Sustainability Report | 2021 CONSOLIDATED NON-FINANCIAL REPORT

SUSTAINABILITY REPORT 2021 3 © KTM C O N T E N T S Introduction by the executive board.........................................................4 Sustainability highlights 2021 key figures ..............................................6 III. ENVIRONMENT AND RESOURCES, INNOVATION AND PRODUCTION ..................................................................................56 I. COMPANY ............................................................................................8 Overview of PIERER Mobility ....................................................................8 Group structure .......................................................................................9 Product highlights.................................................................................10 Our value chain .....................................................................................12 Our stakeholders ...................................................................................13 Key sustainability topics and ESG program ...........................................18 Sustainability and climate risks............................................................22 Our values & under standing of business .............................................30 Anti-corruption and fair competition.................................................31 Respect for human rights .................................................................31 Cooperation partners ........................................................................32 Data protection and cyber security....................................................32 Reporting compliance violations .......................................................33 Our contribution to the SDGs .................................................................35 II. EMPLOYEES AND SOCIETY ..............................................................38 Our employees .......................................................................................38 Occupational safety and employee health .............................................41 Education and training .........................................................................45 Diversity and equal treatment ...............................................................52 Social responsibility ..............................................................................54 Research & development.......................................................................56 Responsible procurement ......................................................................59 Environmental aspects along the product life cycle ..........................63 Environmentally conscious production .............................................65 Pollutant emissions from vehicles (emissions) .................................66 Energy and water consumption .........................................................66 Waste management ..........................................................................68 Transport logistics ................................................................................70 IV. PRODUCTS AND CUSTOMERS .........................................................71 Product quality and customer safety .....................................................71 Product use and recycling .....................................................................74 Customer service...................................................................................77 Ensuring digital transformation ............................................................79 Disclosures according to EU Taxonomy Art. 8 (l 443/9) for the 2021 financial year ..................................................................80 APPENDIX .............................................................................................83 Key figures.............................................................................................84 ESG program .........................................................................................91 GRI content index ..................................................................................95 Independent Assurance Report............................................................101

SUSTAINABILITY REPORT 2021 5 comply with the new Euro 5 emissions standard were already successfully transferred to series production in 2021. The development team is already working on technologies that provide for a further reduction in pollutant emissions for future generations of engines. Another focus of the past research year was to press ahead with further increasing the efficiency of our aggregate testing of new technologies in the area of thermodynamic subsystems of our combustion engines. PIERER Mobility AG is moving full speed ahead with its vision to become the world leader in the field of electrically powered two-wheelers (PTW). Focusing on the power range from 250 W to 11 kW, the Group is taking the next steps to intensify research & development (R&D) in the field of electric mobility. For example, in the reporting year all R&D activities were combined and expanded further into their own research and development company – KTM Forschungs & Entwicklungs GmbH (KTM F&E GmbH). This will ensure that KTM continues to be able to keep up with the ever-in- creasing pace of technological development. A special focus of last year was making the move to the newly developed R&D site in Anif close to Salzburg in Austria, which, in addition to the E drive development division within F&E GmbH, also provides KTM Technologies GmbH with space for further growth. The investment volume for the 7,780 m2 e-mobility center of expertise is EUR 20 million. The state-of-the-art facility provides space for more than 150 employees and is located right next to the KISKA design studio in Anif. We also made further progress in the development of batteries in 2021. KTM participates in a consortium for motorcycles with swappable batter- ies with Honda Motor, Piaggio Group and Yamaha Motor for motorcycles and light electric vehicles. Over the next 3 years, the consortium will develop a common technical standard for a battery swap system including the corresponding battery swap stations. We expect that the international standardization (e.g. CEN, ISO) envisaged in the content of the project will create a market for this battery system which will allow it to meet the expectations of the customers regarding range, “charging time” and costs, and in which positive business cases can be presented for each of the manufacturers (vehicle, battery, charging/swap stations). The work of the consortium will thus make a significant contribution to the wider spread of electric propulsion in light 2-, 3- and 4-wheeled vehicles with a focus on applications over shorter distances (<100 km). We have always pursued 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 as well. This also explains the relatively high research budget – which is currently 8%. This position enables us to offer our customers individual and sustainable mobility solutions that meet the current standards and norms in terms of technology, quality and safety. At the same time, these research activities strengthen Austria as a business location and will also secure many jobs for the future. CO2 emissions of the vehicle fleet The introduction of new models and product segments using drive tech- nologies with lower fuel consumption and emissions is having a positive impact on our average fleet values. As a result, in 2021, the average CO2 emissions of our reported vehicle fleet, including the e-bicycle models which were sold, were 61.14 g/km. Average fuel consumption in the 2021 reporting year was 3.41 l/100 km. Fleet fuel consumption was reduced by 2.49% compared to the 2016 base year (2016: 3.5 l/100 km). Between 2016 and 2021, the Group reduced the average CO2 emissions of its newly sold vehicles by 2.34% (2020: 3.19%). Outlook An openness to differing drive concept technologies, i.e. a mix of electri- fied motorcycles (48 volts) in the lower displacement range (up to max. 250 cc) and motorcycles above this range running on CO2-free synthetic fuels, is seen as a scenario for the future by the global two-wheeler industry. In line with our strategic objective of contributing to emissions reduction and neutrality, the focus of development work in the upcoming years will increasingly be on alternative drive systems in the range up to 15 kW. In the range above this, efforts will focus on the technological advancement of conventional forms of propulsion with synthetic fuels for avoiding CO2. The main goal is to fully exploit the innovation and de- velopment potential in the area of electric mobility and to help shape the growing market and secure market share with e-fuel-powered combustion engines as a global player with strong brands. At least three electric platforms with multiple products will be introduced by 2024. To expand the bicycle and e-bike production capacity, in 2021 a 50:50 joint venture was established with MAXCOM Ltd. for the e-bike production in Plovdiv/Bulgaria. A state-of-the-art e-bike production and assembly facility is being built over an area of 130,000 m². International suppli- ers will also be given the opportunity to locate themselves at the site. Commissioning is scheduled for the second half of 2023. The annual production capacity will be around 350,000 units. PIERER Mobility AG is contributing all of its vehicle development and production expertise to the joint venture. In the 2022 financial year, the PIERER Mobility Group will continue to fo- cus on growth in all core areas, both motorcycles and (e-)bicycles, despite the challenges that exist in the supply chain. Stefan Pierer Chairman of the Executive Board

SUSTAINABILITY REPORT 2021 7 MY22 KTM REPLICA eDRIVEMY22 KTM 16eDRIVE KTM REPLICA 16eDRIVE, MY22 © francescmonterophoto © francescmonterophoto 18.4% unit sales electrified two-wheelers 2) 24.2% female share -22.0% emissions per vehicle sold 5)

SUSTAINABILITY REPORT 2021 9 G RO U P S T RU C T U RE S I M P L I F I E D P R E S E N T A T I O N A S O F 12 / 3 1 / 2 0 2 1 focus on a portfolio of high-quality bicycle brands covering all categories; in November, the company acquired the US-based bicycle manufacturer FELT Bicycles. With FELT, PIERER E-Bikes is not only making headway in the North American market but is also gaining in- sight into the bicycle manufacturer's expertise acquired from 30 years of experience and research and development. Avocodo GmbH, with its registered office in Linz, Austria, is a full-service provider special- izing in mobile applications, web applications and business solutions. The company focuses in particular on digital solutions and individual developments. DealerCenter Digital GmbH, with regis- tered office in Landshut, Germany, develops digital consulting and sales systems that are positioned at the interface between the online and offline worlds and can therefore play an important role in the transformation of the stationary retail sector into the digitally integrated shop of the future. 100%1) 100% 100% 100% 100% 100% 50% 100% 100%2) 100% 75.5% Motorcycles Design, concept development & E-Bicycles digitalization Other shareholdings: ACstyria Mobilitätscluster GmbH 12.3%; Platin 1483. GmbH 100% 1) Incl. squeeze-out in 2022 shareholding of 100%; as of Dec. 31, 2021 99.75%. 2) Formerly KTM Innovation GmbH, renamed in January 2022

SUSTAINABILITY REPORT 2021 11

SUSTAINABILITY REPORT 2021 13 Racers & factory riders, rider teams Media Dealers Politicians Neighbours Employees Academia & experts Networks & associations Supplies Shareholders & investors Business partners Customers O U R S T A K E H O L D E R S Thanks to the growing presence of our products from the various divisions – especially those under the KTM, Husqvarna Motorcycles and GASGAS motorcycle brands and under the Husqvarna E-Bicycles, R Raymon, GASGAS Bicycles and FELT Bicycles (e-)bicycles brands – we engage with various stakeholders on the global market. Their individual interests and approaches are balanced as fairly as possible. We always endeavor to en- gage in ongoing and intensive dialog with our stakeholders. The views and experiences of others have a crucial bearing on how we act in addressing and discussing relevant but also controversial issues. This is the only way in which we can satisfy the requirements and expectations of both sides and develop sustainable solutions. To this end, we have established defined communication channels and forms of dialog that enable an ongoing exchange with the key stakehold- ers. Communicating proactively and integrating relevant stakeholders are crucial for the PIERER Mobility Group in allowing us to maintain our leading position in the market and to respond as promptly as possible to the volatile market environment for our products and services. Treating each other with respect and the transparent flow of information help over the long term to build up mutual trust and prevent misunderstandings – this is the only way to reduce any tension that may exist and to avoid new conflicts. are aware of our social responsibility and therefore we constantly strive to provide future-proof jobs and create new jobs in a sustainable way. Through dialog with neighbors, communities and associations, we develop concepts for solutions to meet local challenges and promote balanced ed- ucational work. Regular engagement with the capital market, for example at roadshows and on conference calls, is very important for the PIERER Mobility Group. In addition, our stakeholder management also involves tech talks, themed workshops, training courses, surveys, web platforms, media contacts and interviews as well as trade fairs and career days. The stakeholder groups were first identified in 2018 as part of an internal analysis of the key stakeholder groups that regularly contact us or with which an intensive exchange of information already occurs. Since then, and on the basis of our ongoing activities with our stakeholders during the year, the forms of dialog have been reviewed at least once a year to ensure they are current, and updated if necessary. An overview of our stakeholder groups and the forms of dialog can be found below. Employees: Annual employee appraisal, intranet, specialist workshops, training courses, ideas workshop, employee survey, information events and staff meetings, guided tours of production areas, welcome days for new employees and apprentices, KTM_academy. In addition to personal discussions, our stakeholder dialog also focuses particularly on joint product development with various specialist groups and strong regional cooperation between our sites and suppliers. We Shareholders and investors: Bilateral exchange on environmental, social and governance (ESG) issues with investors.

SUSTAINABILITY REPORT 2021 15 European Quality Seal for Motorcycle Training The European Motorcycle Training Quality Label 3 is a scheme launched in 2016 and run by the European Association of Motorcycle Manufacturers (ACEM), the German Road Safety Council (DVR) and the International Motorcycling Federation (FIM). It is a voluntary certification scheme for post-licence safety motorcycle training programs, open to all training centers. Its main objective is to help motorcyclists recognize the best post-license training options in Europe. In 2019 The European Motorcycle Training Quality Label was awarded the European Road Safety Char- ter Award in the category “voluntary commitments” by the European Commission. This award acknowledges inspirational and innovative initiatives that contribute towards improving road safety and saving lives on Europe’s roads. A total of 35 training programs operating in Austria, Belgium, Cyprus, France, Germany, Greece, Italy, the Netherlands, Portu- gal, Spain and Sweden, have been awarded the label so far, including five motorcycle training courses at the KTM Riders Academy. So far, about 150 group training sessions have been conducted by the KTM Riders Academy. In the reporting year, there were around 400 training participants. Environment Continuation of activities within the United Nations Economic Commission for Europe (UNECE) in the field of Environmental and Propulsion Perfor- mance Requirements for Internal Combustion Engine PTWs (EPPR). The cooperation involves the international adoption of the Euro 4 and Euro 5 emission standards as well as the further development of legislation on noise emissions from PTWs. On the subject of “Euro 5- Noise Emissions”, a new measurement method was developed in 2020 in the ACEM “Noise” working group under the leadership of KTM and has already been translated by IMMA into a UNECE regulation that applies worldwide. In future, the new “ASEP 2.0” method will measure the pass-by noise up to a Vmax of 100 km/h (previously up to Vmax 80 km/h) and will therefore reflect the noise level in “real world” use. This measurement method will be valid for all new homologations from September 2023. of the following topics and the discussion with the European institutions was very well received (further information can be found at https://acem.eu/vision2030) 2: 1. Urban mobility 2. Carbon emissions 3. Noise (noise emissions) RESEARCH AND DEVELOPMENT POLICY KTM is also involved as a member in the activities of EGVIA (European Green Vehicles Initiative Association), an association involved in the “European Green Vehicles Initiative PPP” together with the European Commission to represent the private sector side of the partnership. The aim of this initiative is to provide environmentally friendly vehicles and mobility system solutions for the future to meet the social, ecological and economic challenges of future mobility. With its product developments, the PIERER Mobility Group makes an important contribution to the devel- opment of roadmaps in the fields of safety, automation, decarbonization and electric mobility. Furthermore, the PIERER Mobility Group participates in and supports various EU research projects. Connected Motorcycle Consortium KTM AG is a member of the Connected Motorcycle Consortium, which has operated under the new name “CMC Next” since 2021. The strategic research and development platform promotes cooperation in industrial in- novations in the field of Cooperative Intelligent Transport Systems (C-ITS). The primary mission of the consortium is to work together with the leading companies in the motorcycle industry to promote the timely and widespread use of C-ITS which offers considerable potential for improving the level of safety for motorcyclists on the road. The key focus is on devel- oping all functions of C-ITS for the L category. (For more information, see the “Product Quality and Customer Safety” chapter starting on page 71.) E-Call - “sAFE” project Promoting participation in transnational standardization activities to de- fine the minimum requirements for the integration of the automated emer- gency call system E-Call, which is already established in the automotive segment. As an example, the latest project "sAFE" (About eCall - sAFE, www.safe112.eu, 2019-2021) can be mentioned here as a “follow-up project” to I-HeERO (HeERO - (www.heero-pilot.eu), in which motorcy- cle-specific minimum requirements were developed for eCall systems of motorcycles. KTM has also been actively involved in both projects and will actively participate in the corresponding CEN technical working group in order to translate the results of the project into a European standard (the technical specification TS17249-5 is currently being revised). 2 https://acem.eu/vision2030 3 European Motorcycle Training Quality Label: https://motorcycle-training-label.eu/; ACEM Road Safety Strategy: https://roadsafetystrategy.acem.eu/home/the-european-motorcycle-training-quality-label/

SUSTAINABILITY REPORT 2021 17 Further information can be found in the following ACEM documents: Transport Sustainability and Noise Emissions 4; Commitments of the Motorcycle Industry to the Environment 5; Strategy for Decarbonization of Transport – Powered Two-Wheelers (PTWs) in 2050. 6 Safety Continuation of activities within the UNECE 7 regarding safety regulations in the PTW segment, such as brakes, lighting, etc. In addition, in the area of safety, manufacturers are focusing in particular on rider assistance systems: Rider assistance systems for motorcycles can help to prevent accidents. They help to reduce collisions by supporting the rider in critical situations. At the same time, they also make the ride more fun and comfortable. Relevant examples are: Traction Control Systems (TCS), Tire Pressure Monitoring Systems (TPMS), electronically adjustable suspension, elec- tronic cruise control, shift assist, fuel-saving assist, proximity activation systems (i.e. keyless driving systems), in-vehicle navigation systems, ad- justable ride mode, side view assist, automatic stability control, etc. Many advanced rider assistance systems were originally developed for cars. However, they can potentially be dangerous if they are used on motorcy- cles without being appropriately adjusted. For this reason, ACEM members are working on specific technical solutions for rider assistance technol- ogies. Systems have already been developed by KTM AG and installed in production motorcycles since 2021, offering adaptive cruise control, forward collision warning and even blind spot detection, all of which can help to increase the level of safety for motorcyclists. The technology on which these systems are based is a combination of radar sensor, brake system, engine management system and HMI (Human Machine Interface). OTHER ACTIVITIES ARGE2RAD Arge2Rad is the association of the Austrian two-wheeler industry. Its activities focus on shifting perceptions in order to make motorcycling even more attractive by making access to powered two-wheelers easier and safer at the same time. In cooperation with several partners – among them the Austrian mobility clubs, the driving schools, the Chamber of Commerce, the media, the police and various ministries – Arge2Rad has already managed to achieve a great deal. Hubert Trunkenpolz, a member of the Management Board of KTM AG, acts as president of Arge2Rad which focuses on the following key priorities: Stable market development of powered two-wheelers, Reduction of CO2 and noise emissions, Traffic regulations and road safety initiatives, Organization of test days and trade fairs. ZIV PIERER E-Bikes GmbH is a member of the Bicycle Industry Association (ZIV) in Germany. By actively participating in various working groups, members can exert influence on standards and legal framework conditions in Germany and subsequently also at EU level via the European umbrella organization CONEBI. 4 https://acem.eu/policy-areas/environment/acem-position-paper-transport-sustainability-sound-emissions-and-noise-a-collective-response-for-a-shared-responsibility 5 https://acem.eu/policy-areas/environment/riding-in-a-21st-century-environment-the-motorcycle-industry-s-commitment-to-the-environment 6 https://acem.eu/policy-areas/environment/acem-position-paper-decarbonisation-of-transport-powered-two-wheelers-ptws-on-the-road-to-2050 7 UNECE: United Nations Economic Commission for Europe

SUSTAINABILITY REPORT 2021 19 Reliable employer Sustainable mobility Occupational safety and employee health Training and further education of employees Fair pay and labor standards (diversity and equal treatment) Local employment: Jobs Alternative drive technologies (including electric mobility) Research and development Product quality and customer safety Pollutant emissions from vehicles (emissions) Road safety Environmentally aware production Fair business practices Efficiency in the use of materials (waste, recycling management) Energy efficiency Local employment: Responsible procurement Business compliance (combating corruption, data protection) Environmental and social standards in the supply chain The key topics will be described in the chapters that follow, using the concepts of risks, due diligence processes and measures, and results and performance indicators. Significant risks from business activities and our business relation- ships, which are associated with the impact on the issues in focus, are identified in the respective divisions and avoided as far as possible by means of the measures described. Non-financial risks are systemati- cally recorded and evaluated (see the “Sustainability and climate risks” chapter). Significant risks that are likely to have a negative impact on the interests of the company are included in the reporting in accord- ance with Section 267a of the Austrian Commercial Code (UGB). OUR ESG P RO G R A M In the future, the ESG program will be an overview of all ESG measures used to address or achieve the key ESG topics and associated targets. The measures and targets in this ESG program will be reviewed, updat- ed or redefined in annual workshops with the departments along the ESG topics which are identified as material. The ESG program will then be submitted to the Executive Board for approval. An initial version of the ESG program was prepared in 2021 in line with the future process and attached in detailed form to the appendix. A brief overview of the measures in the four ESG areas with their respective status are shown below.

SUSTAINABILITY REPORT 2021 21 © KTM Technologies

SUSTAINABILITY REPORT 2021 23 Key topics Description of the main gross risks Measures Relevance to Sustain- ability and Diversity Improvement Act issues Efficiency in the use of materials (waste, recycling management) Outside-In A scarcity of resources combined with their wasteful consumption is a global problem facing manufacturing companies. The risk of a shor- tage of raw materials results in procurement bottlenecks that could have an adverse effect on production. In addition, there may be price increases that affect the company's bottom line. Inside-Out Waste can also enter environmental systems and cause damage if it is not handled properly. High, unsorted volumes of waste materials contribute to a further shortage of usable resources becau- se these cannot be recovered and are therefore destroyed at great expense or lost. Linked TCFD risks Market: Resource scarcity/raw material price increases Both: We optimize processes and are continuously investing in more efficient technologies in order to reduce energy consumption and CO2 emissions in the production of our vehicles. The approach is to utilize raw materials to the fullest extent possible and to implement material-efficient processes. Waste materials are increasingly being collected by type (e.g. aluminum and steel) and then recycled using special systems such as extraction systems. An engine oil reprocessing facility helps to make efficient use of resources, just as oil extraction helps with waste prevention and clean discharge. Uniform waste management systems, an ISO 14001-certified environmental management system and other measures help to manage waste and resources efficiently and correctly. In the future, when it comes to the circular economy, the end-of-life phase of the product life cycle will also be increasingly addressed. This is where recyclability or the use of recy- cled materials have a role to play in achieving more resource-efficient production. In addition, safe chemical management and the issues surrounding hazardous substances in the production process are very important to us and our aim is therefore to continuously extend and optimize these. We rely on our own photovoltaic systems (e.g. House of Brands) and make the large roof areas on our logistics centers available for operating further systems which produce electricity that is supplied to the public grid. As part of the statutory energy audit, we survey the current energy situation in our buildings, processes and in the area of transport (most recently in 2020), define or adapt our measures and then implement targeted energy-saving projects (e.g. using timers for outdoor lighting or LED lighting in the production halls). When it comes to renovations/new buildings, we rely on cooling/heating technology that meets the current technology/environmental standards (e.g. air-source heat pumps at the e-mobility center in Anif or a ground-source heat pump at the new training center in Munderfing). Energy efficiency Outside-In Rising energy prices are caused by various factors and may in turn have an impact on the company's earnings. Without appropriate effi- ciency measures, energy costs could therefore rise sharply and reduce earnings. Inside-Out Energy consumption in the manufacturing sector continues to be a driver of CO2 emissions and of the global warming associated with this. This is particularly true while that the energy supply is not yet provided mainly or exclusively from renewable energy sources. In addition, various technological developments mean that far more energy is needed in the system. This is also the case in view of the increasing electrification of transport and increasing economic activity. Failure to introduce efficiency measures could thus further drive climate change and lead to energy grids becoming overloaded. Linked TCFD risks Chronic: Increasing demand for cooling due to warming

SUSTAINABILITY REPORT 2021 25 Key topics Description of the main gross risks Measures Relevance to Sustain- ability and Diversity Improvement Act issues Employee interests Occupational safety and employee health Inside-Out Local value creation as well as environmental and social conditions are important aspects for maintaining a world that is ecologically, econo- mically and socially sustainable. Global supply chains carry the risk of including businesses where there may be violations of human rights, child labor and other illegal labor, or environ- mental pollution. If such businesses or practices are not identified and subsequently held accountable, or if appropriate countermeasures are not taken, such practices could continue and lead to serious harm and injustice to people and ecosystems. Linked TCFD risks Market: Resource scarcity/raw material price increases Acute: Extreme weather events (severe weather/storms with hail, flooding) Employees have a right to health and safety at the workplace. Failure to comply would endanger the health of employees. Employee performance would also suffer. KTM takes a strategic approach to hazard mitigation, precautionary measures and ex- tensive training. Great care is taken to ensure that every employee complies with the required and designated safety measures and follows the instructions which are issued. Everyone is required to wear the personal protective equip- ment that has been specified and provided free of charge, and to handle it with care. Every employee must receive a health and safety briefing (see appendix) before starting work. Occupational safety is continuously evaluated and improved at all sites. The company doctors regularly inspect the workplaces and provide advice on health protection at work (noise, chemical agents, ergonomics, ...). The new "Health & Safety" department brings together the topics of occupational safety, health and sport and makes them more accessible for all employees. Wide-ranging measures have been put in place to minimize the impact of the COVID-19 pandemic, inclu- ding vaccination offers, testing opportunities, and arrangements to work from home.

SUSTAINABILITY REPORT 2021 27 Key topics Description of the main gross risks Measures Relevance to Sustain- ability and Diversity Improvement Act issues Social interests Road safety Preventing corruption & bribery Product quality and customer safety Local employment (res- ponsible procurement) and environmental and social standards in the supply chain Business compliance (combating corruption) Road safety is a key issue, especially for two-wheelers. Increased risk can have far- reaching consequences. Outside-In If powered two-wheeler mobility is seen as increasingly dangerous, this may lead to a sharp drop in attractiveness and consequently to a slump in sales in this sector. Inside-Out If no road safety measures are taken for PTW, end users may be exposed to serious risks to life and limb. Inside-Out Deficiencies in product quality can lead to seri- ous damage to the health of end customers. Outside-In Problems in product quality can lead to product recalls and reputational damage, which can have a negative impact on the company's bottom line. On the other hand, high demands placed on product quality by regulations and other requirements can lead to high expenses and increasing product complexity. Linked TCFD risks Politics & law: Product liabilities – product lawsuits (another cause) Chronic: Weather-dependent mobility behavior See above (Environmental interests) In principle, collaboration with partners along the value creation chain involves risks of unfair competition, including unfair influencing of suppliers, customers or decision makers. The risk exists mainly in initiating international con- tracts with customers and business partners, in sponsorship, and in all projects involving public officials. Pierer Mobility offers state-of-the-art rider assistance systems (cornering ABS, cornering light, ATIR, ...) to ensure the best possible level of road safety. This area is also given high pri- ority in research and development (e.g. e-call project “sAFE”, V2V communication, patented PTW turn-off warning system). Appropriate provisions are recognized relating to warranty and goodwill obligations. Intensive quality assurance processes both internally and via external certifications (e.g. ISO cer- tification, VDA guideline) help to develop and manufacture products of the highest quality and safety. These include the measurement and testing laboratory, a large test facility and specially trained test teams. Compliance regulations are laid down in the Code of Conduct (CoC), to which the PIERER Mobility Group aligns its business activity. The PIERER Mobility Group also expects its emplo- yees, managers and board members as well as its consultants, business partners, suppliers and customers to respect and comply with the principles and rules contained in the CoC. Therefore, awareness of and the obligation to comply with the principles set out in the CoC is continuously promoted and expanded.

Relevance to Sustain- ability and Diversity Improvement Act issues Other concerns SUSTAINABILITY REPORT 2021 29 Key topics Description of the main gross risks Measures Fair pay and labor standards (diversity and equal treatment) Data protection Research & development See above (employee concerns) Trend analyses and customer surveys (by Kiska, among others) are carried out on an on- going basis in order to identify relevant trends at an early stage and respond accordingly. Internal combustion engines are consistently evolving (see Environmental concerns). In the 2021 financial year, R&D expenditure ac- counted for 8% of sales, underlining the huge importance of this area for the company. See above (employee concerns) Inside-Out Risks result from product development that is not in line with requirements and regulations, such as with regard to alternative drive techno- logies (such as electric mobility). If PIERER Mobility AG does not intensively engage in research and development in the area of two-wheeled mobility, significant milestones, innovations and improvements in the areas of safety, efficiency, environmental compatibility and customer expectations could be missed or delayed. Outside-In Product development that is not in line with requirements and regulations can lead to a loss of market share because the changing demand is not served sufficiently or is served less attractively compared to the competition. Linked TCFD risks Politics & law: Climate and complaint-related regulations/ driving bans. Product liabilities – product lawsuits (another cause). EU regulation on battery disposal Technology: Loss of market position and technology/innova- tion position Incorrectly targeted R&D activities and inves- tments Market: Changes to customer behavior Resource scarcity/raw material price increases Chronic: Weather-dependent mobility behavior

SUSTAINABILITY REPORT 2021 31 DUE DILIGENCE PROCESS AND CURRENT MEASURES Anti-corruption and fair competition In principle, collaboration with partners along the value creation chain involves risks of unfair competition, including (unfair) influencing of suppliers, customers or decision makers. Corruption also involves financial risks for companies in connection with the threat of financial penalties, loss of orders or customers, or damage to reputation. In order to systematically reduce potential corruption risks, the PIERER Mobility Group takes measures to observe and implement the principles laid down in the Code of Conduct and to make managers and employees more aware of compliance issues. The PIERER Mobility Group advocates the respective national anti-cor- ruption provisions and the international directives or recommendations (e.g. UNCAC, U.S. Foreign Corrupt Practices Act, UK Bribery Act, OECD Guidelines for Multinational Enterprises). It does not tolerate any prac- tices in which business transactions are concluded by unfair means. The Code of Conduct lays down comprehensive conduct guidelines in relation to awarding of undue advantages, corruption and bribery. The mandatory principles defined therein in relation to awarding and acceptance of undue advantages provide a regulatory framework that board members, managers and employees must regard as a guide for their conduct when dealing with suppliers and customers. Board members, managers and employees are encouraged to speak to their managers or the competent office for general compliance issues in the event of any doubts as to the permissibility of an award or acceptance of a benefit. When assessing the appropriateness of gifts and invitations of any kind, special attention is paid to social custom and appropriateness in addition to the underly- ing motive. The compliance officer of the PIERER Mobility Group generally acts as the responsible point of contact for compliance issues, particularly also for the area of anti-corruption and fair competition. The operational handling of inquiries and reports of potential compliance cases concerning the PIERER Mobility Group is the responsibility of the legal department of KTM AG. The Executive Board is informed on an ongoing and annual basis regarding significant developments and suspicious cases, and the Executive Board and Supervisory Board are also informed about changes to the Code of Conduct. The Executive Board bears ultimate responsibility for compliance issues. The Code of Conduct of the PIERER Mobility Group is available on the intranet site for most of the board members, managers and employees (with intranet access) of the PIERER Mobility Group. Additionally, it is also available permanently on the website of PIERER Mobility AG in Ger- man and English. Employees, managers and board members are referred to the Code of Conduct at least once a year on the intranet homepage. New employees of the PIERER Mobility Group receive the Code of Conduct during the onboarding process. Furthermore, training is provided by the PIERER Mobility Group on the content of the Code of Conduct and to raise awareness of compliance issues. It is primarily managers and employees from particularly high- risk areas such as Human Resources, Purchasing, Sales, Research & Development, Marketing, Quality Management as well as members of the Executive Board and directors who receive training in face-to-face sessions or, since the 2021 financial year, by means of the e-learning tool “Compliance and Code of Conduct”. This e-learning tool explains the importance of compliance and the pur- pose of compliance measures and the consequences of non-compliance with compliance regulations, and highlights the options for reporting compliance violations and suspected cases. In addition, the main con- tents of the Code of Conduct are described with a focus on the topics of fair competition and the prohibition of cartels as well as corruption and bribery using practical examples. Finally, the content taught is tested by means of control questions, with the training being successfully complet- ed if at least 80% of the questions are answered correctly. Newly hired employees are required to take part in the online training during their induction phase; in addition, all employees must complete this training again every two years. The PIERER Mobility Group also expects its consultants, business part- ners, supply partners and customers to respect and follow the basic rules and principles contained in the Code of Conduct. It is therefore standard practice for new contractual relationships entered into by KTM AG Group and PIERER E-Bikes Group with suppliers or importers to include the Code of Conduct. Respect for human rights People who work directly or indirectly for the PIERER Mobility Group are entitled to have their human rights within the meaning of the UN Univer- sal Declaration of Human Rights observed, and to be treated with fair- ness and respect. The PIERER Mobility Group expects its board members, managers and employees to respect human rights and to protect them in their everyday activities. As human rights risks may exist in principle as a result of the cooperation with partners along the value chain, the Group similarly requires its principal business partners to respect the human rights in the Code of Conduct. In the 2021 financial year, the Declaration on Modern Slavery and Human Trafficking of the PIERER Mobility Group was therefore published, outlin- ing the measures that the PIERER Mobility Group has taken or will take in the future to prevent modern slavery and human trafficking within the Group and the supply chain. Like the Code of Conduct, the Declaration on Modern Slavery and Human Trafficking is also available on the intranet and on the website of PIERER Mobility AG.

SUSTAINABILITY REPORT 2021 33 Care is taken to ensure that all users of the PIERER Mobility Group’s IT system possess the requisite knowledge and awareness of how to use the IT system within the scope of their role through the provision of regular IT security awareness training. This is carried out in a preventative and transparent way and takes place in all subsidiaries worldwide. All employ- ees are required to attend an e-learning course for IT security awareness training once a year. Moreover, a face2face awareness training campaign for all employees of KTM AG and subsidiaries will run until February 2022. In addition to the e-learning content, “security awareness training” has been conducted since September 2021 to make the end user aware of all relevant attack vectors. Besides presenting the correct behavioral approach, the training agenda also focuses on other topics such as new phishing and USB attack vectors, new password methodology and Win- dows authentication features, and phishing audit results. Extensive training measures were carried out for employees at the Mat- tighofen and Munderfing sites on the General Data Protection Regulation. The content of the e-learning tool with a mandatory test for employees was made available in English in the 2021 financial year. A revision of the e-learning tool is planned for the 2022 financial year. In addition, specific training courses are planned for specialist departments that frequently deal with data protection. The intranet also contains an overview of responsibility for data protection: the Executive Board bears ultimate responsibility, while the data protection coordinator deals with and responds to specific technical questions on the subject. The information and security manager are responsible for data security. In addition, a data protection guideline for the introduction of a data protection management system is in place. Compliance with this ensures that the company's conduct is in line with data protection regulations, and in particular safeguards the rights of data subjects, prevents data protection violations and avoids fines. All employees are required to comply with this guideline. This is an instruction. The information sheet that has been part of the service contracts since April 2018 is available on the intranet. This guideline has been substantiated by several company agreements for the area of data protection in general and most recently for video surveillance. Each company has set up its own privacy e-mail address to receive requests. Reporting compliance violations Violations of compliance regulations can have far-reaching negative consequences for the company and its employees. It is therefore essential to uncover possible shortcomings at an early stage in order to avoid or reduce adverse consequences. In this regard, the PIERER Mobility Group also relies on the assistance of its employees. Employees have access to several reporting channels; reports can be submitted by e-mail to compliance@pierermobility.com, by telephone or in a personal meeting with the manager or the legal department. Since December 2021, employ- ees of the PIERER Mobility Group have also had access to an anonymous whistleblower system for reporting compliance violations. In order to protect the anonymity of the whistleblower and the confidentiality of future reports as well as possible, the system of an external, independent provider was implemented for this purpose. The whistleblower system is currently available 24/7 to all employees of the European-based subsidiaries of the PIERER Mobility Group in English as well as in the respective national language of the whistleblower and complies with the requirements of Directive (EU) 2019/1937 of the European Parliament and of the Council of October 23, 2019 on the protection of persons who report breaches of Union law (“EU Whistleblower Directive”). Whistleblowers therefore have the opportunity to anonymously and securely report any breaches of compliance regulations or suspicion of such misconduct to the legal department via this whistleblower system. The exchange of information and messages with the legal department takes place via a secure mailbox while maintaining the anonymity and protection of the whistleblower. All messages will be kept strictly confidential. All information will be examined and, if a suspicious case is confirmed, appropriate measures will be taken to remedy and eliminate any irregularities. Whistleblowers do not need to fear any sanctions from the PIERER Mobili- ty Group from a report of a suspicious case which is submitted to the best of their knowledge and belief, and absolutely no discrimination against whistleblowers will be tolerated. In addition to information on the classic reporting channels, the link to the system and explanations of how it works and the principles of confiden- tiality, protection of the anonymity of the whistleblower and protection against reprisals are permanently available to employees on the intranet site of the legal department or as a notice on the “bulletin boards” in production at the sites in Mattighofen and Munderfing. The Code of Conduct and the compliance guidelines also refer to the existing reporting channels, and training participants are informed of the various options for reporting compliance violations when they complete the e-learning tool “Compliance and Code of Conduct”. RESULTS, KEY PERFORMANCE INDICATORS AND NEXT STEPS In the 2021 financial year, the Code of Conduct of the PIERER Mobility Group was revised and announced in the new version of September 1, 2021. The applicability of the compliance documents was communicated via an article on the intranet and, in addition, 3,553 employees of the PIERER Mobility Group at all company locations worldwide were informed by means of a separate e-mail dispatch, which corresponds to around 75% of the entire workforce. An overview in table form can be found in the appendix. In order to include all future business partners at the time of contract initiation, the Code of Conduct in its current version (September 1, 2021) and additionally also the declaration on modern slavery and human trafficking of the PIERER Mobility Group has been sent as an attach-

SUSTAINABILITY REPORT 2021 35 O U R C O N T R I B U T I O N T O T H E S D G S In 2015, as part of the 2030 Agenda for Sustainable Development, the United Nations set 17 Sustainable Development Goals. Broad cooperation between politicians, civil society, science and business will be needed to achieve these goals. The PIERER Mobility Group wants to help to achieve the global Sustainable Development Goals (focus SDGs) with its operating activities and ensure that its operating activities do not have any adverse effects on the issues and objectives (further SDGs). Out of all seventeen SDGs, a total of eleven SDGs emerge as relevant for the PIERER Mobility Group: FOCUS: SDG 3 – GOOD HEALTH AND WELL-BEING PIERER Mobility AG has set itself the goal of manufactur- ing particularly safe and high-quality products. Customer health and safety always have top priority across all product areas. The research and development department of KTM AG is therefore heavily committed to ensuring the safety of its customers and works on future-oriented solutions. Examples include the world's first “motorcycle stability control” system, but also a PTW bend warning system and ideas for “vehicle-to-vehicle (V2V) communication”. The development and use of such safety and rider assistance systems helps to reduce the number of avoidable motorcycle accidents (SDG 3.6). Furthermore, to further improve the training program for test riders, the KTM Riders Academy was launched. This ensures that KTM employees receive regular rider training in line with their job description. As a manufacturing company, the PIERER Mobility Group has a par- ticular responsibility to ensure the health and safety of its employees. Continuous improvements in the area of occupational safety and the introduction of new health promotion measures also contribute towards SDG 3. In the area of mental health, the focus is on burnout prevention and support, primarily in collaboration with the occupational psychologist and the human resources department (SDG 3.4). As part of the general occupational health services, a comprehensive range of health services is available in the company. These range from acute first aid, eyesight tests and maternity leave to vaccination services such as active vaccination advice and low-threshold access to various vaccinations (SDG 3.8). Occupational safety is improved by making continuous adjustments to production processes, by providing technical equipment on the production lines to reduce occupational accidents, but also by monitoring the health consequences of materials used and having emergency plans for accident scenarios (SDG 3.9). Key topics: Occupational safety & employee health, Product quality and customer safety, Road safety SDG 4 – QUALITY EDUCATION With its initiatives focusing on the training and education of potential and existing employees, the PIERER Mobility Group is making a valuable contribution to SDG 4 which aims to provide quality education and lifelong learning opportunities and enables everyone to enjoy equal access to this. Apprentice training forms an important aspect of HR strategy, as the employees make a significant contribution to the company’s success. KTM is therefore investing around 2.5 million euros in the expansion of its apprentice workshop. Through intensive cooperation with vocational colleges, universities and UASs, particularly young people are offered wide-ranging opportunities to obtain high-quality vocational and tech- nical education and training (SDG 4.3). Women in STEM professions are also specifically supported and the proportion of female apprentices is increasing (SDG 4.5). Existing employees have the opportunity to choose from a comprehensive further training program offered by the KTM_acad- emy (e.g. digital transfer manager course, sales trainee program, manage- ment training, online language training) or from academic courses (KTM Young Pioneers College, KTM Digital Intrapreneurship MBA) to increase their individual qualifications (SDG 4.4). Key topics: Fair pay and labor standards (diversity and equal treatment) SDG 5 – GENDER EQUALITY The PIERER Mobility Group believes that all employees have a right to work in a safe, fair and respectful environment that promotes equal opportunities. This is stated in the Diversity and Anti-Discrimination Policy and practiced accordingly. In addition to measures for flexible working arrangements - such as working from home, flexible working hours and part-time positions - women in STEM professions receive specific support. This is resulting in an increase in female apprentices in technical areas as well as an overall increase in the number of female employees in the company, not least in management positions (SDG 5.5). The Code of Conduct strictly prohibits all discrimina- tion, which is again addressed in the above-mentioned policy, defined and explained in more detail, and also backed up with disciplinary measures. This is helping to end discrimination (SDG 5.1). Key topics: Training and further education of employees, Fair pay and labor standards (diversity and equal treatment), Alternative drive technologies (including electric mobility)

SUSTAINABILITY REPORT 2021 37 sustainable approach therefore involves above all the phased reduction of emissions over the entire product life cycle. Thanks to many years of intensive development work in the field of electric traction systems for PTW, a substantial technology platform has been created in addition to the first products available on the market. This will enable further vehicles powered by renewable energy to be launched on the market (SDG 13.3). While combating climate change is essential, measures must also be tak- en to adapt to unavoidable consequences of climate change (SDG 13.1). To this end, the PIERER Mobility Group systematically considers climate risks and is guided by the recommendations of the Task Force on Climate-Re- lated Financial Disclosures (TCFD). A corresponding report will debut in 2021, and the results will be incorporated into the definition of goals and the identification of measures. Key topics: Alternative drive technologies (including electric mobility), Pollutant emissions from vehicles (emissions), Energy efficiency SDG 16 – PEACE, JUSTICE AND STRONG INSTITUTIONS The PIERER Mobility Group advocates the respective nation- al anti-corruption provisions and the international directives or recommendations (e.g. UNCAC, U.S. Foreign Corrupt Practices Act, UK Bribery Act, OECD Guidelines for Multinational Enterprises). It does not tolerate any practices in which business transactions are concluded by unfair means (SDG 16.5). The Code of Conduct lays down comprehensive conduct guidelines in relation to awarding of undue advantages, cor- ruption and bribery. The mandatory principles defined therein in relation to awarding and acceptance of undue advantages provide a regulatory framework that board members, managers and employees must regard as a guide for their conduct when dealing with suppliers and customers. Every contractual partner that wants to do business with the PIERER Mobility Group must also accept and comply with the ethical principles, general principles and minimum standards of the Code of Conduct. This is an integral part of the basis for concluding any contracts. Key topics: Business compliance (combating corruption, data protection) FOCUS: SDG 11 – SUSTAINABLE CITIES AND COMMUNITIES The Pierer Mobility Group's products, powered two-wheelers, are also frequently used in urban areas, where they can have an impact on air quality. The development of low-emission and alternative drive technologies such as electric mobility can reduce application-related pollutant emissions into the air and thus contribute to SDG 11.6. Key topics: Alternative drive technologies (including electric mobility), Pollutant emissions from vehicles (emissions), Research & development FOCUS: SDG 12 RESPONSIBLE CONSUMPTION AND PRODUCTION We also support SDG 12 by using natural resources efficiently and by taking measures to avoid, reduce and recycle any waste we produce. In the development and production of its products, the PIERER Mobility Group attaches great importance to the efficient and resource-conserving use of materials and a sustainable approach to the environment. Therefore the issue of increasing efficiency as well as making the fullest possible use of raw materials, including recycling, is extremely important. In addition to an engine oil reprocessing facility, reusable containers are increasingly being used to reduce the waste of resources (SDG 12.5). Materials such as steel and aluminum chips or various plastics that cannot be recycled in the company's own value chain are collected separately as part of waste management and handed over to a certified waste disposal partner. An environmental management system in accordance with ISO 14001:2015 is used among other things to coordinate these issues and to ensure that all materials are handled and disposed of safely and properly (SDG 12.4). Local procurement strategies, including support for social ventures, purchasing conditions with social and environmental criteria, and the Code of Conduct contribute to SDG 12.7. Key topics: Efficiency in the use of materials (waste, recycling manage- ment), Pollutant emissions from vehicles (emissions), Environmental and social standards in the supply chain FOCUS: SDG 13 – CLIMATE ACTION The PIERER Mobility Group is conscious of the contribution that its operating activities make to climate change and supports SDG 13 with measures to combat climate change. For example, the company shares the ACEM strategy for decarbonization of Powered Two-Wheelers (PTWs) by 2050 and is working with project partners on concepts for sustainable mobility in urban habitats (SDG 13.2). An impor- tant aspect in the development of homologated vehicles is the reduction of exhaust and noise emissions. Energy-efficient, electrically powered two-wheelers in particular represent an essential part of our solution. A

SUSTAINABILITY REPORT 2021 39 DUE DILIGENCE PROCESS AND MEASURES TO INCREASE THE ATTRACTIVENESS OF THE EMPLOYER Internal and external measures to increase the attractiveness of the company as an employer are an essential element in conveying the prevailing spirit of the PIERER Mobility Group to potential new employees. With various cross-media employee campaigns, KTM AG was able to largely meet its personnel requirements in the reporting year. The career homepage plays a significant role in helping to ensure that KTM AG has an even better profile as an employer and that the opportunity being offered as well as the many benefits are recognized even faster and more clearly. In the area of apprenticeships, attention was not only paid to addressing the target group appropriately, but a dedicated section was also created for the parents of future apprentices. The purpose of this is to provide information about opportunities and options at an early stage, and to pre- vent any uncertainties. During the redesign of the career site career.ktm. com, the virtual reality tour around the buildings at the Mattighofen and Munderfing sites was also expanded and integrated into the homepage. With many trade shows not taking place in person due to the measures to combat COVID, there was active work on, and participation in, virtual trade shows. Some of the virtual formats on offer were utilized very well to maintain a close link with the students. Another focus is to further expand active sourcing to safeguard employee recruitment over the long term. LinkedIn became an even more important partner, not just for posting our vacancies but also for actively approaching candidates. At the same time, the internal databases are also utilized, with at least 10,000 new candidate profiles being received annually and re-contacted as appropriate. After an enforced break due to Covid, the strategic cooperation with defined universities was proactively pushed again and gradually expand- ed. The aim is to work with our partners to set up initiatives, such as accompanying study courses with experts, lectures from the specialist departments and by HR, as well as events and visits to KTM AG. We are also happy to provide materials such as vehicles to help to support students and young talent. TAKING ON EMPLOYEES FROM EXTERNAL COMPANIES The integration of non-Group companies goes hand in hand with the dynamic growth of the PIERER Mobility Group. In order to meet employee needs efficiently and sustainably, a special focus was placed on connect- ing these employees, and integration and organizational development were continuously monitored. In 2021, 209 temporary workers were taken on (concerns employees for the production site in Mattighofen and Munderfing/Austria). Jobs advertised – internal employees are also wanted! In January 2021, a uniform procedure was defined for employees and managers in relation to internal job applications. This is because not only external employees can apply for advertised positions. An application portal exclusively for employees also provides the opportunity to publish positions exclusively for employees. PIERER Mobility AG consciously promotes the internal development of employees. For example, in 2021, about one third of the positions advertised in Austria were filled internally and two thirds of the management positions advertised allowed existing employees to take the next step in their career. KTM once again managed to achieve the golden seal of the Best Recruiter Award for the automotive sector in 2021/2022. This year, we are again including study results as a basis for further developments and improve- ments throughout our recruitment process. Focus on making working hours and work locations more flexible For the purpose of creating a modern and flexible working environment, the PIERER Mobility Group, as an attractive employer, enables employees to better adapt their working hours and place of work to their personal needs and the needs of the company. In order to increase job satisfaction and flexibility at the same time, KTM employees can spread out their weekly working hours from Monday to Thursday based on a fair-use principle. This means they no longer must commute five days a week. In principle, this type of flexible working hours is available to employees who are covered by the scope of the flexitime agreement (applies to the com- pany’s sites in Austria and around 80% of the employees). These flexitime options were also optimized and expanded in other individual PIERER Mobility companies. In order to further reduce travel times, employees can also use the KTM offices in Wels, Linz and Anif in addition to the workplaces in Mattighofen and Munderfing. A further measure for making working hours more flexible is the option of working from home (“home office”). The guideline for this was created during the pandemic and has been adapted to suit the needs of our employees again this year. Furthermore, it was ensured that most of the workforce would be able to work from home if required. Special attention is given to periods of relaxation for the employees. Managers are continuously informed about their employees' current levels of annual leave in order to actively plan periods of relaxation with the employees.

SUSTAINABILITY REPORT 2021 41 O C C U P A T I O N A L S A F E T Y A ND EM PLOY EE HE A LT H CONCEPT AND OBJECTIVE DUE DILIGENCE PROCESS AND CURRENT MEASURES The health and safety of our employees is our top priority. We therefore aim to strengthen not just the professional skills of our employees, but also their health. This is the prerequisite for being able to perform at work and deal with physical and mental stresses and strains. As a company which manufactures and assembles street and off- road motorcycles, there are significant health and safety risks for our employees in the workshops and during test rides. We pursue a strategic approach to minimizing hazards based on the “STOP principle”, precautionary measures and special training, particularly in work areas with a high hazard potential, such as test drives, work environments with machinery, and in workshops. Great attention is paid to following the safety measures that are necessary and have been put in place, and to ensuring that every employee follows the instructions given to them. Everyone is required to wear the personal protective equipment that has been specified and provided free of charge. Health and safety instruction is given to each employee before he or she starts work. Statistics are collected by the human resources department 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 further develop the topics of occupational safety and employee health in a targeted manner and, also to further expand health promotion and (company) sport, another important step was taken in November, with the structural change and bundling of the areas in a separate team. Existing synergies can be better utilized and skills in the area expanded in a targeted manner. Under the team leadership, the safety specialist continues to be responsible for the area of occupational safety and health protection. This person is supported by specialist occupational health and safety service providers. Also, part of the team is the COVID team. This was established in 2020 and particularly takes proactive and preventive measures to prevent the spread of possible COVID-19 infec- tions in the companies of the PIERER Mobility Group. The plan for 2022 is to establish and expand the area of health promotion and sport. 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, ma- chine 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 impair- ments, reintegration into work as well as precautions to ensure suitable and ergonomic workplaces, conflict management in the workplace and resolution of psychological stress. Rider training for test riders A special focus of our efforts is also on the best possible way to prevent accidents test rides with prototype and production motorcycles which are required for operational purposes. In order to provide our employees who are responsible for functional testing and test rides with the best possi- ble training, the KTM Riders Academy was launched in 2020: Specially developed rider training courses, designed from scratch, ensure that KTM employees regularly complete rider training appropriate to their job description. The trainers are provided by the KTM Riders Academy. The training courses developed with R&D are structured in stages in three qualification levels, depending on the professional need: Qualification level 1 is for employees who have to carry out motorcycle rides for work purposes. The core content of this training includes, for example, the controlled response to everyday situations and improving individual riding skills. Qualification level 2 is for employees who have to ride motorcycles in a dynamic way as part of their job – this involves acquiring specific skills such as confidence in the rider assistance systems and gaining a better understanding of systems and vehicle design. This qualification level focuses, for example, on developers of electronic control systems (ABS, EMS, ERS). Qualification level 3 is aimed at employees who have to ride motor- cycles in the highly dynamic limit range as part of their operational work. This primarily involves full-time test riders from the Test Street division. The aim of this qualification level is to provide the test riders with more confidence in demanding riding maneuvers so that they can also give better test feedback.

SUSTAINABILITY REPORT 2021 43 process optimization in terms of cleanliness, order and waste, as well as a focus on standardized working and improved workplace design, reduces the probability of accidents at work and therefore helps to increase the level of safety. There is close cooperation in this area with Gemba-Austria (e.g. implementing lean management projects). ANALYSIS OF OCCUPATIONAL ACCIDENTS TO REDUCE RISKS To avoid risks in the future, any occupational accidents are analyzed. This analysis begins with an on-site inspection and a personal meeting with all those involved in the accident. The accident is then recorded in the company's own risk matrix and analyzed collectively at the end of the year. Clusters of the same accidents will result in targeted measures being developed and implemented. In addition, care is taken during the actual construction of production facilities to ensure that all safety regulations are complied with. This is ensured by the CE quality seal. In 2021, 90 work-related accidents occurred at the PIERER Mobility Group (of which 74 involved employees and 16 involved temporary workers). The total number of accidents leading to at least one day of absence from work was 60 accidents (47 employees and 13 temporary workers). All work-related accidents (mainly bruises, cuts, contusions and fractures) occurred at the KTM sites in Mattighofen, Munderfing, Schalchen, at the KTM Technologies GmbH site in Anif and at the respective test tracks, but also in road traffic during the course of an endurance test. The main causes of accidents can be attributed to the handling of work equipment and tools, vehicles and other means of transport, as well as a lack of at- tention, stumbling and twisting. The injury rate among employees is 13.3 work-related accidents per million hours worked. In 2021, the Lost Time Injury Frequency Rate (LTIFR) was also evaluated for the first time. This is 8.4 for employees and 22.9 for temporary workers. 11 In 2021, the following measures were implemented specifically to improve occupational safety and employee health: Ergonomic development of workplaces in all production areas and selected office workplaces by our ergonomics experts. Continuation of the successful adaptation of the production process- es and the technical equipment on the production lines to reduce accidents at work. (Preassembled assembly groups are installed on the line.) Training courses on how to handle industrial trucks in internal traffic and further development of training measures for 2022 (implementa- tion of eye tracking). Continuous expansion of extraction systems for machines with dust or aerosol formation (lathe, finisher). Improvements to the traffic routes surrounding the company premis- es, for example: new road markings made, widening of sidewalks. In particular, adaptation of the traffic routes to the new circumstances after rebuilding work. Optimization of work processes and organizational changes throughout the warehouse area to prevent accidents. Ongoing improvements for the consistent implementation of safety and fire protection instructions with new employees joining the company. This was also stepped up in 2021 via the newly established Production Academy. Rectifying missing or inadequate safety instructions in areas with an increased incidence of occupational accidents or near misses continued to be a focus. The coronavirus pandemic also presented special challenges in this area: Specific online training courses were developed to ensure that briefings were given despite restrictions on contacts. Employee involvement, consultation and communication The safety officers and occupational physicians act primarily as employee representatives. In addition, employees can also consult the safety spe- cialist or the works council to obtain information. Important information is regularly communicated on the intranet, via managers and via the in- formation boards in the respective areas. In order to ensure, for example, that safety-relevant topics can quickly be communicated to the employees in the production areas, digital screens were installed in November right by the entrances and are used to display information in real time. Another important tool for passing on information is the health and safety committee, in which the safety officers and works council representatives receive an update four times a year. The committee also provides a forum for discussion on occupational safety and health protection. KTM Technologies GmbH also attaches great importance to maintaining the highest safety standards, it regularly trains its employees and ensures that all legal requirements set out in the Austrian Employee Protection Act are met. Special safety briefings are conducted for employees who work in areas with a higher risk potential. The safety briefing is refreshed annu- ally for each employee working with the company INTERGEO. In addition, employees are given the opportunity to ask questions in a personal safety briefing. 11 Number of hours worked in 2021: 5,564,141. The method of calculation was adjusted in 2019. Values for 2019 include all documented occupational accidents. From 2020 onward, work-related injuries to temporary workers are evaluated separately. 2020, 2019 and 2018 are therefore not comparable. See table in the appendix. The Lost Time Injury Frequency Rate (LTIFR) has been recorded since the 2021 reporting year. The LTIFR describes the number of accidents involving lost time of at least one working day per 1 million hours worked. Underlying formula: LTIFR=accidents/hours worked*1,000,000.

SUSTAINABILITY REPORT 2021 45 E D U C A T I O N A N D T R A I N I N G CONCEPT AND OBJECTIVE With less education and training being offered in 2020 due to Covid, the PIERER Mobi- lity Group got going again fully in 2021. The number of hours of education and training for employees in Austria was around 124,000 hours (previous year: around 29,000). The average number of hours per employee was 26 hours (previous year: around 7 hours). The costs of education and training amounted to around EUR 2,292,000 in the reporting year (including companies in Austria, Germany and Australia). See also the table on “Education and Training” in the appendix. Structured personnel management as well as the constant pursuit of personnel development programs are designed to prevent the unwanted departure of employees from the company. A shortage of skilled workers at KTM is also being addressed with a comprehensive apprentice training program in our own apprentice workshop. In production, a qualification matrix is used to map the employees' ability to work. In addition, this matrix is used to continuously determine the employees' qualification requirements and to plan further training accordingly. In particular, the PIERER Mobility Group will in future increasingly rely on online training to deliver education and training of its employees which is flexible in terms of time and location. Furthermore, we will focus on exchanging knowledge internally through experts. This is also the reason why PIERER Mobility has defined its employees as the fourth pillar of its success alongside globalization, innovation and brands in the company, and constantly strives to reinforce this pillar by expanding the education and training it offers. DUE DILIGENCE PROCESSES AND MEASURES “KTM_academy training portal” learning management system Since personal development is now characterized by massive change in an age of digitalization, a web-based learning management system (“KTM_academy training portal”) was launched in 2019. This makes the education and training of employees even more attractive, efficient and transparent. In 2021, KTM Technologies GmbH and Avocodo were also connected to the learning management system. Partly due to the COVID-19 pandemic, very many courses were successfully digitalized or carried out in hybrid form. This ensured that employees continued to receive education and training even in these turbulent times.

SUSTAINABILITY REPORT 2021 47 MBA KTM MBA Digital Business Modelling and Process Innovation + Master Thesis YPC KTM Upgrade KTM YPC, KTM Young Pioneers College Dual Master FH Wels Automotive Mechatronic Management Technical university course University course FH OÖ modular education LIMAK university course KTM_FlexStudies LIMAK and Emeritus diploma courses Online language training Following the introduction of online language training in 2020, the offer was available to all KTM AG employees with a personal IT user account in 2021. This is where we offer our employees language training in the form of a self-study e-learning program, supplemented by individual live tutoring sessions with highly qualified trainers. The e-learning program and the live sessions are tailored to the learner's individual language lev- el. Both the basics of the respective language as well as job-specific and industry-specific content can be learned and consolidated here. The new language is taught intuitively using the multi-award-winning “Dynamic Immersion Method”. This method is based on pictures, videos, stories and interactive exercises. Employees allocate the time flexibly themselves. LinkedIn Learning In the fall of 2021, the LinkedIn Learning platform was introduced at Pierer Mobility AG. LinkedIn Learning is an online learning platform offering thousands of video-based courses in the areas of business, IT and creativity. Courses are available in 7 languages. In the video courses, industry experts guide users through the course content. For many cours- es, additional resources such as support materials, knowledge review offerings, a questions & answers section, or study groups are available. LinkedIn Learning is available for all desktop and mobile devices. For the first time, employees from all Pierer Mobility AG companies can make use of a digital learning offering of this kind. Training support If employees demonstrate special performance and a high level of self-motivation, KTM helps them to complete a degree or training as a foreman alongside their job. The prerequisite for this is that the chosen subject is related to their current position or possible positions at KTM. KTM provides financial support by paying costs, but also by granting special leave, free time to prepare for examinations, or traditional part- time education. LEADERSHIP AND MANAGEMENT Young Pioneers College and KTM Intrapreneurship MBA In 2019, a new further education opportunity was launched together with LIMAK - Austrian Business School. The offer includes the KTM Young Pioneers College and the exclusive KTM Digital Intrapreneurship MBA. The programs focus on general management, leadership and digital intrapre- neurship. The KTM Young Pioneers College is aimed at managers and em- ployees who do not yet hold a management position but who show great development potential. The KTM Digital Intrapreneurship MBA is aimed at general managers, project managers and specialists. Participants are selected through an internal application process, where applicants can showcase their talent and potential. In 2021, we were again able to arrange a trip for a group from the Young Pioneers College. A real highlight in 2021 was when the first group from the KTM Digital Intrapreneurship MBA undertook a study trip through the whole of Austria. They were able to visit various companies and get academic input on the topic of “digitalization”. This MBA group graduated in November 2021 with a viva and can now proudly use the academic title “Master in Business Administration”. A special feature of both programs is the networking and interdisciplinary exchange that the participants continue to maintain beyond the end of the program. KTM AG has also expanded its portfolio in the area of “Academic Educa- tion” to include various diploma and university courses, among others in cooperation with LIMAK - Austrian Business School. The purpose of this is to make its employees’ development opportunities even more specific and to enable further development on an individual basis. There is great focus here on specialist courses, which always also focus on digitaliza- tion. These courses are generally open to all employees of KTM AG and therefore also promote interdisciplinary exchange and networking among employees.

SUSTAINABILITY REPORT 2021 49 College to ensure networking within the company and to acquire new knowledge together with colleagues. At the same time, practical experi- ence is gained directly in sales management and closely related areas. In- ternational experience is a top priority, and therefore trainees also spend some time in our offices in France, the UK or the USA. After this 18-month period, there is then the opportunity to immediately take up a permanent position at KTM in sales management. The sales trainee program was successfully launched for the second time in October 2021. Production Academy – New training center for production employees With the newly created Production Academy in Mattighofen, KTM AG is investing heavily in the education and training of production employees. In the new training center, production employees receive intensive support and training, from onboarding through to technical training. In 2021, more than 100 new employees from leasing companies and from AMS (Public Employment Service Austria) and apprentices were already trained up for the various KTM production plants. In particular, special information days were organized with AMS to give interested parties an advance insight into production, possible areas of responsibility and KTM as a company. © KTM As part of the onboarding training, production employees receive a standardized safety briefing and a guided production tour of the vehicle assembly line right at the start. In addition, participants learn about the most important tools and the right screws for different applications and can try them out in a hands-on way on a motorcycle or engine. A combi- nation of practical application, a theoretical element and a knowledge check means that safety-relevant topics such as cables & connectors or production-specific documents can be communicated in a consistent manner. The TWI method – which means “training within an industry” – is also particularly popular. This is where the trainee slips into the role of the trainer after successfully completing the training and then has to teach another participant the processes that have been learned in a similarly standardized manner. For existing and advanced employees, a separate short assembly line with screwdriving equipment and preassembly was explicitly installed in the training center. Depending on the main assembly errors made in vehicle assembly, effective training can thus be imple- mented in a real environment.

SUSTAINABILITY REPORT 2021 51 It is a central aim of the company to continue to employ apprentices when they have completed their training. This meets the company's require- ment for well-trained specialist staff and at the same time helps young people to make a good start to their professional lives. The cornerstone of apprentice training is our own apprentice workshop. 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. Great store is placed on ensuring that staff training the apprentices have the right technical and teaching qualifications and social skills. Social and methodological skills are also promoted, in addition to specialist skills. Every year, all apprentices go through team building together, where they work on projects together and strengthen cooperation and mutual trust. In 2021, 36 employees who had completed training were integrated into various specialized areas in KTM AG. Of these, over 50% passed their final exams with a grade of excellent or very good. International Skilled Workers Exchange Since 2017, KTM AG has enabled apprentices to spend time abroad in England and Ireland via the organization IFA (International Skilled Workers Exchange). Commercial and technical apprentices support small local businesses with their expertise and are able to improve their own language skills. In addition to language skills, the exchange essentially strengthens their awareness of other cultures but in particular their self-confidence. In 2019, six apprentices took part in the international skilled workers exchange and spent four weeks abroad. In 2021, 11 ap- prentices took part in the international skilled workers exchange and each spent four to six weeks abroad. Digital training management - “Apprentio” With the “Apprentio” app, which was newly introduced in 2020, apprentic- es can access their rotation schedule as well as vocational college, train- ing dates and vocational training blocks at any time on their smartphone. Chats and push notifications enable timely communication between apprentices and their trainers. This has also made planning and coordina- tion in the apprenticeship training back office easier. In addition, the app also presents a standardized feedback process in which apprentices and trainers exchange information with each other while documenting learning progress. Visitor events Several events were held last year to provide interested parties with an insight into our apprenticeship training. These were well attended despite coronavirus restrictions. As part of the “Long Night of Apprenticeship”, which was attended by several companies as well as schools from the Innviertel region, more than 20 families were offered an exclusive guided tour. The Open Apprenticeship Workshop Days were held on 4 Saturdays in March and were completely booked out with 50 families. As part of our cooperation with schools, we were visited by four classes. We were able to use this opportunity to get them excited about apprenticeship training. Partial qualification Since 2021, it has also been possible to complete training in the met- alworking occupation as part of a partial qualification. This allows the candidate to be offered a job in one of our production areas. It also gives those individuals who have not completed 9th grade the opportunity to take advantage of a standardized training program in cooperation with Schärding Vocational College. Both the practical and theoretical training at the vocational college are adapted to the level of the participants. After solid basic training in our technical apprentice workshop, the training is rotated within our production areas. Conversion of apprentice workshop The apprentice workshop at the main site in Mattighofen is being convert- ed into a modern training center. 2.5 million euros are being invested in order to train more apprentices and offer new professions in the future. In addition to a new pneumatic-electrical laboratory and a new programming room for CNC as well as design with 3D printing, all the machinery is being expanded. The automotive workstations and the welding technology area will also be expanded. The teaching rooms will be equipped with the latest technology, including digital whiteboards, and modern social rooms will promote interactive dialog. Apprenticeship with secondary school leaving certificate More than 50 apprentices are currently receiving top-level training in mathematics, German and English as well as an elective subject through the Apprenticeship with secondary school leaving certificate program. This training is equivalent to the advanced professional examination and thus also enables access to higher education. Training is offered at the company's own training center during working hours. Apprentice accommodation In order to expand the catchment area for apprentices, an opportunity has been created to move into a room at the newly renovated accommodation of the OÖ Heimbauverein in Braunau. Meals and educational support are included. Marketing activities In order to capture the attention of the “Generation Z” target group, our marketing activities focused on advertising via radio, training cooper- ation, billboard and LED walls as well as social media campaigns. The positive response is reflected, among other things, in the fact that all ap- prenticeships due to start in September were already filled by March 2021. Digitalization of knowledge - e-learning In order to strengthen digital knowledge management in the apprentice community, an initiative was launched to allow apprentices and trainers to explain training content in a simple manner in e-learning courses, which can then be accessed by other apprentices. For example, terms such as B2B/B2C are explained in a video by an apprentice, who links this with examples from practice as well as input from the vocational college. .

SUSTAINABILITY REPORT 2021 53 Support for women in STEM professions To support women in STEM professions, KTM AG has already implemented several measures (Girl's Day, technical appren- ticeship) that are constantly being expanded. Every year, KTM invites girls who are interested to gain an insight into the company's technical training. In addition to receiving a guided tour of production, on Girl’s Day they can also get involved themselves by machining key chains, working on engines, carrying out measurements on electric panels or removing entire wheels at various stations. The stations are expertly supervised by KTM’s trainers. The number of girls on technical apprenticeships is rising steadily. Due to the corona pandemic, the program could not take place in the reporting year. In Upper Austria, the program will continue virtually in 2022. KTM will not participate again until 2023. Works council The works council ensures the protection and promotion of employees' interests in the company. In the PIERER Mobility Group, the works council of KTM AG and the works council of KTM Components GmbH represent the workforce at the sites in Mattighofen and Munderfing/Austria, respectively. The works council has 16 members in Mattighofen and represents the interests of the workforce. The works council is a member of the Supervisory Board and is actively informed about ongoing developments in the company and involved in decisions. In ad- dition to electing the works council, works meetings can also be held for the purpose of informing employees, for example, about ongoing collective bargaining or other important operational is- sues (“freedom of association”). See also “Explanations on the implementation of the provisions of the core labor standards of the International Labor Organization (ILO) in Austria and the PIERER Mobility Group" on the website under "Sustainability/ Download Center” 12. 12 https://www.pierermobility.com/en/sustainability/download-center © KTM

SUSTAINABILITY REPORT 2021 55 © KTM “Motorcycle of the future” – eEducation, digital education in focus With its in-house Innovation Lab, KTM Motohall is also an industry partner of the eEducation Austria initiative, a project of the Federal Ministry of Education, Science and Research. This educational facility for students was developed together with the Linz-based art, science and technol- ogy center ARS Electronica Solutions. The focus of the project concept called “Motorcycle of the Future” is the meaningful use digital media for educational purposes and to boost digital and IT skills (digi.komp) in Austrian classrooms. The common goal is digital education for all! In the workshops, children and youngsters aged 6-15 can playfully learn how to use the latest design and production processes and the associated tools. The “Motorcycle of the Future” project focuses on designing your own motorcycle of the future using 3-D printers and design software. Documents created for this educational purpose serve as a basis and act as guide for the workshop supervisors. Through this project, the young target group develops a curiosity about technical topics and can acquire expertise. The content is worked through in three teaching units in school as part of project work, and includes a workshop in the Innovation Lab at KTM Motohall. Youth development program – supporting young talent in sport The past four YOUNG FIGHTERZ seasons have already demonstrated that KTM is committed to promoting young talent. The promotion of young motorsport talent remains an important topic. Austria’s young riders in the 85cc class are referred to as YOUNG FIGHTERZ. All riders, regardless of which make, or whether a license holder or amateur rider, are eligible to participate. Following the great success of the 85cc training camps in previous years, the YOUNG FIGHTERZ training series was extended last year to include two camps for riders in the 65cc class, the MINI FIGHTERZ. The training camps take place at venues offering the best training and development opportunities. Local Enduro greats help the youngsters to develop their cross-country skills. This gives young talented riders the opportunity to share their experiences with heroes and role models from the national motorsport scene and to get tips from the pros. Austrian Junior Cup – giving young people sporting opportunities Together with the ÖAMTC, the Austrian Automobile, Motorcycle and Touring Club, KTM AG supported the AJC Austrian Junior Cup 2021. In the reporting year, 20 young people took part in this competition to promote young talent with the aim of becoming the best world championship rid- ers. With this initiative, KTM AG is very keen to support talented Austrian youngsters and to give them a good foundation and opportunity in this sport. Working to improve riding safety As a part of the individual transportation industry, we see it as our role to help to contribute to active and passive riding safety. To this end, we have partnered with ÖAMTC Fahrtechnik to provide motorcycles for use in the eight riding safety centers. During the training courses, bikers learn how to react to dangerous situations on the road quickly and optimally while riding their motorcycle. School and club sponsorship – creating a positive local impact The group is aware that schools, clubs and associations help to support our society and are also essential for people's social life. In the reporting year, KTM AG therefore once again supported a wide range of projects and activities with donations in kind as well as monetary donations amounting to around EUR 43,000.

SUSTAINABILITY REPORT 2021 57 Due to the growing need for energy savings and sustainability, lightweight construction is coming into even sharper focus. Economical lightweight construction is also an important component for electric vehicles because it ensures that they are as efficient as possible and additionally 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 material in the right place”. The combination of a standard ma- terial 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 rear frames, engine guards or chassis components of motorcycles, as well as passenger compartments of multi-track sports and light vehicles. The company also develops and patents its own solutions for these applications, such as the “CONEXUS” technologies, which enable different materials to be bonded together. Another example is the “CAVUS” technology which can be used to manufacture complex, one-piece and pressure-stable hollow components. The company is also explo- ring the use of so-called “organic materials” and new processes for manufacturing them which can make a relevant contribution to reducing the carbon footprint. In order to be able to test the developments under realistic conditions, fully functional prototypes are built in the company's own workshops. Optimum conditions for doing this have been created in the new building and the provision of professional equipment in terms of test stands, measuring technology and analysis tools has been further expanded. This is where prototypes can be fine-tuned, tested and validated in-house in all phases of development. This is a great advantage, especially for the fast, safe and qualitatively flawless development of sophisticated and high-performance electric vehicles. Participation in selected group-wide projects to reduce the car- bon footprint will be as much a part of KTM Technologies GmbH activities for 2022 as the targeted expansion of know-how with a focus on lightweight construction, plastics, 3D printing and new mobility. © KTM Technologies Animation © Numerica © KTM Technologies

SUSTAINABILITY REPORT 2021 59 R E S P O N S I B L E PROCUREMEN T CONCEPT AND OBJECTIVE Procurement is playing an ever greater role in the efficient and sustaina- ble configuration of the value chain and is therefore becoming increasing- ly important. Our suppliers are critical to our success and everything we achieve is a joint effort. For this reason, a basis is created for the parties involved – suppliers and customers – which allows long-term business relationships to be established and expanded. In addition, a mature supply chain from the supplier to the production sites in Mattighofen and Munderfing is primarily designed to ensure the availability of parts at eco- nomically competitive costs. In order to be able to implement these goals, various employees from the areas of purchasing, quality management and research & development contribute with their expertise before a new purchased part is awarded to a supplier selected in a tender. Fair payment and fair working conditions, both in the company's own operations and in the supply chain, form the basis for a long-term working relationship based on trust. The immediate effects of the coronavirus pandemic, for example with suppliers affected by illness, as well as the upheaval in the global economy as a result of this crisis place even greater demands on safeguarding the availability of parts. In order to be able to identify and resolve volatile environmental influences and risks arising, for example, from the coronavirus pandemic at an earlier stage, an A.I. 17-supported risk monitoring system is used. In addition to the close and transparent exchange of information with our suppliers, this system provides immediate information about any global events that have a direct or indirect impact on the supply chain. This enables us to detect disruptive influences along the supply chain at an early stage, take coun- termeasures as quickly as possible and thus largely avoid material supply risks. Targeted monitoring of potential influences can not only optimize resilience within the supply chain, but also ensure that sustainability aspects are maintained globally. DUE DILIGENCE PROCESS AND CURRENT MEASURES Considering and complying with the regulations of our Code of Conduct, the working relationship with our supply partners benefits from long-term, consistent points of contact in purchasing, which we can ensure thanks to a low turnover of staff. Our expertise in the area of purchasing is continu- ously increased through further education and on-the-job training. Based on their personal learning concept, our employees continue their education through purchasing courses in cooperation with the BMÖ/BME 18, technical training or KTM's own MBA in cooperation with LIMAK in Linz. In order to grow as a company together with our supply partners and to achieve continuous improvement in all areas, we rely on open and transparent communication. For new developments of SE 19 and principal components, we work together with our supply partners at a very early stage of development in order to jointly design components that support our goals from a technical, commercial and logistical point of view. Here, as is customary in the industry, we work with our R&D department to ex- ploit approaches such as design to cost, cost engineering and component standardization. The selection of the right supply partners takes place in the Purchasing, R&D and Quality team, considering our commodity group strategies. This ensures that all criteria are taken into account in their entirety in the decision and that the next steps are planned together. These decisions are based on the "total cost of ownership" approach and thus include, among other things, consideration of the transport distances traveled. The most important criteria here include ISO 9001 certification, technical capa- bilities, security of supply, quality, competitiveness and communication. In the future, we also expect our suppliers to certify an environmental management system in accordance with ISO 14001, EMAS or comparable standards. In order to define appropriate targets for this, we conducted an inventory of the certifications of our series and non-series suppliers as well as logistics service providers, in which 60% of our key suppliers participated 20. This allowed us to draw the following conclusions: 40% of the business partners that participated in the survey are certified to an environmental management system in accordance with ISO 14001 and 1% in accordance with EMAS. 27% have other, in some cases additional, environmentally relevant certifications; these mostly include a certified energy management system in accordance with ISO 50001 (9%) or an award for operational environmental management through ÖKOPROFIT®. 17 A.I.: Artificial Intelligence 18 BMÖ: Federal Association for Materials Management, Purchasing and Logistics in Austria; BME: Federal Association for Materials Management, Purchasing and Logistics in Germany. 19 SE: Simultaneous Engineering 20 The survey on which the results are based ran beyond the turn of 2021/2022, but it refers to certifications in 2021.

We will start with the strategic auditing of certain focus components as well as the suppliers that have already had problems with deliveries in the past. This process will then be continuously expanded in consultation with the suppliers. This early identification, assessment and management is intended to ensure material availability and further improve traceability and supply chain transparency. Suppliers with above-average performance are presented with a quality award once a year (KTM Supplier Excellence). The quality award is given to those suppliers that have supplied KTM in the last 12 months and have not been the cause of any complaints during this time. In addition, criteria regarding the level of turnover and the signing of the quality assurance agreement must be fulfilled. Furthermore, there must be no justified objection from the quality and purchasing management. In addition, the financial situation of our supply partners is assessed at regular intervals and product liability insurance is required. Above a certain purchasing volume, we can offer our supply partners the option to participate in our specially developed supply chain finance program. This program offers our supply partners a financing program on KTM terms and enables KTM to extend the terms of payment for the purpose of working capital management. Procurement strategy and purchasing volume We try to boost the economy of our own region and generate lower transport costs and more environmentally friendly supply chains by having shorter transport distances. An example of this is implementation of local procurement strategies for our production sites in Mattighofen and Munderfing. The regional supply industry contributes to a large extent to KTM AG’s success as a company. SUSTAINABILITY REPORT 2021 61 When awarding new projects, emphasis is placed on supporting social enterprises, considering local procurement strategies. This means that suitable projects are preferably awarded to inclusive businesses in the region. The purchasing volume of components for the series production of motorcycles in the 2021 financial year amounted to approx. 912 million euros. Geographical breakdown: 2% from the district of Braunau, 7% from Upper Austria, 24% from Austria, 67% from Austria/Germany/Italy and 90% from Europe. The bicycles are purchased fully assembled from a partner in Europe (approx. 70%) and a partner in Asia (approx. 30%). In the 2021 financial year, the purchasing volume for indirect materials and services for the plants in Austria was approx. 172 million euros. The majority was procured within Austria: 5% from the district of Braunau, 21% within Upper Austria, 57% within Austria, 79% within Austria/Germany/Italy and 97% within Europe. Purchasing volume per continent (series purchasing): 90.5 % Europe Asia 6.9 % North America 2.6 %

SUSTAINABILITY REPORT 2021 63 EN VIRO N MEN TA L A SPECT S A L O N G T H E P R O D U C T L I F E C Y C L E CONCEPT AND OBJECTIVE The PIERER Mobility Group is aware of the environmental impacts associated with the production and the use of its products, and therefore strives to use natural resources responsibly. The products developed, produced and sold by PIERER Mobility AG are various vehicle concepts adapted to the various usage profiles of our customers. The portfolio ranges from vehicles for active leisure activities (Motocross, Enduro, etc.) to uses in the field of urban mobility. Thanks to its broad product range, the company has various levers at its disposal that enable a sustainable reduction in emissions in all mobility areas and along the entire life cycle – from product development and product manufacturing to product use. Activities for the purpose of safeguarding the environmental goals are coordinated in large parts of the PIERER Mobility Group in the respective departments of the company. In addition, an environmental management system in accordance with ISO 14001:2015 was successfully implemented in summer 2021. In the course of the implementation, our environmental targets were also defined (see page 13 in the TCFD Report 2021) 22, and have since been updated annually. In addition to the KTM AG production and logistics sites in Munderfing and Mattighofen, the certification of the environmental management system (EMS) also covers KTM Components GmbH and KTM Forschungs und Entwicklungs GmbH. Structure & process of the environmental management system: The environmental management system in accordance with DIN EN ISO 14001:2015, which was implemented and certified in 2021, mainly focus- es on the following aspects: Input/output analyses: The material flows of the materials used in pro- duction are analyzed annually in order to initiate measures to optimize the use of materials if necessary. Life cycle assessment from development through to disposal: Currently, certain aspects of the product life cycle, such as the electrification of small power classes and reduction of consumption, are being champi- oned. In addition, a process is currently being developed to calculate the carbon footprint for individual components of our vehicles. Ensuring operational safety: Every employee receives a safety and fire protection briefing when they join the company. Furthermore, weekly audits focusing on safety, order and cleanliness are carried out at the certified sites to continuously ensure environmental protection, safety and fire protection specifications. Emergency plans, which contain instructions on the correct conduct in emergency situations, are in place for each site. Audits: Regular internal audits are conducted to continuously examine whether processes, requirements and guidelines of ISO 14001:2015 are being met. If there are any discrepancies, appropriate corrective measures are taken. In addition, an ISO 14001:2015 certification audit takes place once a year and an external energy audit every four years. Annually updated environmental targets: Workshops to update our environmental targets are held once a year with the relevant depart- ments. Environmental targets are disclosed in our reporting in line with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). This report will henceforth be revised annually and published on the group's website 23. Annual assessment of environmental aspects: In order to be able to op- timally align our environmental targets, our key environmental aspects are assessed before the environmental targets are updated. A workshop is also held once a year for this purpose. Enshrining and raising environmental awareness: In order to achieve a consistent awareness of the environment within our company, employee training courses on our environmental management system are held on an ongoing basis. They will be expanded further during 2022. Legal compliance: see chapter “Business Compliance”. REPRESENTATIVES IN TERMS OF THE ENVIRONMENTAL MANAGEMENT SYSTEM Waste Management Officer Representatives of people with disabilities Fire Prevention Officer Hazardous Materials Officer Poisons Officer Safety Officer Environmental Management Officer 22 https://www.pierermobility.com/wp-content/uploads/2021/11/PIERER-Mobility-AG_TCFD-Report-2021_en.pdf 23 https://www.pierermobility.com/en/sustainability/sustainability-reports

SUSTAINABILITY REPORT 2021 65 ENVIRONMENTALLY CONSCIOUS PRODUCTION As far as the development and production of its products are concerned, the PIERER Mobility Group always attaches great importance to the efficient use of raw materials in a manner that conserves resources, and sustainable handling of the resources used for the development and production process. Therefore, increases in efficiency in many areas, in addition to the maximum possible utilization of raw materials – including their return to the material cycle – represent a particularly important aspect for PIERER Mobility AG. The operating and administrative buildings of KTM AG are built according to the specifications of OIB Guideline 6 (energy performance certificate for non-residential buildings, or energy performance certificate for other buildings). An energy certificate is only available for newer buildings as of 2013. The “Real Estate” department is responsible for the legally compliant new construction of plants and buildings, project submis- sion and approval procedures, the corresponding communication with authorities, and for conducting the recurring Section 82b audits. The head of the department reports directly to the Executive Board. The manufacture of preliminary products and finished products generates various waste materials that are recycled according to type. The materials to be recycled are aluminum, stainless steel and steel waste. These are handed over to a certified specialist waste management company in various quality grades. The efficient use of materials and the maximum possible utilization of raw materials, including their return to the material cycle, prevent unnecessary waste of materials and also ensure that any waste produced is disposed of properly. For the transport of preliminary and finished products within the Group structure and to suppliers, the Pierer Mobility Group focuses on the use of reusable packaging. The quota of reusable packaging for deliveries of standard products within Austria as well as from neighboring countries is increasing each year. Currently, approx. 23% of standard products are delivered in reusable packaging. This was the conclusion of the evaluation carried out in the reporting year. Our goal is to increase the reusable quota to 25% in 2022. In addition to economic aspects, reusable packaging helps to reduce the need for natural raw materials to produce various items of disposable packaging and their disposal. The preparation of oil can also contribute toward protecting the environ- ment. Following an engine test bench run, the oil is filtered in a reprocess- ing plant and then returned to the oil tank. This means that it is no longer necessary to change the oil, and the environmental impact of disposing of it after just one use is reduced. The aluminum chips produced during the mechanical milling of cylinder heads and engine cases are conveyed via a central extraction system by means of a vacuum through a pipe system directly from the CNC milling machine into a collection container. In 2021, this allowed 189.83 tons (previous year: 169.92 tons) of aluminum chips to be returned to the material cycle. The aluminum chips are processed at a recycling company and can be turned back into a valuable raw material. All aluminum castings machined in-house are cleaned in a solvent-based (alcohol) parts washing machine. In comparison to water-based systems, this method of cleaning parts does not produce any waste water, which has to be disposed of at great cost. In the engine plant, the thread lock was also changed as far as possible from “liquid” to a version perma- nently applied to the thread. This is already applied to the screw thread by the supplier. Apart from an increase in process reliability, this also results in a significant reduction in the number of empty containers that need to be disposed of. Due to the large number of different screws and the associated approval procedures (screw tests, sampling, etc.), the implementation of this measure took from January 2019 to August 2021. Our engine completion system was also completely redesigned, and in the course of this was changed from “oil draining” to “oil suction”. The installation took place in Q3 2021. This is also resulting in a reduction of oily waste; draining required much more cleaning effort using rags due to the oil running out. Hazardous substances in the production process & REACH regulation Constantly expanding professional hazardous substance management is a major issue for PIERER Mobility AG / KTM AG. Before a new working substance is procured, it must be approved by the company's responsible departments using a form and safety data sheet. Information such as the precise name of the substance, purpose and place of use as well as the annual order quantity and container size are relevant. These are checked by the safety officer. The required material or substance is not procured until it has been approved by those responsible for occupational safety, waste, fire safety, occupational medicine, and chemicals and poisons. Wherever possible, we try to minimize or even completely avoid hazardous working and auxiliary materials in our production processes. For this reason, alternatives are sought before or at the latest during the approval process in the case of substances that may be harmful to health. If there is no alternative for the requested substance, the above-mentioned people responsible will consult together on how the substance can be used without endangering our employees. In addition, a list of working materials is kept with reference to the collected safety data sheets. The topic of hazardous substances in the production process is accom- panied by the ever-increasing importance of safe chemical management. Since a wide variety of different substances and materials are used in the manufacture of motorcycles, safe, conscious and sustainable handling and use of these substances is an important issue for the whole industry. Therefore, as an OEM, we also support the REACH regulation's efforts to reduce possible risks associated with chemicals as well as the potential impact on the environment and to improve the protection of human health. We therefore require our suppliers to register as well as record the chemical composition of all parts purchased by KTM in the central IMDS (International Material Data System) database. This database serves as a central tool for fulfilling our obligations regarding the REACH regulation. All other processes for implementing the REACH regulation are constantly in focus and are continuously evaluated in order to efficiently comply with the requirements and obligations.

SUSTAINABILITY REPORT 2021 67 Targets and measures for reducing consumption 32: Installation of photovoltaic systems on the roofs of logistics center 1, logistics center 2 and component production LED switchover in vehicle assembly by Q3 2021 Electrification of the passenger car fleet – target of 20% by the end of 2022 Sustainable energy source on the roof of KTM The photovoltaic system on the roof of the “House of Brands” office building with a total area of 679.8 m² is designed for the building’s own consumption. In the period from February 2021 to February 2022, the sys- tem produced around 114,400 kWh of electricity (around 9,500 kWh per month). The missing smart meter has only been retrofitted since the end of January 2022. Due to the short time since this additional module was put into operation, it is not possible to make a valid statement about how the reciprocal amount of energy was bought or sold. It will be possible to provide more accurate information about the amount of energy generated in the next report. Since it was commissioned, between July 2019 and February 2022, the photovoltaic system has produced about 334,500 kWh of electricity (about 10,800 kWh of electricity per month) for the office building in Munderfing/Austria. The roof area of the KTM logistics center 1 in Munderfing was rented out for the construction of another photovoltaic system covering 40,000 m² (power approx. 4,000 kWP). In total, this resulted in an annual production of alternative electricity amount approx. 4.0 million kilowatt hours (kWh). The operator of the photovoltaic system is PLB Energie GmbH (Austria) 33. This system is designed to feed electricity into the public grid and an has been in operation since 2021. In comparison: According to Statistics Aus- tria, An average Austrian household consumes 3,559.90 kWh of electricity per year, ascending trend. The plant with the first component supplies approx. 1,000 households (in the final stage, with the commissioning of logistics center 2, the plant will thus supply approx. 2,000 households). The photovoltaic system is an environmentally friendly technology on the roof of KTM AG and will also deliver a CO2 saving of 1,400 tons per year in the very first construction phase. A photovoltaic system is also to be installed on the component production building in 2022. The size and operator model correspond with the system on logistics center 1. logistics center 2, which is currently under construction, is scheduled for completion by mid-2022. The building is designed for the installation of a photovoltaic system. There were no concrete plans available when this report was drafted. Use of materials and efficient use of infrastructure The key objective for KTM AG in developing new engines and vehicles in the high-performance motorcycle segment is using materials that meet the requirements – for example by using high-strength steels and composite materials for its chassis and engines. By using state-of-the-art construction and simulation software, it has also been possible to estab- lish a reliable strength design, minimize the number of prototype parts required, as well as significantly reduce the specific component weight. Vehicle assembly: One line – three brands The assembly lines of the vehicle assembly department (FAS) in Mat- tighofen are designed to be sufficiently flexible so that both road and off-road motorcycles of all brands (KTM, HUSQVARNA, GASGAS) can be assembled on them. Following assembly, the functional check is carried out on specially designed test benches. The test process can be carried out with very little set-up effort on any of the existing test stands, regard- less of the type and size of the motorcycle. In order to optimize the consumption of resources, the required quantity of auxiliary and operating materials is controlled and, if necessary, opti- mized during the assembly process as well as during the testing process. For example, the amount of grease applied for lubricating the steering head tube on assembly line 1 was considerably reduced by developing a dosing unit. A conversion of the assembly lines 2, 3 and 4 is planned. Infrastructure expansion in Anif close to Salzburg As part of the renovation work, for the new R&D site the existing cooling/ heating technology was replaced for the entire building and substituted with air source heat pumps. Heating is provided by a low-temperature heating system. The hall area covering approx. 5,000 m² contains the workshop and test benches as well as a small office area. In addition, it is equipped with the very latest safety technology. The office building with an area of approx. 3,000 m² was modernized (in respect of room con- ditioning) by installing interior insulation and replacing all windows. By moving to the new building, there will be more parking spaces available here employees, and above all there are more bicycle and (e-)two-wheel- er parking spaces. Furthermore, charging stations for e-vehicles are installed. 32 See environmental targets on page 13 in the TCFD Report 2021: https://www.pierermobility.com/wp-content/uploads/2021/11/PIERER-Mobility-AG_TCFD-Report-2021_en.pdf 33 The photovoltaic system was built by Ökosolar PV GmbH (Austria).

SUSTAINABILITY REPORT 2021 69 We must handle considerable amounts of waste as part of motorcycle production. A large part of the waste produced comes from certain product-specific steps during production. This starts with the processing of engine cases (aluminum chips, drilling emulsion) and continues with the manufacture of exhaust systems (steel, oil-water mixtures, stain- less steel) and vehicle frames (steel, coolant) and also extends to the manufacture of products in general (packaging materials such as wood, cardboard and plastic). The measures we implement enable us to take the necessary steps to avoid or reduce waste and to recycle secondary raw materials. One example of waste reduction is our reusable racks, which are used as packaging for transporting motorcycles in Europe (disposable packaging is currently used for overseas shipments). In the reporting year, KTM AG and KTM Components GmbH were therefore able to recycle around 786.6 tons (previous year: around 661.0 tons) of metal waste (separated into various scrap fractions, excl. aluminum waste); around 261.5 tons (previous year: around 267.5) of aluminum waste; around 4,487.3 tons (previous year: 3,126) of recyclable waste. Furthermore, around 337.9 tons (previous year: 267.8) of hazardous waste and around 519.7 tons (previous year: 500.3 tons) of other waste that could not be re- cycled were produced. This list focuses on the operating companies of the PIERER Mobility Group. The detailed table can be found in the appendix. Depending on the production volume, the waste produced (both steel and aluminum) is fed into the recycling cycle at a rate of up to 90 - 95%. In the 2021 reporting year, the amount of waste per vehicle produced was around 30.4 kg (in 2020 around 28.6 kg). The quantity of packaging materials disposed of per vehicle produced was around 20.3 kg (around 15.9 kg in 2020). Waste that cannot be clearly attributed to production was not included in the calculation of “waste per vehicle produced” and “packaging materials disposed of per vehicle produced” for reasons of materiality. The increased quantities of waste per vehicle between 2020 and 2021 are due to the increase in the spare parts business and the increased number of imported vehicles. Consequently, an adjustment or specification of the calculation (including imported vehicles) was also made retrospectively for the years 2019 and 2020. The detailed table can be found in the appendix. ACTIVITIES AND MEASURES IN THE (E-)BICYCLES DEVELOPMENT PROCESS Sustainability already plays a central role in the area of research & development at PIERER E-Bikes GmbH. The aim is to make every phase of the product life cycle environmentally friendly – from the choice of raw material suppliers to disposal and recycling. Effective measures can be taken into account throughout the product development process in order to manufacture products that are as environmentally friendly as possible. For example, new processes and procedures can reduce energy consump- tion, save material or replace existing materials with more sustainable alternatives. A specific example of this is the use of thermoplastics. Plastic polymers soften when heated and can be molded; they solidify when cooled. Owing to their unique chemical properties, thermoplastics can be reshaped and recycled without negatively affecting the physical properties of the material. Therefore, they are increasingly being used for all types of injection molding, for example in frame construction. If you look at the product range strategy itself, further positive effects can be achieved by extending the product life cycles themselves. In addition, new developments will be based on a more modular structure in order to reduce the number of different frame variants. In addition to a leaner range, this strategy also facilitates the supply of spare parts. This is being practiced for the first time with new developments under the Husqvarna brand. Reduction of CO2 through production and logistics of (e-)bicycles in the EU CO2 reduction through long-term production and logistics planning in and for the regions for (e-)bicycles and the components required for them. Shifting production toward consumer markets, splitting produc- tion volumes between the main region of Asia and Europe. The joint venture with Maxcom in Bulgaria offers opportunities to set up an assembly operation (start in 2024) in line with current sustainability and occupational safety criteria for more flexible assembly closer to the market in Europe in the future. This helps to reduce the outlay on transporting complete bicycles globally. With each bicycle assembled in the EU, we reduce the carbon footprint by 3/4. This assumption is based on a study conducted by the “Poly- technic University of Milan” 34 from 2017. Packaging optimization in terms of utilization and the packaging dimensions, as well as the installation of collective warehouses in the regions, which ensure full utilization of the load carriers and containers prior to shipment / loading. Synergy of warehouses beyond PIERER E-Bikes with KTM and the component manufacturers. 34 http://ebma-brussels.eu/wp-content/uploads/2017/09/Study-Politecnico-Milano.-CO2-Emissions-Bicycles..pdf

SUSTAINABILITY REPORT 2021 71 I V. P R O D U C T S A N D C U S T O M E R S PRODUCT QUA L I T Y A ND CUS TO MER S A F E T Y CONCEPT AND OBJECTIVE PIERER Mobility AG has set itself the goal of manufacturing particularly safe and high-quality products. Our mission is to reduce the number of avoidable motorcycle accidents to a technically feasible minimum by using rider assistance systems, among other things. In particular, we also involve our relevant stakeholder groups in the testing and validation process in order to ensure the best possible overall result. DUE DILIGENCE PROCESS The entire process of producing a product – from the market analysis, the product idea, design studies, design and development, cooperation with suppliers, procurement of components for series production, parts pro- duction, assembly of engine and vehicle, through to packing and dispatch – is mapped by a process-oriented quality management system according to ISO 9001:2015 and controlled using the KTM process management system. In order to counter the risk as much as possible of a faulty product and of associated potential adverse effects for our customers, we perform intensive audits on engines and vehicles while production is underway. These are based on the VDA 6.3 guideline (VDA – German Automotive Industry Association, VDA 6.3 = guidelines for process audits) for improving production and assembly processes and are handled monthly by the Quality Management, Serial Support & Audit Team. As most of the vehicles produced are designed and homologated for use on public roads, we attach great importance to complying with the statutory requirements of the relevant end markets. A measurement and testing laboratory is available within the research and development department. There newly developed or further developed materials, which are intended for installation on the motorcycle, are ana- lyzed or tested for health and safety impacts to ensure compliance with component/product specification requirements. If required, tests can also be carried out on clothing and accessories (protective equipment, etc.) in the in-house laboratory. In addition, we operate an operational stability test facility for testing individual components, assemblies and complete vehicles (e.g. shaker test bench, servo-hydraulics test bench, endurance roller dynamometers, acoustic roller dynamometer). The development results are tested throughout the product development process by specially installed test teams for both on-road and off-road vehicles, from the early prototype phase through to the production prod- uct. The riders are specially trained vis-à-vis other R&D staff in handling such vehicles and pushing them to the limit. In the course of testing, more than two million km are covered each year. In order to avoid risks, FMEA analyses/failure mode and effects analyses (design & process FMEA) are also carried out annually under the responsibility of the process and risk management officer. In addition, efforts are being made to prepare a process FMEA in order to further minimize process risks in the future. Customer health and safety always have top priority across all product areas of PIERER Mobility AG. The recall rate, despite the significant increase in sales figures and model expansions, was eleven recalls in the reporting period. This validates the strict requirements along our value chain and demonstrates the high product quality of all brands including all measures in the area of market monitoring. Further information about the recalls can be found on product websites 35. As an additional safety feature, every KTM, Husqvarna & GASGAS owner can find out under Service and Safety Check 36 whether a recall notice applies to their vehicle (chassis number and delivery certificate required). At Pierer E-Bikes GmbH, the entire product development process is carried out using tried and tested processes that are constantly being refined in line with the continuous improvement process. Suppliers of safety-rele- vant and functionally relevant components are integrated into the process in a timely manner. The finished products are assembled at experienced assembly plants that are renowned for their excellent quality. Since the products produced must meet safety-relevant requirements, we place great emphasis on complying with the legal requirements of the respec- tive end markets. Appropriate quality planning during the actual product development process ensures that we continue to improve the existing high standard. In order to further develop the process of corrective and improvement measures based on market findings, Pierer E-Bikes GmbH is planning both an increase in personnel resources and a systematic 35 https://cloud-prod.ktm.com/en-int/service/Safety.html and https://www.husqvarna-motorcycles.com/en/service/safety-information/ and https://www.gasgas.com/en-int/service/safety-information.html 36 See as an example https://www.gasgas.com/en-int/service/service-and-safety-check.html

SUSTAINABILITY REPORT 2021 73 A further focus is on the systematic further development of our suppliers in order that here also compliance with safety standards and the smooth integration of the supplied components into the overall system is ensured. For the purpose of a specific strength design, newly developed compo- nents are subjected to extensive calculations and simulations, structural strength tests and prolonged load tests according to our own operational strength process. Future focal points will be the further intensification of testing processes and the securing of personal data collected while networked mobility (GDPR). Similar to the expansion of the testing and measuring capacities in the area of strength design and ensuring oper- ational strength, a further area of priority is the expansion of test bench capacities in the area of emissions development. CMC ‘Next’ To further increase motorcycle safety and ensure that motorcycles can retain their mobility role in the future, several leading motorcycle manu- facturers 37 continued their cooperation in the CMC "Next" in 2021. This involved the detailed study of accident scenarios and the development of approaches to prevent these. Warnings In line with its commitment to detect critical situations in good time, KTM is working on acoustic warnings that are designed to enable the rider to react in good time. For this purpose, a concept for investigating acoustic signals was developed and at the same time cooperation in standardi- zation committees was started in order to achieve greater safety across different manufacturers. SAFETY STANDARDS As has already been explained in the previous paragraphs, development work is increasingly focusing on electric/electronic systems. On the one hand, this serves to increase the level of safety for KTM customers, and on the other the global legal safety requirements are being adapted to meet the increasing safety needs of road users. The increasing integra- tion of several complex, electronic control systems and the expansion in networking with other road users can pose significant safety risks in the event of malfunctions. Therefore, these functions are subject to strict development and quality assurance processes. Functional development in the electrics/electronics area of a motorcycle is mainly carried out accord- ing to the ISO 26262 standard for functional safety. Special attention is paid to the complete and correct networking of safety-relevant compo- nents (e.g. the behavior of the electrically assisted brake system and the motor control). This ensures that safe operation of the vehicle can always be guaranteed, both in normal operation and in the event of a defect. As part of continuous process improvement, new specifications such as securing vehicles and associated infrastructure against cyber attacks are also being integrated into the development processes. As a result, future requirements are identified and implemented as far as possible even before series development begins. In the current environment, the topics of the safety of electric drives and cyber security (e.g. according to ISO 21434) are being given the appropriate priority and integrated into the company processes. This is ensuring a high level of customer safety at KTM even before the corresponding legal requirements are imposed. 37 Founding members: BMW Group, Honda Motor Co Ltd, KTM AG, Yamaha Motor Co Ltd.

SUSTAINABILITY REPORT 2021 75 © KTM KTM also has a special acoustic laboratory room where almost no sound is reflected, making it suitable for conducting simulated pass-by noise emission tests (simulating the UNECE R41 test procedure). However, simulated pass-by noise tests are not yet provided for in the EU type-ap- proval regulation or in the UNECE R41 regulation for noise emissions from motorcycles. Nevertheless, noise emission tests are performed in this an- echoic chamber to support the continuous noise emission assessment of whole vehicles and vehicle subsystems under development (e.g. a braking system or isolated analysis of secondary transmission noise emissions). In the reporting year, a professorship in “Acoustics and Noise Develop- ment Research” was established at the Technical University of Graz/ Austria and is also being funded by KTM. The aim is to define the topics for the research projects and drive them forward in cooperation with the supporters. This is scheduled to start in 2022. In the 2021 financial year, efforts focused on making further progress with development projects relating to our combustion engine range. Par- ticular emphasis was placed on improving performance while at the same time reducing fuel consumption and emissions. For example, some models that comply with the new Euro 5 emissions standard were already suc- cessfully transferred to series production in 2021. The development team is already working on technologies that provide for a further reduction in pollutant emissions for future generations of engines. Another focus of the past research year was to press ahead with further increasing the efficiency of our aggregate testing of new technologies in the area of thermodynamic subsystems of our combustion engines. As in the previous year, the effects of the COVID-19 pandemic were primarily felt in the form of a significant reduction in the travel activities of our developers (the R&D area is associated with very high-frequency travel due to the heavy consultation with development partners and the necessary testing of new development stages) and various delays in deadlines with our supply part- ners or in the delivery of prototype components. The OBD (onboard diagnostics) systems used in our motorcycle models monitor emission-relevant components during riding, and notify the customer (rider) of any malfunctions. This avoids a situation in which vehicles with potentially increased levels of pollutant emissions are ridden for a longer period of time without this being noticed. In principle, all motorcycles homologated at the factory for use on public roads in the EU are equipped with an electronic onboard diagnostic system (OBD-1). In particular, the vehicles homologated in the EU in accordance with the Euro 5 exhaust emission standard are also equipped with a software-based OBD system (OBD-2), which offers an extended range of functions. The equipment with the respective OBD system is based on the European and internationally applicable homologation requirements for vehicles. The intensive series development and testing of these models have represent- ed a significant part of our research and development programs in recent years. Even models intended for markets in which the OBD system is not mandatory are voluntarily equipped with the OBD system. Our research and development department is working on the development and further development of the engine control units and the OBD system so that levels

SUSTAINABILITY REPORT 2021 77 CUS TO MER SERVICE CONCEPT AND OBJECTIVE KTM AG has a global service network of approx. 3300 (with India approx. 4200) specialist motorcycle workshops to meet the high demands placed on the quality of our products. These meet defined quality standards regarding to infrastructure, equipment with special tools and training. The workshop specialists are trained using the “train-the-trainer” princi- ple from headquarters by means of face-to-face training units lasting several weeks, a self-study e-academy, mobile learning modules and live webinars. B2B: In order to offer dealers and importers optimum technical support, the “Global Support Center” has been in operation since 2019: It provides a ticket system with an underlying support workflow and affiliated knowledge database. In this way, not only can “help for self- help” be offered, but knowledge growth can also be generated directly from all markets. In addition, the service level is made measurable. Thanks to this expansion, requests for spare parts and accessories as well as product improvement suggestions can now be received. B2C: End customers also have the opportunity to submit support requests via the website, which are also handled promptly by the Global Support Center via the global service network. With the aid of our system-protected flow of information through the “Global Support Center” (consisting of the Support Center and the Dealer.Net.), more than 50,000 requests were handled across all areas in the 2021 reporting year. Street motorcycles are delivered in Europe's main sales markets with 12 months of mobility assistance, which is extended by one year free of charge for the customer with every service in an authorized specialist workshop. In addition, street motorcycle customers in 15 European coun- tries have the option of taking out an extended warranty. Both services are handled in cooperation with partners operating throughout Europe. Support is also guaranteed for HUSQVARNA motorcycle models developed before HUSQVARNA Motorcycles was added to KTM AG in 2013. The “Customer Service Manual” describes all customer service process flows for dealers, importers and subsidiaries. The manual is updated annually and made available to everyone in customer service. When potential error patterns are identified, an escalation process is initiated. This occurs via regular weekly meetings of the Technical Quality Circle (TQC) and the Quality Control Committee (monthly), and if neces- sary via the Ad Hoc Safety Committee. A safety committee is also established for motorcycles and e-bicycles: The ad hoc meeting is convened at the Vice President level. The following members are appointed to the Safety Committee: Vice President Legal, Vice President R&D (or Project Management), Vice President Quality, Vice President Customer Service, and Vice President Sales, as well as experts from the problematic areas (if needed). Con- vened on an ad hoc basis depending on the safety level of the problem at the invitation of the Customer Service Vice President. In addition, internal training by the legal department for product liability in the EU, in the USA, in Canada, ... etc. is provided on a mandatory basis for all colleagues concerned, as well as a warranty analysis (monthly). The customer service report informs the Executive Board about the current status of relevant, technical/quality issues on a weekly/monthly basis. DUE DILIGENCE PROCESS AND CURRENT MEASURES More than one million euros for a new training center Constantly new and increasingly complex motorcycles with an increasing level of innovation, new technologies – such as e-mobility, connectiv- ity, distance radar – additional brands and a growing number of sales partners all over the world as well as more difficult travel conditions due to COVID-19 pose great challenges for the training and further education of 2-wheel technicians. KTM AG invested around 1.1 million euros in a new training center with modern infrastructure, green building technology and innovative training methodology. The training building, which was in commissioned in 2021, is the first KTM building to be heated and cooled entirely using geothermal energy, with a 70 kW geothermal heat pump being used. The new training center in Munderfing covering over 1,100 m2 has two modern training rooms, each with six interactive workstations where the motorcycle is worked on directly, a soundproof video room for film recordings and “live” webinars, several workstations for digital edit- ing of the video material and currently a total of 14 permanent positions, including two apprentices. The expanded capacities allow simultaneous training on site of more than 60 people in various disciplines for the 3 brands (KTM, Husqvarna, GASGAS). Additionally, around EUR 0.5 million were spent on renovating and modernizing the training center in Mattig- hofen in the reporting year. This primarily included the creation of additional offices for apprentice support, training rooms, recreational and social areas, and modern apprenticeship workplaces. The training concept is called a “Blended-Learning System”, which is an integrated learning concept. This means that, as a preparatory step, participants have to complete online courses which focus mainly on the presentation of the models and technologies. In the subsequent practical 3-week basic classroom training, hands-on training takes place:

SUSTAINABILITY REPORT 2021 79 E N S U R I N G D I G I T A L T R A NSFORM AT IO N PIERER Innovation aims to drive digital transformation sustainably in all parts and divisions of the group. Digital innovations therefore extend from new solutions on the motorcycle to the user experience before, during and after a motorcycle ride, as well as when purchasing products. The topic of sustainability was also defined as a priority in the strategic development of a vision for 2030. In a further step, targeted packages of measures will be derived from this vision of the future and gradually implemented in order, among other things, to raise awareness of sustainability issues among employees and customers. LIGHTHOUSE PROJECTS PIERER Innovation implements sustainable measures in its various divi- sions: The Tech Scouting Team focuses on finding sustainable solutions for the entire value chain. The Data Science and Business Modeling Team focuses on sustainable business models and services for customers and business partners. For the eCommerce unit, the main focus is on present- ing the customer journey in a sustainable way through digital services. TECH SCOUTING Many initiatives within our Tech Scouting Team revolve around discov- ering and investigating new technologies and solutions that support the sustainable transformation of two-wheeler mobility for the future. We take a holistic approach that creates opportunities to cover the many aspects of sustainable mobility and production. Our development areas range from innovative drive concepts and alternative energy storage systems to system efficiency analyses and usage analyses. In addition, we actively support our production sites in increasing the level of digitalization, improving quality and increasing efficiency. Our team uses state-of-the- art cloud technologies to gain detailed insights into the manufacturing process and the machines which are used to improve the processes and increase overall performance. Ultimately, our “open innovation approach” with countless startups gives us the opportunity to share our goals and values and actively influence key factors for success in the early development phase of a project. In 2022, we will also increase our focus on scouting in the area of sustainability in order to implement sustainable solutions from the very beginning. eCOMMERCE In 2021, the eCommerce team focused strongly on the further develop- ment of online platforms. An online reservation platform was used to help dealers to enable those customers who were interested to reserve special editions of motorcycles, thus optimizing the margin in addition to saving process and logistics costs. The development of an employee store is progressing well. This platform also takes a long-term view of the entire process chain. RESERVING SPECIAL EDITIONS ONLINE The limited special edition bikes have previously been assigned to coun- tries by headquarters. The country organization was tasked with selecting those dealers that would receive a special edition motorbike according to certain criteria. It was not uncommon to be no buyer for the motorcycles – which were highly coveted. Since 2021, special edition bikes have been offered directly to end customers. They can place a binding (pre)order for a special edition motorcycle from a dealer on the KTM website. KTM thus avoids illogical allocations by finding a buyer for each bike within a few hours. The motorcycles are – in an ideal scenario – delivered directly to the customer, thus drastically shortening logistics and supply chains. eCOMMERCE MARKETPLACE Previously, KTM AG employees were able to purchase a large share of the PG&A (KTM PowerParts, Garments & Accessories) segment for private purposes using an Excel sheet. Due to a lack of product information and presentation, there are often incorrect orders and, because of the manual process, very high processing costs. KTM is therefore developing an employee online store that will solve the problems outlined above. The fulfillment will be handled by an external partner. The main focus is on professional processing, while at the same time increased attention will be paid to avoiding packaging and returns. DATA SCIENCE & BUSINESS MODELING - OUTLOOK FOR 2022 In 2022, the Data Science & Business Modeling team will focus on sustainable business models and services. One of the most important projects is predicting the range of the e-bicyles matched to its user. Range prediction for e-bicyles E-bicyles are becoming ever more popular. Decreasing purchase costs, advancing technologies and in particular the classification as an emis- sion-free vehicle are just a few of the reasons for this. Nevertheless, many people still exclude e-bicyles as an alternative option for traveling to work or other short distances. Range anxiety is most often cited as an obstacle because e-bicyles have limited energy storage capacity and energy consumption is highly dependent on the ambient conditions and rider behavior. The group is therefore working hard to be able to estimate the range specifically for each rider and their conditions. The goal is to enable riders to make informed decisions about route planning and charging management, and thus also to provide greater certainty and enjoyment when riding an e-bicyles.

SUSTAINABILITY REPORT 2021 81 If economic activities of PIERER Mobility AG are included in the EU catalog, they are considered taxonomy-eligible. For example, in the case of PIERER Mobility AG, the economic activity “3.3 Manufacture of low carbon technologies for transport” is to be considered. Revenues, investments and operating expenses related to this activity can be classified as taxonomy-eligible. activity, or relates to the acquisition of products and services from a taxonomy-eligible economic activity. CapEx taxonomy-eligible CapEX for non-taxonomy-eligible activities Total CapEX share as % (rounded) 79 % 21 % 100% Based on a complete analysis of the economic activities, the share of taxonomy-eligible revenues / capital expenditures (capex) / operating expenditures (opex) in the respective totals according to the EU Taxonomy of PIERER Mobility AG for the 2021 financial year is reported. The EU Taxonomy Regulation and the delegated acts issued in this regard contain formulations and terms that are still subject to considerable uncertainties of interpretation and for which clarifications have not yet been published in every case. The PIERER Mobility AG 's interpretation of these terms is set out in the following statements. KEY FIGURES Sales ratio The sales ratio is the ratio of sales from taxonomy-eligible economic activities in a financial year to total sales in that financial year. Sales taxonomy-eligible Sales from non-taxonomy-eligible activities Total Sales share as % (rounded) 77 % 23 % 100% In accordance with the EU taxonomy, the total sales revenues for the 2021 financial year of € 2,041.7 million form the denominator of the sales ratio. The total capital expenditure according to the EU Taxonomy Regulation amounts to € 203.1 million and corresponds to the additions to property, plant and equipment and intangible assets (incl. IFRS 16 rights of use in accordance with IFRS consolidated financial statements – see additions according to the statement of changes in non-current assets in the notes to the consolidated financial statements under point 22. Intangible assets and point 23. Property, plant and equipment or in the management report on the consolidatet financial statements under the notes on investments in point 3. Financial performance indicators). Based on the project description of the additions, an analysis is performed regarding taxonomy eligibility and a comparison with Annex I (Substantial contribution to climate change mitigation) and Annex II (Substantial contribution to climate change adaptation) of the Delegat- ed Regulation of (EU) 2020/852. The total of the additions reflecting a taxonomy-eligible investment forms the numerator of the CapEx ratio. Most taxonomy-eligible capital expenditures relate to capitalized research and development costs associated with the manufacture of low carbon technologies for transport. The OpEx ratio indicates the proportion of operating expenditure, as defined by the EU taxonomy, associated with taxonomy-eligible economic activities, with a CapEx plan described above, or with the acquisition of products from a taxonomy-eligible economic activity. The sales revenues reported in the consolidated income statement of € 2,041.7 million (see Revenues according to the consolidated income statement or in the notes to the consolidated financial statements under point 8. Revenues) of PIERER Mobility AG are examined across all Group companies to determine whether they were generated with taxono- my-eligible economic activities in accordance with Annex I (Substantial contribution to climate change mitigation) and Annex II (Substantial contribution to climate change adaptation) of the Delegated Regulation of (EU) 2020/852. A detailed analysis of the items included in the sales revenue is used to allocate the respective revenue to the taxonomy-eligi- ble economic activities. The total of the revenues of the taxonomy-eligible economic activities for the 2021 financial year forms the numerator. OpEx taxonomy-eligible OpEX for non-taxonomy-eligible activities Total OpEx share as % (rounded) 70 % 30 % 100% The total operating expenditure according to the EU Taxonomy Regulation amounts to approx. € 12.9 million. To determine the denominator, the accounts reflecting direct, non-capi- talized costs for research and development expenses, building renovation measures, short-term leasing, service and repair expenses (explanation of significant components) were considered. The economic activities of PIERER Mobility AG are classified as taxono- my-eligible by the economic activities described in the Delegated Regula- tion (Annex I / Annex II) “3.3 Manufacture of low carbon technologies for transport” (Annex I). CapEx ratio The CapEx ratio indicates the proportion of capital expenditure (CapEx) that is either associated with a taxonomy-eligible economic activity, or associated with achieving an environmentally sustainable economic The numerator results from an analysis of the assets related to the expenses recorded in the above accounts in terms of their taxonomy eligibility on the basis of Annex I (Substantial contribution to climate change mitigation) and Annex II (Substantial contribution to climate change adaptation) of the Delegated Regulation of (EU) 2020/852. Most taxonomy-eligible operating costs are for building renovation measures as well as maintenance and repair of production-related equipment and fleet vehicles.

SUSTAINABILITY REPORT 2021 83 A P P E N D I X Key figures ESG program GRI Content Index Independent Assurance Report Imprint Contact © KTM

SUSTAINABILITY REPORT 2021 85 Corruption training by continent 1) Employees in Europe Employees other continents 2) Unit Headcount in per cent Headcount in per cent 2021 4 0.08% 6 0.13% 2020 2019 - - - - - - - - 1) The assessment of the corruption training was evaluated by continent for the first time in 2021, excl. DealerCenter Digital GmbH. 2) Africa, Asia, Australia, North America, South America GRI 205-3, 307-1, 406-1, 416-2, 418-1 Compliance I Environmental Compliance I Non-discrimination I Safety risks with products I Data protection Unit 2021 2020 2019 205-3: Compliance cases 1) 307-1: Proceedings, fines and/or other sanctions relating to non-compliance with environmental protection laws and/or regulations 2) 406-1: Incidents of discrimination 3) 416-2: Incidents with fine or penalty after recalls 418-1: Data protection complaints Number Number Number Number Number 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1) In the PIERER Mobility Group, there were neither any relevant compliance cases nor cases that resulted in corresponding compliance investigations or proceedings regarding corruption in the 2021 financial year. 2) In the PIERER Mobility Group, there were no relevant cases relating to non-compliance with environmental protection laws and/or regulations that resulted in proceedings, fines and/or other sanctions in the 2021 financial year. 3) In the PIERER Mobility Group, there were no incidents of discrimination in the 2021 financial year that resulted in legal proceedings and have or could have a significant impact on the economic situation of the PIERER Mobility Group. II. E M P LOY EES A N D SO CIE T Y GRI 102-8 Employees Total Full time thereof male thereof female Part time thereof male thereof female Share of female employees Unit 2021 2020 2019 Headcount Headcount Headcount Headcount Headcount Headcount Headcount in per cent 5,249 4,843 3,834 1,009 406 147 259 24.2% 4,586 4,248 3,450 798 338 110 228 22.4% 4,368 4,044 3,262 782 324 119 205 22.6% All data excl. members of the Executive Board of PIERER Mobility AG, incl. temporary workers and from 2021 incl. DealCenter Digital GmbH. In 2019 including Avocodo GmbH and PEXCO GmbH. In 2020, the employees of PEXCO GmbH are included in the key figures of PIERER E-Bikes GmbH. Only about 1% of the employees have a fixed-term contract, so no separate subdivision into permanent / fixed-term employment relationships is made in this list. Excluded from this are interns, diploma/master's students etc. as well as employees in their probationary period (first 6 months of service). Number of temporary workers (incl. foundation apprentices) as of Dec. 31, 2021: 486, which is 9.3% of the total workforce. GRI 102-8 Employee structure by continent 1) Total employees Employees in Austria Employees in Germany Employees in Europe Employees other continents 2) 1) Evaluation of employee structure by company location (not by nationality). 2) Africa, Asia, Australia, North America, South America Unit 2021 2020 2019 Headcount Headcount in per cent Headcount in per cent Headcount in per cent Headcount in per cent 5,249 4,361 83.1% 136 2.6% 316 6.0% 436 8.3% 4,586 3,822 83.3% 116 2.5% 284 6.2% 364 7.9% 4,368 3,639 83.3% 110 2.5% 254 5.8% 365 8.4%

SUSTAINABILITY REPORT 2021 87 GRI 405-1 Executive Board and Supervisory Board Executive Board thereof male thereof 30-50 years thereof > 50 years Supervisory Board thereof male thereof > 50 years There were no changes to the Executive Board and Supervisory Board in the reporting year. GRI 403-9 Health and safety - employees Accidents at work Injury rate Serious accidents at work (over 6 months of recovery) Injury rate for serious accidents Work-related fatality rate Lost-Time Injury Frequency Rate (LTIFR) Health and safety – temporary workers Accidents at work Injury rate Serious accidents at work (over 6 months of recovery) Injury rate for serious accidents Work-related fatality rate Lost-Time Injury Frequency Rate (LTIFR) Unit 2021 2020 2019 Headcount in per cent in per cent in per cent Headcount in per cent in per cent Unit Number in Hours Number Number Number Number Unit Number in Hours Number Number Number Number 4 100% 25% 75% 4 100% 100% 2021 74 13.3 0 0 0 8.4 2021 16 28.2 0 0 0 22.9 4 100% 25% 75% 4 100% 100% 2020 56 12.8 3 0.7 0.2 - 2020 6 22.6 0 0 0 - 4 100% 25% 75% 4 100% 100% 2019 1) 101 19.4 14 2.7 0 - 2019 - - - - - - The Lost Time Injury Frequency Rate (LTIFR) has been recorded since the 2021 reporting year. The LTIFR describes the number of accidents involving lost time of at least one day per 1 million hours worked. Underlying formula: LTIFR=accidents/hours worked*1,000,000. 1) The method of calculation was adjusted in 2019. Values from 2019 include all documented occupational accidents (excluding commuting accidents). Data for employees of external companies are available. Injury rate based on injuries per 1 million hours worked. In accordance with GRI standards, the injury rate is calculated on the basis of productive working hours: Number of hours worked in 2021: 5,564,141 (2020: 4,368,239), productive hours incl. temporary workers 6,131,249. From 2020, work-related injuries of temporary workers are shown separately. For 2020, no productive hours of KTM Technologies GmbH as well as Pierer E-Bikes GmbH could be evaluated from the time recording; evaluation has been possible since 2021 (excl. Dealer Center Digital GmbH). In the 2021 financial year, as in 2019, there was no work-related fatality at KTM AG. There was one work-related fatality in 2020. GRI 404-1 Education and training Total number of employees 1) thereof male thereof female thereof workers (incl. apprentices) thereof white-collar workers (incl. apprentices) thereof managers 2) Number of apprentices thereof commercial apprentices thereof industrial apprentices Total number of hours of education and training of employees in Austria Average number of hours of education and training Unit 2021 2020 2019 1) Headcount Headcount Headcount Headcount Headcount Headcount Headcount Headcount Headcount in Hours in Hours 4,751 3,630 1,121 1,930 2,207 614 186 66 120 124,038 26 4,293 3,310 983 1,822 1,896 575 170 60 110 29,276 7 3,981 3,062 919 1,757 1,815 414 158 54 104 45,869 12

SUSTAINABILITY REPORT 2021 89 2021 79.36 61.14 3.41 2020 78.67 n.a. 3.39 2019 79.09 n.a. 3.41 Unit Ø emission in g/km Ø emission in g/km Ø consumption in l/100 km GRI 302-5 Reduction in energy demand for products Fleet emissions motorcycles 1) 2) Fleet emissions incl. e-bicycles 3) Fleet consumption 4) 1) Calculated on a pro rata basis of 249,472 motorcycles in the B2C business. 2) CO2 fleet emissions increased by 0.69 g/km in the reporting year, due to the strong growth in sales of ICE models with medium and large displacements (> 500cc). 3) Calculated on a pro rata basis of 74,942 e-bicycles in the B2B (wholesale) business. 4) To allow better understanding, we do not state the vehicle consumption in joules, but in l / 100 km as usual. GRI 305-1, 305-2, 305-3 PIERER Mobility Group CO2 footprint Greenhouse gas emissions according to greenhouse gas protocol (Scope 1-3): Scope 1: Direct greenhouse gas emissions Emissions natural gas procurement at PIERER Mobility-Gruppe sites 1) Emissions vehicle fleet Emissions test benches Scope 2: Indirect greenhouse gas emissions "location based" 2) Emissions district heat procurement 2) Emissions electricity procurement at PIERER Mobility Group sites 1) Scope 2: Indirect greenhouse gas emissions "market based" 2) Emissions district heating Emissions electricity procurement at PIERER Mobility Group sites 1) Scope 3: Indirect greenhouse gas emissions Emissions commuter traffic with aircraft Emissions commuter traffic with private vehicles Emissions commuter traffic with rental cars Emissions commuter traffic with train 3) Emissions commuter traffic with taxi 3) Emissions paper 3) Emissions use phase of vehicle sold 4) Total footprint "location based" Total footprint "market based" 2021 2020 2019 in t CO2-e in per cent in t CO2-e in per cent in t CO2-e in per cent 6,677.29 3,898.10 1,638.10 1,141.09 5,136.72 134.39 5,002.34 213.09 136.40 76.68 936,260.90 1,315.40 54.79 86.31 2.14 31.05 2,144.03 932,627.17 948,074.91 943,151.28 0.70% 58.38% 24.53% 17.09% 0.54% 2.62% 97.38% 0.02% 64.01% 35.99% 98.75% 0.14% 0.01% 0.01% 0.00% 0.00% 0.23% 99.61% 5,679.78 3,295.77 1,565.46 818.54 5,036.93 125.73 4,911.20 1,154.76 125.73 1,029.03 832,231.63 738.05 33.01 61.03 1.74 16.26 1,617.20 829,764.35 0.67% 58.03% 27.56% 14.41% 0.60% 2.50% 97.50% 0.14% 10.89% 89.11% 98.73% 0.09% 0.00% 0.01% 0.00% 0.00% 0.19% 99.70% 6,565.99 3,688.60 1,619.37 1,258.02 5,580.66 129.33 5,451.33 - - - 778,605.29 6,790.99 46.75 125.35 4.93 55.83 1,821.04 769,760.40 0.83% 56.18% 24.66% 19.16% 0.71% 2.32% 97.68% - - - 98.46% 0.87% 0.01% 0.02% 0.00% 0.01% 0.23% 98.86% 100.00% 842,948.34 100.00% 790,751.94 100.00% - 839,066.17 - - - Emissions per vehicle sold "location based" (305-4) 2)5) 2021 2020 2019 t CO2-e per vehicle sold (Scope 1-2) t CO2-e per vehicle sold (Scope 1-3) GRI 302-3 Energy intensity 6) MWh per vehicle sold MWh per vehicle produced Water consumption in m³ per vehicle sold 0.04 2.92 0.05 3.67 0.06 3.83 2021 2020 2019 0,14 0,25 0,08 0.16 0.27 0.07 0.20 0.26 0.11 For the calculation of CO2 equivalents for Scope 1-2, the conversion factors of the Austria Federal Environment Agency and the UK Department for Environment, Food & Regulatory Affairs (DEFRA) for 2016, 2019, 2020 & 2021 were used. The base year of the calculation is 2018, the calculation of CO2 equivalents for Scope 1-3 was published for the first time in the Sustainability Report 2019. In principle, the data of the main company and production sites in Austria are included in the evaluation: In addition to PIERER Mobility AG, this comprises KTM AG, Pierer Innovation GmbH, KTM Technologies GmbH and KTM Sportcar GmbH. 1) Evaluation excluding Pierer Innovation GmbH, Avocodo GmbH, PIERER E-Bikes GmbH, DC Digital GmbH. 2) In 2019, calculation with "location-based" emissions. Emissions from district heating at the KTM Sportcar GmbH site. Since 2020, emissions have also been calculated using a "market based” method. However, for better traceability, the calculation of the emission shares in % in the reporting year was waived here and "location based" was used for the CO2 emissions per vehicle sold (the difference between "market and location based" is very small and therefore negligible). In the case of KTM Sportcar GmbH, the emission factor from the Federal Environment Agency was used for the calculation for district heating, because no information on the emission data is available from the supplier. 3) Evaluation including Pierer Innovation GmbH.

SUSTAINABILITY REPORT 2021 91 ESG PROGR A M Measures Description Status Start Date RELIABLE EMPLOYER Occupational safety & employee health Focus on health & safety Training and further education of employees Expansion of training programs KTM_academy training portal Production Academy Priority measures for apprentices Fair pay and labor standards The new “Health & Safety” department brings together the topics of occupational safety, health and sport and makes them more tangible for all employees. 2021 2022 The entire offering is being expanded. The KTM_academy is set to be rolled out to all international locations and will be available as an app under "KTM_academy to go". After further optimizations to the system in 2020 (e.g. training of "mini-administrators" for greater efficiency), KTM Technologies was connected to the system in 2021. In order to promote the further development of KTM production employees, a Production Academy has been set up and offers the possibility of acqui- ring the necessary basic knowledge and further training in all production activities. The number of apprentices is to be increased and offers for apprentices will be improved once again (e.g. apprentice welcome days, "Apprentio" app, apprenticeship with school leaving certificate). In addition, partici- pation in the "Zukunft.lehre.österreich" program has been ongoing since 2021. 2021 2022 2019 2021 2021 2021 2021 2022 2021 2021 2020 2021 2021 2021 2021 2022 2021 2021 2021 2022 Flexible work locations or working from home Childcare Diversity and Anti-Discrimination Policy The Diversity and Anti-Discrimination Policy provides a global framework that defines how diversity should be encouraged within the group and how the PIERER Mobility Group prevents, recognizes and responds to all forms of discrimination and harassment. Employees can work flexibly at any location in Austria and the home office policy has been communicated to employees. In addition to the offer of a crèche place that already exists for children of employees, in the summer of 2021 free summer childcare was offered. An employee app is being developed to provide all employees with infor- mation and the opportunity to access their data at all times. Processes are in place to optimize the application process and onboarding by utilizing the "Best Recruiters" quality seal and feedback forms for onboarding. The social areas and sanitary facilities in production are being redesigned or modernized. In addition, offers for production employees will be expan- ded (e.g. daily snack allowance). Employee app Optimization of recruitment processes and onboarding Making production areas more attractive

SUSTAINABILITY REPORT 2021 93 Measures Energy efficiency Description Status Start Date Electrification of the passenger car fleet Switch to LED lighting Using electric and hybrid models, 20% of the passenger car fleet is to be electrified by the end of 2022. In vehicle assembly (FAS), the commissioning of the new LED hall lighting took place in summer 2021. 2021 2022 2019 2021 SUSTAINABLE MOBILITY Alternative drive technologies Battery registration, collection and disposal for e-bikes New developments in the EMotion research project Strategy for electrification and decarbonization Swappable Batteries Motorcycle Consortium (SBMC) Research & development Bundling of research and development activities Product quality and customer safety Goal: At least three electric platforms with several products will be introduced by 2024. The cooperation agreement concluded with Landbell Group in 2019 for battery reporting, collection and disposal for KTM AG brands was extended to the PIERER E-bikes brands in 2021. The “EMotion” project launched in 2020 is dedicated to sustainable two- wheel mobility. The aim is to have cost-effective, energy-efficient, com- fortable and lightweight electric two-wheelers, along with innovative user interfaces and eco-coaching strategies for efficient and resource-saving use. Initial concepts and prototypes are available and being evaluated. A pilot phase for eco-coaching strategies is planned for 2023. KTM AG's strategy for alternative drive technologies and decarbonization of PTW was updated. The decarbonization strategy until 2050 of ACEM is shared here. In 2021, the SBMC was founded by KTM F&E GmbH together with three other motorcycle manufacturers in order by 2024 to develop a common technical standard for a battery swap system including the corresponding battery swap stations which should meet customer expectations in an economical way. 2019 2021 2020 2023 2021 2021 2021 2024 In 2021, all R&D activities were bundled and further expanded in a separate research and development company - KTM Forschungs & Entwicklungs GmbH (KTM F&E GmbH). The company also moved into the new location in Anif, which is home to the development of e-drives, among other things. 2021 2021

SUSTAINABILITY REPORT 2021 95 G R I C O N T E N T I N D E X This Sustainability Report has been prepared for the first time in accordance with the internationally recognized framework for sustainability reporting "GRI Standards": "Core" option in the past reporting year. An extension will continue to be sought and the reporting will be further optimized in 2022, also in accordance with the requirements for future sustainability reporting by the new EU directive (Corporate Sustainability Reporting Directive - CSRD). This relates in particulary to the following standards: 301-1, 305-3, 306-3, 308, 414. General information GRI-Standard 101 102 102-1 102-2 102-3 102-4 Description Foundation 2016 General Disclosures 2016 Name of the organisation Activities, brands, products, and services Location of headquarters Location of operations 102-5 102-6 102-7 102-8 102-9 102-10 102-11 102-12 102-13 102-14 102-16 102-18 102-40 102-41 102-42 102-43 102-44 102-45 102-46 102-47 102-48 102-49 Ownership and legal form Market served Scale of the organization Information on employees and other workers Supply chain Significant changes to the organization and its supply chain Precautionary Principle or approach External initiatives Membership of associations Statement from senior decision-maker Values, principles, standards, and norms of behavior Governance structure List of stakeholder groups Collective bargaining agreements Identifying and selecting stakeholders Approach to stakeholder engagement Key topics and concerns raised Entities included in the consolidated financial statements Defining report content and topic Boundaries List of material topics Restatements of information Changes in reporting Comments I Omissions Reference I Chapter Page(s) Worldwide, in 29 countries Management Report Management Report Only 1% of employees have a temporary contract, therefore no separate subdivision into permanent / temporary emplo- yment has been conducted. Breakdown of employees by coun- try (AT, DE) and by continent (Europe and other continents). Corporate Governance Report Around 98% of PIERER Mobility employees are subject to collective agreements. The Austrian requirements do not apply to subsidiaries in other countries. Consolidated financial statements No restatements have been necessary. Overview of Pierer Mobility Overview of Pierer Mobility Overview of Pierer Mobility Non-financial report/ Overview of Pierer Mobility, Annual Report 2020/ schedule of equity holdings) Overview of Pierer Mobility, Group structure Annual Report 2021 Annual Report 2021 Our employees, Appendix Responsible procurement Non-financial report/Group structure, Res- ponsible Procurement; Annual Report 2021/ Management Report Company, Employees and society, Products and customers Business Compliance, Respect for Human Rights, Code of Conduct for business/sup- plier partners and customers Our Stakeholder Introduction by the executive board Anti-Corruption and Fair Competition, Respect for Human Rights, Declaration on modern slavery and human trafficking, Explanations on the implementation of the provisions of the core labour standards of the ILO Annual Report 2021 Our Stakeholders Our Employees, Appendix Our Stakeholders Our Stakeholders Materiality Analysis and Key Sustainability Topics, Business Compliance Annual Report 2021 Materiality Analysis and Key Sustainability Topics Materiality Analysis and Key Sustainability Topics Key Sustainability Topics 8 8 8 8, 191-193 8, 9 96-118 96-118 38, 85 59 9, 59, 96-118 8, 30, 71 30, 31, 34 13 4 30, 31, 53 65 13 38, 85 13 13 18, 30 119 18 18 18, 22

SUSTAINABILITY REPORT 2021 97 GRI-Standard 103-2 103-3 102-8 Description The management approach and its components Evaluation of the management approach Information on employees and other workers Own indicator Employed within 10km Comments I Omissions Only 1% of employees have a temporary contract, therefore no separate subdivision into permanent / temporary emplo- yment has been conducted. Breakdown of employees by coun- try (AT, DE) and by continent (Europe and other continents). 1,901 KTM AG employees live directly in Mattighofen and the neighboring communities within a radius of 10 km as the crow flies. Reference I Chapter Our Employees Our Employees Our Employees, Appendix Page(s) 38 38 38,85 38 Fair pay and labor standards (Diversity and equal treatment) 103 103-1 Management approach 2016 Explanation of the material topic and its boundary The management approach and its components 103-2 103-3 405 405-1 103-2 103-3 403 403-1 Evaluation of the management approach Diversity and equal opportunity 2016 Diversity of governance bodies and employees Occupational safety and employee health 103 103-1 Management approach 2016 Explanation of the material topic and its boundary The management approach and its components Evaluation of the management approach Occupational health and safety 2018 Occupational health and safety manage- ment system 2018 403-2 Hazard identification, risk assessment and incident investigation 403-3 Occupational health services 403-4 403-5 403-6 403-7 403-9 Worker participation, consultation and communication on occupational healthand safety Worker training on occupational health and safety Promotion of worker health Prevention and mitigation of occupational health and safety impacts directly linked by business relationships Work-related injuries Education and Training of employees 103 103-1 Management approach 2016 Explanation of the material topic and its boundary The management approach and its components Evaluation of the management approach Training and Education 2016 103-2 103-3 404 Our employees, Diversity and equal treatment 38,52 Our employees, Diversity and equal treat- ment, Explanations on the implementation of the provisions of the core labour standards of the ILO. Diversity and equal treatment 52 52 Diversity and equal treatment 52,86 Our employees, Occupational safety and employee health Our employees, Occupational safety and employee health Our employees, Occupational safety and employee health For an overview, see the Occupational health and safety policy at https://www.pierermobi- lity.com/en/sustainability/download-center Occupational safety and employee health Stakeholder, Occupational safety and employee health 41 41 41 41 14 Occupational safety and employee health 43-44 Occupational safety and employee health Occupational safety and employee health Occupational safety and employee health 42-43 41-42 41 43, 87 45 45 45 45 Hazard minimization based on the “STOP principle”. All legal requirements regarding occupational safety and health protection are implemented in accordance with the provisions of the Employee Protection Act and the Work Equipment Ordinance. In addition, compliance with machine guidelines, dust/noise and screen exposure guidelines is ensured, especially in work areas with an increased risk of danger/accident and injury. The risk assessment of work areas and the documentation are carried out on the basis of regular evaluations by the external safety expert (“ASZ Linz“, “Intergeo“) in cooperation with the in-house safety officers. Cooperation with occupational health service providers „ASZ Linz“, „Intergeo“ (company physicians, qualified health and nursing staff, occupational psychologist, ergonomists). E.g. safety and fire protection instructions, KTM Operations System (KOS), cooperation with Gemba-Austria. E.g. KTM Riders Academy, Production Academy (new training center for production employees). Bundling of measures in a dedicated team. No work-related fatalities in the reporting periods 2019 and 20121, and one work-related fatality in 2020. Accident figures for employees of external companies are available. The LTFIR was also evaluated for the first time in 2021. Occupational Safety and Employee Health, Appendix Education and Training Education and Training Education and Training Education and Training

SUSTAINABILITY REPORT 2021 99 Reference I Chapter Page(s) Environmental aspects along the product life cycle Environmental aspects along the product life cycle Environmental aspects along the product life cycle Environmental aspects along the product life cycle Environmental aspects along the product life cycle 63 63 63 68 Description GRI-Standard Efficiency in the use of materials (waste, recycling management) 103 103-1 Comments I Omissions Management approach 2016 Explanation of the material topic and its boundary The management approach and its components Evaluation of the management approach Materials 2016 Materials used by weight or volume 103-2 103-3 301 301-1 Certified environmental management system according to ISO 14001:2015. Regular audits. Distribution of materials used in motorcycles and packaging material used "disposable packaging" (in kg): For this purpose, two representative motorcycle models and a bicycle model were selected that are sold most on average (KTM 890 Duke, Enduro 350 EXC-F, Husqvarna GT2). The extension of the data collection is under construction. 306 306-3 Waste 2020 Waste generated Environmental and social standards in the supply chain 103 103-1 Management approach 2016 Explanation of the material topic and its boundary 103-2 103-3 308 308-1 308-2 414 414-1 414-2 The management approach and its components Evaluation of the management approach Supplier environmental assessment 2016 New suppliers that were screened using environmental criteria Negative environmental impacts in the supply chain and actions taken Supplier social assessment 2016 New suppliers that were screened using social criteria Negative social impacts in the supply chain and actions taken Waste management is currently under construction. For this report, waste types, total waste volume (in tons) / per vehicle produced (in kg) were collected. Environmental aspects along the product life cycle / Waste management, Appendix 63, 68-69, 90 Project to introduce an ESG platform for supplier assessment in regarding to social and environmental criteria. Implemen- tation in spring 2022. Responsible Procurement, Transport logistics 59, 70 Regular supplier audits. 23% of the series suppliers were inspected in 2021. Current- ly, it is not possible to provide information on the proportion of new suppliers. No business relationships were terminated in the reporting year due to identified negative environmental impacts. 23% of the series suppliers were inspected in 2021. Current- ly, it is not possible to provide information on the proportion of new suppliers. Regular inspections of suppliers prior to project approval ensure that also social aspects are taken into account. We were not aware of any negative effects in the reporting year. Responsible Procurement, Transport logistics Responsible Procurement, Transport logistics Responsible Procurement, Transport logistics Responsible Procurement, Transport logistics 59, 70 59, 70 59, 70 Responsible Procurement, Transport logistics 59, 70 Responsible Procurement, Transport logistics Responsible Procurement, Transport logistics 59-61 Responsible Procurement, Transport logistics 59-61

SUSTAINABILITY REPORT 2021 101 I N D E P E N D E N T A S S U R A N C E R E P O R T To the Board of PIERER Mobility AG, Wels INDEPENDENT ASSURANCE REPORT ON THE NON-FINANCIAL REPORTING ACCORDING TO § 267A UGB We have performed an independent limited assurance engagement on the combined consolidated non-financial report according to §§ 243b and 267a UGB (“NFI report”) for the financial year 2020, which has been published as “Group non-financial statement” of PIERER Mobility AG, Wels (referred to as "PIERER Mobility AG or "the Company"). Conclusion Based on the procedures performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the NFI report of the Company is not in accordance with the legal requirements of the Austrian Sustainability and Diversity Improvement Act (§§ 243b and 267a UGB), and the sustainability reporting guidelines of the Global Reporting Initiative (GRI Standards) Option “Core” in all material respects. Management's Responsibility The Company's management is responsible for the proper preparation of the NFI report in accordance with the reporting criteria. The Company applies the legal requirements of the Austrian Sustainability and Diversity Improvement Act (§§ 243b and 267a UGB) and the sustainability reporting guidelines of the Global Reporting Initiative (GRI Standards) Option “Core” as reporting criteria. In addition, the company prepares disclosures in accordance with the EU Taxonomy Regulation, which are published as part of sustainability reporting. The Company’s management is responsibile for the selection and application of appropriate methods for non-financial reporting (especially the selec- tion of significant matters) as well as the use of appropriate assumptions and estimates for individual non-financial disclosures, given the circum- stances. Furthermore, their responsibilities include the design, implementation and maintenance of systems, processes and internal controls that are relevant for the preparation of the sustainability report in a way that is free of material misstatements – whether due to fraud or error. Auditors' Responsibility Our responsibility is to state whether, based on our procedures performed and the evidence we have obtained, anything has come to our attention that causes us to believe that the Company’s NFI report is not in accordance with the legal requirements of the Austrian Sustainability and Diversity Improvement Act (§§ 243b and 267a UGB), and the sustainability reporting guidelines of the Global Reporting Initiative (GRI Standards) Option “Core” in all material respects. The audit of the disclosures included in the NFI report in accordance with the EU Taxonomy Regulation is not part of our engagement Our engagement was conducted in conformity with the International Standard on Assurance Engagements (ISAE 3000) applicable to such engage- ments. These standards require us to comply with our professional requirements including independence requirements, and to plan and perform the engagement to enable us to express a conclusion with limited assurance, taking into account materiality. An independent assurance engagement with the purpose of expressing a conclusion with limited assurance ("limited assurance engagement") is substantially less in scope than an independent assurance engagement with the purpose of expressing a conclusion with reasonable assurance (“reasonable assurance enagement"), thus providing reduced assurance. Despite diligent engagement planning and execution, it cannot be ruled out

SUSTAINABILITY REPORT 2021 103 A B O U T T H I S R E P O R T This sustainability report (non-financial report pursuant to Section 267a of the Austrian Commercial Code (UGB)) has been prepared in accordance with the internationally recognized framework for sustainability reporting “GRI Standards”: “Core” option. The GRI Content Index, starting on page 95, contains a detailed list of the minimum requirements in this regard and of our compliance or omission. This consolidated non-financial report, as it is known, essentially covers all fully consolidated subsidiaries of PIERER Mobility AG. In addition to KTM AG, this includes KTM Technologies GmbH (formerly KTM Technologies GmbH), PIERER Innovation GmbH (formerly KTM Innovation GmbH), Avocodo GmbH, PIERER E-Bikes GmbH and, since 2021, DealerCenter Digital GmbH. The key environmental figures generally reflect the key figures of the main company and production sites: In addition to PIERER Mobility AG, this comprises KTM AG, PIERER Innovation GmbH, KTM Technologies GmbH and KTM Sportcar GmbH. PIERER E-Bikes GmbH* is not included here. The key environmental figures and emissions associated with this company are not published in this report. External Audit The published information has been audited by KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Linz/Austria. Our aim is to document the validation and trustworthiness of the disclosed information for the public in a comprehensible manner by conducting this second voluntary external audit. The corresponding confirmation can be found in the independent audit report at the end of this sustainability report. * The (e-)bicycles of PIERER E-Bikes GmbH are sourced from two external, independent assembly sites. The assembly sites are in turn supplied directly by various component manufacturers. PIERER E-Bikes GmbH therefore does not perform any assembly work itself. In 2021, the decision was made to establish a joint venture with the assembler Maxcom in Bulgaria. The intention here is for the first vehicles to be assembled under the joint organization from 2024. IMPRINT Owner and publisher PIERER Mobility AG Edisonstrasse 1 4600 Wels, Austria FN 78112 x / Wels Provincial and Commercial Court CONTACT 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 and E-Bicycles archive, KTM Technologies, KISKA, Numerica, Adobe Stock The present 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. This report is published in German and English. In the event of ambiguity, the German version shall take precedence.