including revenues within the segments) External revenues Result from operating activities Investments Depreciation and amortization Motorcycles 1,413,978 1,413,959 105,304 147,949 -120,357 E-Bikes 112,497 112,424 2,216 1,513 -4,333 Other Consolidation TOTAL 36,141 3,999 -179 718 -1,599 -32,234 0 -100 1,530,382 1,530,382 107,241 0 0 150,180 -126,289 Share in the result of companies accounted for using the equity method -1,359 0 0 179 -1,180 Balance sheet total Equity Working capital employed Net debt 2019 EURk Revenues (including revenues within the segments) External revenues Result from operating activities Investments 1) Depreciation and amortization 1,561,592 102,505 634,969 173,982 -281,786 Motorcycles 1,512,879 1,512,805 121,293 147,919 107,677 32,810 4,299 -3,347 E-Bikes 0 0 8,743 0 0 Share in the result of companies accounted for using the equity method -718 -1,616 0 850 Balance sheet total Equity Working capital employed Net debt 1,492,212 605,913 244,447 -333,451 81,139 15,311 27,603 -23,997 289,378 237,679 1,805 -38,957 -248,837 -240,270 355 602 1) From 2020 onward, current lease additions are not included. The previous year's figures have been adjusted to improve comparability. 296,378 246,213 -460 -34,738 -274,441 -259,873 3,711 7,458 1,686,034 654,119 181,532 -312,413 Other Consolidation TOTAL 35,717 7,330 991 1,004 1,410 -28,461 0 679 0 0 1,520,135 1,520,135 131,706 148,923 109,087 -1,484 1,613,892 618,633 274,210 -395,803

130 10 . S E L L I N G A N D R A C I N G E X P E N S E S The Group’s selling and racing expenses are composed of the following: EURk Cost of materials and purchased services Personnel expenses Depreciation/amortization of property, plant and equipment and other intangible assets Other operating expenses Sponsorship money and other operating income 11. R E S E A R C H A N D D E V E L O P M E N T E X P E N S E S The Group’s research and development expenses are composed of the following: EURk Cost of materials and purchased services Personnel expenses Depreciation/amortization of property, plant and equipment and other intangible assets Other operating expenses Subsidies and other operating income 2020 2019 33,291 73,282 10,188 106,633 -31,178 192,216 34,417 74,490 8,479 131,681 -34,174 214,893 2020 2019 4,432 24,238 8,008 966 -14,253 23,391 8,426 24,138 6,985 388 -16,247 23,690 Expenses disclosed under research and development expenses comprise research costs and non-capitalizable development costs. Personnel expenses before the effects of capitalizing development costs were EURk 61,614 (previous year: EURk 62,758). The research and development expenses (before capitalizing development costs) totaled EURk 137,713 (previous year: EURk 138,520) and therefore 9.0% (previous year: 9.1%) of revenue. 12 . A D M I N I S T R AT I V E E X P E N S E S The Group’s administrative expenses are composed of the following: EURk Cost of materials and purchased services Personnel expenses Depreciation/amortization of property, plant and equipment and other intangible assets Other operating expenses Other operating income 2020 1,571 45,911 29,026 28,199 -2,062 102,645 2019 7,248 40,494 23,414 14,556 -1,504 84,208

132 16 . F I N A N C I A L A N D I N V E S T M E N T I N C O M E The Group’s financial and investment income is composed of the following: EURk Interest income Interest expenses Other financial and investment income (expenses) The Group’s other financial and investment income is composed of the following: EURk Foreign exchange valuation of bank deposits Cost of hedging Valuation interest swap Impairment of non-current financial assets Gain / Loss from the disposal of non-consolidated subsidiaries 17. I N C O M E TA X E S The group’s income tax expense and income tax income are attributable to current taxes and deferred taxes as follows: EURk Current tax Deferred tax 2020 2019 1,629 -15,213 -2,833 -16,417 2020 -2,158 83 -262 -494 -2 -2,833 3,026 -16,974 78 -13,870 2019 40 -50 0 0 88 78 2020 2019 -11,824 -9,545 -21,369 -8,671 -13,453 -22,124 The income taxes shown are the taxes on income and earnings paid and/or owed in the individual countries as well as the deferred taxes. The Austrian companies of the PIERER Mobility Group are subject to a corporate income tax rate of 25.0%. The calculation of foreign income taxes is based on the laws and regulations that are in force or have been adopted in the individual countries. The income tax rates applicable to foreign entities vary from 9.0 % to 37.8%. The expected tax expense for the financial year (derived from applying the group tax rate of 25.0% to the profit before tax) and the actual tax expense disclosed are reconciled as follows:

134 2 0 . E M P L O Y E E S Employee numbers as stated include agency and external staff: Balance as of 1/1/2020 Changes during the financial year Balance as of 12/31/2020 4,368 218 4,586 As at 12/31/2020, 2,158 white-collar employees (previous year: 2,439) and 2,428 manual workers (previous year: 1,929) were employed. As at 12/31/2020, 3,822 employees (previous year: 3,639) are employed in Austria and 764 (previous year: 729) abroad. On average, the Group employed 4,406 people (previous year: 4,369), of which 2,417 were white-collar employees (previous year: 2,309) and 1,989 manual workers (previous year: 2,061). During the 2020 financial year, total personnel expenses before the effects of capitalizing development costs were EURk 264,910 (previous year: EURk 277,189). V. N O T E S T O T H E C O N S O L I D AT E D S TAT E M E N T O F F I N A N C I A L P O S I T I O N 21. G O O D W I L L Goodwill is tested for impairment once a year and when there are indications of impairment in accordance with IAS 36. The Group determines the recoverable amount fundamentally on the basis of the value in use, which represents the present value of the expected future cash flows before tax. The impairment tests of the cash-generating units (CGUs) “KTM” and “PIERER E-Bikes (formerly: PEXCO)” were prepared on the basis of a five-year cash flow plan. This is the basis for the approved budget and the latest medium-term planning. Management has also taken into account the expected impact of the COVID-19 pandemic. Beyond the detailed planning horizon, the cash flows for the final financial period planned in detail are used as the basis for calculating a perpetuity value, with a growth rate of 1% being applied to the discount rate. The discount rate used was a weighted average cost of capital (WACC) before taxes of 9.6% (previous year: 9.2%) for “KTM” and 9.4% for “PIERER E-Bikes”. The calculation was based on externally available capital market data. Medium-term planning is based on internal assumptions concerning the future development of sales, prices, and costs, the future development of new markets, and the composition of the product mix. The assumptions are based mainly on the wealth of experience gained over many years and management assessments. All other conditions being equal, for the “KTM” cash-generating unit any increase in input tax for WACC to 13.8% (previous year: 12.9%) or decline in budgeted future EBITs by 29.8% (previous year: 29.3%) would result in the carrying amount of the CGU corresponding to the recoverable amount. All other conditions being equal, for the “PIERER E-Bikes” cash-generating unit any increase in input tax for WACC to 25.3% or decline in budgeted future EBIT by 63.2% would result in the carrying amount of the CGU corresponding to the recoverable amount. In the previous year, the E-Bikes division (PEXCO) was acquired as of 12/23/2019. Due to the proximity of the acquisition to the reporting date, the recoverable amount as of 12/31/2019 was determined on the basis of the purchase price (= fair value) and was higher than the carrying amount. The breakdown of goodwill and its development and division between the respective CGUs is as follows: EURk Acquisition and production costs: Balance as of 01/01 Changes in the scope of consolidation Currency translation Balance as of 12/31 2020 2019 150,289 679 27 150,995 116,141 33,931 217 150,289

136 The breakdown of intangible assets and their development over the 2020 financial year as well as over the 2019 financial year are shown in the following tables: EURk Concessions, industrial property rights and similar rights and benefits as well as resulting licenses Customers, Brand values, Develpment cost Advance payments Total Acquisition and production costs: Balance as of 12/31/2019 Adjustment in accordance with IAS 8 (offsetting of research grants) Balance as of 01/01/2020 Additions Disposals Changes in the scope of consolidation Currency translation Transfers Balance as of 12/31/2020 Accumulated depreciation and amortization: Balance as of 01/01/2020 Additions Disposals Changes in the scope of consolidation Currency translation Transfers Balance as of 12/31/2020 Carrying amount: Balance as of 12/31/2020 Balance as of 12/31/2019 EURk Acquisition and production costs: Balance as of 01/01/2019 Additions Disposals Changes in the scope of consolidation Currency translation Transfers Balance as of 12/31/2019 67,293 0 67,293 7,094 0 632 -57 4,946 79,908 37,631 13,016 0 90 -19 0 50,718 29,190 29,662 481,568 -15,232 466,336 106,618 -28,772 0 1 480 544,663 124,750 52,258 -26,279 0 0 0 150,729 5,474 0 5,474 3,517 0 0 0 -5,280 3,711 0 0 0 0 0 0 0 554,335 -15,232 539,103 117,229 -28,772 632 -56 146 628,282 162,381 65,274 -26,279 90 -19 0 201,447 393,934 356,818 3,711 5,474 426,835 391,954 Concessions, industrial property rights and similar rights and benefits as well as resulting licenses Customers, Brand values, Develpment cost Advance payments Total 57,555 6,361 -420 -7 13 3,791 67,293 381,312 98,567 -10,119 11,808 0 0 481,568 4,287 5,127 0 0 -4 -3,936 5,474 443,154 110,055 -10,539 11,801 9 -145 554,335

138 The useful lives of the right-of-use assets (IFRS 16) reported under property, plant and equipment from 1/1/2019 onward are between 3 and 10 years. The tables below provide a breakdown of property, plant, and equipment along with movements during the 2020 and 2019 financial years: Real Estate Buildings Technical plant and machinery Operational and business equipment Advance payments and investments in construction EURk Acquisition and production costs: Balance as of 01/01/2020 Additions Disposals Changes in the scope of consolidation Currency translation Transfers Balance as of 12/31/2020 Accumulated depreciation and amortization: Balance as of 01/01/2020 Additions Disposals Changes in the scope of consolidation Currency translation Transfers Balance as of 12/31/2020 Carrying amount: Balance as of 12/31/2020 Balance as of 12/31/2019 EURk Acquisition and production costs: Balance as of 01/01/2019 Additions from first-time application of IFRS 16 Additions Disposals Changes in the scope of consolidation Currency translation Transfers 17,445 6,720 0 -513 0 1 -557 183,533 226,875 22,087 4,477 -2,184 5,527 445 -93 1,853 25,411 -1,154 -2,631 7 5,748 92,601 8,205 16,529 -2,771 2,034 265 6,644 13,739 0 8,448 0 -293 13 -11,597 23,096 2,208 0 1,426 -10 0 26,720 176 164 0 0 -2 0 338 213,792 10,067 -473 33,856 -1,665 132 255,709 49,897 13,895 -108 511 -663 0 63,532 256,109 22,357 -1,020 130 -11 8,526 286,091 178,158 27,063 -798 10 -7 0 204,426 26,382 22,920 192,177 163,895 81,665 77,951 123,507 13,063 -3,518 6,577 -1,238 546 138,937 72,086 19,893 -2,801 454 -992 0 88,640 50,297 51,421 10,310 4,740 -3 0 0 -9,349 5,698 0 0 0 0 0 0 0 5,698 10,310 356,219 326,497 Real Estate Buildings Technical plant and machinery Operational and business equipment Advance payments and investments in construction Total 626,814 52,435 -5,014 41,989 -2,924 -145 713,155 300,317 61,015 -3,707 975 -1,664 0 356,936 Total 534,193 38,865 54,865 -6,622 4,637 731 145

140 integrated shop of the future. Movements in the carrying amounts of the investments accounted for using the equity method were as follows in the financial year: EURk Book value of investments on 1/1 Acquisition of holdings Consolidation changes (successive acquisition) Disposal of holdings Proportionate net income Change in disclosure (simple participation) Other comprehensive income Dividend Other Book value of investments on 12/31 2 5 . D E F E R R E D TA X A S S E T S 2020 13,628 1,514 0 0 -1,180 0 -100 -606 -4 13,252 2019 26,138 0 -3,699 -5,621 -1,484 -1,455 -31 -997 777 13,628 Deferred tax assets relating to tax loss carryforwards are recognized insofar as they can be realized within a reasonable period. Deferred tax assets and deferred tax liabilities are reported on a net basis if they are subject to the same tax jurisdiction and are of a similar duration. Deferred tax items for differences between the tax base of fully consolidated interests or interests measured at equity and the corresponding consolidated equity are recognized only if realization is probable within the foreseeable future. Total deferred tax assets and deferred tax liabilities were calculated from the following statement of financial position items: EURk Deferred tax assets: Current assets: Inventories Non-current assets: Fixed assets Loss carryforwards Employee benefits Provisions Liabilities Offsetting Deferred tax liabilities: Currents assets Non-current assets Other Offsetting 12/31/2020 12/31/2019 5,365 1,656 7,721 4,114 3,406 3,896 26,158 -14,640 11,518 -981 -100,540 -59 -101,580 14,640 -86,940 8,075 547 5,688 4,525 3,125 1,087 23,047 -13,047 10,000 -641 -91,807 -63 -92,511 13,047 -79,464

142 Others in the amount of EURk 1,707 (previous year: EURk 2,276) relate to a future tax benefit from the liquidation loss of WP Suspension B.V. This can be claimed spread over seven years from the liquidation date. Furthermore, there are deferred tax assets on loss carryforwards of the KTM Group in the amount of EURk 4,405 (previous year: EURk 0) and of the PIERER E-Bikes Group of EURk 8,397 (previous year: EURk 11,579). Deductible temporary differences and unused tax losses (including outstanding sevenths of write-downs to going concern value) for which deferred tax assets were not capitalized amount to EURk 68,529 (previous year: EURk 67,474). Value adjustment to loss carryforwards and temporary differen- ces have been carried out to the extent to which a medium-term realization of deferred tax assets cannot be assumed with sufficient certainty from today’s perspective. 2 6 . O T H E R N O N - C U R R E N T A S S E T S EURk Receivables from financing activities Lease receivables from subleases Other 12/31/2020 12/31/2019 1,885 590 662 3,137 2,452 880 2,138 5,470 Other non-current assets include, among other things, the equity holding in AC styria Mobilitätscluster GmbH, which is measured at fair value under other comprehensive income. The previous year still included the carrying amount of the investment in KTM MOTOHALL GmbH, which is fully consoli- dated from 2020. Other also includes the capitalization of a beneficial contract from the 2019 financial year in connection with the deconsolidation of KTM Components (Dalian) Co., Ltd., Dalian, China. 27. I N V E N T O R I E S The Group uses a cost averaging as the method of subsequent consumption. In addition, if the use of inventories is restricted, a write-down based on an analysis of coverage is recorded. The economic value of existing inventories is also reviewed on a case-by-case basis and additional allowances are made as required for slow-moving items or items with limited possibilities of sale. Inventories are represented as follows: EURk Raw materials, auxiliary materials and operating materials Unfinished products Finished products and goods EURk Gross inventory level - Allowances Net inventory level 12/31/2020 12/31/2019 67,813 27,677 203,254 298,744 66,714 30,063 224,865 321,642 12/31/2020 12/31/2019 327,347 -28,603 298,744 346,074 -24,432 321,642 The carrying amount of inventories recognized at the lower net realizable value amounts to EURk 61,076 (previous year: EURk 67,939).

144 3 0 . C A S H A N D C A S H E Q U I VA L E N T S Cash and cash equivalents include cash on hand and in banks, checks, and time deposits with a fixed term of not more than three months (calculated from acquisition date) and are measured at their fair value as of the reporting date. For further details on changes in the cash status please see the information on the statement of cash flows in Chapter VI of the Notes to the Consolidated Financial Statements. 31. C O N S O L I D AT E D E Q U I T Y Movements in the consolidated equity in the 2020 and 2019 financial years are presented on page 118. The share capital of the company amounts to EUR 22,538,674 and is divided into 22,538,674 bearer shares of no par value, each of which represents an equal equity holding in the share capital. The shares grant the rights that are usually due to stockholders under the Austrian Stock Corporation Act. These include the right to payout of the dividend resolved upon at the Annual General Meeting as well as the right to vote at the Annual General Meeting. All shares have been paid up in full. The share capital shown in the consolidated financial statements is equal to the figure reported in the separate financial statements of PIERER Mobility AG. In the current financial year, 116,028 treasury shares were purchased and 30,703 treasury shares were sold. In total, PIERER Mobility AG holds 193,340 treasury shares as of December 31, 2020. On the reporting date, the reserve for treasury shares amounted to EURk -8,447 (previous year: EURk -5,220). The reserve pursuant to IFRS 9 comprises the cash flow hedge reserve. The cash flow hedge reserve comprises the effective portion of the cumulative net changes in the fair value of hedging instruments used to hedge cash flows until their subsequent recognition in profit or loss or direct recognition in the costs of acquisition or carrying amount of a non-financial asset or non-financial liability. The hedging costs reserve shows gains and losses on the portion excluded from the designated hedging transaction that relates to the forward element of the forward currency transaction. These are initially recognized as other comprehensive income and accounted for in the same way as gains and losses in the hedging transaction reserve. The development of the cash flow hedge reserve and the reserve for hedging costs is explained in Note 45 “Hedges”. The interests held by non-controlling shareholders include the interests of third parties in the equity of the consolidated subsidiaries. 2020 EURk Percentage of non-controlling interests on reporting date Revenue Profit Other comprehensive income Total comprehensive income Profit assigned to non-controlling interests Other comprehensive income assigned to non-controlling interests Non-current assets Current assets Non-current liabilities Current liabilities Net assets Carrying amount of non-controlling interests KTM AG 48.29% 1,413,978 71,210 -3,292 67,918 34,441 -1,589 861,467 666,745 -536,004 -384,868 607,340 293,423 Other Total 116,404 -1,755 -1,379 -3,134 103 0 80,528 77,294 -45,425 -65,618 46,779 441 1,530,382 69,455 -4,671 64,784 34,544 -1,589 941,995 744,039 -581,429 -450,486 654,119 293,864

146 Movements in other earnings after tax within consolidated equity were as follows: EURk 2020 Currency translation differences Cash flow hedge Revaluation of net debt from defined benefit plans 2019 Currency translation differences Cash flow hedge Revaluation of net debt from defined benefit plans Provision as per IFRS 9 Reserves including total earnings Foreign curren- cy translation reserve Total Interests non-controlling shareholders Total consolidated equity 0 -1,215 0 -1,215 0 -274 0 -274 0 0 352 352 0 0 -1,065 -1,065 -2,219 0 0 -2,219 515 0 0 515 -2,219 -1,215 352 -3,082 515 -274 -1,065 -824 -2,057 139 329 -1,589 492 -371 -995 -874 -4,276 -1,076 681 -4,671 1,007 -645 -2,060 -1,698 3 2 . F I N A N C I A L L I A B I L I T I E S EURk Promissory note loans Registered bond Liabilities owed to credit institutions Liabilities from factoring program between group companies Liabilities from supplier finance program between group companies Lease liabilities Other interest-bearing liabilities Total financial liabilities EURk Promissory note loans Registered bond Liabilities owed to credit institutions Liabilities from factoring program between group companies Lease liabilities Other interest-bearing liabilities Total financial liabilities 12/31/2020 12/31/2020 12/31/2020 12/31/2020 Nominal Carrying amount Term < 1 year Term > 1 year 228,500 30,000 201,471 3,669 228,067 30,000 201,471 3,669 3,317 3,317 61,727 2,432 531,116 61,727 2,432 530,683 3,500 0 42,185 3,669 3,317 19,491 2,432 74,594 224,567 30,000 159,286 0 0 42,236 0 456,089 12/31/2019 12/31/2019 12/31/2019 12/31/2019 Nominal Carrying amount Term < 1 year Term > 1 year 234,500 30,000 223,247 4,839 62,132 2,479 557,197 233,970 30,000 223,247 4,839 62,132 2,479 556,667 6,000 0 56,454 4,839 16,586 2,479 86,358 227,970 30,000 166,793 0 45,546 0 470,309

148 The actuarial gain/loss is made up of the following factors: EURk Change in expected values Change in demographic assumptions Change in financial assumptions Actuarial gain / loss The measurement of the obligation is based on the following assumptions: Discount rate Wage / salary trend Retirement age (years) women/men 12/31/2020 12/31/2019 -807 5 -106 -908 214 10 2,523 2,747 12/31/2020 12/31/2019 0.90% 2.50% 1.10% 2.75% 62 - 65 years 62 - 65 years The discount rate was determined taking into account the average terms and the average remaining lifespans. The discount rate is the market yield on high quality, fixed-interest corporate bonds at the end of the reporting period. Employee turnover is determined on a company-specific basis and takes account of age and length of service. The actuarial measurements are based on country-specific tables of mortality rates. The chosen retirement age is the statutory retirement age in each country. As of 12/31/2020, a change (+/- 0.5 percentage points) to the parameters “discount rate” and “wage/salary trend” would have had the following effects on the present value of the future payments: Parameter Discount rate Wage / salary trend Change -0.50% 6.5% -6.2% Change +0.50% -6.3% 6.3% As of 12/31/2019, a change (+/- 0.5 percentage points) to the parameters “discount rate” and “wage/salary trend” would have had the following effects on the present value of the future payments: Parameter Discount rate Wage / salary trend Change -0.50% 6.9% -6.3% Change +0.50% -6.4% 6.7% The companies of the PIERER Mobility Group are obligated under collective-bargaining agreements to pay their employees in Austria anniversary bonuses upon attaining a certain number of years of service (as from 25 years of service) (defined benefit obligation). The interest result is recognized under “Other financial result”. Movements in obligations relating to claims to anniversary bonuses were as follows:

150 Supplier finance: Companies in the PIERER Mobility Group have entered into a supplier finance program (a revolving facility for the financing of trade payables) with an Austrian credit institution. Suppliers may sell their receivables due from the PIERER Mobility Group to the credit institution prior to maturity. The PIERER Mobility Group is not released from the original obligation and there is no significant change in the terms of the contract as a result of the quantitative and qualitative review. The liabilities continue to be shown under trade payables and are reported in cash flow from operating activities. As of 12/31/2020, trade payables amounting to EURk 119,558 (previous year: EURk 62,986) are covered by this supplier finance program. This repre- sents 45.6% (previous year: 28.3%) of total trade payables as of the reporting date. In addition to suppliers outside the Group, such a program was also concluded between Austrian companies in the PIERER Mobility Group. From the point of view of the PIERER Mobility Group, no exchange of services took place; it merely made use of external financing, which is reported under cur- rent financial liabilities. Cash flows are reported under cash flow from financing activities. As of 12/31/2020, the liabilities from this program totaled EURk 122,875 (previous year: EURk 62,986), of which as of 12/31/2020 in the consolidated financial statements of PIERER Mobility AG the dealings between group companies amounting to EURk 3,317 (previous year: EURk 0) are presented as current financial liabilities. Contingent liabilities: PIERER Mobility AG has issued a guarantee to KGI Bank Co., Ltd., Taiwan, for PEXCO GmbH, Schweinfurt, Germany, for obligations to suppliers up to a maximum amount of EURk 16,299 (previous year: EURk 0). The amount outstanding to suppliers at the reporting date was EURk 7,685. 3 5 . P R O V I S I O N S The group makes provisions relating to guarantees and warranties in relation to known, expectable individual cases. The amounts of expected expen- ses are primarily based on previous experience and are recorded at the time the products are sold as an expense. Estimates of future expenses involve uncertainties, which is why there may be an adjustment of the provision made in the future. It cannot be ruled out that the actual expenses for these measures exceed or fall short of the provision made for those purposes in an unforeseeable way. Movements in the provisions during the financial year were as follows: EURk Balance as of 1/1/2020 Additions Disolutions Utilization Balance as of 12/31/2020 Current provisions Provisions for guarantee and warranty Provisions for legal actions Other provisions 12,448 252 4,257 16,957 14,140 344 822 15,306 -210 0 0 -210 -11,766 0 -2,308 -14,074 14,612 596 2,771 17,979

152 V I I . R I S K R E P O R T 3 6 . R I S K M A N A G E M E N T As a group of companies doing business on a global scale, the PIERER Mobility Group faces a multitude of possible risks that are monitored by means of a comprehensive risk management system. The Executive Board and Supervisory Board are periodically informed about risks that may have a major impact on the Group’s business developments. Management takes timely action to avoid, minimize and hedge risks. An internal control system adapted to the company’s needs and incorporating basic principles such as segregation of duties and dual control has been integrated into the financial reporting process. Internal and external audits ensure that the processes are continually improved and optimized. Further- more, a uniform reporting system is in place throughout the group, for the ongoing management and control of the risk management process. Continuous growth depends on a variety of factors, such as demand behavior, product development, changes in foreign exchange rates, the general economic setting in the individual sales markets, prices of goods purchased from others, or talent management. Increased market research activities and a model policy reflecting the resulting findings are a means of responding to a market environment characterized by rapidly changing situations. The earnings position of PIERER Mobility AG (as an individual company) is characterized by expenses associated with financing, the acquisition of equity holdings and expenses for projects, and is significantly dependent on the dividend policy of its affiliates. The equity holding in the KTM Group is currently the biggest and most essential interest of PIERER Mobility AG. With the successful takeover of the e-bike business of PEXCO GmbH at the end of the previous year, the newly founded parent company of the e-bike segment, PIERER E-Bikes GmbH, forms another operating core holding of the Group. In accordance with the requirements of section 243(c) of the Austrian Commercial Code, a corporate governance report has been drawn up. In this regard, please refer to the publication in the annual report of PIERER Mobility AG and/or to the PIERER Mobility AG website. 37. M A R K E T R I S K S CYCLICAL RISK The KTM Group is primarily active in the motorcycle sector and the PIERER E-Bikes Group in the bicycle sector. Sales opportunities are determined by the general economic situation in the countries and regions in which the PIERER Mobility Group is represented with its products. As past years have shown, the motorcycle industry in particular is a cyclical industry and is subject to strong fluctuations regarding demand. This risk is counteracted by relevant market research and market forecasts, which are then taken into account in the planning process. COMPETITION AND PRICING PRESSURE The market for motorcycles in the industrialized countries in particular is characterized by intense competition; the strongest competitors are four Japanese, three European and, to a lesser extent, one U.S. manufacturer, some of which possess greater financial resources and have higher sales figures and market shares. In addition, the street motorcycle market is characterized by high pricing pressure, and new competitors are trying to enter the market by relying on a low-price strategy. Thanks to the successful market strategy, market leadership has been achieved in Europe. SALES RISK The largest individual sales markets of the PIERER Mobility Group are the European market and the U.S. market. A slump in these markets could have a negative impact on business activities. Entering new markets essentially involves a cost risk as, in some of these markets, the trend of sales as well as the general political conditions are difficult to assess. By collaborating with its strategic partner Bajaj Auto Ltd., Pune, India, joint work continues on the implementation of a global product strategy. Due to the lockdown measures initiated by several governments, numerous dealers were forced to temporarily close their businesses. This resulted in a decline in retail revenue in the first half of the year, particularly in Europe. From May onward, some countries eased the restrictions and thus allowed

154 tion, all technical innovations are moreover subjected to comprehensive testing using the quality management system so as to eliminate as much as possible any technical defects that could have a negative effect on earnings development. PRODUCT LIABILITY RISK In its business environment, the PIERER Mobility Group is also exposed to claims for damages arising as a result of accidents and injuries. This ap- plies especially to the U.S., where claims asserted in product liability cases involve higher amounts of liability. Appropriate insurance has been taken out to hedge these risks. 3 9. I T R I S K S Within the PIERER Mobility Group, an IT security and risk management system is operated with the aim of making it possible to recognize and manage company-relevant risks in the area of information security. In addition, evidence of compliance and the exercising of due diligence when handling and using information and equipment for the processing of information is provided and documented in respect of customers, the Executive Board and the general managers of each participating company. The ever-increasing threat of IT and cyber risks is countered through the ongoing development of IT security measures and the use of state-of-the- art IT security technologies. Cyber attacks are averted using a multi-level technical concept, which makes use of state-of-the-art security features, such as intrusion prevention systems and additional upstream or internal technical security systems. In addition, behavior-based security solutions are used with a view to identifying security-related abuse. Incidents are identified and handled by a malware incident response process. In parallel, regular internal and external vulnerability analyses are performed and any vulnerabilities identified are countered by means of an established patch and update management process. Regular internal and external security audits are documented in risk management, any findings are evaluated and prioritized, and a solution is then applied. Care is taken to ensure that all users of IT systems possess the requisite knowledge and awareness for the use of IT within the scope of their role through the provision of regular general IT security awareness training. This training is provided in a preventative and traceable manner. Due to the COVID-19 pandemic, it became necessary at short notice for a large number of employees to carry out their activities by working from home. In this situation, the continuous development of the IT infrastructure over the past years paid off. The PIERER Mobility Group was able to respond to these extraordinary challenges and provide employees with a remote workstation quickly and easily. 4 0 . F I N A N C I A L R I S K S The PIERER Mobility Group is subject to credit, market, currency and liquidity risks regarding its assets, liabilities and planned transactions. Financial risk management is aimed at controlling and limiting those risks. The Executive Board and the Supervisory Board are informed on a regular basis about risks that can have a major impact on the group’s business developments. The principles of financial risk management are laid down and monitored by the Supervisory Board and the Executive Board. Group Treasury is responsible for their implementation. To protect itself against the financial risks described below, the PIERER Mobility Group uses derivative financial instruments in order to safely hedge cash flows from operating activities against fluctuations in exchange rates and/or interest rates. The hedging horizon generally covers currently open items and any transactions planned for the next twelve to eighteen months. In exceptional cases, strategic hedge positions involving longer time periods may be entered into in consultation with the Supervisory Board. CURRENCY RISKS As an enterprise doing business on a global scale, the PIERER Mobility Group is influenced by general global economic data such as changes in currency parities or developments in the financial markets. As the US dollar represents the highest individual foreign currency risk faced by KTM, mo- vements in the US dollar exchange rate are of particular importance to the development of revenue and income. The KTM Group earned approximately 27% of its revenues in US dollars during the 2020 financial year (previous year: 25%). Currency hedging measures, in particular hedging strategies, can largely offset these currency shifts over at least one model year.

156 level have on profit or loss (after tax) and equity. The relevant balances as of the reporting date were used as a basis. It was assumed that the risk faced on the reporting date essentially represents the risk present during the financial year. The group tax rate of 25% was used as the tax rate. Furthermore, it was assumed in the analysis that all other variables, in particular the exchange rates, remained constant. The main causes of ineffectiveness in interest rate hedges are: the impact of counterparty and group credit risk on the fair value of the interest rate derivatives that are not reflected in the change in fair value of hedged cash flows attributable to changes in the interest rates differences in interest rate adjustment dates between the derivatives and the hedged items A sensitivity analysis was performed on interest rate risk. A change of 50 basis points would have the following effects on profit or loss, other compre- hensive income and equity: Increase (+) / Decrease (-) EURk Change in net result Change in currency-related cash flow hedge provisions Change in equity Increase by 50 BP 12/31/2019 12/31/2020 -960 -1,804 -2,764 Decrease by 50 BP 12/31/2020 12/31/2019 263 1,711 1,974 422 14 436 -880 -14 -894 In connection with the IBOR reform, Group Treasury conducted a review of how the affected reference interest rates are used in the financial instru- ments utilized. With regard to existing financial instruments, Group Treasury is in close consultation with business partners and is actively monitoring the development of industry-standard reference interest rates and standards in order to be able to make adjustments. Fallback clauses have been agreed for contracts and financial instruments that were concluded in the last six months and for which the reference interest rates in question apply. These clauses regulate how the reference interest rate can be substituted if it is temporarily or permanently unavailable. DEFAULT RISKS (CREDIT OR CREDITWORTHINESS RISKS) The default risk is the risk of financial losses if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The default risk generally arises from trade receivables. On the assets side, the carrying amounts reported also represent the maximum default risk. In addition, there are no general set-off agreements, with the exception of the set-off agreement described in the annex under Note 44 of the notes to the consolidated financial statements. Trade receivables The default risk on receivables from customers can be rated as low, as ongoing checks of the creditworthiness of new and existing customers are performed and collateral is requested. Risk management carries out an analysis and assessment of new customers. They are first analyzed individually with regard to their creditworthiness, and standardized Group-wide contracts are concluded with customers. The analysis includes external ratings, where available, as well as annual fi- nancial statements, information from credit agencies, and bank information. Sales limits are set for each customer and reviewed on an ongoing basis. All sales exceeding these limits require the approval of the risk management department. Default risks are largely hedged by means of credit insurance and bankable security (guarantees, letters of credit). The default risks and related con- trols are defined in internal guidelines. There are largely long-standing business relationships with dealers and importers. By continuously monitoring the default risk and the creditworthiness of customers, each receivable is individually reviewed to ascertain the need for a value adjustment.

158 Cash and cash equivalents, other assets and derivatives Credit losses on cash and cash equivalents are generally calculated using the same method as for debt instruments. Given the short-term nature of these items and the good rating of the banks, the Group assumes that these portfolios are financial instruments with a low default risk and that the expected losses are negligible. Likewise, the default risk for other financial instruments is to be regarded as low, as the counterparties are obligors of optimum creditworthiness. The default risk on derivative financial instruments with positive market value is limited to their replacement cost; as all the counterparties are banks of good creditworthiness, the default risk can be classified as low. There are no indications of any additional impairment loss requirements for financial assets. LIQUIDITY RISKS It is a material objective of financial risk management in the PIERER Mobility Group to ensure solvency and financial flexibility at all times. Factors contributing to liquidity risks include, in particular, proceeds from revenues being below the planning assumptions due to weaker demand. For this purpose, the group maintains a liquidity reserve in the form of unused credit lines (cash credits and guarantee credits) and, if needed, in the form of cash in banks with good creditworthiness. Top priority is given to ensuring liquidity over the short and medium-term. Another major control parameter is the maximization of free cash flow by cost-cutting measures, proactive working capital management and reduced investment expenditure. From today’s perspective, sufficient commitments have been given concerning the creditworthiness of our strategic financing partners and therefore the se- curity of current liquidity reserves. Non-current liquidity requirements are met by the issuance of promissory note loans and by taking out bank loans.

160 EURk Carrying amount 12/31/2019 Cash flow 2020 Fixed interest Variable interest Repay- ment Cash flow 2021 to 2024 Fixed interest Variable interest Repay- ment Cash flow from 2025 Fixed interest Variable interest Repay- ment Financial liabilities measured at fair value Fair value - hedging instruments Other financial liabilities - deriva- tives with negative market value that have already been assigned to receivables Other financial liabilities - deriva- tives with negative market value (cash flow hedge) 312 0 1,598 102 Total 1,910 102 0 0 0 312 1,402 1,714 0 63 63 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Financial liabilities not measured at fair value At amortized cost Interest-bearing liabilities Lease liabilites Trade payables Other financial liabilities (current and non-current) Total Total 494,535 5,401 1,406 69,772 15,342 3,017 100,328 10,400 2,664 324,437 62,132 222,628 38,124 817,419 819,329 0 0 0 868 16,586 0 222,628 0 38,124 0 0 0 1,764 35,530 0 0 0 0 0 0 0 3,565 10,016 0 0 0 0 5,401 5,503 2,274 2,274 347,110 348,824 15,342 15,405 4,781 4,781 135,858 135,858 10,400 10,400 6,229 6,229 334,453 334,453 The table includes all financial instruments that were held at the reporting date and for which payments had already been contractually agreed. Budget figures for future new financial liabilities are not included. Ongoing working capital loans were assumed to have an average term to maturity of 12 months; however, these loans are regularly renewed and, from an economic point of view, are available for a longer period of time. Foreign exchange balances were converted using the closing rate. Variable interest payments from the financial instruments were determined on the basis of the last interest rate that was set before the reporting date. Financial liabilities repayable at any time are always assigned to the earliest maturity band. Liabilities covered by the supplier finance program are paid at their respective due dates. The related cash outflows are taken into account in the liquidity planning. The supplier finance program leads to a concentration of risk. The number of suppliers is replaced by focusing on one creditor bank. If this creditor bank were to terminate the supplier finance agreement, this would basically result in an additional liquidity risk, which, however, is of minor importance due to almost identical supplier payment targets. As cited in note 34, this relates to 45.6% trade payables at the reporting date. The concentration risk is therefore considered to be low.

162 V I I I . F I N A N C I A L I N S T R U M E N T S A N D C A P I TA L M A N A G E M E N T 4 2 . B A S I C P R I N C I P L E S The PIERER Mobility Group holds primary and derivative financial instruments. Primary financial instruments mainly include trade receivables, credit balances with credit institutions, liabilities owed to credit institutions, trade payables, and financial liabilities. The portfolio of primary financial inst- ruments is shown in the consolidated statement of financial position and described in the notes to the consolidated financial statements. Derivative financial instruments are generally used to hedge existing risks relating to interest rate changes and foreign currency. The use of derivative financial instruments is subject to appropriate authorization and control procedures in the group. Linkage to a hedged item is mandatory; trading transactions are not permitted. Purchases and sales of all financial instruments are recognized as of the settlement date. As a matter of principle, financial instruments are mea- sured at cost of acquisition upon initial recognition. The financial instruments are derecognized if the rights to payments from the investment have expired or have been transferred and the group has essentially transferred all the risks and opportunities associated with their ownership. ACCOUNTING POLICIES: Categorization will take place in connection with the contractual cash flows and the business models on which they are based. In this regard, the follo- wing measurement categories are provided by IFRS 9: AC category: At amortized cost using the effective interest method FVOCI category: At fair value, changes to the fair value are recorded under other comprehensive income FVPL category: At fair value, changes to the fair value are recorded in the income statement In the case of equity instruments (such as shares in companies not listed on the stock exchange), the FVOCI option can be exercised. This will lead to changes in the fair value being recorded under other comprehensive income, meaning that it will no longer be possible to regroup the changes to fair value accumulated under other comprehensive income in the income statement. Insofar as this option is not exercised, these will be assigned to the FVPL category, under which all changes to the fair value will be recorded in the income statement. Receivables and other assets upon initial recognition are measured at fair value and in subsequent periods are measured at amortized cost of acqui- sition. Foreign currency receivables are translated at the closing rate, less any impairment charges required on account of identifiable risks. Financial receivables are classified as “At amortized cost” and measured at amortized cost of acquisition. That portion of trade receivables that is part of the ABS or factoring program is allocated to the category “Fair Value through Profit and Loss” (FVPL). Financial liabilities are measured at amortized cost of acquisition. Financial liabilities are classified as “At amortized cost”. Any difference between the amount received and the amount repayable is apportioned over the period to maturity using the effective interest method and recognized in financial result. Issuing costs incurred in connection with bonds are recognized as an expense over the time to maturity. Liabilities are measured at amortized cost. Liabilities denominated in foreign currencies are translated at the closing rate. All financial instruments in the FVPL category are measured at fair value through profit or loss on the basis of the criteria of IFRS 9 (business model or SPPI test). The fair value option was not exercised. Impairment loss Trade receivables do not exhibit any significant financing components. For that reason, the simplified process for establishing the expected credit loss is used; this involves accounting for all instruments with a risk provision, which is independent of their credit quality, in the amount of the expec- ted losses over the term to maturity. In the case of trade receivables, this amounts to fewer than twelve months and therefore corresponds to the 12-month loss.

164 The table below shows the carrying amounts and fair values of financial assets (financial instrument shown on the assets side), broken down by class and IFRS 9 measurement category. However, it does not provide information on the fair value or measurement level of financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value. EURk Financial assets measured at fair value Other current assets - derivatives with positive market value that have already been assigned to receivables Other current assets - derivatives with positive market value (cash flow hedge) Trade receivables Other financial assets Total Financial assets not measured at fair value Cash and cash equivalents Trade receivables Other financial assets Total Total EURk Financial assets measured at fair value Other current assets - derivatives with positive market value that have already been assigned to receivables Other current assets - derivatives with positive market value (cash flow hedge) Trade receivables Other financial assets Total Financial assets not measured at fair value Cash and cash equivalents Trade receivables Other financial assets Total Total Carrying amount 12/31/2020 Classification under IFRS 9 1,663 532 17,051 1,410 20,656 218,270 127,836 37,718 383,824 404,480 FVPL FVOCI FVPL FVOCI / FVPL AC AC AC Carrying amount 12/31/2019 Classification under IFRS 9 Fair-Value 12/31/2020 1,663 532 17,051 1,410 - - - Fair value 12/31/2019 131 1,422 6,209 2,873 10,635 160,864 168,987 31,172 361,023 371,658 FVPL FVOCI FVPL FVOCI / FVPL 131 1,422 6,209 2,873 AC AC AC - - - Receivables sold in connection with the current ABS and factoring program are fully derecognized in accordance with the rules under IFRS 9. Under the ABS program, trade receivables insured on a revolving monthly basis are sold up to a maximum volume of EURk 250,000 (previous year: EURk 185,000). As of the reporting date, trade receivables of EURk 127,399 (previous year: EURk 149,090) had been sold to third parties. Up to a contractually defined amount, the PIERER Mobility Group continues to bear a risk from credit risk related defaults. As at 12/31/2020, the maximum ensuing risk of loss was EURk 994 (previous year: EURk 1,035). The expected loss is recorded as a liability and expensed at the time of sale. As

166 The table below shows the carrying amounts and fair values of financial liabilities (financial instruments shown on the liabilities side), broken down by class and IFRS 9 measurement category. However, it does not provide information on the fair value or measurement level of financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value. EURk Financial liabilities measured at fair value Fair value - hedging instruments Other financial liabilities - derivatives with negative market value (no hedging relationship) Other financial liabilities - derivatives with negative market value that have already been assigned to receivables Other financial liabilities - derivatives with negative market value (cash flow hedge) Total Carrying amount 12/31/2020 Classification under IFRS 9 Fair-Value 12/31/2020 245 748 2,085 3,078 468,956 61,727 262,099 54,975 847,757 850.835 FVPL FVPL FVOCI AC AC AC AC 245 748 2,085 495,649 - - - Carrying amount 12/31/2019 Classification under IFRS 9 Fair value 12/31/2019 312 1,598 1,910 494,535 62,132 222,628 38,124 817,419 819,329 FVPL FVOCI AC AC AC AC 312 1,598 509,601 - - - Financial liabilities not measured at fair value At amortized cost Interest-bearing liabilities Lease liabilities Trade payables Other financial liabilities (current and non-current) Total Total EURk Financial liabilities measured at fair value Fair value - hedging instruments Other financial liabilities - derivatives with negative market value that have already been assigned to receivables Other financial liabilities - derivatives with negative market value (cash flow hedge) Total Financial liabilities not measured at fair value At amortized cost Interest-bearing liabilities Lease liabilities Trade payables Other financial liabilities (current and non-current) Total Total

168 The net profit or loss from the financial instruments by IFRS 9 measurement category includes net gains/losses, total interest income/expenses and impairment losses and is made up as follows: 2020 EURk From Interest From subsequent measurement to fair value From allowance From disposal income From foreign exchange valuation Net income (total) Financial assets - amortized cost (AC) 1,629 Fair Value through OCI (FVOCI) - equity instruments Fair Value through PL (FVPL) - equity instruments Other financial liabilities - amortized cost (AC) Total 2019 EURk Financial assets - amortized cost (AC) Fair Value through OCI (FVOCI) - equity instruments Fair Value through PL (FVPL) - equity instruments Other financial liabilities - amortized cost (AC) Total 0 0 -14,555 -12,926 From Interest 3,026 70 0 -16,280 -13,184 -1,087 -494 -2,158 0 -2 -262 0 -264 0 0 0 -1,087 0 0 0 -494 -2,110 -2 -262 0 0 0 -2,158 -14,555 -16,929 From subsequent measurement to fair value From allowance From disposal income From foreign exchange valuation Net income (total) 0 0 3 0 3 -790 0 0 0 -790 -100 10 6 0 -84 23 0 0 0 23 2,159 80 9 -16,280 -14,032 Changes in allowances and the derecognition of financial assets (amortized cost) are disclosed in other operating expenses for the relevant overhead areas. The remaining components of the net result are included in financial income and expenses. 4 4 . S E T- O F F O F F I N A N C I A L A S S E T S A N D L I A B I L I T I E S The group enters into set-off agreements with banks in connection with derivatives. Generally, the amounts owed under such agreements by each counterparty on a given day for all outstanding transactions in the same currency are aggregated into a single net amount payable by one party to the other. In certain cases – e.g. when a credit event such as a default occurs – all outstanding transactions under the agreement are terminated, their value as of termination is determined and only a single net amount is payable for settling all transactions. These items are not set off in the statement of financial position, since the net set-off of multiple transactions under the same framework agreements does not generally occur. The tables below show financial assets and liabilities that have actually been offset along with amounts that are subject to a set-off agreement but which have not been offset as they do not fulfill the criteria for set-off prescribed under IFRS.

170 However, the main contractual criteria of the hedged item and the hedging instrument are identical but oppositely structured (“critical terms match”), ensuring an economic context for the hedging relationship. A cash flow hedge is present if variable cash flows from recognized assets and/or liabilities or forecast business transactions that are subject to a market price risk are being hedged. If the requirements for a cash flow hedge are met, the effective portion of the change in the market value of hedging instruments must be recognized directly in consolidated equity. However, it is not recognized in profit or loss until the hedged transaction occurs. Where foreign currency hedges are used, subsequent changes in the market value of the derivatives are recognized in profit or loss. Thereafter, the change in the market value is compared with the value of the foreign currency trade payables or receivables as translated at the closing rate. Any changes in earnings that are caused by the ineffectiveness of derivative financial instruments are recognized in profit or loss in the consolidated income statement. To measure the effectiveness of a currency hedge, the hedged items and the hedging transactions are grouped together in so-called maturity bands according to the hedged risk. The maturity bands should not cover more than one quarter-year. Prospective effectiveness is assessed at the inception of the hedging relationship and reviewed at each measurement date and in the event of a significant change in the circumstances that affect the criteria for assessing effectiveness. In the case of interest rate hedges, prospective effectiveness is measured using a sensitivity analysis and retros- pective effectiveness testing is performed using the dollar offset approach. Derivatives are measured at fair value. The fair value is the market value and is determined using accepted methods of financial mathematics. This determination is based on the market data (interest rate, exchange rate, etc.) prevailing on the reporting date. The forward rate applicable on the reporting date is used for measuring forward currency transactions. In the case of positive market values, the creditworthiness of the counterparty is included in the measurement by means of a credit value adjustment (CVA). In the case of negative market values, a debit value adjustment (DVA) is deducted in order to account for the proprietary default risk. Special models are used to estimate the measurement. They are checked for plausibility by means of bank valuations. The Group only recognizes changes in the spot rate component of forward currency transactions as a hedging instrument in cash flow hedges. The change in the forward component is accounted for separately as cost of hedges and transferred to a reserve for hedging costs (cost of hedges) in equity or reclassified to the income statement if the hedged item affects profit or loss (financial result). The following derivative financial instruments used as hedging instruments are employed as of 12/31/2020 or 12/31/2019: 12/31/2020 Forward currency transactions Currency Notional amount in 1000 local currency 20,000 USD Market values in EURk 1,999 Exposures in EURk Term up to 1 year 117,755 20,000 Average foreign ex- change rate 1.09 Term 1- 5 years - JPY CAD GBP CHF AUD NZD PLN ZAR CNY 4,266,000 0 17,000 8,200 50,000 8,000 0 0 0 -840 0 168 25 -745 -60 0 0 0 -7,354 4,266,000 123.47 40,884 78,226 22,224 95,173 12,248 15,155 12,912 -5,743 0 17,000 8,200 50,000 8,000 0 0 0 - 0.89 1.08 1.63 1.73 - - - - - - - - - - - - Average foreign ex- change rate - - - - - - - - - - Notional amount in 1000 local currency 108,167 Market values in EURk -1,145 Interest rate swaps Exposures in EURk Term up to 1 year Average interest rate Term 1- 5 years Average interest rate 0 893 2.11% 107,275 0.39%

172 The hedging transactions designated as of the reporting date are composed of the following: EURk Nominal amount Carrying amount Assets Liabilities Line item in the statement of financial positi- on where the hedging instrument is included 12/31/2020 Foreign currency risk Foreign currency forwards - sales and receivables Foreign currency forwards - inventory purchases Interest rate risk Interest rate swaps Total 12/31/2019 Foreign currency risk Foreign currency forwards - sales and receivables Foreign currency forwards - inventory purchases Interest rate risk Interest rate swaps Total 78,620 34,128 108,167 220,915 131,979 24,741 10,611 167,331 2,193 1,660 0 3,853 1,155 451 0 1,606 -806 -2,500 -1,145 -4,451 -1,714 0 -196 -1,910 Other current assets, other current liabilities Other current assets, other current liabilities Other current liabilities Other current assets, other current liabilities Other current assets, other current liabilities Other current liabilities

174 FORWARD CURRENCY TRANSACTIONS The PIERER Mobility Group enters into forward currency transactions to hedge intended future revenue and cost of materials denominated in foreign currency against the risk of exchange rate fluctuations. INTEREST RATE SWAPS In order to control the interest rate risk in relation to variable rates of interest, amortizing interest rate swaps with a nominal value of EURk 8,882 and a term of 10 years were entered into during the 2013 financial year. The amortizing interest rate swap concluded in the 2014 financial year with a nominal value of EURk 30,000 and a term of 6 years expired in 2020 in accordance with its terms. In 2020, USD interest rate swaps with a nominal value of USD 130,000k and a term of 5 years were concluded to hedge variable USD financing. As at 12/31/2020, the outstanding notional amount was EURk 108,167 (previous year: EURk 10,611). In the 2020 financial year, EURk 262 (previous year: EURk 0) from the valuation of interest rate swaps was recognized in the income statement. 4 6 . C A P I TA L M A N A G E M E N T The aim of the Group is to preserve a strong capital structure in order to maintain investor, creditor and market confidence and to ensure the com- pany’s sustainable development. The Executive Board regularly monitors the return on capital as well as the amounts of the dividends that will be distributed to the holders of ordinary shares. The strategy of the PIERER Mobility Group aims to ensure that PIERER Mobility AG and the other Group companies have an equity base that meets the local requirements. The principal key figures used for capital management control are equity ratio, net financial debt, gearing and the dynamic debt level. Some loan agreements include financial covenants regarding the equity ratio and dynamic debt level, non-compliance with which would lead to a premature repayment of the financial liabilities. All financial covenants were fulfilled in the reporting year. The equity ratio is represented as follows: EURk Equity Balance sheet total Equity ratio 12/31/2020 12/31/2019 654,119 1,686,034 38.8% 618,663 1,613,892 38.3% The net financial debt is defined on the basis of the current and non-current financial liabilities (bonds, loans, lease liabilities and other interest-be- aring liabilities) minus cash and cash equivalents. The aim here is to ensure long-term liquidity, the efficient use of external financing and minimizing financial risk while simultaneously optimizing returns. EURk Non-current financial liabilities Current financial liabilities Cash and cash equivalents Net financial debt 12/31/2020 12/31/2019 456,089 74,594 530,683 -218,270 312,413 470,309 86,358 556,667 -160,864 395,803 The key figures of “gearing” (ratio of net debt to equity) and the “dynamic debt level” (ratio of net financial debt to EBITDA) for monitoring the capital are represented as follows:

176 The cash value of the minimum lease payments is as follows: EURk 2020 Up to 1 year Longer than 1 year and up to 5 years Over 5 years Total 2019 Up to 1 year Longer than 1 year and up to 5 years Over 5 years Total Future minimum lease payments Interest payments Present value of future minimum lease payments 20,285 34,601 12,693 67,579 17,453 37,294 13,581 68,328 794 1,558 3,499 5,851 867 1,764 3,565 6,196 19,491 33,042 9,194 61,727 16,586 35,530 10,016 62,132 EURk 968 213 3,802 9,426 EURk 1,017 213 4,365 6,976 Payment obligations under leases are disclosed in the consolidated statement of financial position under financial liabilities, see Note 32. Amounts recognized in the income statement and statement of cash flows 2020 - Lease agreements Interest expenses on lease liabilities Income from sublease of right-of-use assets Expenses relating to short-term leases Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets 2019 - Lease agreements Interest expenses on lease liabilities Income from sublease of right-of-use assets Expenses relating to short-term leases Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets The expenses for leases for low-value assets relate to rental and lease agreements for IT equipment. In the statement of cash flows, cash flows for leases in the amount of EURk 32,804 (previous year: EURk 27,166) were recorded, of which EURk 18,821 (previous year: EURk 15,021) relate to repayments of lease liabilities and EURk 13,983 (previous year: EURk 12,145) to short-term and low-value leases as well as interest expenses and income from subleases of right-of-use assets. Options for prolongation Some rental and lease agreements contain options for prolongation which can be exercised by the group up to one year before the end of the contract term that cannot be canceled. Wherever possible, the group seeks to include options for prolongation when concluding new rental and lease agree- ments in order to safeguard operational flexibility. On the date of availability, the group determines whether the exercise of the option for prolongation is sufficiently certain. The group reassesses whether it is reasonably certain that an option for prolongation will be exercised if a significant event or change in circumstances occurs that is within its control.

178 In the 2020 financial year and in the prior year, there were no material transactions with related parties (apart from Executive Board and Supervisory Board earnings, see Note 51.). The business transactions with related companies are represented as follows according to the grouping described: EURk Receivables Liabilities Revenues Expenses Dividend Shareholder related companies Associated companies Other companies 12/31/2020 12/31/2019 12/31/2020 12/31/2019 12/31/2020 12/31/2019 11,544 -10,390 822 -48,915 0 19,103 -3,110 14,450 -57,910 -4,192 5,118 -1,630 17,508 -22,371 0 2,338 -5,959 10,353 -26,543 0 2,056 -609 14,858 5,588 -521 8,075 -143,427 -88,258 0 0 All transactions with related companies were made under customary market conditions. Material business relations are explained below: SHAREHOLDER-RELATED COMPANIES: Since the investment in 2014, PIERER Mobility AG has been a group member of Pierer Konzerngesellschaft mbH, Wels, in accordance with section 9 of the Austrian Corporate Tax Act (KStG). Since 2017, KTM AG has been a member of this tax group within the meaning of the Austrian Corporate Tax Act. The taxable incomes of the group members are allocated to the group parent. The tax compensation between the group parent and each individual group member was regulated by a group taxation and tax transfer agreement. Tax losses are reserved at the level of the respective subsidiaries and can be offset at this level against future tax profits. In the 2020 financial year, expenses totaling EURk 6,925 were incurred with Pierer Konzerngesellschaft mbH (previous year: EURk 5,628) and interest income amounting to EURk 822 (previous year: EURk 26). As at the reporting date, there were outstanding liabilities amounting to EURk 2,920 (previ- ous year: EURk 869). The previous year included receivables in the amount of EURk 8,872. Since October 1, 2018, Pierer Industrie AG has formed a tax group for VAT purposes with the PIERER Mobility Group. As of the reporting date, Pierer Industrie AG had receivables totaling EURk 5,779 (previous year: EURk 4,251), in particular from sales tax credits due from members of the executive bodies. No dividend was paid to the shareholders by PIERER Mobility AG in the 2020 financial year. In the previous year, Pierer Industrie AG received dividends from PIERER Mobility AG amounting to EURk 4,192 from the previous 2018 financial year. Other transactions with shareholder-related companies mainly concern the Pankl Racing Group, which acts as a supplier of purchased parts for the KTM Group. The Pankl Racing Group is part of the Pierer Industrie Group and is controlled via Pankl AG. With effect from January 1, 2020, KTM Immobilien GmbH acquired 80% of the shares in KTM MOTOHALL GmbH from PIERER IMMOREAL GmbH, thus increasing its interest from 10% to 90%. For more details, please refer to Note 7, Changes in the Scope of Consolidation. In the previous year with effect from June 30, 2019, the KTM Group reduced its shareholding from 49% to 10% (purchase price EURk 5,676). In the previous year, the 100% interest in KTM Components (Dalian) Co., Ltd., Dalian, China held by KTM Components GmbH was sold at a purchase price of EURk 1,000 to Pankl Racing Systems AG, Kapfenberg, with effect from July 1, 2019. ASSOCIATED COMPANIES: Expenses of EURk 12,760 were incurred for services provided by Kiska GmbH during the financial year (previous year: EURk 15,168). As of 12/31/2020, accounts payable to Kiska GmbH stood at EURk 1,015 (previous year: EURk 5,379). Other expenses relate to transactions with KTM Asia Motorcycle Manufacturing Inc. of the Philippines. Revenue from associates relates to transactions with KTM Asia Motorcycle Manufacturing Inc. and China Zhejiang CFMOTO-KTMR2R Motorcycles Co.

180 X I . E V E N T S A F T E R T H E B A L A N C E S H E E T D AT E On January 20, 2021, the share buyback program of PIERER Mobility AG was ended early. On January 21, 2021, the company decided to offer treasury shares for sale to selected institutional investors and/or strategic business partners as of February 8, 2021. At the Extraordinary General Meeting of PIERER Mobility AG held on February 26, 2021, the Articles of Association were amended. By adding a new section 17, an opting-out clause was created in accordance with Swiss takeover law. The background to the amendment of the Articles of Association was the fact that the shares of the company are listed both on the SIX Swiss Exchange (International Reporting Standard) (SIX) and on the Regulated Market of the Frankfurt Stock Exchange (General Standard). This dual listing led to a parallel applicability of Swiss and Austrian or German takeover law. These positive conflicts of jurisdiction could lead to jurisdictional problems, duplications, inefficiencies, additional costs and potentially even contra- dictions. Compared to Swiss law, Austrian and German takeover law do not contain any conflict-of-law rules that could resolve the aforementioned positive conflicts of jurisdiction vis-à-vis Swiss law. Swiss takeover law, on the other hand, provides that the application of the provisions of Swiss law may be waived in connection with a public takeover offer if Swiss and foreign law are applicable at the same time, provided that certain other conditions are met. By the new inclusion of section 17 in the Articles of Association of PIERER Mobility AG, this option has been utilized, so that in the event of a change of control no mandatory offer under Swiss takeover law is required and the shareholders do not have a corresponding exit right under Swiss law in the event of a change of control. Similarly, it is no longer necessary under Swiss takeover law to determine whether a change of control has oc- curred at all. Both - the facts of the change of control and its legal consequence (mandatory offer) - are governed exclusively by Austrian and German takeover law, respectively, which remain fully applicable. It is pointed out that a positive resolution would only (but still) waive the provisions of Swiss takeover law on mandatory offers in the event of changes of control. This means that whenever there is no obligation to make an offer under the provisions of Austrian takeover law, there is also no obligation to make an offer under Swiss takeover law. If, on the other hand, there is a voluntary offer or a mandatory offer under Austrian law, the provisions of Swiss takeover law must still be observed. In this case, it would have to be examined with the Swiss Takeover Board to what extent the application of the provisions of Swiss law could be waived in a specific individual case on the basis of Art. 125 para. 2 FinfraG. Further events that occurred after 12/31/2020 and that are material for the measurement of the assets and liabilities have either been reflected in these financial statements or are not known.

182 Company Husqvarna Motorcycles S.A. Pty. Ltd., Northriding, South Africa KTM Logistikzentrum GmbH, Mattighofen WP Suspension GmbH, Mattighofen KTM Sportmotorcycle MEA DMCC, Dubai WP Suspension North America, Inc., Murrieta, CA, USA KTM do Brasil Ltda., Sao Paulo, Brazil W Verwaltungs AG, Mattighofen KTM Components GmbH, Munderfing WP Immobilien GmbH, Munderfing WP Components GmbH, Munderfing KTM Beteiligungs GmbH, Mattighofen KTM Australia Holding Pty Ltd., West Perth, Australia KTM Australia Pty Ltd., Welshpool, Australia HQVA Pty Ltd., West Perth, Australia KTM Motorcycles Distributers NZ Limited Wellington Central, New Zealand Cero Design Studio S.L., Barcelona, Spain GASGAS Motorcycles GmbH, Mattighofen GASGAS Motorcycles Espana S.L.U. (formerly: Canepa Investments S.L.), Terrassa, Spain KTM MOTOHALL GmbH, Mattighofen KTM Racing GmbH, Mattighofen PIERER E-Bikes GmbH, Munderfing bikes&wheels 2 Radhandels GmbH (formerly: (4) SPORTS GmbH), Wels PEXCO GmbH, Schweinfurt, Germany PEXCO Italia S.r.l, Meran, Italy bikes&wheels Suisse GmbH (formerly: PEXCO Suisse GmbH), Frauenfeld, Switzerland PEXCO France SAS, Saint-Priest, France bikes&wheels 2RUEDAS Espana S.L. (formerly: Husqvarna Motorcycles Espana S.L.), Terrassa, Spain 1) bikes&wheels France SAS (formerly: Husqvarna Motorcycles France SAS), Saint-Priest, France 1) bikes&wheels Italia S.r.l. (formerly: Husqvarna Motorcycles Italia S.r.l.), Meran, Italy 1) bikes&wheels Scandinavia AB (formerly: HQV Motorcycles Scandinavia AB), Örebro, Sweden 1) bikes&wheels North America Inc., Murrieta, CA, USA HDC GmbH (formerly: PF Beteiligungsverwaltungs GmbH), Wels KTM E-Technologies GmbH (formerly: KTM Technologies GmbH), Anif KTM Innovation GmbH, Wels Avocodo GmbH, Linz Platin 1483. GmbH, Schweinfurt, Germany Initial consolidation date 4/1/2015 12/31/20 Interest % 51.71 Consolidation type FCA 12/31/19 Interest % 51.71 Consolidation type FCA 9/16/2016 11/30/2016 11/30/2016 8/31/2017 12/31/2017 6/30/2005 11/30/2007 4/30/2005 12/31/2009 4/30/2018 7/1/2019 7/1/2019 7/1/2019 7/1/2019 10/1/2019 10/31/2019 1/1/2020 1/1/2020 2/29/2020 2/25/2020 4/30/2020 12/31/2019 12/31/2019 12/31/2019 12/31/2019 12/31/2013 51.71 51.71 51.71 51.71 51.71 - 51.71 51.71 - 51.71 51.71 51.71 51.71 51.71 25.86 51.71 51.71 46.54 51.71 100.00 100.00 100.00 - 100.00 100.00 100.00 12/31/2013 100.00 12/31/2013 100.00 12/31/2013 100.00 10/1/2020 12/31/2016 10/1/2019 3/31/2018 4/30/2019 12/31/2019 100.00 100.00 74.00 100.00 100.00 100.00 FC FC FCA FCA FCA - FC FC - FC FCA FCA FCA FCA FCA FC FCA FC FC FC FC FCA - FCA FCA FCA FCA FCA FCA FCA FC FC FC FC FCA 51.71 51.71 51.71 51.71 51.71 51.64 51.64 51.64 51.64 51.71 51.71 51.71 51.71 51.71 25.86 51.71 5.17 - - - 100.00 100.00 100.00 100.00 51.71 51.71 51.71 51.71 - 100.00 74.00 100.00 70.00 100.00 FC FC FCA FCA FCA FC FC FC FC FC FCA FCA FCA FCA FCA FC - - - - FCA FCA FCA FCA FCA FCA FCA FCA - FC FC FC FC FCA

184184 AUDITOR‘S REPORT R E P O R T O N T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S A U D I T O P I N I O N We have audited the consolidated financial statements of PIERER Mobility AG, Wels, Austria, and its subsidiaries (the Group), which comprise the consolidated statement of financial position as at December 31, 2020, the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of cash flows and consolidated statement of changes in equity for the year then ended, and the notes to the consolidated financial statements. In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of 31 December 2020, and its consolidated financial performance and consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU, and the additional requirements pursuant to Section 245a UGB (Austrian Commercial Code). B A S I S F O R O U R O P I N I O N We conducted our audit in accordance with the EU Regulation 537/2014 (“EU Regulation”) and Austrian Standards on Auditing. These standards require the audit to be conducted in accordance with International Standards on Auditing (ISA). Our responsibilities under those standards are further described in the “Auditor’s Responsibilities” section of our report. We are independent of the audited Group in accordance with Austrian Generally Ac- cepted Accounting Principles and professional regulations, and we have fulfilled our other responsibilities under those relevant ethical requirements. We believe that the audit evidence we have obtained up to the date of the auditor’s report is sufficient and appropriate to provide a basis for our audit opinion on this date. K E Y A U D I T M AT T E R S Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements. These matters were addressed in the context of our audit of the financial statements as a whole, however, we do not provide a separate opinion thereon. I M PA I R M E N T O F G O O D W I L L A N D B R A N D ‘ K T M ’ See Note 21 and Note 22 to the consolidated financial statements Risk for the financial statements In its consolidated financial statements, PIERER Mobility AG allocated a goodwill with a carrying value of MEUR 110,1 and an intangible assets with an indefinite useful life with a carrying value of MEUR 74,4 to the cash-generating unit KTM AG. Thus, the cash-generating unit KTM AG is tested for impairment at least annually and whenever there is an indication that the cash-generating unit may be impaired For this purpose, PIERER Mobility AG estimates the recoverable amount of the cash-generating unit KTM AG using the discounted cash flow method. The outcome of the valuation is highly dependent on managements cash flow projections (considering future revenue growth, profit margins and long- term growth rates) and the cost of capital used for discounting. Thus, the estimation of the recoverable amount is significantly reliant to accounting estimates and therefore subject to uncertainty. There is a risk that assumptions and estimates used to estimate the recoverable amount are not appropriate. This could have a significant impact on the recoverable amount and therefore the carrying amount of goodwill, intangible assets and tangible assets in the consolidated statement of financial position, as well as the operating result in the consolidated income statement.

186186 A U D I T O R ‘ S R E S P O N S I B I L I T I E S Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstate- ment – whether due to fraud or error – and to issue an auditor’s report that includes our audit opinion. Reasonable assurance represents a high level of assurance, but provides no guarantee that an audit conducted in accordance with the EU Regulation and Austrian Standards on Auditing (and therefore ISAs), will always detect a material misstatement, if any. Misstatements may result from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with the EU Regulation and Austrian Standards on Auditing, we exercise professional judgment and maintain profes- sional skepticism throughout the audit. Moreover: We identify and assess the risks of material misstatement in the consolidated financial statements, whether due to fraud or error, we design and perform audit procedures responsive to those risks and obtain sufficient and appropriate audit evidence to serve as a basis for our audit opinion. The risk of not detecting material misstatements resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misprepresentations or override of internal control. We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. We conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our audit report to the respective note in the consolidated financial statements. If such disclosures are not appropriate, we will modify our audit opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. We evaluate the overall presentation, structure and content of the consolidated financial statements, including the notes, and whether the consoli- dated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We obtain sufficient appropriate audit evidence regarding the financial information of the entities and business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with the audit committee regarding, amongst other matters, the planned scope and timing of our audit as well as significant findings, including any significant deficiencies in internal control that we identify during our audit. We communicate to the audit committee that we have complied with the relevant professional requirements in respect of our independence, that we will report any relationships and other events that could reasonably affect our independence and, where appropriate, the related safeguards. From the matters communicated with the audit committee, we determine those matters that were of most significance in the audit i.e. key audit matters. We describe these key audit matters in our auditor’s report unless laws or other legal regulations preclude public disclosure about the mat- ter or when in very rare cases, we determine that a matter should not be included in our audit report because the negative consequences of doing so would reasonably be expected to outweigh the public benefits of such communication.

188188 STATEMEN T BY THE E XECUTIVE BOARD Pursuant to Section 124 (1) (3) of the Austrian Stock Exchange Act We confirm to the best of our knowledge that the consolidated financial statements give a true and fair view of the assets, liabilities, financial and earnings position of the Group as required by the applicable accounting standards and that the consolidated management report gives a true and fair view of the development and performance of the business and the position of the Group, together with a description of the principal risks and uncertainties the Group faces. We confirm to the best of our knowledge that the annual financial statements of the parent company give a true and fair view of the assets, liabilities, financial and earnings position of the parent company as required by the applicable accounting standards and that the management report gives a true and fair view of the development and performance of the business and the position of the parent company, together with a description of the principal risks and uncertainties the parent company faces. Wels, March 2021 Executive Board Stefan Pierer Friedrich Roithner Hubert Trunkenpolz Viktor Sigl

190190 IMPRINT CONTACT Owner and publisher PIERER Mobility AG Edisonstrasse 1 4600 Wels, Austria FN 78112 x / Wels Provincial and Commercial Court Michaela Friepess Investor Relations, Sustainability Telefon: +43 7242 69 402 E-Mail: ir@pierermobility.com Website: www.pierermobility.com Concept and design: Grafik-Buero Elena Gratzer, 4600 Wels, www.grafik-buero.at Photos: KTM archive, Husqvarna Motorcycles/Husqvarna E-Bicycles archive, WP archive, GASGAS archive The present annual report has been prepared with the utmost care and the correctness of the data was checked. Nevertheless, slight differences in the calculations may arise as result of the summation of rounded amounts and percentages, and typographical and printing errors cannot be ruled out. References to persons such as “employees” or “staff members” are intended to be gender-neutral and insofar as the contrary appears this is solely for purposes of legibility. This report and the forward-looking statements it contains were prepared on the basis of all the data and information available at the time of going to press. However, we are must point out that various factors may cause the actual results to deviate from the forward-looking statements given in the report.

V I C T O RI E S & S U C C E S S E S 2 0 2 0 KTM WORLD AND US CHAMPIONSHIPS HUSQVARNA MOTORCYCLES WORLD & US CHAMPIONS GASGAS WORLD CHAMPIONS FIM MX2 Motocross World Championship Tom Vialle (FRA) FIM SuperEnduro World Champion Billy Bolt Trial-E World Cup Champions Albert Cabestany (ESP) MOTORSPORT RESULTS Dakar Rallye Laia Sanz (18th) FIM Motocross World Championship Glenn Coldenhoff – MXGP (8th) Ivo Monticelli – MXGP (15th) Isak Gifting – MX2 (12th) Michael Sandner – MX2 (29th) Simon Langenfelder – MX2 (30th) Jeremy Sydow – MX2 (32nd) Trial GP World Championship Jorge Casales – Trial GP (4th) Trial-E World Championship Albert Cabestany – Trial-E (1st) X-Trial Indoor World Championship Jorge Casales – Trial GP (5th) RFME Trial Championship Jorge Casales – Trial GP (2nd) FIM Moto3™ World Championship Albert Arenas (ESP) AMA 450MX Pro Motocross Champion Zach Osborne FIM Moto3™ Junior World Championship Izan Guevara (ESP) AMA EnduroCross Champion Colton Haaker FIM Flat Track World Championship Lasse Kurvinen (FIN) Grand National Cross Country Overall Champion Kailub Russell (USA) Full Gas Sprint Enduro Champion Kailub Russell (USA) WORCS Champion Taylor Robert (USA) MANUFACTURER’S TITLES FIM MXGP World Championship FIM Moto3™ Junior World Championship FIM Flat Track World Championship MOTORSPORT RESULTS FIM SuperEnduro World Championship Tadeusz Błażusiak (2nd) Jonny Walker (3rd) Dakar Rally Toby Price (3rd) MotoGP™ Pol Espargaró (5th) Moto2™ Jorge Martín (5th) Tetsuta Nagashima (8th) FIM MXGP Motocross World Championship Tony Cairoli – MXGP (3rd) Extreme Enduro (Wins) Manuel Lettenbichler – Red Bull Romaniacs, RO (1st) EnduroGP (Wins) Josep Garcia – GP of Portugal 1 Day 2 E2 & EnduroGP (1st) Josep Garcia – GP of Portugal 2 Day 2 E2 & EnduroGP (1st) French Beach Race Series Nathan Watson (1st) AMA 450SX Supercross Championship Cooper Webb (2nd) AMA 450MX Pro Motocross Championship Marvin Musquin (4th) MOTORSPORT RESULTS FIM SuperEnduro World Championship Billy Bolt (1st) Alfredo Gómez (4th) AMA EnduroCross Championship Colton Haaker (1st) Dakar Rally Pablo Quintanilla (2nd) Andrew Short (10th) FIM Motocross World Championship Jed Beaton – MX2 (4th) Thomas Kjer Olsen – MX2 (6th) Arminas Jasikonis – MXGP (13th) Pauls Jonass – MXGP (31st) Extreme Enduro Graham Jarvis – Sea To Sky, TU (1st) Billy Bolt – Sea To Sky, TU (3rd) Graham Jarvis – Romaniacs, RO (2nd) Alfredo Gómez – Romaniacs, RO (3rd) Billy Bolt – Romaniacs, RO (5th) FIM Moto3TM World Championship Romano Fenati (14th) Alonso López (23rd) AMA 450SX Supercross Championship Jason Anderson (4th) Zach Osborne (6th) Dean Wilson (8th) AMA 250SX Supercross Championship Michael Mosiman 250SX West (5th) Jalek Swoll 250SX East (7th) AMA 450MX Pro Motocross Championship Zach Osborne (1st) Dean Wilson (15th) Jason Anderson (19th) AMA 250MX Pro Motocross Championship RJ Hampshire (7th) Stilez Robertson (18th) Jalek Swoll (30th)