Untitled

Annual Financial Report | 2022

Management report on the consolidated financial statements

Consolidated financial statements

Notes to the consolidated financial statements

Auditor’s report on the consolidated financial statements

Annual financial statements and management report

Auditor’s report on the annual financial statements

Statement by the executive board

Co ntents

105

Management report_2022

Management report

on the consolidated

financial statements

as of December 31, 2022 of PIERER Mobility AG, Wels

1. Development of the PIERER Mobility Group 106

2. Economic environment and market development 107

3. Financial performance indicators 110

4. Non-financial statement 115

5. Research & development and new models 115

6. Opportunities and risk report 119

7. Disclosures pursuant to Section 243a (1) of

the Austrian Commercial Code (UGB) 125

8. Main features of the internal control system

pursuant to Section 243a (2) of the Austrian

Commercial Code (UGB) 127

9. Outlook 129

Management report _2022

1. DEVELOPMENT OF THE PIERER MOBILITY GROUP

The Company

PIERER Mobility AG is the parent company for Europe's leading

manufacturer of powered two-wheelers in the sport motorcycles and

e-bikes segment. The motorcycles segment comprises the full range

of premium products under the KTM, GASGAS and Husqvarna

Motorcycles brands. The group’s innovative strength makes it a

pioneering leader in technology for sustainable combustion concepts

and electric mobility through its motorcycle brands. The Husqvarna

E-Bicycles, GASGAS Bicycles, FELT Bicycles and R Raymon brands

complement the two-wheeler range. The premium brand range also

includes high-performance components from the WP brand and, in

the four-wheel segment, the KTM X-BOW high-performance sports

car. By engaging in strategic partnerships, the company has been

able to diversify its production capacities in recent years and to

increase its competitiveness in the global market. In this context, the

very successful alliance with Bajaj in India, which has now been in

place for 15 years, deserves special mention. In addition, the

cooperation arrangements with CFMOTO in China and the joint

venture with Maxcom in Bulgaria will boost both bicycle and

motorcycle production over the long term. With its leading technology

in the field of low-voltage electric mobility, PIERER Mobility aims to

become the global market leader for electric two-wheelers in the

power range from 250 W to 15 kW.

The shares of PIERER Mobility AG have had a primary listing in the

International Reporting Standard of the SIX Swiss Exchange since

November 14, 2016. On March 29, 2017, the shares of PIERER Mobility

AG were included in the Swiss Performance Index (SPI) of the SIX

Swiss Exchange. Since March 1, 2022, the shares of PIERER Mobility

AG have also been listed on the prime market in Vienna, the top

segment of the Official Market of the Vienna Stock Exchange. In

addition, the shares of PIERER Mobility AG were admitted to the ATX

Global Players Index (ATX GP) of the Vienna Stock Exchange on

September 19, 2022. The listing on the Frankfurt Stock Exchange

(General Standard) was terminated on October 18, 2022 (last trading

day).

Development of sales and revenue in the 2022 financial year

Despite experiencing supreme challenges in the supply chain, in the

2022 financial year the PIERER Mobility Group increased group

revenue by 19.4 % to a new record level of € 2,437.2 million (previous

year: € 2,041.7 million). With 375,492 motorcycles sold (previous year:

332,881) in the 2022 financial year, the Motorcycles segment

achieved an increase in sales of around 13 %. Despite massive supply

problems, the Bicycle Division also achieved sales growth of more

than 15 %, selling 118,465 e-bicycles and bicycles (previous year:

102,753).

In Europe, unit sales to dealers were 122,028 motorcycles (+2 %) and

96,056 bicycles (-5 %). Almost two-thirds of the motorcycles (253,464

units) were sold in markets outside Europe, and in particular in North

America (+67 %). In the bicycle segment, the DACH region still

represents the largest sales market at around 67 %. In 2022, the

Bicycle Division was able to increase its share of sales in North

America from just under 1 % to around 11 %.

The PIERER Mobility Group continued to maintain global registrations

at a high level. After a strong increase in global demand for

motorcycles in the previous year, both the European motorcycle

market (-3 %), with a volume of approx. 730,000 units, and the North

American motorcycle market (-5.7 %), with a size of approx. 470,000

units, decreased slightly in 2022 and stabilized at a high level. The

market share of all three brands (KTM, GASGAS and Husqvarna

Motorcycles) is therefore around 10 % in Europe and 12 % in North

America. The Australian (including New Zealand) motorcycle market

also declined slightly, with a 10 % drop to 60,000 newly registered

motorcycles. Nevertheless, the three brands as a whole managed to

increase their share of this market to around 21 %. By contrast, the

relevant Indian motorcycle market is seeing a significant upswing

(+23 %). Bajaj sold around 50,000 KTM and Husqvarna motorcycles in

India, resulting in a market share of 5 %.

Global milestone: The 1,000,000th KTM motorcycle left the

manufacturing plant of strategic partner Bajaj in Pune/India

PIERER Mobility AG has reached a significant milestone with its

leading premium motorcycle brand KTM in India. The one millionth

motorcycle – a KTM Adventure 390 – rolled off the production line at

Bajaj's Chakan manufacturing plant in Pune. At this Bajaj Auto Limited

plant, motorcycles of the KTM brand (125 cm

to 390 cm

) and

Husqvarna brand (125 cm

to 401 cm

) have been co-developed and

produced for global distribution since 2011.

Strategic cooperation with MV Agusta & takeover of European

distribution for CFMOTO motorcycles

In November 2022, KTM AG acquired a 25.1 % stake in MV Agusta

Motor S.p.A., with registered office in Varese (Italy), as part of a

capital increase. MV Agusta is a European motorcycle manufacturer

with a long tradition in the top premium segment whose brand is

synonymous with Italian design and engineering. As part of this

strategic partnership between the two European motorcycle

manufacturers, KTM will support MV Agusta in the supply chain and

take over purchasing. In addition, as part of this cooperation, MV

Agusta will distribute its range of products exclusively through

PIERER Mobility's global distribution network.

The increase in the level of cooperation with CFMOTO is also driven

107

by the newly founded subsidiary CFMOTO Motorcycles Distribution

GmbH, Munderfing, Austria. The company is taking over the

distribution of CFMOTO motorcycles in Europe, in particular in

Germany, Austria, Switzerland, Spain and the UK.

Great success in racing in 2022 – PIERER Mobility wins 2023

Dakar Rally with KTM

With another 17 world championship titles in 2022, PIERER Mobility

AG can reflect on an outstanding year of motorsport. In both the E1

and GP classes of the classic EnduroGP championship, GASGAS was

crowned the winner. Izan Guevara capped off a perfect season of

racing by claiming the title in the Moto3™ World Championship. With

Manuel Lettenbichler, KTM secured the title of world champion in the

FIM Hard Enduro World Championship. His teammate Tom Vialle

displayed great speed and consistency to win the MX2 Motocross

World Championship. Augusto Fernandez won the Moto2™ World

Championship title for KTM in a thrilling finale. Two race wins and

several podium finishes helped the KTM Factory Racing Team secure

second place in the MotoGP team standings. The Husqvarna brand

can also look back on a successful year. Billy Bolt dominated the FIM

EnduroCross World Championship, winning not just the title but also

the team classification for Husqvarna.

The last year culminated in great success and this vein of success

continued with the first big win in the new year. At the beginning of

2023, PIERER Mobility AG secured its 20th win in the Dakar Rally

courtesy of Argentinian Kevin Benavides riding a KTM bike in Saudi

Arabia. Toby Price (KTM) and Skyler Howes (Husqvarna) completed

the podium in second and third places, making it a perfect start to the

2023 motorsport season.

Impact of the Russian-Ukrainian war

The PIERER Mobility Group's business is not directly affected by the

military conflict in Ukraine. PIERER Mobility does not have any

investments, other assets or other material business relationships in

Ukraine, Russia or Belarus, nor does it have any material business

relationships with suppliers or dealers in these countries.

Strategic corporate decisions, objectives and actions have not so far

been affected by the war and are not expected to be. Overall, there is

no material financial impact on the financial statements for the 2022

financial year. The PIERER Mobility Group does not expect the war to

have any direct material impact on its expected future cash flows, net

assets, financial and earnings position, or on developments

foreseeable from today's perspective.

Indirectly, however, as in the industry as a whole, the business risk for

the PIERER Mobility Group is increasing, in particular due to further

increases in energy and raw material costs as well as negative effects

on the global economy.

2. ECONOMIC ENVIRONMENT AND MARKET DEVELOPMENT

In the last financial year 2022, the pace of growth in the global

economy slowed down significantly as a result of the Russian-

Ukrainian war, leading to a significant downturn in the economic

outlook. Meanwhile, the lingering effects of the COVID-19 pandemic

are still being felt, particularly when it comes to procurement and

global supply chains. The combination of these two situations in

particular over the last financial year illustrates the many ways in

which supply chains can become unstable. One of the many impacts

being seen is supply shortages and significant price increases not

just for the global economy, but for ordinary people around the world

as well.

Another example of a significant effect from this multi-layered crisis is

inflation rates, which seem to be settling at a high level at least in the

short and medium term. At the same time, the Chinese government’s

decision to abandon its zero COVID-19 policy at the end of 2022 has

contributed to a shortage of available goods and resources globally

because the Chinese infrastructure and transport routes have been

overwhelmed. This is another driver of commodity prices, which in

turn increases inflationary pressure and has a negative effect on real

incomes and spending. In addition, the war in Ukraine in particular

has led to a significant increase in energy prices, and this is having an

impact on the supply of goods, which was already under great strain,

and therefore the economy as a whole.

Ultimately, the situation described above is leading to highly uncertain

global growth forecasts, which are constantly being adjusted, from

the leading organizations in this field, such as the International

Monetary Fund (IMF), the Organisation for Economic Co-operation

and Development (OECD) and the World Bank. The latest estimates

suggest an increase in growth forecasts for 2023 compared with

previous estimates at the end of 2022. On the one hand, this reflects

the inherent dynamics and volatility of economic development; on the

other hand, the increases in growth forecasts indicate flattening

global economic risks and inflation rates, more austere monetary and

fiscal policies, and better economic prospects. The IMF's estimates

are based on numerous assumptions about a wide range of

macroeconomic factors, in particular the trend in the price of fossil

fuels and other resources and the general level of interest rates.

For industrialized countries, the IMF expects growth of 1.2 % in 2023

and 1.4 % in 2024. For the euro zone, growth of 0.7 % is forecast for

Management report _2022

2023. For 2024, the IMF expects growth of 1.6 % for the euro zone,

while growth in Germany in particular is forecast to be below average

at 0.1 % for 2023 and 1.4 % for 2024.

For emerging markets and developing countries, the IMF forecasts

economic growth of 4.0 % for 2023 and 4.2 % for 2024. A growth rate

of 5.2 % is forecast for China in 2023 and 4.5 % in 2024. For India,

economic output is forecast to increase by 5.4 % in 2023 and by 6.8 %

in 2024.

The IMF forecasts rates of inflation of 6.6 % for 2023 and 4.3 % for

2024, putting its estimates of future rates of inflation around 1.7

percentage points above the level expected by the OECD and World

Bank. The IMF notes that the risks to the global economic outlook

remain exceptionally high, as the future development of the global

economy will depend in particular on successful calibration of

monetary policy, the course of the war in Ukraine and the economic

recovery in China, following the impact of the country abandoning its

zero COVID-19 policy. This assessment is broadly shared by the

OECD and the World Bank. According to the IMF, OECD and World

Bank, the risks of a scenario of economic stagnation and monetary

inflation at the same time, which was still being forecast in 2022, have

decreased significantly and such a scenario is not expected now. In

summary, the projections from the most important organizations

suggest low global rates of growth despite the challenges that were

highlighted in the introduction. The global economic downturn is

expected to be less severe than the most recent projections from

2022 suggested, although all projections of global economic

development are subject to great uncertainty.

In the past 2022 financial year, the global

motorcycle market

displayed a positive trend (+5.7 %). In Europe

, the motorcycle market

fell to a volume of approx. 730,000 new registrations as of December

31, 2022, which corresponds to a slight decrease of -3 %. The market

share of KTM, Husqvarna and GASGAS motorcycles registered for

road use is 10.0 % (previous year: 11.5 %; figures excluding motocross

models). While the overall market for motorcycles eligible for

registration grew in Italy (+7 %), for example, on average there was a

slight decline (-3 %) in large parts of Europe.

In North America

, one of the most important sales markets for the

PIERER Mobility Group, the total market shrank slightly from 495,000

in the previous year to 470,000 in 2022 (-5.7 %), but the group's market

share increased from 11.6 % in the previous year to 11.8 %.

1 Related to the key sales markets of the KTM Group: DE, FR, IT, UK, ES, SE, BE, NL, AT, CH, FL, DK, NO, GR, PL, SL, HU, BALTIC, USA, CAN, AUS, NZ, JP, SA, TH, CN, AR, BR, CO.

2 Motorcycles = 120 cm

excluding motocross, scooters, and ATVs, including electric motorcycles in the markets DE, FR, IT, UK, ES, SE, BE, NL, AT, CH, FI, NO, BALTIC.

3 Motorcycles = 120 cm

including motocross, excluding scooters and ATVs, including electric motorcycles in both the US and CA markets.

In Australia, the market cooled down to roughly its 2020 level (-10 %

with a total market volume of 60,000 units; previous year: +8 %).

However, the KTM, Husqvarna and GASGAS brands were able to

expand their market share and now have a market share of 20.6 %

(previous year: 19.7 %). Aside from its home market of Austria, this

represents the PIERER Mobility Group's largest percentage share of

the market anywhere in the world.

The relevant Indian motorcycle market (S2/S3 segment) is clearly on

the up (+23 %) and exceeded the volume of 1 million units in 2022. In

this context, the strategic partner Bajaj sold almost 50,000

motorcycles of the KTM and Husqvarna brands in India, which

equates to a market share of 5 % (previous year: 7 %). In China

(premium importer market) as well as in Japan (motorcycles

>250 cm

), the markets recorded a slight decline (-4.4 % in Japan) and

a significant decline (-14 % in China), with this volume reduction being

caused in China especially by the measures that were in place to

restrict the spread of coronavirus in 2022. Nevertheless, the PIERER

Mobility Group's market share in Japan, the home market of the major

Japanese motorcycle manufacturers, remains stable at 3 % (previous

year: 3.3 %), while demand in China for KTM and Husqvarna models

is reflected in a market share of 10.3 % (previous year: 10.2 %).

The e-mobility market has great potential for growth. It can be

expected that high-quality products will emerge to meet the level of

demand. Consumers' increased awareness of quality and

environmental issues is leading directly to a higher level of demand in

the relevant market – an established trend, especially based on data

for the German sales market, which according to the latest scientific

findings is very much dependent on a changing demographic

structure, with people more conscious of the environment. At the

same time, it should be noted that current macroeconomic

uncertainties, as were outlined at the beginning, as well as impacts

on consumer prices, not least due to high rates of inflation, may

produce unpredictable effects on the level of demand.

The latest 2022 report from the Confederation of the European

Bicycle Industry (CONEBI) indicates a European sales volume of

around 22 million New Mobility Products – EPACs in CONEBI's

terminology – in 2021. This is moderate growth of 0.8 % compared to

2020. However, sales of electrified products are outperforming the

overall market, with a +11.5 % increase compared to 2020 and a

22.8 % share of total products sold. According to the report, the most

109

important countries in terms of sales volume are still Germany

(4.7 million units), the UK (3.3 million units) and France (2.0 million

units).

According to the German Two-Wheeler Industry Association (ZIV),

around 4.7 million New Mobility products were sold in Germany in

2021, representing a decline in sales of around 5 % compared to the

record year of 2020. Sales are thus stabilizing at a significantly higher

level compared to the period before the COVID-19 pandemic. This

decline was attributable exclusively to the non-electrified

two-wheeler segment (-13.0 %), while sales of electrified products

sbucked the trend, rising 3 %. In its report for 2021 as a whole, the ZIV

confirms the extremely positive previous forecasts for the relevant

market. For example, the ZIV expects 2.0 million electrified products

to have been sold in Germany in 2021 (previous year: 1.95 million

electrified products). Their market share is thus 42.6 % (previous year:

38.7 %). The ZIV has also increased its estimate for their medium-term

market share: In the medium term, the share of electrified New

Mobility products in the total relevant market in Germany is expected

to be 50 % (previous year’s estimate: 40-50 %).

A trend study by the auditing and consulting firm PwC from 2021

also

shows that the relevant market will grow worldwide at an average rate

of around 5.5 % per year in the coming years. This trend will be driven

primarily by strong growth in sales of electrified New Mobility

products (7.4 % p.a. according to the study). According to the study,

the biggest potential for growth is in the East Asian and European and

North American markets, with an estimated sales volume of around

210.4 million products (estimated value of this sales volume: approx.

80 billion euros) sold worldwide in 2025. Other recent studies, e.g. by

Grand View Research

or Precedence Research

, confirm that they

expect the same strong growth trend with calculated annual global

growth rates of 8.2 % and 7.4 %, respectively, with Europe

representing the fastest growing market (10.4 % and 10.5 % CAGR,

respectively) and the electrified New Mobility products segment

representing the fastest growing product area (10.2 % and 10.3 %

CAGR, respectively).

1 For more information, see https://www.pwc.com/it/it/publications/docs/pwc-global-bike-and-accessories-market.pdf (status: January 26, 2023).

2 For an overview, see https://www.grandviewresearch.com/industry-analysis/bicycle-market (status: January 26, 2023).

3 For an overview, see https://www.precedenceresearch.com/bicycle-market (status: January 26, 2023).

Management report _2022

3. FINANCIAL PERFORMANCE INDICATORS

KEY FINANCIAL PERFORMANCE INDICATORS:

EARNINGS RATIOS 2021 2022 CHANGE IN %

Revenue in € million 2,041.7 2,437.2 19.4%

EBITDA in € million 332.2 381.1 14.7%

EBITDA margin in % 16.3% 15.6%

Result from operating activities (EBIT) in € million 193.5 235.3 21.6%

EBIT margin in % 9.5% 9.7%

OTHER FINANCIAL FIGURES:

EARNINGS RATIOS 2021 2022 CHANGE IN %

Earnings after taxes in € million 142.9 170.6 19.4%

Earnings after minorities in € million 82.5 169.9 > 100%

BALANCE SHEET RATIOS 12/31/2021 12/31/2022 CHANGE IN %

Balance sheet total in € million 2,033.7 2,550.6 25.4%

Equity in € million 765.6 914.4 19.4%

Equity ratio in % 37.6% 35.8%

Working capital employed

in € million 160.5 186.7 16.4%

Net debt

in € million 189.9 256.5 35.1%

Gearing

in % 24.8% 28.1%

CASH FLOW AND CAPEX 2021 2022 CHANGE IN %

Cash flow from operating activities in € million 367.4 280.3 -23.7%

Cash flow from investing activities in € million -195.1 -283.1 45.1%

Free cash flow

in € million 172.2 -2.8 < 100%

Cash flow from financing activities in € million -27.6 -91.3 < 100%

Capital expenditure

in € million 178.5 267.5 49.9%

VALUE CREATION 12/31/2021 12/31/2022

ROCE (Return on Capital Employed)

in % 17.4% 19.2%

ROE (Return on Equity)

in % 20.1% 20.3%

ROIC (Return on Invested Capital)

in % 13.0% 15.5%

1 Working capital employed = inventory + trade receivables - trade payables

2 Net financial debt = financial liabilities (current, non-current) - cash

3 Gearing = net financial debt / equity

4 Free cash flow = cash flow from operating activity + cash flow from investing activity

5 Additions to property, plant and equipment and intangible assets as per statement of changes in non-current assets; excluding lease additions (IFRS 16)

in the amount of € 25.9 million (previous year: € 24.6 million)

6 ROCE: EBIT / average capital employed; capital employed = property, plant and equipment + goodwill + intangible assets + working capital employed

7 ROE = net result after taxes / average equity

8 ROIC = NOPAT / average capital employed; NOPAT = EBIT – taxes

111

BUSINESS DEVELOPMENT AND ANALYSIS OF

EARNINGS RATIOS

Despite ongoing disruption to its supply chains, the PIERER Mobility

Group can reflect on another record financial year. In the 2022

financial year, the PIERER Mobility Group generated record revenue

of € 2,437.2 million, up from € 2,041.7 million in the previous year,

representing an increase in revenue of 19.4 %. Approximately 95 % of

revenues were earned outside of Austria. Looking at different regions,

46.5 % of revenues were generated in Europe (-9.5 percentage points

year-on-year), 33.9 % in North America including Mexico (+11.0

percentage points year-on-year), and 19.6 % in the rest of the world

(-1.5 percentage points year-on-year).

Earnings before interest and taxes (EBIT) improved by 21.6 % to

€ 235.3 million (previous year: € 193.5 million), which equates to an

EBIT margin of 9.7 %. The earnings before interest, taxes,

depreciation and amortization (EBITDA) of € 381.1 million are around

€ 50 million higher than the previous year's figure of € 332.2 million.

The EBITDA margin is 15.6 %. The net result after tax was

€ 170.6 million, 19.4 % higher than the previous year.

The overall sales figures of the PIERER Mobility Group as well as the

sales of PTWs (motorcycles and e-bicycles) are as follows:

449,971

409,797

493,957

435,634

2022

2021

PTWs Bicycles

Unit sales total (Number of units)

The two segments “Motorcycles” and “Bicycles” represent the main

operating areas of the PIERER Mobility Group, the development of

which is discussed below.

MOTORCYCLES

In the 2022 financial year, the Motorcycle Division achieved revenue

of € 2,262.5 million (previous year: € 1,876.4 million). Driven by the

sustained high global demand for powered two-wheelers, an

increase of 20.6 % was recorded compared with the same period of

the previous year. EBITDA of € 381.2 million (previous year: € 325.2

million) and EBIT of € 241.0 million (previous year: € 192.8 million) thus

increased significantly compared to the previous year. These

correspond to an EBITDA margin of 16.8 % (previous year: 17.3 %)

and an EBIT margin of 10.7 % (previous year: 10.3 %).

In North America, the Motorcycle Division recorded revenue growth

of 74.0 % to € 811.3 million. This meant that 35.9 % of revenue was

generated in North America (previous year: 24.8 %). In Europe,

revenue remained roughly at the previous year's level of € 977.4

million (previous year: € 980.8 million), corresponding to a share of

43.2 % (previous year: 52.3 %). Revenue increased in other countries

by 10.3 % to € 473.8 million compared to the previous year. The share

of revenue generated in other countries was 20.9 % (previous year:

22.9 %).

With 268,575 KTM motorcycles sold, 75,266 HUSQVARNA

motorcycles sold and 31,651 GASGAS motorcycles sold in the 2022

financial year, sales of 375,492 motorcycles (2021: 332,881 units) were

achieved (including the motorcycles sold in India and Indonesia by

partner Bajaj). The Motorcycle Division thus achieved a 12.8 %

increase in unit sales, consolidating its presence in the important

motorcycle sales markets with its three motorcycle brands.

KTM Husqvarna Mororcyles GASGAS

249,290

60,801

22,790

2021

Unit sales 2021 Motorcycles (Number of units)

268,575

75,266

31,651

2022

Unit sales 2022 Motorcycles (Number of units)*

375,492

* includes 16.369 units E-Balance Bikes

In the European sales regions, unit sales were 122,028 motorcycles

(+1.6 %). Around two thirds of the motorcycles produced (253,464)

were sold in markets outside Europe. Growth was particularly strong

in North America, where 109,711 motorcycles were sold. This

represented an increase of 66.8 % compared to the previous year.

Sales volumes were also encouraging in South America with 37,613

motorcycles sold (+15.5 %) and in Asia with 31,803 motorcycles sold

(+6.6 %). Unit sales in Australia were roughly on a par with the

previous year, with around 19,478 motorcycles sold (previous year:

20,811 units). In India/Nepal, unit sales were around 51,484 (-14.6 %).

In the 2022 financial year, 222,041 motorcycles were manufactured at

the Mattighofen production site. Compared to the previous year, this

constitutes an increase of 43,049 units, or +24.1 %. Taking into

account the small-engine KTM and Husqvarna models produced by

our partner Bajaj Auto Ltd. in India and the GASGAS Trials produced

in Spain, 381,823 motorcycles (+17.9 %) were manufactured

worldwide.

Management report _2022

Units sales by region FY 2022

32.5% Europe

29.2% North America

(incl. Mexico)

13.7% India / Indonesia

(by Bajaj)

24.6% remaining global

region

Revenue by region FY 2022

43.2% Europe

35.9% North America

(incl. Mexico)

20.9% remaining global

region

BICYCLES

In the Bicycle Division, the establishment and expansion of the four

“Husqvarna E-Bicycles”, “GASGAS Bicycles”, “FELT Bicycles” and “R

Raymon” is well underway. The visibility of all brands is increasing

strongly thanks to events, trade shows and the new round of orders

for the model year 2022.

In order to secure the necessary production capacities, a joint

venture was established in the previous year with MAXCOM Ltd., one

of the largest bicycle manufacturers in Eastern Europe and an

existing manufacturer of PIERER New Mobility GmbH. A state-of-

the-art e-bike production facility will be built on an area of 130,000

square meters, which will also offer international suppliers the

opportunity to locate at the site. The annual production capacity will

be around 350,000 units. In addition, due to global supply chain

issues, a subsidiary in Taiwan, PIERER E-Bikes Asia Ltd. was also

established in June 2022. PIERER E-Bikes Asia Ltd. will provide

significant support to PIERER New Mobility in its supply chain

management and thus reduce procurement risk through direct

access to the Asian market. Finally, the new subsidiary in Taiwan is

expected to contribute to achieving the long-term corporate and

revenue targets set.

In the 2022 financial year, revenue of € 171.2 million was generated in

the Bicycle Division (previous year: € 162.7 million). This represents a

year-on-year increase in revenue of 5.2 %. Revenue was below

budgeted expectations mainly due to bottlenecks in the supply chain

and in particular for electrical components. In this regard, the

company is in constant dialog with its suppliers to reduce further

potential bottlenecks. EBITDA in 2022 was € 6.5 million (previous

year: € 11.4 million) and EBIT was € 2.5 million (previous year: € 7.0

million). This corresponds to an EBITDA margin of 3.8 % (previous

year: 7.0 %) and an EBIT margin of 1.4 % (previous year: 4.3 %).

With 74,479 e-bicycles (previous year: 76,916) and 43,986 non-e-

bicycles (previous year: 25,837), the Bicycle Division with its

HUSQVARNA, R RAYMON, GASGAS and FELT brands achieved total

sales growth of 15.3 %, selling 118,465 bicycles (previous year:

102,753). Of the e-bicycles sold in the 2022 financial year, 71.4 % were

sold under the R Raymon brand, 20.6 % under the Husqvarna

E-Bicycles brand, and 8.0 % under the GASGAS brand. Sales of

non-electric bicycles were spread almost equally between the two

brands FELT and R Raymon (previous year just R Raymon).

74,479

76,916

43,986

25,837

2022

2021

(E-)Bicycles

Bicycles

Unit sales 2022 (E-)Bicycles (Number of units)

118,465

Unit sales 2021 (E-)Bicycles (Number of units)

102,753

Around 81 % of sales were in Europe and here in particular in the

DACH region. A further 11 % were in the North American sales region

and around 7 % in the Asian sales region. The remaining sales

(around 1 %) were made in South America and Australia.

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STATEMENT OF FINANCIAL POSITION ANALYSIS

The balance sheet structure of the PIERER Mobility Group is as follows:

2021 2022

€ million in % € million in %

Non-current assets 992.8 48.8% 1,195.8 46.9%

Current assets 1,040.9 51.2% 1,354.8 53.1%

Assets 2,033.7 100.0% 2,550.6 100.0%

Equity 765.6 37.6% 914.4 35.8%

Non-current liabilities 649.5 31.9% 625.6 24.5%

Current liabilities 618.7 30.4% 1,010.6 39.6%

Equity and liabilities 2,033.7 100.0% 2,550.6 100.0%

The balance sheet total of the PIERER Mobility Group increased by

25.4 % from € 2,033.7 million to € 2,550.6 million compared to the

consolidated financial statements as of December 31, 2021.

Similar to previous years, the increase in non-current assets from

€ 992.8 million to € 1,195.8 million was in particular in the area of

development projects, which was above the level of amortization and

resulted in an increase in intangible assets. In addition, property, plant

and equipment also increased, mainly due to the construction of the

new headquarters of KTM North America in Murrietta, California.

Within current assets, inventories in particular increased by € 248.8

million. The other changes relate on the one hand to the increase in

trade receivable and other assets and on the other hand to the

reduction in cash and cash equivalents. Overall, this resulted in an

increase in current assets of 30.2 % to € 1,354.8 million.

Current liabilities increased by € 391.9 million (+63.4 %) compared to

December 31, 2021. The increase is largely attributable to the rise in

trade payables. Non-current liabilities decreased slightly by 3.7 % to

€ 625.6 million.

Equity increased by € 148.8 million from € 765.6 million to € 914.4

million in the 2022 financial year. On the one hand, equity was

strengthened by a net result after tax of € 170.6 million. On the other

hand, dividend payments of € 34.3 million and the purchase of shares

in KTM AG (increase in shares from 99.75 % to 100 %) worth € 5.1

million led to a reduction in equity. The other effects of € 17.6 million

essentially concern the recognition of foreign currency differences

with no effect on profit or loss, the measurement of financial

instruments and the revaluation of net debt from defined benefit

plans. At 35.8 %, the equity ratio is below the value as of December

31, 2021 of 37.6 % due to the balance sheet increase described above.

Revenue by region FY 2022

71.5% DACH region

17.5% remaining

Europe

11% remaining global

region

Unit sales by region FY 2022

67.0% DACH region

14.1% remaining

Europe

18.9% remaining global

region

Management report _2022

LIQUIDITY ANALYSIS

The cash flow from operating activities was € 280.3 million in the

2022 financial year, and was therefore 23.7 % below the previous

year’s value of € 367.4 million, which was primarily attributable to the

increase in working capital.

The cash outflow from investments amounted to € -283.1 million and

was significantly higher overall than the previous year's figure of

€ -195.1 million. This increase was mainly due to the higher payments

for the acquisition of intangible assets and property, plant and

equipment (effect € -64.6 million). In addition, capital expenditure was

increased by the investment made in the new US headquarters and

the purchase of 25.1 % of the shares in MV Agusta Motor S.p.A.

This high level of investment and an increase in capital tied up in

working capital meant that free cash flow was slightly negative at

€ -2.8 million in 2022. In the last three financial years, an average free

cash flow of 5.6 % of revenue was generated, which is above the

sustainable target range of 3 to 5 % of revenue.

After taking the cash flow from financing activities of € -91.3 million

into account, liquid funds decreased by € 94.8 million (including

foreign currency effects of € -0.7 million) to € 278.7 million compared

to December 31, 2021.

Due to the strong equity base and long-term financing, sufficient

liquidity reserves remain permanently available.

INVESTMENTS

In the current financial year, total investments in the PIERER Mobility

Group amounted to € 293.4 million (previous year: € 203.1 million)

including IFRS 16 lease additions of € 25.9 million (previous year:

€ 24.6 million). The investments excluding leasing projects were

divided between development projects (incl. tools), property, plant

and equipment and intangible assets as follows:

FY 2021

178.5 in € million

FY 2022

267.5 in € million

17.5

intangible assets

29.9

property, plant and equipment

131.1

R&D (incl. tools)

44.0

intangible assets

62.1

property, plant and equipment

161.4

R&D (incl. tools)

As usual, high investments were made in series development projects

(including tools) in the past financial year. The consistently high

investments in series product development represent one of the key

success factors of the PIERER Mobility Group.

One of the most significant single investments in infrastructure

(property, plant and equipment) in the 2022 financial year was the

continued construction and completion of the new headquarters of

KTM North America in Murrieta, California. Company premises have

been constructed over an area of approx. 14,000 m² and comprise

office and motorsport buildings as well as storage areas. The total

investment for the construction of the building was around USD 53

million.

Other significant individual investment projects in 2022 included the

acquisition of new production facilities to modernize manufacturing,

the purchase of land to secure future expansion of the business, and

interior fitting out of the new logistics center in Munderfing which

commenced operations during the financial year. In addition,

investments were made in the new production site for GASGAS Trial

models in Terrassa, Spain, north of Barcelona, where series

production started in June 2022.

In 2022, extensive investments were also made in the joint project

with MAXCOM Ltd. in Bulgaria. This will be one of PIERER New

Mobility's most significant investment projects over the coming years.

The increase in investments in intangible assets, in addition to

ongoing investments in IT and licenses, resulted largely from the

addition of trademark rights.

Due to the high investment in capacities and infrastructure in recent

years and the relocation of the small-engine Husqvarna Motorcycles

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road models to our strategic partner Bajaj, the required production

capacities in Austria have been secured for the next few years.

Despite macroeconomic challenges at a global level, investments in

the (further) development of existing and new models, electric

mobility and high-tech modernization are the top priority right now

and will continue to be so in the future. In line with the strategic

objectives, expenditure on investments in research and development

will remain at the already high level of previous years.

4. NONFINANCIAL STATEMENT

The company prepared a consolidated non-financial report for the

PIERER Mobility Group in accordance with Section 267a of the

Austrian Commercial Code (UGB) for the 2022 financial year. This

report contains information about concepts, non-financial risks, due

diligence processes as well as results and performance indicators

with regard to environmental, social and employee issues, respect for

human rights, and the fight against corruption and bribery. This report

has been reviewed by the Supervisory Board in accordance with

Section 96 of the Austrian Stock Corporation Act (AktG) and is

available online at https://www.pierermobility.com/en/sustainability/

sustainability-reports.

The corporate governance report is available on the company's

website at https://www.pierermobility.com/en/investor-relations/

corporate-governance.

5. RESEARCH & DEVELOPMENT AND NEW MODELS

For PIERER Mobility AG, as the leading manufacturer of premium

powered two-wheeler (PTW) vehicles in Europe, it is our declared

goal to further expand our leading role in the world of motorcycling in

terms of technology, sales, and image. We have been particularly

focused on the area of research and development for several years.

The result of the R&D strategy we have pursued is innovative

products that meet our customers' high expectations in technology

and performance. At the same time, it makes it possible for us to

develop new markets in a manner that ensures lasting success.

Particularly high priority is given to the early recognition of trends in

the powered two-wheeler (PTW) segment and the further

development of the product range from a technical and functional

perspective. At the same time, we have a strong commitment to

tracking, recognizing and implementing customer requirements with

regard to the PIERER Mobility Group's products and services. This

enables us to further build on the pioneering role we have developed

in the past and to ensure a market-oriented product development

strategy.

Thanks to the globally active research and development organization,

the PIERER Mobility Group has a network of highly qualified

employees – for instance in the construction, computation and

simulation sectors. This network is supported by the in-house

machinery and equipment that performs the production, construction

and validation of newly developed prototypes. This combination

allows us to react with a high degree of flexibility to changing

requirements and the level of complexity associated with this.

In operational terms, excluding the ancillary effect of capitalization

and amortization of development expenses, 8.7 % of total revenue

was spent on research and development, corresponding in absolute

figures to € 213.2 million (previous year: € 162.4 million).

The Research and Development department of the PIERER Mobility

Group is a global organization, with decentralized locations in Europe

(in particular Austria and Spain), and America. The development

programs are centrally managed at the R&D headquarters in

Mattighofen and in Munderfing, where the majority of our employees

from the research and development department are based. The

Research and Development Center at the company's head office in

Mattighofen is an innovation hub covering an area of more than

20,000 m², where groundbreaking products for the Powersport

segment are designed, developed and tested using state-of-the-art

equipment.

KTM Technologies GmbH, with registered office in Anif near

Salzburg (Austria), specializes in future mobility concepts, particularly

in the areas of concept and technology development and lightweight

construction. A key factor in its success is the application-focused

development of new solutions and technologies, combining a high

level of expertise in the area of vehicle concept development,

including the use of multiple materials, composites and additive

manufacturing technologies. As an innovation hub, KTM

Technologies GmbH works closely with KTM Forschungs- und

Entwicklungs GmbH and customers from other industrial sectors. Its

partners and customers include established OEMs and start-ups

from sectors such as automotive and aerospace, mechanical

engineering and the sporting goods industry.

Management report _2022

When the KTM Freeride E was launched on the market in 2014, the

PIERER Mobility Group was considered a pioneer in the field of

electric mobility. In recent years, the range of electric vehicles in

various performance categories has been extended to all brands in

the group. The development of electric motorcycle models is largely

carried out at the in-house center of excellence established in recent

years in Anif near Salzburg.

Because motorcycles with electric drive systems are still subject to

significant practical restrictions due to their low power density, one of

the key items on the agenda for research over the past year was to

reduce the exhaust and noise emissions of the PIERER Group's range

of internal combustion engines. To continue operating in the premium

vehicle segments with high performance and range requirements as

dynamically as before, the projects included in-depth examination of

future-proof synthetic fuels known as e-fuels and testing of fuels with

increased bioethanol content.

The noise emissions of motorcycles have become an important

acceptance criterion for this vehicle category in recent years. For this

reason, proactive work was carried out last year on researching the

noise sources of offroad models and thus deriving approaches to

solutions for significantly reducing noise emissions.

KTM Forschungs und Entwicklungs GmbH is a founding member of

the Swappable Batteries Motorcycle Consortium (SBMC). The

consortium, which was established in September 2021 after intensive

preparatory work together with other leading motorcycle

manufacturers, will develop a common technical standard for a

battery swap system including charging and swap stations in the next

few years. The aim is to meet customer expectations for range,

charging time and costs through international standardization of the

battery system, thus making an important contribution to the further

spread of electrified mobility concepts in urban living areas.

The successes of the past year include a hybrid brake disc guard and

a skid plate manufactured using the patented CONEXUS technology

developed in-house. This innovative technology enables different

materials to be joined without requiring an additional process such as

gluing or bolting. CONEXUS eliminates costly processes, saving both

energy and associated CO

emissions. Above all, however, property

profiles can be optimally exploited through the targeted use of

materials. The two hybrid components feature lightweight,

high-performance carbon composite structures joined with an

impact-resistant plastic. The CONEXUS technology also enables

simple and total separation of the materials for recycling. To illustrate

the CO

savings potential of the technology, a brake disc guard was

developed that reduces the carbon footprint in material use by

around 70 % by using natural flax fibers instead of carbon fibers as

well as a bio-based plastic. This innovation received the “EC

Composites Innovation Award” in Paris, the highest award in the

composites industry. This was followed in November by the

prestigious “Automotive Body Exterior” award of the Society of Plastic

Engineers (SPE). These awards have aroused great interest in this

technology from other industries, and specific projects have already

been initiated with partners from the automotive and aerospace

sectors. As part of the activities to improve sustainability, the methods

and tools used for life cycle assessment have evolved significantly.

Identifying the carbon footprint of the materials used is an important

element of a complete life cycle assessment of components and

vehicles.

A novel body concept was developed for H2X Global, an Australian

start-up company active in the field of commercial vehicles powered

by hydrogen fuel cells. The innovative, origami-inspired design can

reduce the energy and one-off costs for new vehicles. This

represents a major cost advantage, especially for commercial

vehicles produced in smaller numbers.

In August 2022, KTM Technologies GmbH initiated an “Innovation

Talk” at the international “Living Legends of Aviation” gala. The

objective of the panel discussion was to bring together the aviation

and automotive sectors in order to identify synergies for sustainable

mobility solutions of the future.

Virtualization of product development is an important building block

for reducing development times, costs and quality risks. Ultimately,

the physical testing of components and complete vehicles on

corresponding test benches is an indispensable part of the testing of

new products. For this purpose, a test area covering 300 m² and

equipped with the latest test benches was created at the Anif site in

order to ensure quality assurance of the products during

development.

In addition to refining the adaptive cruise control system which was

first available in a production model in 2021 and the lean-angle-

dependent traction control and antilock brake systems developed in

close collaboration with BOSCH, work was carried out on many other

intelligent safety and assistance systems and extensive tests were

conducted during the last year of research. Research into camera-

based assistance systems and the testing of advanced radar-based

sensor technology for detecting objects are just two examples of the

many technology development projects being pursued concurrently.

Another focus in the past year was on developing new approaches for

lighting technologies with the aim of making motorcycling safer in the

dark by improving illumination of the road. The introduction of novel

safety and convenience functions in vehicles in recent years has

been accompanied by a significant increase in the complexity of

motorcycle electrical/electronic systems. This is why work in 2022

also focused on developing a modular platform architecture for

electronic components. The aim of this initiative is to be able to

respond more quickly to product requirements, reduce the level of

complexity in the development of electronic components and further

increase functionality and quality.

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Connectivity features that enable data exchange between the vehicle

and accessories such as smartphones have undergone intense

development in recent years and are now regarded as indispensable

features, especially in the premium segment. In addition to the

development of convenience functions such as telephony and

navigation, a key part of the activities over the last year were the

development and testing of systems for communication between the

motorcycle and other vehicles, or between the motorcycle and road

infrastructure such as traffic lights.

Another pillar of the development philosophy that the company

pursues is using high-quality materials in all vehicles, resulting in a

reduction in vehicle weight and the associated potential for reducing

fuel consumption and emissions and improving ridability. For

example, great efforts made in recent years have enabled the weight

of our offroad competition models to be further reduced with each

new generation. Among the many research and development

projects in the development of materials and surfaces, work was

carried out on developing and testing wheels and chassis

components made of fiber-reinforced composites, as well as on

further developing the manufacturing process for plastic parts with

design elements featuring hybrid construction. An additional focus is

on investigating the use of recycled and bio-based materials at the

component level.

The KTM and HUSQVARNA motocross models, which have

successfully been tested by winning races as part of the company's

commitment to global motorsport, underwent their final endurance

tests and were successfully transferred to series production and put

on sale worldwide. There were a number of particularly noteworthy

technical solutions – first and foremost a new hybrid rear frame

concept and extensive revisions of the high-strength steel frame used

across all platforms. The series ramp-up of the completely revised

GASGAS Trial models was a further milestone for the traditional

Spanish brand. The transfer to series production of electrically

powered motorcycles was completed across all brands with the KTM

SX E3, HUSQVARNA EE3 and GASGAS MC E-3 models.

The wide range of street models offered by the group’s KTM,

HUSQVARNA and GASGAS brands extends from naked bikes,

supersport and touring models in the entry-level segment, to a broad

mid-range segment with single-cylinder and straight twin models

right through to premium motorcycles with efficient and powerful

two-cylinder engines. With regard to the transfer to series production,

research in 2022 was particularly focused on the mid-range

platforms. The largest projects included the final testing of the

HUSQVARNA 901 Norden Explorer, a refinement of the successful

sister model HUSQVARNA 901 Norden that was launched the

previous year, and the testing and start of production of the KTM 890

ADVENTURE and KTM 890 ADVENTURE R models. The production

ramp-up of the first GASGAS street models, the agile GASGAS 700

SM supermoto and its counterpart for rough terrain, the

GASGAS 700 ES, are an important part of the Group’s brand strategy.

Research in 2023 will feature a large number of project initiatives in

the areas of fundamental research, technology and complete vehicle

development, testing and validation. Just like the activities from the

year under review, the focus in engine development will be on further

increasing efficiency by optimizing the thermodynamic system, on

research into e-fuels and on general development and testing of

purely electric drive systems and energy storage modules. The field

of electrical/electronic development includes the development of

new safety and assistance systems and innovative human-machine

interface concepts designed to make a lasting contribution to

reducing accidents. Intensive consortium work in the field of

connected motorcycles is also being continued. At KTM

Technologies GmbH, the focus in 2023 will be on developing new

concepts for components and complete vehicles, both for the group

and for customers from other industries. Another focus will be on

technology transfer and qualification of materials, as well as on

processes and methods for optimizing the sustainability of products

and components. The core competencies of KTM Technologies

GmbH in lightweight construction and composites are to be used in

various cross-industry development projects on products for future

mobility.

MOTORCYCLE MODELS

In the 2022 financial year, a large number of new or revised models

from the KTM, Husqvarna Motorcycles and GASGAS brands, both

offroad and street, were again launched to cater for the ever-growing

customer base. Following the release of the KTM 890 DUKE R in

early 2020, KTM brought out the new, revised 2022 KTM 890 DUKE R

in February 2022. The 2023 KTM 890 ADVENTURE R and 2023 KTM

890 ADVENTURE are aimed at a growing customer segment looking

for freedom in motorcycling. The medium-weight motorcycles were

presented as a solution for potential “new” adventure riders. The

updated 2023 KTM SXs model range lays the foundation for further

expansion of KTM's dominance in the off-road segment. In August

2022, as part of the KTM SX model range, KTM released the new

2023 KTM 50 SX Factory Edition. The 2023 KTM 450 SMR has been

available since June 2022. The latest iteration of the KTM EXC and

EXC-F models in 2023 reinforces KTM's claim to lead the class in the

enduro off-road segment for all riders and terrains, starting with the

entry-level 2-stroke KTM 150 EXC and culminating in the best-in-class

4-stroke KTM 500 EXC-F. The new Enduro models have been

available from dealers since May 2022.

In addition, KTM unveiled another addition to its range of four-wheel

products in the third quarter. With the new KTM X-BOW GT-XR

supersport car, KTM combines the READY TO RACE DNA of the KTM

X-BOW GT2, which has made its mark in motorsport, with the

requirements of a roadgoing vehicle.

Management report _2022

Husqvarna Motorcycles has given its street range, specifically the

Svartpilen 401, Vitpilen 401 and the Svartpilen 125, which was only

launched last year, a major overhaul. Following the redesign of the

street models, Husqvarna Motorcycles' 2023 TE and FE Enduro

models are also available at authorized Husqvarna Motorcycles

dealers. Just like the Enduro model range, Husqvarna Motorcycles'

2023 TC and FC model range has also been fundamentally

overhauled to incorporate the latest technology – with the aim of

leading the way when it comes to technology. To complement the

model year 2023 Husqvarna Motorcycles motocross and enduro

line-ups which have already been upgraded and the new

specifications and components that are used, Husqvarna

Motorcycles has unveiled the new Heritage series of these

motorcycles, which has been available in a strictly limited supply

through its dealer network since September 2022. The NORDEN 901

was unveiled last year and is a dynamic and versatile touring

motorcycle for adventures that delivers excellent on-road and

off-road performance. Technical accessories were introduced for this

bike in the first quarter of 2022 and have been available ever since.

The Husqvarna Motorcycles 2023 FS 450 has also been available

since June 2022. Husqvarna Motorcycles is also setting new

standards in the single-cylinder motorcycle segment with its two

model year 2023 motorcycles, the 701 Enduro and 701 Supermoto.

Husqvarna Motorcycles is continuing its pioneering work in the field

of electrified motorcycles, and in 2022 it revamped its EE 3 and EE 5

electrified small motorcycles to the high quality standard for which

the brand is renowned. With performance levels to match gasoline-

powered 50 cm

motorcycles, the EE 3 introduces young riders to the

world of motocross, while the more powerful EE 5 focuses on

motocross competition. The electric mini-bikes have been available

through the network of dealers since the 3rd quarter of 2022.

GASGAS Motorcycles has introduced the MC 450F Troy Lee

Designs, the first Team Edition motocross bike. GASGAS has also

added a vibrant new look to its motocross range for the new 2023

models, which have been available since the first quarter of 2022. In

the second quarter of 2022, GASGAS Motorcycles introduced its first

two street bikes: the GASGAS SM 700 and the GASGAS ES 700. Both

models were made available at dealerships in various countries

during 2022, with the North American launch not scheduled until

2023. Developed over the last two years, the new 2023 generation of

GASGAS trial bikes has been improved in many key aspects. The new

trial bikes from GASGAS have been commercially available since the

end of August 2022.

The strictly limited 2023 GASGAS RX 450F Replica enables

customers to purchase a motorcycle that is almost the exact replica

of the bike on which Sam Sunderland won the Dakar Rally in 2022. At

the same time, GASGAS has released two new Factory Editions: The

GASGAS MC 450F Factory Edition and GASGAS MC 250F Factory

Edition offer supreme off-road performance with the very latest

generation of components.

The first half of 2022 saw the market launch of the updated versions

of the two Electric-Balance Bikes (known as E-Balance Bikes for

short), 12eDRIVE and 16eDRIVE from STACYC™, which are available

as models for all three of the group’s KTM, Husqvarna Motorcycles

and GASGAS brands. These bikes are electrically powered vehicles

whose multiple uses and great versatility make them the perfect

entry-level platform for the very youngest bikers of the future, while

also opening up a new market segment. With a battery life of up to 60

minutes and a charging time of 30-60 minutes for the 2-Ah battery on

the 12eDRIVE or 45-60 minutes for the 4-Ah battery on the 16eDRIVE,

as well as weighing just 7.7 and 9 kg, respectively, both E-Balance

Bikes offer youngsters an ideal way to start learning how to ride on

two wheels. E-Balance Bikes are sold through the distribution

channels of KTM, i.e. motorcycle dealers, as well as through the

distribution channels of PIERER New Mobility.

BICYCLE MODELS

The launch of the new 2022 model year and the presentation of the

whole collection of New Mobility products for all brands took place

primarily during the Media Summit on April 26, 2022.

Husqvarna E-Bicycles fundamentally focuses on innovation in the

field of electric mobility. The brand's primary motivation is to develop

New Mobility products for the future. At the Media Summit,

Husqvarna E-Bicycles unveiled the new Husqvarna Mountain Cross 6

(MC6), a full carbon e-MTB with a new geometry and kinematics. The

MC6 will enhance Husqvarna E-Bicycles' position in the e-MTB

sector thanks to its distinctive carbon frame design with the motor

mounted in a unique position, and act as a blueprint for future product

innovations. 2022 also marked Husqvarna E-Bicycles' first full season

competing in the elite competitions of the popular Enduro World

Series Electric with three elite racers.

GASGAS Bicycles is building on the success of the GASGAS brand

in the motorcycle segment, offering riders the opportunity to

experience off-road trails while riding high-performance e-MTBs.

With its roots in the world of off-road motorcycling, GASGAS broke

new ground in 2022 by launching a variety of new electrified New

Mobility products that encompass a wide range of products from

lightweight all-mountain bikes to high-performance enduro bikes.

As the newest brand in PIERER New Mobility's portfolio, FELT is

focused on speed and competition. One of the things the brand

launched in the 2022 financial year was two new platforms: The

Breed Carbon Gravel Race Bike and the triathlon-specific IA 2.0. For

2023, the brand will focus on these two core products to establish

itself as a key player in bike racing over the coming years and extend

its offering to all racing segments, including off-road, while expanding

its range of models at the same time.

119

R RAYMON focuses on offering decent value for money. Further

proof of this is the new, lightweight E-Mountain Trial Bikes (E-MTBs)

platform. The focus of development work was on further

harmonization of the three pillars of motor, battery and weight. In the

2022 financial year, the AirRay, a lightweight trial e-MTB, was

launched. With this new product category, R RAYMON is laying down

an important marker in a rapidly growing product segment. In the

electric all-mountain segment, R RAYMON presented more

innovations with the new 2022 TrailRay e-models.

6. OPPORTUNITIES AND RISK REPORT

As Europe's leading “Powered Two-Wheeler” (PTW) manufacturer,

the PIERER Mobility Group with its KTM, Husqvarna Motorcycles, and

GASGAS motorcycle brands is among the European technology and

market leaders. The business activities of the PIERER Mobility Group

are characterized by ongoing changes. Exploiting the opportunities

that these changes present is the essential cornerstone of the

success of the PIERER Mobility Group. In order to secure the future

success of the business and exploit the opportunities that arise, the

group must consciously take risks.

The management of opportunities and risks is the basis for

responding appropriately to changes in the underlying political,

economic, technical or legal conditions. Where it is likely that the

opportunities or risks identified will occur, they have already been

incorporated into the statements made in the notes to the

consolidated financial statements and the group management report.

The following statements include possible future developments or

events that could lead to a positive (opportunities) or negative (risks)

deviation from the company forecast for the PIERER Mobility Group.

As part of risk management, all individual and cumulative risks that

could jeopardize the success of the company are monitored and

controlled. Risks that could jeopardize the company as a going

concern are generally avoided. The scope of risk consolidation

corresponds to the scope of consolidation of the consolidated

financial statements of the PIERER Mobility Group.

RISK MANAGEMENT SYSTEM

The main purpose of the PIERER Mobility Group's risk management

system is to safeguard and strengthen the company by correctly and

transparently assessing financial, operational and strategic risks. In

this context, the Executive Board, together with the management of

the main group companies – in particular KTM AG, performs

extensive management and controlling tasks within the framework of

an internal, integrated control system that covers all major sites.

Recognizing, evaluating and responding to strategic and operational

risks promptly is an essential part of the management activities of

these units and adds significant value to the company. The basis for

this is a uniform, group-wide reporting system established on a

monthly basis, and ongoing monitoring of operational and strategic

plans.

The PIERER Mobility Group has a multi-level risk management system

in which group-wide risks are identified by location or geographical

area. Operational responsibility and the assessment of group-wide

risks is carried out by the risk management of KTM AG and local

management and is reported directly to and monitored by the

Executive Board and the Group Executive Board.

Preventive analysis of potential or near-miss events is another aim of

risk management. In addition, risk management is also responsible

for actively controlling risks and evaluating appropriate measures

with the business units concerned.

RISK MANAGEMENT STRATEGY

The PIERER Mobility Group bases its risk management strategy on

risk analysis and risk assessment according to the COSO®

framework. Accordingly, the group has defined the following core

areas of the risk management strategy:

Management report _2022

Risk

Identification

Risk

Assessment

Risiko

Control

Reporting

Monitoring

• Structured recording of opportunities and individual risks in the sectors

• Implementation of risk workshops

• Identification takes place, among other things, by means of the standard risk catalog

• Failure mode and effect analysis

• Extend of damage and probability of occurrence

• Control of the overall risk position by influencing opportunities and

individual risk

• Control of the effectiveness of measures

• Continuous monitoring

• Collection, evaluation, forwarding of information

• Reporting

Risk management established at the level of KTM AG regularly

conducts risk analyses for selected production and distribution sites.

Only risks outside the consolidated statement of financial position

and the consolidated income statement are presented.

RISK MITIGATION

Depending on the impact on the company, efforts are made to

minimize or avoid risks by taking appropriate measures or, in certain

cases, to deliberately take them.

RISK ASSESSMENT

The aim of risk assessment is to perform continuous, qualitative and

quantitative evaluation of all identified opportunities and risks in order

to prioritize risk control measures. Opportunity and risk assessment

at the PIERER Mobility Group should meet the following

requirements:

• Objectivity: The assessment should be performed according to

standards that are as objective as possible.

• Comparability: To allow the opportunities and risks to be

compared with each other, a quantitative assessment is made

using uniformly defined values (where reasonable and possible).

ASSESSMENT METHODOLOGY

Opportunities and individual risks are assessed on the basis of their

likelihood of occurrence and their significance for the net assets,

financial position and earnings position of the group. This assessment

is based on information about a) risks that have actually occurred in

the past, b) benchmark values from the industry or c) realistic expert

estimates prepared by the group itself.

The quantitative assessment follows a scenario-based approach,

distinguishing between the following categories: Best Case (BC),

Most Likely Case (MLC), and Worst Case (WC). This is a classic

triangular distribution. For isolated risks, a qualitative assessment can

additionally be used, if necessary, or alternative distributions (normal

distribution, etc.) can be used for fluctuating risks. The choice of the

respective distribution depends on the type of risk.

RISK MONITORING / CONTROL

The essence of operational risk management is to identify, evaluate

and control significant risks arising from operations. This process is

carried out in particular by the senior and middle management levels

of KTM AG and monitored by the Executive Board of PIERER Mobility

AG.

OPPORTUNITIES AND RISK REPORT

The following overview provides a general summary of all identified

risks and opportunities and highlights their significance for the

PIERER Mobility Group. Overall, the PIERER Mobility Group has not

identified any risks that could jeopardize its continued existence as a

going concern, neither on the reporting date nor at the time that the

financial statements were prepared.

121

• MARKET RISKS

Cyclical risk

The PIERER Mobility Group operates mainly in the motorcycle and

bicycle industry. Sales opportunities are determined by the general

economic situation in the countries and regions in which the PIERER

Mobility Group is represented with its products. As recent years have

shown, the motorcycle sector in particular is cyclical and subject to

large fluctuations regarding demand. This risk is counteracted by

relevant market research and market forecasts, which are then taken

into account in the planning process.

Leading economic institutes assume that the current high inflation

rates will not persist in the medium term, i.e. that this is a temporary

phenomenon. Nevertheless, the current situation gives rise to a

cyclical global procurement and sales risk that also affects the

PIERER Mobility Group. Essentially, this risk lies in the increased

procurement prices for raw materials, supplies and components –

already driven by the global shortage – as well as in the increased

production overheads, especially in energy prices, and the sharp rise

in transport costs.

On the procurement side, the group is countering the risk from rising

procurement prices through several measures, such as the use of

alternative supply chains and corresponding activities to reduce

costs incurred, the implementation of efficiency measures at supplier

partners through support cost engineering, and the agreement on

temporary price increases based on indices. In addition, the group

has already implemented other significant measures to build up

inventories and safeguard production, as mentioned above. Due to

the flexibility in the implemented production layout, the group is also

able to adjust production schedules as needed in the event of global

developments leading to increasingly tight supply chains. Finally,

PIERER Mobility is committed to adjusting its logistical procurement

structure to minimize transportation distances and associated costs.

However, the global impact of high inflation rates could ultimately be

reflected in changes in customers' overall reduced consumption

behavior. PIERER Mobility continuously monitors such effects on

customers' consumption behavior and notes that demand for PIERER

Mobility Group products as a quality provider of PTWs remains at a

high level. Further increases in interest rates in the course of fighting

inflation could potentially increase pressure on dealers and pose a

sales risk for the group. The group is therefore in close coordination

with its network of dealers, supporting it with targeted programs.

Competition and pricing pressure

Competition on the motorcycle market in industrialized countries is

particularly intense; KTM’s strongest competitors are four Japanese

and three European manufacturers and, on a slightly smaller scale, a

U.S. manufacturer, some of which have greater financial resources,

higher sales figures and market shares. Price pressure in the street

motorcycle market is very high, and new competitors are trying to

enter the market using low-price strategies. Thanks to its successful

market strategy, KTM is Europe's leading manufacturer of powered

two-wheel vehicles. The full integration of GASGAS as the third

motorcycle brand and the further development of the dealer network

has also contributed to this. Thanks to our innovative strength, we see

ourselves as the technology leader in the two-wheeler sector in

Europe. The strategic partnership with Bajaj, India's second largest

motorcycle manufacturer, and the increased level of cooperation with

CFMOTO strengthens the company’s competitiveness in global

markets.

The bicycle market is developing strongly on the supply side: A

moderate increase in demand is being offset by a greater increase in

supply due to an easing of the supply chain situation for existing

suppliers. This is putting pressure on prices and intensifying the

battle for market share. The PIERER Mobility Group can exploit its

renowned, comprehensive network of dealers as an advantage here.

In addition, the portfolio is being expanded in various directions to

make it more appealing by integrating brands such as, most recently,

FELT Bicycles or cargo bikes from the Johansson brand. The

cooperation with MAXCOM in Bulgaria is vital in relocating the value

chain to Europe, thus creating resilience and enabling better pricing.

Sales risk

The largest individual sales markets of the PIERER Mobility Group are

the European market and the U.S. market. A slump in these markets

could have a negative impact on business activities. Entering new

markets involves a major cost risk as, in some of these markets, the

sales trends as well as the geopolitical conditions are difficult to

assess. By collaborating with its strategic partner Bajaj Auto Ltd.,

Pune, India, the company is working steadily toward implementing a

global product strategy in the motorcycle sector. In order to diversify

the sales risk, the Bicycle Division is also pursuing the goal of

expanding successfully in other markets.

Geopolitical risks

It is also important to keep a very close eye on geopolitical risks. In

particular, the war in Ukraine will have a negative impact on the global

economy. In business terms, the PIERER Mobility Group is not directly

affected by the military conflict that is taking place in Ukraine.

Indirectly, the PIERER Mobility Group, along with the whole industry,

is confronted primarily by further increases in energy and raw

material costs and negative effects on the capital markets.

Management report _2022

• INDUSTRY-SPECIFIC RISKS

Restrictions relating to motorcycling

The revenue of the group depends, inter alia, on the possible offroad

uses of the motorcycles and is therefore influenced to a considerable

extent by the national legal framework regulating offroad motorsport,

motorcycle registrations and driver’s licenses in the countries where

the vehicles are sold.

Due to the introduction of the Euro 5 emissions standard on January

1, 2020, updating the entire Street motorcycle product range to meet

the new regulatory requirements was the focus of R&D activities and

was completed in 2020. During the 2020 calendar year, all models

intended for the EU region and for operation on public roads were

newly type-approved according to the “Euro 5” regulations or their

type approval was upgraded from “Euro 4” to “Euro 5” by an

amendment. Series production of the first “Euro 5” model took place

in July 2020 (sample series of KTM 890 Adventure models). The last

“Euro 4” model for the EU region was produced in December 2020.

Since January 1, 2021, only “Euro 5” vehicles have been produced for

the EU region and for operation on public roads (EU Regulation

168/2013 – for more information on Euro 5 requirements, please refer

to page 74 in the Sustainability Report 2021).

Procurement risk

In the second year following the outbreak of the COVID-19 pandemic,

the group faced increasing difficulties with regard to the supply of

semiconductors and the associated shortages of electronic

components. In order to support its suppliers in this situation, PIERER

Mobility actively intervened in the procurement of electronic

components and was thus able to prevent major shortages both at

suppliers and at its own production sites. In addition to the shortage

of electrical components, there were also bottlenecks in the supply of

raw materials such as aluminum and plastic pellets, but these had

only immaterial effects due to intensive cooperation in the supply

chain.

The first half of 2022 confirmed the forecasts made at the end of 2021

and led to disruptions in the procurement of essential electrical

components. Thanks to close cooperation along the entire supply

chain, the resulting backlogs were controlled and cleared towards the

end of the first half of the year. Even though there were delays in the

second half of the year caused by global supply chain bottlenecks in

the procurement of certain components, the requirements of the

respective production sites were covered for the longer term.

In the current situation, the procurement risk faced by the Motorcycle

Division is principally failing to receive ordered components or

receiving them on dates other than those originally agreed. In order to

ensure the best possible availability of components, PIERER Mobility

focuses on long-term cooperations with supply partners as well as

the careful selection of excellent new suppliers in accordance with

established criteria. The group works continuously on developing its

relationships with its suppliers. From the company's perspective, a

deep mutual understanding of the processes is essential here. As the

quality of the motorcycles is strongly determined by the quality and

properties of the subcomponents that are sourced, particular

attention is paid to ensuring suitable operating facilities and

production processes at suppliers, as well as their financial strength

and compliance with ecological, social and ethical standards.

In the Bicycle Division, the procurement of components and bicycles

is planned for the medium term. Short-term fluctuations can also be

offset by appropriate storage capacities. The products are priced on

the basis of fixed negotiated purchase prices. Prices and capacities

are agreed with suppliers in advance and secured. The PIERER

Mobility Group has several suppliers from different countries for

e-bicycles in its portfolio to reduce the risk of dependency, as far as

possible, and to increase the stability of the supply chains. The timely

availability of frames and drive components as a risk places increased

demands on the suppliers of e-bicycles.

Research and development, racing

Technical innovations and the introduction of new products make a

significant contribution to the PIERER Mobility Group's position in the

market. To this end, new trends must be identified promptly. To

counteract the risk, our own products’ innovative capacity must be

ensured. Racing achievements are not only an important marketing

instrument for the company but also form the basis for product

development and set standards for series development. Valuable

experience is gathered whenever products can be tested in racing

conditions at racing events. Before being introduced into series

production, all technical innovations are moreover subjected to

comprehensive testing by the quality management system so as to

eliminate, to the greatest extent possible, any technical defects that

could have a negative effect on earnings development.

In order to further expand our role as a technological pioneer and also

to keep pace with major competitors, the PIERER Mobility Group

pursues a very intensive research and development strategy. This

also explains the relatively high research-spending ratio – currently

around 8-9 % of revenue.

• IT RISKS

The PIERER Mobility Group has implemented an IT security and risk

management system for the purpose of identifying and managing

company-relevant risks in the area of information security. For further

information on IT risks, please refer to the notes to the consolidated

financial statements (Chapter VII) of PIERER Mobility AG.

123

• FINANCIAL RISKS

For further information on the risk report and on financial

instruments, including the specific measures to mitigate risks through

the use of financial instruments (e.g. hedging of foreign currency

positions with futures, swaps, etc.), please refer to the notes to the

consolidated financial statements (Chapters VII and VIII) of PIERER

Mobility AG.

• OTHER RISKS

Risks due to the legal framework

As the PIERER Mobility Group markets its products (motorcycles,

e-bicycles and non-e-bicycles) in a large number of countries, it is

exposed to the risk of changes in national regulations, terms of

licenses, taxes, trade restrictions, prices, income, and exchange

restrictions as well as to the risk of political, social, and economic

instability, inflation, and interest rate fluctuations. Motorcycles

registered for road use must comply with relevant provisions

concerning noise and exhaust gas emissions in order to be approved

for sale in each country. The possible offroad uses of motorcycles are

also considerably influenced by the national legal framework in the

countries where the vehicles are sold. In order to counteract the risk

and to be able to act promptly in the event of changes in national legal

frameworks, the respective country-specific regulations are

thoroughly reviewed and monitored on an ongoing basis prior to

market entry.

Business and environmental risk

Environmental risks may relate to products, production, procurement

and non-operating factors. With regard to the products, risks arise in

relation to emissions such as noise and pollutants or the leakage of

harmful substances such as fuel or oil. In order to minimize these

risks that may be caused by potential malfunctions, the homologation

requirements are strictly observed in addition to other measures,

each vehicle tested for its functionality and compliance with all limit

values on our own test benches, and a laboratory is in operation to

test the interaction of materials used with people and the

environment. In addition, the development of emission-free

alternative drive systems and products is becoming an increasingly

important focus.

In production, environmental risks arise due to the potential leakage

of substances, waste and material residues on the premises.

Numerous measures are implemented to prevent them. These

include waste management concepts, an engine oil treatment plant,

emergency plans for each site and professional extraction systems

for metal chips that deposit them in the container provided for this

purpose. Emissions from operating the test benches are also caught

by extraction systems.

Environmental risks in procurement may result from the environment-

related shortage and rising prices of resources, cooperation with

suppliers that do not operate with sufficient environmental measures,

and emissions from delivery routes. In order to minimize these risks,

measures are taken that include auditing suppliers, optimizing

procurement channels, prioritizing regional procurement, and the use

of resource-saving, modern production technology.

In addition, environmental risks arise from weather-related and

climate-related phenomena, such as floods and other natural

disasters. Although it is not possible to completely rule out the risk of

natural disasters, efforts are made to minimize the risk of production

processes being impaired by having suitable emergency plans and

insurance policies.

Personnel-related risks

Risks may arise if key staff leave the company, especially with regard

to the growth course. Efficient personnel management as well as the

ongoing implementation of personnel development programs are

designed to counteract the risk of key staff leaving the company. The

risk of a shortage of skilled staff is countered, among other things, by

a comprehensive apprentice training program in the company's own

apprentice workshop. The aim is to recruit employees from the region

and to retain them in the long term.

Internal and external measures to increase employer attractiveness

are an essential element in conveying the predominant spirit of the

PIERER Mobility Group to potential new employees. With various

cross-media employee campaigns, the company was able to largely

meet its personnel requirements in the reporting year. When it came

to apprenticeships, attention was not only given to addressing the

right target groups, but a dedicated area was also created for the

parents of future apprentices in order to provide information about

opportunities and possibilities at an early stage and to prevent any

uncertainties.

The PIERER Mobility Group has taken numerous measures to protect

its employees since the outbreak of the coronavirus pandemic in

Austria. Government measures and regulations were implemented

comprehensively and quickly and, due to the forward-looking

approach and constant engagement with the authorities, some of

them were integrated into the day-to-day business even before they

were legally required. It was therefore possible to prevent large-scale

spread within the company.

Planned regulation in the European Union for combustion engines

As a building block for achieving the European Green Deal, the

European Commission's sustainability strategy, the so-called “Fit for

55” strategy pursues the goal of reducing net greenhouse gas

Management report _2022

emissions in the European Union by at least 55 % by 2030 compared

to the base year 1990.

Part of this package is the amendment of the regulation of CO

emissions standards for passenger cars and light commercial

vehicles by requiring newly registered passenger cars and light

commercial vehicles to be 100 % emission-free from 2035. According

to the current proposal from the EU Council, zero-emission vehicles

are deemed to be electric vehicles, vehicles powered by fuel cells or

vehicles powered by hydrogen. To take account of technological

progress, a review of alternative drive solutions is planned in 2026;

this will include in particular the use of synthetic fuels, known as

e-fuels. Motorcycles are not covered by the regulation.

As a member of the ACEM (European Association of Motorcycle

Manufacturers) at the level of KTM AG, PIERER Mobility supports the

strategy of decarbonization, which is based on the objectives of the

European Green Deal and the Climate Protection Act, as well as the

European Commission's Sustainable and Smart Mobility Strategy.

Electric mobility will play an essential role here, especially in urban

environments. In market segments that are difficult to electrify, such

as leisure and touring motorcycles, which are subject to much higher

requirements in terms of drive performance and range, other

solutions based on the combustion engine will also be important. This

will include the use of CO

-neutral e-fuels in combustion engines in

addition to the electrification of the drive system. For PIERER Mobility

AG, this strategy provides the guidance on how to deal with the key

ESG issue of “sustainable mobility”; among other things, alternative

drive technologies or pollutant emissions of vehicles will be

considered here.

Independently of regulatory requirements, the PIERER Mobility Group

strives to offer solutions for reducing emissions over the long term.

Embracing new technology is a key factor for success in this regard.

A mix of electrified motorcycles (48 volts) in the lower displacement

range (up to max. 250 cm

) and motorcycles above this range running

on e-fuels is seen as a scenario for the future by the two-wheeler

industry globally.

Reference is made here to the further explanations regarding

non-financial or sustainability-related risks (ESG risks) and climate-

related risks in the Sustainability Report 2022 and TCFD Report 2022.

125

7. DISCLOSURES PURSUANT TO SECTION 243A 1 OF THE AUSTRIAN

COMMERCIAL CODE UGB

1. The share capital is EUR 33,796,535, and is divided into

33,796,535 bearer shares with voting rights, where every ordinary

share has an equal stake in the share capital. The shares grant

the customary rights due to stockholders under the Austrian

Stock Corporation Act. These include the right to payout of the

dividends resolved upon at the Annual General Meeting as well

as the right to vote at the Annual General Meeting. All the shares

of PIERER Mobility AG have been listed on the SIX Swiss

Exchange (SIX) in the International Reporting Standard since

November 14, 2016 (ISIN AT0000KTMI02). In addition, the shares

of PIERER Mobility AG were listed on the Regulated Market

(General Standard) of the Frankfurt Stock Exchange from March

3, 2020 to October 18, 2022. Since March 1, 2022, the shares of

PIERER Mobility AG have additionally been listed on the Vienna

Stock Exchange (Official Market). There was no change in the

company’s share capital in the 2022 financial year. Likewise, no

treasury shares were acquired or sold, which is why the company

did not hold any treasury shares as of the reporting date of

December 31, 2022.

2. Since September 29, 2021, there has been a syndicate agreement

between Pierer Konzerngesellschaft mbH, Pierer Industrie AG

and Pierer Bajaj AG on the one hand (the “Pierer Group”) and

Bajaj Auto Ltd. and Bajaj Auto International Holdings B.V. on the

other hand (the “Bajaj Group”) (the “2021 Syndicate Agreement”),

which governs the rights and obligations of the two groups of

companies with respect to the shareholding of Pierer Industrie

AG and Bajaj Auto International Holdings B.V. in Pierer Bajaj AG as

the majority shareholder of PIERER Mobility AG. The 2021

Syndicate Agreement provides that the rules of procedure for the

Executive Board and the Supervisory Board of Pierer Bajaj AG

require the approval of the Supervisory Board members of Pierer

Bajaj AG nominated by Bajaj in the event of a transfer of

ownership of shares in PIERER Mobility AG. Pierer Bajaj AG,

which is economically attributable to Stefan Pierer, is thus subject

to restrictions on disposal in light of the syndicate agreement at

the level of Pierer Bajaj AG. The Executive Board is not aware of

any other restrictions affecting voting rights or the transfer of

shares.

3. As far as the company is aware, the following had a direct or

indirect equity holding of at least 10 % in the share capital of

PIERER Mobility AG as of December 31, 2022:

• Pierer Bajaj AG: 73.82 % (direct equity holding);

• Pierer Industrie AG: 73.82 % (indirect equity holding);

• Pierer Konzerngesellschaft mbH (direct and indirect equity

holding): 2.53 % (direct equity holding) and 73.82 % (indirect

equity holding).

4. There are no shares with special control rights.

5. There is currently no employee participation scheme in place.

6. There are no provisions going beyond the law with regard to the

appointment and dismissal of members of the Executive Board

and Supervisory Board and amendments to the Articles of

Association.

7. Authorizations to issue or repurchase shares:

Only opportunities to issue or repurchase shares that were still

outstanding at the reporting date of December 31, 2022 are taken

into account:

Based on the amendment to the Articles of Association resolved

at the Annual General Meeting on April 27, 2017, the Company's

Articles of Association contain the following provision as Section

5a “Conditional Capital”:

The company share capital shall be increased in accordance

with Section 159 (2) no. 1 of the Austrian Stock Corporation Act

by up to EUR 25 million by issuing up to 25 million no-par value

bearer shares (ordinary shares) for issue to creditors of

financial instruments in accordance with Section 174 of the

Austrian Stock Corporation Act, which are issued using the

authorization granted in this Annual General Meeting by the

company. The capital increase may only be carried out to the

extent that the creditors of financial instruments make use of

their options of conversion and/or pre-emption rights on

company shares. The issue price and the conversion ratio shall

be determined according to a recognized pricing procedure,

following accepted financial mathematical methods and based

on the company’s share price. The newly issued shares of the

conditional capital increase are entitled to dividends to the

same extent as the existing shares in the company. The

Executive Board is authorized, with the approval of the

Supervisory Board, to determine the further details of the

implementation of the conditional capital increase. The

Supervisory Board is authorized to resolve amendments to the

articles of association resulting from the issue of shares from

the conditional capital.

This conditional capital increase is for issuing new shares to

creditors of financial instruments pursuant to Section 174 of the

Austrian Stock Corporation Act, which are issued using the

Management report _2022

authorization granted in the Annual General Meeting held on

April 27, 2017 by the company. This authorization granted by the

Annual General Meeting on April 27, 2017 to issue financial

instruments pursuant to Section 174 of the Austrian Stock

Corporation Act expired in the 2022 financial year without being

utilized. A conditional capital increase within the meaning of

Section 5a “Conditional Capital” in the version of the Articles of

Association applicable at the reporting date will therefore not

take place.

The following resolution was adopted during the Extraordinary

General Meeting of October 4, 2019:

The Executive Board is authorized for a period of five years,

with the approval of the Supervisory Board, to sell or use

treasury shares in a way other than via the stock exchange or

by means of a public offer for any legally permissible purpose

and in so doing also to exclude the shareholders' quota-based

purchase right (exclusion of subscription rights) and to

determine the terms and conditions of disposal. The

authorization may be exercised in whole or in part or in several

installments and in pursuit of one or more purposes.

However, as of the reporting date of December 31, 2022, the

Executive Board is neither authorized to acquire treasury

shares nor does the company hold treasury shares.

The following resolutions were adopted during the Annual

General Meeting of April 29, 2022:

a) The Executive Board is authorized in accordance with

Section 169 of the Austrian Stock Corporation Act, until

April 29, 2027, to increase the share capital of the company

from EUR 33,796,535.00 by up to EUR 16,898,267.00 to up to

EUR 50,694,802.00 with the consent of the Supervisory

Board by issuing, in several tranches if necessary, up to

16,898,267 no-par-value bearer shares in return for cash

contributions and/or contributions in kind and to determine

the initial offering price and the terms and conditions of the

issue and the further details of implementing the capital

increase in agreement with the Supervisory Board and, if

need be, to offer the new shares to the shareholders for

subscription by way of the indirect subscription right

pursuant to Section 153 (6) of the Austrian Stock

Corporation Act.

b) The Executive Board shall be authorized, with the consent

of the Supervisory Board, to exclude the subscription right

of the shareholders in full or in part

(i) if the capital increase takes place in return for cash

contributions and in total the proportion of the

company’s share capital which can be apportioned to

the shares issued in return for cash contributions with

no subscription right does not exceed the limit of 10 %

of the share capital of the company at the time of

granting,

(ii) if there is a capital increase against a contribution

in kind,

(iii) to service an over-allotment option (Greenshoe),

and/or

(iv) for the settlement of fractional amounts.

8. Any agreements on the part of the company which would take

effect, change or cease to apply in the case of a change in the

controlling interest in the company as a result of a public takeover

offer, or the effects thereof, will not be disclosed by the company

due to the fact that it would considerably harm the company.

9. There are no compensation agreements between the company

and its Executive Board and Supervisory Board members or

employees in the case of a public takeover bid.

127

8. MAIN FEATURES OF THE INTERNAL CONTROL SYSTEM PURSUANT TO

SECTION 243A (2) OF THE AUSTRIAN COMMERCIAL CODE (UGB)

The internal control system of the PIERER Mobility Group has the task

of ensuring the correctness and reliability of financial reporting,

compliance with the legal and internal regulations relevant to the

company, as well as the effectiveness and efficiency of operational

activities, including the protection of assets from losses due to

damages and malversations. Internationally accepted frameworks for

internal control systems (e.g. COSO framework) have been

considered in designing the elements of the internal control system.

The system comprises:

• Group-wide specifications for financial reporting

• Segregation of duties as an organizational measure

• System-based and process-dependent controls

• Process-independent controls

• Management of risks relating to the preparation of financial

statements

The PIERER Mobility Group is committed to the continuous

development and improvement of the internal control system. To this

end, its functionality is regularly monitored through process and data

analyses as well as independent, external audit activities. The main

features of the internal control system with regard to the financial

reporting process are presented below.

CONTROL ENVIRONMENT

The organizational structure of the PIERER Mobility Group forms the

basis for the control environment and the internal control system

within the company. In terms of the organizational structure in (group)

financial reporting, there are clear areas of competence and

responsibility at the various management and hierarchical levels of

the group. On the one hand, this relates to the group headquarters in

Wels as well as the Austrian and all international subsidiaries.

Treasury and Business Process Finance are located in the operating

areas of the group, with duties and responsibilities also being clearly

divided here.

The strong international orientation of the PIERER Mobility Group and

the associated decentralized structures of the company and different

sites are taken into account by centralizing key corporate functions in

the area of financial reporting at the Austrian sites (especially in

Mattighofen). The performance and management of national

business activities is the responsibility of the respective local

management and is monitored by the Executive Board of KTM AG

and the Group Executive Board.

In terms of process organization, the PIERER Mobility Group relies on

a distinctive and comprehensive set of accounting, valuation and

account assignment rules. This provides an appropriate basis for a

strong control environment and control system. New accounting

standards are assessed with regard to their impact on the financial

reporting of the PIERER Mobility Group. The specifications for

financial reporting and financial reporting processes are reviewed on

an ongoing basis and adjusted at least annually, or more frequently if

necessary. Monitoring compliance with the controls and regulations

relating to financial reporting is the responsibility of the relevant

management.

RISK ASSESSMENT

Risks relating to the financial reporting process are identified and

monitored by the management and taken into account in the risk

management process. The focus here is on those risks that are to be

considered material. Material risks in the area of financial reporting

include incomplete recording of facts relevant to accounting, errors in

document recording, and incorrect calculations. Complex accounting

principles could lead to an increased risk of error, incorrect reporting,

and late preparation of financial statements. There is also a risk of

data being accessed by unauthorized persons or of data being

manipulated, IT systems failing, and data being lost.

For the preparation of the financial statements, estimates have to be

made on a regular basis and there is an inherent risk that future

developments may deviate from these estimates. This applies in

particular to the following matters/items in the consolidated financial

statements: Social capital, outcome of legal disputes, recoverability of

receivables, investments and stocks. In some cases, external experts

are consulted or publicly available sources are used to minimize the

risk of incorrect estimates.

CONTROL MEASURES

The PIERER Mobility Group has integrated its controls directly into

the (group) financial reporting processes. An essential element of

this, in addition to process-independent external control

mechanisms, is the principle of segregation of duties. To ensure

complete, timely and correct preparation of the financial statements,

quality assurance and control measures have been implemented in

all areas involved in the accounting process. All control measures are

applied in the ongoing business process to ensure that potential

errors in financial reporting are prevented or are detected and

corrected. Furthermore, the application of internal company

guidelines results in consistent handling of business transactions as

well as consistent accounting and reporting. Controls are integrated

in the key IT systems with a relevance for financial reporting which

prevent, among other things, the incorrect recording of business

Management report _2022

transactions, ensure the complete recording of business transactions

or the measurement of business transactions in accordance with the

financial reporting requirements, or support the verification of

consolidation. In view of the increasing demands on IT systems in

financial reporting as well as the constantly growing technical

possibilities, the PIERER Mobility Group regularly conducts

IT-supported analyses of the effectiveness of the measures taken in

order to identify and subsequently eliminate any control weaknesses

that may have occurred.

Control measures relating to IT security are a cornerstone of the

internal control system. For example, the separation of sensitive

activities is supported by restricting the allocation of IT

authorizations. Automated checks take place through the ERP

software used, such as the automated checks for invoice approval

and invoice verification.

COMMUNICATION AND MONITORING

Responsibility for the effectiveness of the internal control system in

the (group) financial reporting process is clearly defined and lies with

the responsible managers and process owners. In addition to the

results of the internal assessment, the assessment of effectiveness

also includes the results of external audits, e.g., as part of the audit of

the annual financial statements or external IT security audits, as well

as those of the Supervisory Board and the Audit Committee.

Weaknesses in the control system are remedied taking into account

their potential impact on the financial reporting processes.

In addition to the financial statements required by law, which are

made available to management levels, the group has also

implemented a comprehensive internal reporting system that is

prepared and distributed at different levels of aggregation depending

on the recipient of the report.

Other central instruments of risk monitoring and control are the

company-wide guidelines on dealing with significant risks, the

planning and controlling processes, and ongoing reporting. The

guidelines include the setting and control of limits and actions to limit

financial risks, as well as the strict specification of the dual control

principle for invoice and payment approvals.

In addition, the internal control system is based on precise

information about the accounting and financial reporting processes

and also includes their upstream business processes, e.g. purchase

requisitions or logistics processes. The effectiveness of the internal

control system is reviewed by management in that the results, which

are submitted to management in condensed reporting form, are

analyzed, evaluated and commented on by management.

The Executive Board and the Audit Committee are informed annually

about the assessment of the effectiveness of the internal control

system in financial reporting. In the event of significant changes in the

effectiveness of the internal control system, a report is submitted

immediately to the Executive Board and, if necessary, to the

Supervisory Board, and suitable measures are taken to increase its

effectiveness.

129

9. OUTLOOK

In the 2023 financial year, the PIERER Mobility Group will continue to

focus on growth in its core areas, both motorcycles and (e-)bicycles.

The Executive Board anticipates revenue growth of between 6 and

10 % with an EBIT margin of 8 to 10 %.

Despite the challenging environment, in particular the war in Ukraine

as well as high rates of inflation, the KTM, Husqvarna Motorcycles

and GASGAS motorcycle brands have largely managed to maintain

their market shares in all their major sales markets. Although the

PIERER Mobility Group faces ongoing problems in its global supply

chains, it was able to strengthen its market presence with the release

of the new models for 2023.

The PIERER Mobility Group expects the motorcycle market to grow in

the medium to long term, even though current developments may

lead to weaker demand for motorcycles in the short term. Growth in

motorcycle sales will be driven primarily by a continued high level of

demand in North America and Australia. For Europe, a slight decline

in the market is expected. In terms of sales figures, the company

expects the motorcycle market to remain positive overall for quality

premium products.

In the New Mobility/(E-)Bicycles segment, the market for electric

mobility in general has great potential for growth in the short, medium

and long term. As part of this market, new mobility concepts

represent a healthy, sustainable and individual way of getting around.

Similarly to the motorcycle market, the group expects the market to

grow in the medium to long term but, here too, current developments

may lead to demand weakening in the short term during 2023.

By offering a wide range of innovative products through its Husqvarna

E-Bicycles, R RAYMON, GASGAS and FELT brands, the PIERER

Mobility Group also has lasting confidence in the bicycle segment

and is very keen to further expand its market share. The brand

strategy that is being pursued and the focus on new product

developments are expected to continue to boost revenues.

In the 2022 financial year, the group faced challenges in its

international supply chains because capacity and delivery

bottlenecks at individual suppliers and in international transport

logistics caused delays to deliveries. Although the group expects

these problems to ease slightly in the 2023 financial year, the situation

is likely to remain fraught. The PIERER Mobility Group has already

taken various measures to identify and minimize negative impacts in

the area of supply chain management. The expected challenges and

their consequences are to be mitigated by the supplier risk

assessment, which has been revised and gradually refined over

recent years, and the implementation of the early warning system

when there are global events that may directly or indirectly affect the

supply chain. In addition to measures taken in response to these

global supply chain issues, PIERER E-Bikes Asia Ltd was established

in June 2022 as a local presence in Taiwan. This newly established

subsidiary will provide significant support to the PIERER Mobility

Group in its supply chain management and therefore reduce the

procurement risk by providing direct access to the Asian market.

In line with the group's vision of becoming a global market leader in

electrically powered two-wheelers with a motor output of 250 W to

15 KW, the focus of motorcycle development work in the coming

years will increasingly be on alternative, in particular electrified,

drives in the range up to 250 cm

The urban mobility of the future will be characterized by speed limits

and short distances and could therefore benefit from electrically

powered drives. This is why the group will be focusing its

development work on developing various models with low-voltage

technology (48 volts). Membership of the “Swappable Battery

Motorcycle Consortium” (SBMC) is intended to accelerate the

development and dissemination of swappable battery systems and

the opening up of technical standards. The PIERER Mobility Group

believes that, apart from a few niche products, the electrification of

two-wheelers with higher power and distance requirements (over 250

) is not a viable alternative for the mass market. This is where

synthetic fuels (“e-fuels”) can help to achieve carbon neutrality.

In January 2023, the production of the 1,000,000th motorcycle of the

KTM and Husqvarna brands since the establishment of the strategic

partnership with the Bajaj Group was celebrated at its production

plant in Pune, India. The cooperation with Bajaj will be extended to

include the joint development of a 48-volt electric two-wheeler

platform. The PIERER Mobility Group expects at least one third of

group revenue to be generated from electrified two-wheelers by

2030.

The cooperations which have been stepped up or entered into with

CFMOTO and MV Agusta will expand the range of motorcycles sold

by the PIERER Mobility Group. This will be implemented by integrating

CFMOTO and MV Agusta products into its distribution network,

starting in the 2023 financial year. While the distribution of CFMOTO

products will focus on specific countries in Europe, MV Agusta

motorcycles will be distributed worldwide through newly established

companies.

With the expansion of its product range, the PIERER Mobility Group is

continuing to pursue its philosophy of providing sustainable mobility

solutions for the future through PIERER New Mobility GmbH. The

next stages of expansion will be to enter the markets in Great Britain,

Australia, New Zealand and South Africa. Independent, differentiated

distribution channels are the pillars of the group's successful New

Mobility strategy. The cooperation with MAXCOM Ltd. was stepped

Management report _2022

up even more in the 2022 financial year and a joint venture was

established to handle the supply chain, warehousing and logistics.

Commissioning is scheduled for the second half of 2023. In order for

PIERER New Mobility GmbH to be able to achieve the future

production and sales volume targets and therefore the lasting

corporate growth that the company wants, investments were made in

the joint project with MAXCOM Ltd. in 2022 and will continue to be

made in 2023.

Wels, March 15, 2023

The Executive Board of PIERER Mobility AG

Stefan Pierer Friedrich Roithner Hubert Trunkenpolz Viktor Sigl

131

Consolidated nancial statement_2022

Consolidated financial

statement

Consolidated statement 132

Consolidated income statement 134

Consolidated statement of

comprehensive income 135

Consolidated statement of cash flow 136

Consolidated statement of changes in equity 138

Consolidated financial statement_2022

CONSOLIDATED STATEMENT

of financial position as at December 31, 2022

EURk Notes No. 12/31/2022 12/31/2021

Assets:

Non-current assets:

Goodwill 21 130,655 130,711

Intangible assets 22 570,356 473,561

Property, plant and equipment 23 443,712 361,330

Investments accounted for using the equity method 24 33,341 13,562

Deferred tax assets 25 13,782 9,617

Other non-current assets 26 3,999 4,033

1,195,845 992,814

Current assets:

Inventories 27 653,928 405,174

Trade receivables 28 270,422 150,861

Receivables and other assets 29 137,616 110,801

Tax refund claims 14,087 560

Cash and cash equivalents 30 278,738 373,509

1,354,790 1,040,905

2,550,635 2,033,719

133

EURk Notes No. 12/31/2022 12/31/2021

Equity and liabilities:

Equity:

Share capital 31 33,797 33,797

Capital reserves 31 9,949 9,949

Other reserves including retained earnings 31 863,989 716,396

Equity of the owners of the parent company 907,735 760,142

Non-controlling interests 31 6,661 5,409

914,396 765,551

Non-current liabilities:

Financial liabilities 32 458,620 506,539

Liabilities for employee benefits 33 26,154 28,763

Deferred tax liabilities 25 124,428 99,977

Other non-current liabilities 34 16,407 14,187

625,609 649,466

Current liabilities:

Financial liabilities 32 76,635 56,847

Trade payables 34 737,602 395,581

Provisions 35 44,037 23,105

Tax liabilities 5,203 9,852

Other current liabilities 34 147,152 133,317

1,010,630 618,702

2,550,635 2,033,719

Consolidated financial statement_2022

CONSOLIDATED INCOME STATEMENT

for the financial year from 1/1/2022 through 12/31/2022

EURk Notes No. 2022 2021

Revenue 8 2,437,200 2,041,730

Production costs of the services

provided to generate the revenue

9 -1,745,878 -1,469,426

Gross profit from sales 691,322 572,304

Selling and racing expenses

10 -242,800 -208,901

Research and development expenses 11 -55,352 -33,330

Administration expenses

12 -164,900 -137,008

Other operating expenses 13 -391 -1,990

Other operating income 14 2,377 744

Earnings from at-equity holdings 15 4,994 1,666

Result from operating activities 235,250 193,485

Interest income 16 4,023 1,864

Interest expenses 16 -19,313 -12,858

Other financial and investment income (expenses) 16 -4,057 9,097

Result before taxes 215,903 191,588

Income taxes 17 -45,280 -48,716

Profit or loss for the financial year 170,623 142,872

thereof owners of the parent company 169,921 82,540

thereof non-controlling shareholders 702 60,332

Undiluted (=diluted) earnings per share (EUR) 18 5.03 3.34

1 Previous year's amount adjusted, see notes to the consolidated financial statements, point 2 "principles of financial reporting"

135

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the financial year from 1/1/2022 through 12/31/2022

EURk Notes No. 2022 2021

Profit or loss for the financial year 170,623 142,872

Items reclassified to profit or loss or which can be subsequently

reclassified

Foreign currency translation re foreign subsidiaries 31 1,684 4,492

Foreign currency translation re investments accounted for using the

equity method

24, 31 -255 425

Valuation of cash flow hedges 31 19,651 3,008

Deferred tax on valuation of cash flow hedges 31 -4,742 -752

16,338 7,173

Items not reclassified to profit or loss

Revaluation of net debt from

defined benefit plans

31, 33 1,606 759

Tax effect 31 -539 -190

1,067 569

Other net result after tax 17,405 7,742

Total comprehensive income 188,028 150,614

thereof owners of the parent company 187,326 88,054

thereof non-controlling shareholders 702 62,560

Consolidated financial statement_2022

CONSOLIDATED STATEMENT OF CASH FLOWS

for the financial year 1/1/2022 through 12/31/2022

EURk Notes No. 2022 2021

Operations

Profit or loss for the financial year 170,623 142,872

+ (-) Interest expenses / interest income 16 15,290 10,994

+ Tax expenses 17 45,280 48,716

+ Depreciation/amortization of property, plant and equipment and

intangible assets

22, 23 145,858 138,717

+ (-) Addition (reversal) of non-current liabilities

for employee benefits

-1,517 554

(-) + Profit (loss) from equity consolidation 15 -4,994 -1,666

(-) + Profit (loss) from the diposal of fixed assets 22, 23 10,199 12,286

+ (-) Other non-cash expenses (income) VI -23,987 -13,284

+ Interest received 3,982 1,855

- Interest payments -18,880 -11,954

- Tax payments -43,768 -31,048

+ Dividends received 984 1,022

Gross cash flow 299,070 299,064

- (+) Increase (decrease) in inventories -241,620 -104,641

- (+) Increase (decrease) in trade receivables, advance payments,

other current and non-current assets

-154,610 298

+ (-) Increase (decrease) in trade payables, advance payments and

other current and non-current liabilities

377,495 172,642

Increase (decrease) in the net current assets -18,735 68,299

Cash flow from operations 280,335 367,363

137

EURk Notes No. 2022 2021

Investing activity

- Payments for the acquisition of intangible

assets and property, plant and equipment

22, 23 -246,519 -181,922

- Payments for the acquisition of investments accounted for using

the equity method and other financial assets

7, 24 -16,017 -773

+ Receipts from the sale of intangible

assets and property, plant and equipment

300 599

+ Receipts from the disposal of investments accounted for using

the equity method and other financial assets

24 1,275 0

+ (-) Sale and acquisition of subsidiaries 7 -5,477 934

- Payments from other assets -16,687 -13,961

Cash flow from investing activity -283,125 -195,123

Free cash flow -2,790 172,240

Financing activity

- Dividend payments to third parties -34,297 -24,448

+ Sale of own shares 31 0 13,595

+ (-) Disposal/acquisition of non-controlling interests 31 -4,804 -27,906

+ Taking out a research loan VI 0 50,000

+ Taking out non-current interest-bearing liabilities 32, VI 0 29,528

- Repayment of promissory note loan 32, VI -6,000 -3,500

- Repayment of research loan VI -14,118 -25,368

- Repayment of non-current interest-bearing liabilities VI -6,687 -11,101

- Repayment of lease liability VI, 47 -23,414 -18,431

+ (-) Change in other current financial liabilities VI -1,975 -9,990

Cash flow from financing activity -91,295 -27,621

Total cash flow -94,085 144,619

+ Opening balance of liquid funds within the Group 373,509 218,270

+ Effect of foreign currency fluctuations -686 10,620

Closing balance of liquid funds within the Group 278,738 373,509

Consolidated financial statement_2022

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

EURk Notes No. Equity of the owners of the parent company

capital

Capital

reserves

Reserves

including

total

earnings

Reserve in

accordance

with IFRS 9

Adjustment

items

currency

translation

Reserves for

own shares

Total Shares

of non-

controlling

shareholders

Total

consoli-

dated

equity

Balance as of January 1, 2022 33,797 9,949 714,154 1,369 873 0 760,142 5,409 765,551

Profit or loss for the financial year 0 0 169,921 0 0 0 169,921 702 170,623

Other comprehensive income 31 0 0 1,067 14,909 1,429 0 17,405 0 17,405

Total comprehensive income 0 0 170,988 14,909 1,429 0 187,326 702 188,028

Transactions with shareholders

Dividends to third parties 18, 31

0 0 -33,797 0 0 0 -33,797 -500 -34,297

Acquisition/disposal of shares to subsidiaries 31 0 0 -3,298 0 0 0 -3,298 -1,506 -4,804

Gains and losses on hedging transactions and hedging costs reclassified

to inventories

0 0 0 -23 0 0 -23 0 -23

Capital measures 31, 34 0 0 -2,579 0 0 0 -2,579 2,556 -23

Miscellaneous 0 0 -36 0 0 0 -36 0 -36

Balance as of December 31, 2022 33,797 9,949 845,432 16,255 2,302 0 907,735 6,661 914,396

EURk Notes No. Equity of the owners of the parent company

capital

Capital

reserves

Reserves

including

total

earnings

Reserve in

accordance

with IFRS 9

Adjustment

items

currency

translation

Reserves for

own shares

Total Shares

of non-

controlling

shareholders

Total

consoli-

dated

equity

Balance as of January 1, 2021 after adjustments 22,539 9,949 339,548 -1,318 -2,016 -8,447 360,255 293,864 654,119

Profit or loss for the financial year 0 0 82,540 0 0 0 82,540 60,332 142,872

Other comprehensive income 31 0 0 206 1,871 3,437 0 5,514 2,228 7,742

Total comprehensive income 0 0 82,746 1,871 3,437 0 88,054 62,560 150,614

Transactions with shareholders

Dividends to third parties 31

0 0 -11,173 0 0 0 -11,173 -13,275 -24,448

Acquisition/disposal of shares to subsidiaries 31 0 0 309,876 660 -548 0 309,988 -340,458 -30,470

Changes to the scope of consolidation 0 0 0 0 0 0 0 2,784 2,784

Gains and losses on hedging transactions and hedging costs reclassified

to inventories

0 0 0 156 0 0 156 0 156

Acquisition of own shares 31 0 0 5,148 0 0 8,447 13,595 0 13,595

Disposal of own shares 31 11,258 0 -11,258 0 0 0 0 0 0

Miscellaneous 0 0 -733 0 0 0 -733 -66 -799

Balance as of December 31, 2021 33,797 9,949 714,154 1,369 873 0 760,142 5,409 765,551

139

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

EURk Notes No. Equity of the owners of the parent company

capital

Capital

reserves

Reserves

including

total

earnings

Reserve in

accordance

with IFRS 9

Adjustment

items

currency

translation

Reserves for

own shares

Total Shares

of non-

controlling

shareholders

Total

consoli-

dated

equity

Balance as of January 1, 2022 33,797 9,949 714,154 1,369 873 0 760,142 5,409 765,551

Profit or loss for the financial year 0 0 169,921 0 0 0 169,921 702 170,623

Other comprehensive income 31 0 0 1,067 14,909 1,429 0 17,405 0 17,405

Total comprehensive income 0 0 170,988 14,909 1,429 0 187,326 702 188,028

Transactions with shareholders

Dividends to third parties 18, 31

0 0 -33,797 0 0 0 -33,797 -500 -34,297

Acquisition/disposal of shares to subsidiaries 31 0 0 -3,298 0 0 0 -3,298 -1,506 -4,804

Gains and losses on hedging transactions and hedging costs reclassified

to inventories

0 0 0 -23 0 0 -23 0 -23

Capital measures 31, 34 0 0 -2,579 0 0 0 -2,579 2,556 -23

Miscellaneous 0 0 -36 0 0 0 -36 0 -36

Balance as of December 31, 2022 33,797 9,949 845,432 16,255 2,302 0 907,735 6,661 914,396

EURk Notes No. Equity of the owners of the parent company

capital

Capital

reserves

Reserves

including

total

earnings

Reserve in

accordance

with IFRS 9

Adjustment

items

currency

translation

Reserves for

own shares

Total Shares

of non-

controlling

shareholders

Total

consoli-

dated

equity

Balance as of January 1, 2021 after adjustments 22,539 9,949 339,548 -1,318 -2,016 -8,447 360,255 293,864 654,119

Profit or loss for the financial year 0 0 82,540 0 0 0 82,540 60,332 142,872

Other comprehensive income 31 0 0 206 1,871 3,437 0 5,514 2,228 7,742

Total comprehensive income 0 0 82,746 1,871 3,437 0 88,054 62,560 150,614

Transactions with shareholders

Dividends to third parties 31

0 0 -11,173 0 0 0 -11,173 -13,275 -24,448

Acquisition/disposal of shares to subsidiaries 31 0 0 309,876 660 -548 0 309,988 -340,458 -30,470

Changes to the scope of consolidation 0 0 0 0 0 0 0 2,784 2,784

Gains and losses on hedging transactions and hedging costs reclassified

to inventories

0 0 0 156 0 0 156 0 156

Acquisition of own shares 31 0 0 5,148 0 0 8,447 13,595 0 13,595

Disposal of own shares 31 11,258 0 -11,258 0 0 0 0 0 0

Miscellaneous 0 0 -733 0 0 0 -733 -66 -799

Balance as of December 31, 2021 33,797 9,949 714,154 1,369 873 0 760,142 5,409 765,551

Consolidated financial statement_2022

141

Notes to the Consolidated

Financial Statements

for the 2022 Financial Year

I. General information 142

1. Company information 142

2. Principles of financial reporting 142

3. Newly applied standards and interpretations 143

4. Standards and interpretations to be applied in

the future 143

5. Estimates and discretionary decisions 144

II. Scope of consolidation 147

6. Consolidation principles and methods 147

7. Changes in the scope of consolidation 147

III. Segment reporting 149

IV. Notes to the consolidated income

statement 151

8. Revenues 151

9. Cost of sales 151

10. Selling and racing expenses 152

11. Research and development expenses 152

12. Administrative expenses 152

13. Other operating expenses 153

14. Other operating income 153

15. Earnings from at-equity holdings 153

16. Financial and investment earnings 153

17. Income taxes 154

18. Earnings per share and proposal on the

appropriation of net profit 155

19. Expenses for the auditor of the financial

statements 156

20. Employees 156

V. Notes to the consolidated statement

of financial position 157

21. Goodwill 157

22. Intangible assets 158

23. Property, plant and equipment 161

24. Investments accounted for using the equity method 163

25. Deferred tax assets 164

26. Other non-current assets 166

27. Inventories 166

28. Trade receivables 167

29. Current receivables and other assets 168

30. Cash and cash equivalents 168

31. Consolidated equity 168

32. Financial liabilities 172

33. Liabilities for employee benefits 173

34. Other current and non-current liabilities and

trade payables 175

35. Provisions 176

VI. Notes on the statement of cash flows 177

VII. Risk report 178

36. Risk management 178

37. Market risks 178

38. Industry-specific risks 179

39. IT risks 180

40. Financial risks 181

41. Other risks 188

VIII. Financial instruments and

capital management 190

42. Basic principles 190

43. Classification and fair value 191

44. Set-off of financial assets and liabilities 197

45. Hedges 198

46. Capital management 203

IX. Leases 205

47. Leases as lessee (IFRS 16) 205

48. Leases as lessor (IFRS 16) 207

X. Explanations regarding related parties

and the corporate bodies 208

49. Related party disclosures 208

50. Corporate bodies of PIERER Mobility AG 210

51. Executive Board and Supervisory Board

remuneration 210

XI. Events after the reporting date 210

XII. Group companies

(schedule of equity holdings) 211

XIII. Approval of the consolidated

financial statements 214

Notes to the consolidated nancial statements_2022

I. GENERAL INFORMATION

1. COMPANY INFORMATION

PIERER Mobility AG is the umbrella company for Europe's leading

manufacturer of powered two-wheelers, and manufactures a full

range of premium products under the KTM, GASGAS and Husqvarna

Motorcycles brands. The group’s innovative strength makes it a

pioneering leader in technology for two-wheeled electric mobility

through its motorcycle brands. Husqvarna E-Bicycles, GASGAS

Bicycles, FELT Bicycles and R Raymon complement the two-wheeler

range. The brand range also includes premium components from the

WP brand and special KTM X-BOW high-performance sports cars.

Following the strategic partnership with Bajaj in India, the company

has been able to diversify its production capacities in recent years

and increase its competitiveness in the global market. The

cooperation with CFMOTO in China and the joint venture with

Maxcom in Bulgaria will boost both bicycle and motorcycle

production over the long term. With its leading technology in the field

of low-voltage electric mobility, PIERER Mobility aims to become the

global market leader for electric two-wheelers in the power range

from 250 W to 15 kW.

PIERER Mobility AG has its registered office at Edisonstraße 1, 4600

Wels, and is registered in the commercial register at the Provincial

Court of Wels in its capacity as Commercial Court under the regis-

tration number FN 78112 x. The company is part of the same group as

Pierer Konzerngesellschaft mbH, Wels (ultimate parent company of

the group) and its affiliated companies, and is included within the

consolidated financial statements of that group. These consolidated

financial statements are filed with the Provincial Court of Wels in its

capacity as Commercial Court under file number FN 134766 k and are

the consolidated financial statements for the largest scope of

consolidation.

The shares of PIERER Mobility AG have a primary listing in the “Swiss

Performance Index (SPI)” of the SIX Swiss Exchange in Zurich and, as

of March 1, 2022, trading was additionally admitted to the Prime

Market of the Vienna Stock Exchange, which means that the shares

of PIERER Mobility AG are listed in the top segment of the Vienna

Stock Exchange. At the request of PIERER Mobility AG, the

management of the Frankfurt Stock Exchange has approved the

admission of the company's shares (ISIN: AT0000KTMI02) for trading

on the regulated market of the Frankfurt Stock Exchange with effect

from the end of October 18, 2022.

2. PRINCIPLES OF FINANCIAL REPORTING

The consolidated financial statements for the period from January 1

to December 31, 2022 were prepared in accordance with the Interna-

tional Financial Reporting Standards (IFRS) issued by the International

Accounting Standards Board (IASB) and in accordance with the inter-

pretations of the International Financial Reporting Interpretations

Committee (IFRIC), insofar as they are applied within the European

Union. The additional requirements stipulated by Section 245a (1) of

the Austrian Commercial Code (UGB) were also met in this context.

The companies included in the consolidated financial statements are

established on the basis of uniform financial reporting provisions.

These provisions were applied by all consolidated entities. The

companies included in the annual financial statements have prepared

their annual financial statements as of the consolidated statement of

financial position of December 31.

The financial statements of all major domestic and foreign companies

included in the consolidated financial statements, which are subject

to mandatory auditing in accordance with national regulations, were

audited by independent auditors and received an unqualified audit

opinion.

The figures in the consolidated financial statements are reported in

the functional currency of the group parent, the euro. Unless

otherwise specifically indicated, all amounts are rounded to the

nearest 1,000 euros (EUR k), which may give rise to rounding

differences. The use of automated calculating tools may result in

rounding differences with accumulation of rounded figures and with

percentages.

As part of the ongoing optimization of cost monitoring and reporting,

the reporting of various logistics, transport and administrative

expenses as well as the measurement of PG&A (Parts, Garments and

Accessories) in the consolidated income statement was adjusted as

of the beginning of the financial year. In order to improve compara-

bility, the cost of sales was increased by EUR 20,795k and

administrative expenses by EUR 8,151k in the previous year's consoli-

dated income statement on the one hand, while selling and racing

expenses were reduced by EUR 28,946k on the other. The

adjustments had no impact on the result.

143

3. NEWLY APPLIED STANDARDS AND INTERPRETATIONS

The table below shows the standards and interpretations mandatorily applied for the first time that had also already been endorsed by the European

Commission as of December 31, 2022:

First-time application New or amended standards and interpretations Published by the IASB

January 1

2022

Amendments to IAS 16 Property, Plant and

Equipment - Revenue before Intended Use

May 14

2020

Amendments to IAS 37 Onerous Contracts –

Settlement Costs of Contracts

May 14

2020

Amendments to IFRS 3 Business Combinations –

Reference to the Framework

May 14

2020

Improvements to IFRS 2018 - 2020 Amendments to

IFRS 1, IFRS 9, IFRS 16 and IAS 41

May 14

2020

All amended standards and interpretations are either not relevant to the PIERER Mobility Group or have no material impact.

4. STANDARDS AND INTERPRETATIONS TO BE APPLIED IN THE FUTURE

The following table shows the amendments to standards and interpretations that have already been adopted by the European Commission, but

whose application was not yet mandatory on the reporting date and which have also not been applied early:

First-time application New or amended standards and interpretations Published by the IASB

January 1

2023

IFRS 17 Insurance Contracts

Amendments to IFRS 17 - First-time Adoption of IFRS 17 and IFRS 9 –

Comparative Information

May 18

2017

December 9

2021

Amendments to IAS 1 and IFRS Practice Statement 2 –

Disclosure of accounting policies

February 12

2021

Amendments to IAS 8 - Accounting Policies, Changes in Accounting

Estimates and Errors - Definition of Accounting Estimates

February 12

2021

Amendments to IAS 12 Income Taxes - Deferred Taxes Relating to

Assets and Liabilities Arising from a Single Transaction

May 7

2021

Notes to the consolidated nancial statements_2022

The IASB and the IFRIC have passed further standards and interpretations, the application of which was not mandatory during the 2022 financial

year and/or which have not yet been adopted by the European Commission. These are the following standards and interpretations:

New or amended standards and interpretations Date of application

of IASB

Published

by the IASB

EU-Endorse-

ment?

Amendments to IAS 1 Presentation of Financial Statements - Classi-

fication of Liabilities as Current or Non-Current (including Deferral of

the Effective Date and Non-Current Liabilities with Covenants)

January 1

2024 October 31

2022 No

Amendments to IFRS 16 Leases - Lease liability in a sale and lease-

back transaction

January 1

2024 September 22

2022 No

The PIERER Mobility Group assumes that there will be no material impact on the consolidated financial statements from the standards to be applied

in the future.

5. ESTIMATES AND DISCRETIONARY DECISIONS

In the consolidated financial statements, certain estimates and

assumptions must be made that affect the recognized assets and

liabilities, the disclosure of contingent liabilities as of the reporting

date, and the presentation of income and expenses for the financial

year. In making estimates, the Executive Board takes account of

empirical values and current forecasts. The amounts actually arising

may differ from the estimates if assumed parameters develop

contrary to expectations. If new conditions become known, they are

duly taken into account and previous assumptions are revised.

• In particular, assumptions are made to assess the recoverability of

goodwill and intangible assets of indeterminate useful life. Goodwill

of EUR 130,655k (previous year: EUR 130,711k) was recognized at

the reporting date, along with the “KTM” brand, which is valued at

EUR 61,103k (previous year: EUR 61,103k), the “GASGAS” brand,

which is valued at EUR 13,346k (previous year: EUR 13,346k), the

“FELT” brand, which is valued at EUR 3,707k (previous year: EUR

3,707k), and the “MV Agusta” brand, which is valued at EUR 20,165k

(previous year: EUR 0k). For further information, see the explana-

tions in Note 21 “Goodwill” and Note 22 “Intangible assets”.

• Deferred tax assets on tax loss carryforwards not subject to

expiration are recognized based on the assumption that sufficient

taxable income will be generated in the future to allow them to be

utilized. Suitable allowances are made in the event of uncertainties

in the assumptions. As of December 31, 2022, deferred tax assets

on loss carryforwards of EUR 1,747k (previous year: EUR 3,077k)

were capitalized. Based on current tax planning, the management

expects that the loss carryforwards recognized as of December

31, 2022 will be utilized over the next five years. For further details

on deferred taxes, see the explanations in Note 25 “Deferred tax

assets”.

• In cash flow hedge accounting, assessments are made regarding

the occurrence of future cash flows. These cash flows could occur

differently in terms of their amount and timing and therefore have

an impact on cash flow hedge accounting.

• Furthermore, there is some uncertainty as to the estimation for the

recognition and measurement of liabilities for employee benefits.

Assumptions are made concerning the following factors: empirical

values, demographic assumptions such as the retirement age of

women/men and staff turnover, as well as financial assumptions

such as the discount rate and future wage and salary trends.

Liabilities for employee benefits of EUR 26,154k (previous year:

EUR 28,763k) were recognized at the reporting date. For further

information, see the explanations in Note 33 “Liabilities for

employee benefits”.

• Estimates for provisions mainly relate to provisions relating to

guarantees and warranties. To determine the amount of the

provisions, a direct correlation was established for each product

group between revenues and the guarantee and warranty

expenses incurred. The percentage value of guarantee and

warranty expenses in terms of revenue is checked several times

a year and adjusted if necessary. As of December 31, 2022,

provisions relating to guarantees and warranties of EUR 20,947k

(previous year: EUR 20,000k) were recognized. An average

increase in the guarantee cost percentage of 10 % would lead to

an increase in the provision of EUR 2,095k (previous year: EUR

1,597k). For the changes in the provisions relating to guarantees

and warranties, see Note 35 “Provisions”.

• The determination of the fair values of assets and liabilities

acquired as part of a business combination and the useful lives of

these assets is based on assessments by the management.

145

• Leases

Assessments of the term and interest rates are made. Further

details are provided under Note 23 “Property, plant, and

equipment” and Note 47 “Leases as lessee”.

• Estimates are made for inventories in connection with inventory

valuation and analysis of coverage. In addition, allowance require-

ments are recorded on a case-by-case basis due to long storage

periods and limited sales possibilities

The following judgments were made in respect of the application of

accounting policies in the PIERER Mobility Group:

• Development costs

Development costs are capitalized in accordance with the

accounting policy presented. The initial capitalization of costs is

based on management assumptions regarding the assessment

of the future economic benefit of the expenses incurred and the

technical feasibility of the developed product or process, as well as

its marketability.

• Derecognition of receivables in connection with ABS and factoring

agreements

Evaluations were made with respect to the conditions for derecog-

nition under IFRS 9. For further details, please refer to Section VIII.

“Financial instruments and capital management”.

• Supplier finance

Assessments were made regarding the disclosure of liabilities

in relation to the supplier finance program. Further details are

provided under Note 34 “Other current and non-current liabilities

and trade payables”.

• Consolidation

In determining whether control exists in accordance with IFRS

10, management exercises judgments in determining the relevant

activities of the subsidiaries.

Impact of climate-related issues on financial reporting:

The global mobility industry, which includes bicycles and

motorcycles, is undergoing profound change as a result of the

increasing focus on the impacts on climate change. This is primarily

leading to ongoing revision of regulatory requirements for fuel

efficiency, electrification, and to changes in fuel efficiency,

greenhouse gas emissions, and other exhaust emissions. In addition,

there are technological changes, such as the electrification of

Powered Two-Wheelers (PTWs).

One of the key pillars of the PIERER Mobility Group's sustainability

strategy is the decarbonization of transport. The PIERER Mobility

Group endeavors to provide drive solutions for PTWs that champion

this approach, independently of binding legal requirements and

comparative figures. As an ACEM member, the group therefore

shares its strategy for decarbonization, which is aligned with the

objectives of the European Green Deal and the Climate Change Act,

as well as the “Sustainable and Smart Mobility Strategy” of the

European Commission.

The industry goal, which is based on the concept of “Right Vehicle,

Right Place, Right Energy Carrier,” is to consider and cater for all

areas of application for motorcycles by adopting a technology-neutral

approach. Targeted use of different drive technologies and energy

carriers makes it possible to contribute to ecological goals such as

the ultimate goal of achieving carbon neutrality in the transport

sector.

The group's sustainability strategy forms part of management's

planning calculations and has thus been considered in the

preparation of the consolidated financial statements for a variety of

different topics (as discussed below). However, current developments

and measures adopted by management to implement the sustaina-

bility strategy are not leading to fundamental changes in assumptions

and estimates in the preparation of the consolidated financial

statements. The Executive Board estimates the potential impact of

climate-related opportunities and risks on the consolidated financial

statements under IFRS as follows:

• Useful lives of non-financial assets:

The PIERER Mobility Group has evaluated the extent to which

the useful lives of property, plant and equipment and intangible

assets could be affected by climate-related issues. In particular,

an assessment was made to determine whether, on the basis

of existing and forthcoming legal and regulatory requirements,

industrial plants can no longer be used to the extent that was

originally envisaged. It was not possible to conclude that useful

lives would be affected by external or internal obligations.

• Impairment losses on assets:

The short-term and medium-term financial plans and thus the

impairment tests are based on the sustainability strategy and the

business model with a focus on sustainability. The short-term

and medium-term financial plans of the individual CGUs take

appropriate account of assumptions made regarding climate-re-

lated factors in capital expenditure programs (CAPEX), technol-

ogies and production processes for achieving the group's internal

climate targets, and in the ecologically sustainable product mix

based on them, in line with the “Right Vehicle, Right Place, Right

Energy Carrier” concept.

• Provisions and contingent liabilities:

In the 2022 financial year, the PIERER Mobility Group did not incur

Notes to the consolidated nancial statements_2022

any new obligations arising from the violation of climate protection

laws and/or climate regulations that would have required the

recognition of a provision or the disclosure of a contingent liability.

The PIERER Mobility Group is constantly adapting its sustainability

strategy to reflect evolving requirements and technological changes

or to take account of future business plans or strategies. As the

potential impact of regulatory requirements, technological changes

or future plans and strategies that have not yet been announced and

their operationalization, including the reallocation of resources,

cannot be estimated, the consolidated financial statements may be

affected by these developments in future periods.

Impact of the Russian-Ukrainian war:

The PIERER Mobility Group has not identified any significant reason

to materially change its estimates and expectations as of December

31, 2022 on the basis of the war that is happening in Ukraine. The

group does not have any investments, other assets or other material

business relationships in Ukraine, Russia or Belarus, nor does the

Group have any material business relationships with suppliers or

dealers in these countries. With this in mind, the company does not

expect any material impact on the expected future cash flows.

Equally, PIERER Mobility AG has not suffered, and does not expect to

suffer, any loss of control, joint control or the ability to exercise

significant influence over any entity as a result of the war or the

sanctions that have been imposed.

In order to identify possible additional credit losses, the group has

analyzed the structure of its trade receivables from customers in

Ukraine, Russia and Belarus. The Group expects its customers in

Belarus to be able to service their liabilities because sanctions have

not been imposed on payment transactions. This has not resulted in

any significant amount of trade receivables needing to be adjusted. In

calculating the probability of default, the structure of trade

receivables analyzed did not show any material change in payment

behavior or any material risk from existing customer or dealer

relationships. Further explanations in relation to expected credit

losses on trade receivables can be found in Note 40.

The situation regarding the lack of direct impact which has been

described above also leads the PIERER Mobility Group to conclude

that there are no direct indications that an impairment loss exists,

especially at the level of property, plant and equipment and rights of

use. In accordance with the rules of IAS 36, there is no need for

impairment for the “KTM” CGU and the “PIERER New Mobility

(formerly: PIERER E-Bikes)” CGU (see Note 21 “Goodwill” for a further

explanation).

147

II. SCOPE OF CONSOLIDATION

6. CONSOLIDATION PRINCIPLES AND METHODS

All subsidiaries are fully consolidated in the consolidated financial

statements of PIERER Mobility AG. Subsidiaries are companies

controlled by the group. The financial statements of subsidiaries are

included in the consolidated financial statements from the moment

control begins and until the moment control ends. Unless otherwise

stated, the amount for non-controlling interests is recorded with the

pro rata net assets of the acquired company without goodwill.

Investments in associates are included in the statement of financial

position item “Investments accounted for using the equity method”.

The reporting currency of the PIERER Mobility Group is the euro.

The subsidiaries and the holdings ac-counted for using the equity

method prepare their annual financial statements in their functional

currency. In this context, assets and liabilities included in the financial

statements to be consolidated are translated using the average

exchange rate on the reporting date and the income statement items

are translated using the mean rate of exchange for the financial year.

The following significant exchange rates for the PIERER Mobility

Group were used for currency translation into the reporting currency:

Closing rate Average rate

12/31/2022 12/31/2021 2022 2021

US-dollar 1.0666 1.1326 1.0500 1.1816

Swiss franc 0.9847 1.0331 1.0017 1.0799

Japanese yen 140.6600 130.3800 138.1392 130.3200

South African rand 18.0986 18.0625 17.2127 17.5922

Mexican peso 20.8560 23.1438 21.0536 24.0516

Australian dollar 1.5693 1.5615 1.5154 1.5783

Chinese Renminbi 7.3582 - 7.1543 -

7. CHANGES IN THE SCOPE OF CONSOLIDATION

All subsidiaries that are either legally or de facto under the control of PIERER Mobility AG are included in the present consolidated financial

statements as of December 31, 2022. The number of companies included in the scope of consolidation changed as follows in the 2022 financial

year:

Fully consolidated

companies

At-equity companies

Balance as of 12/31/2021 67 3

Additions to the scope of consolidation 10 2

Eliminations from the scope of consolidation -1 0

Balance as of 12/31/2022 76 5

thereof foreign companies 53 3

PIERER Mobility AG, as the parent company of the PIERER Mobility Group, has not been included in this list. The entities included in the consoli-

dated financial statements and their dates of initial consolidation are listed in Section XII. “Group companies (schedule of equity holdings)”.

Notes to the consolidated nancial statements_2022

Changes in the fully consolidated entities

• Additions to the scope of consolidation:

In May 2022, PIERER E-Bikes Asia Ltd. with registered office in

Taichung City, Taiwan was newly founded and consolidated for the

first time.

In June 2022, CFMOTO Europa GmbH with registered office in

Mattighofen, Austria was newly founded, consolidated for the first

time and in September 2022 renamed CFMOTO Motorcycles

Distribution GmbH. Furthermore, PIERER E-Commerce North

America Inc., Murrieta, CA, USA was also founded in June and was

fully consolidated in the consolidated financial statements of PIERER

Mobility AG accordingly.

With effect from July 7, 2022, KTM North America, Inc., Murrieta, CA,

USA acquired 100 % of the shares in PIERER IMMOREAL NORTH

AMERICA LLC, Murrieta, CA, USA from PIERER IMMOREAL GmbH,

Wels. The following assets and liabilities were acquired:

EURk

Non-current assets 44,794

Current assets 6,949

Non-current liabilities to affiliated companies 30,515

Current liabilities 6,666

Net assets 14,562

Negative goodwill -2,136

Contribution value -12,426

Cash and cash equivalents acquired 6,949

Net cash outflow from acquisition -5,477

The difference (credit item) of EUR 2,136k arising on initial consoli-

dation was recognized as other operating income.

Furthermore, in July 2022 KTM (SHANGHAI) MOTO CO., LTD. with

registered office in Shanghai, China was newly founded and consoli-

dated for the first time.

In September 2022, MV Agusta Motorcycles GmbH, with registered

office in Mattighofen, Austria and MV Agusta Motorcycles North

America, Inc., Murrieta, CA, USA were newly founded and fully

consolidated.

In October 2022, PIERER NEW MOBILITY AUSTRALIA PTY LTD,

based in New South Wales, was newly founded in Australia, and MV

Agusta Services S.r.l., based in Merano, was newly founded in Italy,

and both were fully consolidated in the consolidated financial

statements accordingly.

In addition, PIERER Produktion GmbH, with registered office in

Munderfing, was founded and consequently consolidated for the first

time in November 2022.

• Departures from the scope of consolidation:

With effect from November 2, 2022, FELT GmbH, Munich, Germany

was merged into PIERER New Mobility Deutschland GmbH (formerly:

PIERER E-Bikes Deutschland GmbH), Schweinfurt, Germany.

Changes in entities accounted for at-equity

With effect from November 15, 2022, 25.1 % of the shares in MV

Agusta Motor S.p.A., Varese, Italy were acquired. In addition, in

December the group acquired 23 % of the shares in Vöcklabrucker

Metallgießerei Dambauer GmbH, Vöcklabruck. Both companies are

included in the consolidated financial statements using the equity

method.

149

III. SEGMENT REPORTING

The business activities of PIERER Mobility AG are managed on the

basis of the two divisions “Motorcycles” and “Bicycles (formerly:

E-Bicycles)”. The individual segments are managed separately and

report to PIERER Mobility AG in accordance with IFRS accounting

regulations. The main decision-maker for the segment report is the

overall Executive Board of PIERER Mobility AG. The segment

reporting is made with the segments Motorcycles, Bicycles and

Others, according to the internal reporting.

MOTORCYCLES:

The “Motorcycles” segment comprises the development, production

and distribution of motorcycles under the “KTM”, “Husqvarna

Motorcycles” and “GASGAS” brands as well as components of the

“WP” brand. As of December 31, 2022, the Motorcycles segment

included 57 subsidiaries, located in Austria, the United States, Japan,

South Africa, Mexico, India, Australia and New Zealand and in various

other European and Asian countries, which are included within the

consolidated financial statements. In addition, interests are also held

in assembly companies in the Philippines and China.

BICYCLES:

PIERER New Mobility GmbH together with its subsidiaries forms the

“Bicycles” segment of the PIERER Mobility Group. With the

“Husqvarna E-Bicycles”, “GASGAS Bicycles”, “FELT Bicycles” and “R

Raymon” brands, the focus is on developing, manufacturing and

trading e-bicycles and bicycles. In total, the segment comprises 13

fully consolidated companies.

OTHERS:

The “Others” segment encompasses PIERER Mobility AG, PIERER

Innovation GmbH, Avocodo GmbH, PIERER E-Commerce GmbH

(formerly: HDC GmbH), PIERER E-Commerce North America Inc.,

DealerCenter Digital GmbH and Platin 1483 GmbH.

None of the segments has a dependency on external customers

within the meaning of IFRS 8.34. Goods and services between the

segments are provided on an arm’s length basis. The segment

performance indicator EBIT describes the operating result for the

period before the financial result and income taxes. The investments

relate to additions to property, plant and equipment and intangible

assets (excluding lease additions in accordance with IFRS 16).

Income accounted for using the equity method is included in EBIT in

accordance with the classification of the consolidated income

statement. Working capital employed corresponds to the sum of

inventories and trade receivables less trade payables as of the

reporting date. Net financial debt corresponds to the total of current

and non-current financial liabilities (including lease liabilities) less

cash at the reporting date.

Notes to the consolidated nancial statements_2022

The segment information for the 2022 and 2021 financial year breaks down among the segments described as follows:

2022

EURk

Motorcycles Bicycles Other Consolidation TOTAL

Revenues (including revenues within the

segments)

2,262,491 171,192 55,496 -51,979 2,437,200

External revenues 2,262,049 171,192 3,959 0 2,437,200

Result from operating activities 240,968 2,458 -8,972 796 235,250

Investments

258,665 11,78 0 788 -3,707 267,526

Depreciation and amortization -140,250 -4,005 -3,120 1,517 -145,858

Share in the result of companies accounted for

using the equity method

4,172 0 0 822 4,994

Balance sheet total 2,354,682 212,706 258 ,115 -274,868 2,550,635

Equity 900,624 41,239 233,767 -261,234 914,396

Working Capital Employed 185,872 -6,072 4,133 2,814 186,747

Net debt -254,720 10,832 -13,675 1,046 -256,517

2021

EURk

Motorcycles Bicycles Other Consolidation TOTAL

Revenues (including revenues within the

segments)

1,876,418 162,719 54,433 -51,840 2,041,730

External revenues 1,876,222 162,717 2,791 0 2,041,730

Result from operating activities 192,763 7,032 -7,713 1,403 193,485

Investments

166,652 9,859 1,974 0 178,485

Depreciation and amortization -132,482 -4,348 -1,888 0 -138,718

Share in the result of companies accounted for

using the equity method

256 0 0 1,410 1,666

Balance sheet total 1,891,760 110,4 09 362,274 -330,724 2,033,719

Equity 730,894 40,623 306,513 -312,479 765,551

Working Capital Employed 156,136 -4,904 7,743 1,479 160,454

Net debt -174,517 6,589 -22,806 857 -189,877

1) Excluding IFRS 16 (Leasing); Lease additions in 2022 amounted to EUR 25,877k (previous year: EUR 24,626k).

151

IV. NOTES TO THE CONSOLIDATED INCOME STATEMENT

The consolidated income statement is prepared according to the cost

of sales method. In the 2022 financial year, there was a reclassifi-

cation of logistics and transport expenses and the measurement of

PG&A (parts, garments, and accessories) within the income

statement. Further information on the restatement of the previous

year's amounts relating to cost of sales, selling and racing expenses,

and administrative expenses can be found under Note 2, “Accounting

policies”.

8. REVENUES

Revenues, minus cash discounts, customer bonuses, and rebates,

are generally recorded upon the passing of the risk as per the terms

of the transaction (Incoterms) or at the time when performance was

rendered.

The breakdown by geographical area of external revenues is based

on the location of the customers. The revenues by geographical

regions of the group are made up as follows:

EURk 2022 2021

Europe 1,133,296 1,142,492

North America and Mexico 825,755 468,188

Other 478,149 431,050

2,437,200 2,041,730

Variable forms of consideration such as discounts, sales bonuses,

and cash discounts are reported as revenue reductions. Variable

consideration commitments are reported as contractual obligations

within the meaning of IFRS 15. The contractual obligations for variable

considerations in respect of price discounts, sales bonuses and cash

discounts amounted to €63.5 million as of December 31, 2022

(December 31, 2021: € 50.4 million).

As warranties are not sold separately, they only provide assurance

that the products being sold meet the agreed specifications. As these

warranties do not depart from the statutory warranty obligations or

those that are typical of the industry in terms of their duration or their

content, they are deemed to be assurance-type implied warranties,

which do not constitute a separate performance obligation.

Accordingly, the warranties continue to be recognized in accordance

with IAS 37.

9. COST OF SALES

The group's cost of sales is made up as follows:

EURk 2022 2021

Cost of materials and purchased services 1,488,845 1,224,034

Personnel expenses 138,893 112,491

Amortization charged to capitalized development costs 61,024 59,839

Depreciation/amortization of property, plant and equipment and other intangible assets 30,550 28,031

Other operating expenses 26,566 45,031

1,745,878 1,469,426

Cost of sales includes expenses from foreign currency translation differences of EUR 31,966k (previous year: EUR 5,518k).

Notes to the consolidated nancial statements_2022

10. SELLING AND RACING EXPENSES

The group's selling and racing expenses are made up as follows:

EURk 2022 2021

Cost of materials and purchased services 39,974 39,737

Personnel expenses 110,101 92,760

Depreciation/amortization of property, plant and equipment and other intangible assets 13,047 12,688

Other operating expenses 129,073 104,296

Sponsorship money and other operating income -49,395 -40,580

242,800 208,901

11. RESEARCH AND DEVELOPMENT EXPENSES

The group's research and development expenses are made up as follows:

EURk 2022 2021

Cost of materials and purchased services 9,419 8,534

Personnel expenses 33,820 29,210

Depreciation/amortization of property, plant and equipment and other intangible assets 8,159 8,420

Other operating expenses 25,272 3,384

Subsidies and other operating income -21,318 -16,218

55,352 33,330

Expenses disclosed under research and development expenses

comprise research costs and non-capitalizable development costs.

Personnel expenses before the effects of capitalizing development

costs were EUR 91,947k (previous year: EUR 77,374k). The research

and development expenses (before capitalizing development costs)

totaled EUR 213,209k (previous year: EUR 162,361k) and therefore

8.7 % (previous year: 8.0 %) of revenue.

12. ADMINISTRATIVE EXPENSES

The group's administrative expenses are made up as follows:

EURk 2022 2021

Cost of materials and purchased services 3,060 3,300

Personnel expenses 65,336 54,339

Depreciation/amortization of property, plant and equipment and other intangible assets 33,078 29,740

Other operating expenses 66,932 51,617

Other operating income -3,506 -1,988

164,900 137,008

153

13. OTHER OPERATING EXPENSES

The other operating expenses total EUR 391k (previous year:

EUR 1,990k).

Miscellaneous other expenses include bank charges and, in the

previous year, mainly effects resulting from changes in the scope of

consolidation amounting to EUR 1,562k.

14. OTHER OPERATING INCOME

Other operating income is realized when the economic benefit arising

from the underlying contract becomes probable and a reliable deter-

mination of the income can be made.

The group’s other operating income is made up as follows:

EURk 2022 2021

Income from the disposal of assets 137 254

Consolidation changes 2,136 142

Other remaining income 104 348

2,377 744

15. EARNINGS FROM AT-EQUITY HOLDINGS

The share of the profit/loss of associates accounted for using the

equity method is shown in the income statement as a separate item in

the result from operating activities. These are mainly equity holdings

that are involved in the operating activities of the PIERER Mobility

Group as major suppliers or customers.

The earnings from the companies accounted for using the equity

method are made up as follows:

EURk 2022 2021

Kiska GmbH 822 1,485

KTM Asia Motorcycle Manufacturing Inc. 72 280

China Zhejiang CFMOTO-KTMR2R Motorcycles Co., Ltd. 4,100 -24

DealerCenter Digital GmbH 0 -75

4,994 1,666

16. FINANCIAL AND INVESTMENT EARNINGS

The group’s financial and investment earnings are made up as follows:

EURk 2022 2021

Interest income 4,023 1,864

Interest expenses -19,313 -12,858

Other financial and investment income (expenses) -4,057 9,097

-19,347 -1,897

Notes to the consolidated nancial statements_2022

The group's other financial and investment income is made up as follows:

EURk 2022 2021

Foreign exchange valuation of bank deposits -1,676 8,652

Foreign currency valuation of given loans 441 0

Cost of hedging -2,483 71

Valuation interest swap 17 365

Impairment of non-current financial assets -450 0

Gain / Loss from the disposal of non-consolidated subsidiaries 94 9

-4,057 9,097

17. INCOME TAXES

The group’s income tax expense and income are attributable to current taxes and deferred taxes as follows:

EURk 2022 2021

Current tax -34,626 -34,933

Deferred tax -10,654 -13,783

-45,280 -48,716

Income taxes comprise taxes on income and earnings payable in

each country as well as deferred taxes. The Austrian companies of

the PIERER Mobility Group are subject to a corporate income tax rate

of 25 %. In Austria, a tax reform law was passed in 2022 and provides

for a gradual reduction in the corporate income tax rate. The

corporate income tax rate will be reduced to 24 % for 2023 and to

23 % from 2024 onwards. Following this tax rate change, deferred

taxes were calculated using the respective future tax rate that will

apply at the time of the anticipated reversal of the difference in value.

The calculation of foreign income taxes is based on the laws and

regulations that are in force or have been adopted in the individual

countries. The income tax rates applicable to foreign entities vary

from 9.0 % to 34.6 %.

155

A reconciliation between the expected tax expense for the financial year (application of the group tax rate of 25 % to earnings before taxes) and the

actual tax expense recognized can be presented as follows:

EURk 2022 2021

Expected tax expenses / income 215,903 191,588

Expected tax expenses / income -53,976 -47,897

Non-temporary differences and other tax additions -3,010 -3,935

Recognition / allowances / utilization of loss carryforwards -1,995 211

Non-taxable results in consequence of consolidation changes 534 -776

Taxes in relation to prior periods -2,608 -1,081

Effects of foreign tax rates -286 -408

Earnings from equity holdings 1,062 488

Investment benefits 5,362 3,850

Tax rate changes 9,696 0

Miscellaneous -59 832

-45,280 -48,716

The decrease in the tax rate to 21.0 % (previous year: 25.4 %) is partly

due to the reduction in the tax rate in Austria. The effect from the

revaluation of deferred taxes as of January 1, 2022 amounting to

EUR 7,011k as well as from ongoing changes in 2022 amounting to

EUR 2,685k results mainly from the development costs which cannot

be capitalized for tax purposes as well as from differences arising

from the recognition of the “KTM” brand.

18. EARNINGS PER SHARE AND PROPOSAL ON THE APPROPRIATION OF NET PROFIT

Earnings per share in the current 2022 financial year amounted to EUR 5.03 (previous year: EUR 3.34) and are calculated as follows:

2022 2021

Earnings - owner of parent company (EURk) 169,921 82,540

Total number of shares (units) 33,796,535 33,796,535

Effect of own and new shares (units) 0 -9,048,544

Weighted average of shares 33,796,535 24,747,991

Undiluted (=diluted) earnings per share (EUR) 5.03 3.34

According to the Austrian Stock Corporation Act, the separate

financial statement issued by PIERER Mobility AG in accordance with

the Austrian accounting regulations on December 31, 2022 forms the

basis for the payment of dividends.

For the 2022 financial year, it is proposed that, from the net profit of

PIERER Mobility AG amounting to EUR 187,172k, a dividend of EUR 2

per share (equating to EUR 67,593k in total) is paid out and the

remaining amount is carried forward. A dividend of EUR 33,797k was

paid from the net profit in 2021.

Notes to the consolidated nancial statements_2022

19. EXPENSES FOR THE AUDITOR OF THE FINANCIAL STATEMENTS

The expenses for the auditor KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft attributable to the reporting period

break down as follows:

EURk 2022 2021

Annual audit for each individual company and the consolidated financial statements 564 550

Other assurance services 48 51

Other services 56

127

668 728

20. EMPLOYEES

Employee numbers as stated include agency and external staff:

Balance as of 1/1/2022 5,249

Changes during the financial year 839

Balance as of 12/31/2022 6,088

As of December 31, 2022, there were 3,293 white-collar employees

(previous year: 2,862) and 2,795 manual workers (previous year:

2,387). As of December 31, 2022, 5,008 employees (previous year:

4,340) were employed in Austria and 1,080 employees (previous year:

909) were employed abroad. On average, the group employed 5,727

people (previous year: 4,948), of which 3,088 were white-collar

employees (previous year: 2,660) and 2,639 manual workers (previous

year: 2,289).

During the 2022 financial year, total personnel expenses before the

effects of capitalizing development costs were EUR 406,277k

(previous year: EUR 336,964k).

157

V. NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

21. GOODWILL

In accordance with IAS 36.99, the detailed calculation of the

recoverable amount as of December 31, 2020 was used for the

impairment test of the “KTM” and “PIERER New Mobility” cash-gener-

ating units (CGUs) in the 2021 financial year, as the assets and

liabilities of the CGUs have not changed materially since the last

calculation of the recoverable amount; the last calculation showed a

material excess of the carrying amount of the CGUs. Based on an

analysis of the events that have occurred and circumstances that

have changed since December 31, 2020, management believes that

there is still an extremely remote likelihood that the recoverable

amount would be less than the carrying amount in a current

calculation. This is confirmed on the one hand by the record results

and outperformance of the forecasts for 2021 and 2022, and on the

other hand also by the continued positive forecast for 2023 of the

PIERER Mobility Group.

Nevertheless, in view of the macroeconomic developments in the

2022 financial year (including the Ukraine-Russia conflict, interest

rates, inflation), the recoverability of goodwill was assessed based on

current calculations.

The calculation was made using the following method: The forecast

of cash flows is based on financial budgets approved by management

and/or forecasting, taking into account the medium-term strategy

targets. Estimated cash flows beyond this period are calculated by

extrapolation of budget/forecast values, whereby constant further

development based on a growth rate of 1 % is assumed from the third

year onwards. The discount rate used was a weighted average cost of

capital (WACC) before taxes of 11.6 % (2020: 9.6 %) for “KTM” and

11.3 % (2020: 9.4 %) for “PIERER New Mobility”. All other conditions

being equal, for the “KTM” cash-generating unit any increase in input

tax for WACC to 18.9 % (2020: 13.8 %) or decline in budgeted future

EBITs by 36.6 % (2020: 29.8 %) would result in the carrying amount of

the CGU corresponding to the recoverable amount. All other

conditions being equal, for the “PIERER New Mobility” cash-gener-

ating unit any increase in input tax for WACC to 34.3 % (2020: 25.3 %)

or decline in budgeted future EBITs by 68.4 % (2020: 63.2 %) would

result in the carrying amount of the CGU corresponding to the

recoverable amount.

The breakdown of goodwill and its development and division between the respective CGUs is as follows:

EURk 2022 2021

Acquisition and production costs:

Balance as of 01/01 150,681 150,995

Changes in the scope of consolidation 0 -569

Currency translation -49 255

Balance as of 12/31 150,632 150,681

Accumulated depreciation and amortization:

Balance as of 01/01 19,970 19,961

Changes in the scope of consolidation 0 0

Currency translation 7 9

Balance as of 12/31 19,977 19,970

Balance as of 12/31 130,655 130,711

KTM 110,253 110,309

PIERER New Mobility (formerly PIERER E-Bikes) 19,457 19,457

Avocodo 945 945

Notes to the consolidated nancial statements_2022

22. INTANGIBLE ASSETS

Intangible assets are capitalized in the same way as property, plant

and equipment, at acquisition or production cost and measured less

amortization. Amortization is calculated in accordance with the

straight line method and is based on the following expected useful

lives:

Useful life in years

Software 3 - 5

Intangible assets generated internally 5

For intangible assets generated internally, the production period is

subdivided into research, development, and model update phases.

Costs incurred during the research and model update phases are

immediately recognized in profit and loss. Capitalized development

costs that can be clearly attributed to projects are amortized from the

commencement of series production.

In the 2022 financial year, development costs of EUR 136,539k

(previous year: EUR 112,959k) were capitalized and a total of EUR

61,024k (previous year: EUR 59,839k) were amortized. As of

December 31, 2022, devel-opment costs with a carrying amount of

EUR 420,572k (previous year: EUR 352,856k) are included in

intangible assets.

Intangible assets of indeterminate useful life, such as the “KTM”,

“GASGAS” and “FELT” brands, which were recognized in the course

of the initial purchase price allocation at a value of EUR 61,103k, EUR

13,346k, and EUR 3,707k, respectively, and the “MV Agusta” brand

acquired during the financial year with a value of EUR 20,165k, are not

amortized but are instead subjected to an impairment test in

accordance with IAS 36. The Executive Board assumes an indeter-

minate useful life for the brands because the rights are not subject to

any restrictions as to time, in law or by contract in the relevant sales

markets and because the sustained public awareness of the brands

indicates that there has been no loss of economic value. The three

“KTM”, “GASGAS” and “MV Agusta” brands are allocated to the

“KTM” cash-generating unit, and the “FELT” brand is allocated to the

“PIERER New Mobility” cash-generating unit. As the brands do not

generate cash inflows that are largely independent of the cash

inflows from other assets, the impairment test is performed as part of

the impairment tests of the respective “KTM” and “PIERER New

Mobility” goodwill (see Note 21. “Goodwill”).

159

The tables below provide a breakdown of intangible assets along with movements during the 2022 and 2021 financial years:

EURk Concessions, industrial

property rights and similar

rights and benefits as well as

resulting licenses

Customers,

Brand values,

Develpment cost

Advance

payments

Total

Acquisition and production costs:

Balance as of 01/01/2022 82,567 615,768 3,473 701,808

Additions 11,693 156,705 12,175 180,573

Disposals -5,103 -96,649 0 -101,752

Changes in the scope of

consolidation

0 0 0 0

Currency translation 67 0 0 67

Transfers 1,416 10 -1,087 339

Balance as of 12/31/2022 90,640 675,834 14,561 781,035

Accumulated depreciation and amortization:

Balance as of 01/01/2022 54,498 173,749 0 228,247

Additions 12,305 62,705 0 75,010

Disposals -4,751 -87,849 0 -92,600

Changes in the scope of

consolidation

0 0 0 0

Currency translation 22 0 0 22

Transfers -15 15 0 0

Balance as of 12/31/2022 62,059 148,620 0 210,679

Carrying amount:

Balance as of 12/31/2022 28,581 527,214 14,561 570,356

Balance as of 12/31/2021 28,069 442,019 3,473 473,561

Notes to the consolidated nancial statements_2022

EURk Concessions, industrial property

rights and similar rights and benefits

as well as resulting licenses

Customers,

Brand values,

Develpment

cost

Advance

payments

Total

Acquisition and production costs:

Balance as of 01/01/2021 79,908 544,663 3,711 628,282

Additions 9,698 117,381 3,374 130,453

Disposals -10,929 -47,226 0 -58,155

Changes in the scope of

consolidation

215 949 0 1,164

Currency translation 63 1 0 64

Transfers 3,612 0 -3,612 0

Balance as of 12/31/2021 82,567 615,768 3,473 701,808

Accumulated depreciation and

amortization:

Balance as of 01/01/2021 50,718 150,729 0 201,447

Additions 13,539 61,416 0 74,955

Disposals -9,770 -38,396 0 -48,166

Changes in the scope of

consolidation

-8 0 0 -8

Currency translation 19 0 0 19

Transfers 0 0 0 0

Balance as of 12/31/2021 54,498 173,749 0 228,247

Carrying amount:

Balance as of 12/31/2021 28,069 442,019 3,473 473,561

Balance as of 12/31/2020 29,190 393,934 3,711 426,835

In the current financial year, development costs of an asset not

available for use amounting to EUR 8,798k (previous year: EUR 8,829k)

were derecognized due to the termination of the project.

In the consolidated statement of cash flows, an adjustment of EUR

-17,011k (previous year: EUR 4,432k) was made to additions to

intangible assets to reflect transactions that had no cash flow effect.

Government grants for capitalized development costs, which are

mainly subsidies for development services, are recognized over the

expected useful life of the development costs in accordance with IAS

20. The net presentation in accordance with IAS 20 is applied, i.e.

grants for non-current assets are deducted from the carrying amount

of the asset in the consolidated statement of financial position.

161

23. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are measured at cost less depreciation. Depreciation is calculated in accordance with the straight line method and is

based on the following expected useful lives:

Useful life in years

Buildings 10 - 50

Technical plant and machinery 2 - 10

Fixtures and fittings, tools and equipment 3 - 8

For the rights of use reported under property, plant and equipment

from January 1, 2019 (IFRS 16), the useful life is between 3 and 10

years.

The tables below provide a breakdown of property, plant and

equipment along with movements during the 2022 and 2021 financial

years:

Real

Estate

Buildings Technical

plant and

machinery

Operational

and business

equipment

Advance

payments

and invest-

ments in

construction

Total

Acquisition and production costs:

Balance as of 01/01/2022 32,738 266,620 301,822 145,623 9,009 755,812

Additions 2,867 28,487 27,349 33,539 20,588 112,830

Disposals 0 -2,411 -31,708 -8,174 -2 -42,295

Changes in the scope of

consolidation

13,715 0 0 0 29,038 42,753

Currency translation 8 993 -1 998 -1 1,997

Transfers 0 29,916 6,637 258 -37,176 -365

Balance as of 12/31/2022 49,328 323,605 304,099 172,244 21,456 870,732

Accumulated depreciation and

amortization:

Balance as of 01/01/2022 550 77,775 221,456 94,701 0 394,482

Additions 230 17,758 29,519 23,341 0 70,848

Disposals 0 -1,132 -30,514 -7,882 0 -39,528

Changes in the scope of

consolidation

0 0 0 0 0 0

Currency translation 1 558 -1 682 0 1,240

Transfers 0 0 15 -37 0 -22

Balance as of 12/31/2022 781 94,959 220,475 110,80 5 0 427,020

Carrying amount:

Balance as of 12/31/2022 48,547 228,646 83,624 61,439 21,456 443,712

Balance as of 12/31/2021 32,188 188,845 80,366 50,922 9,009 361,330

Notes to the consolidated nancial statements_2022

Real

Estate

Buildings Technical

plant and

machinery

Operational

and business

equipment

Advance

payments

and invest-

ments in

construction

Total

Acquisition and production costs:

Balance as of 01/01/2021 26,720 255,709 286,091 138,937 5,698 713,155

Additions 6,009 13,737 22,544 21,786 8,582 72,658

Disposals 0 -4,262 -11,004 -16,043 -529 -31,838

Changes in the scope of

consolidation

0 -213 -26 -660 0 -899

Currency translation 9 1,531 1 1,195 0 2,736

Transfers 0 118 4,216 408 -4,742 0

Balance as of 12/31/2021 32,738 266,620 301,822 145,623 9,009 755,812

Accumulated depreciation and

amortization:

Balance as of 01/01/2021 338 63,532 204,426 88,640 0 356,936

Additions 210 15,321 27,693 20,538 0 63,762

Disposals 0 -1,741 -10,639 -15,364 0 -27,744

Changes in the scope of

consolidation

0 -87 -7 -113 0 -207

Currency translation 2 750 1 982 0 1,735

Transfers 0 0 -18 18 0 0

Balance as of 12/31/2021 550 77,775 221,456 94,701 0 394,482

Carrying amount:

Balance as of 12/31/2021 32,188 188,845 80,366 50,922 9,009 361,330

Balance as of 12/31/2020 26,382 192,177 81,665 50,279 5,698 356,219

Property, plant and equipment additions include investments

amounting to EUR 25,877k (previous year: EUR 24,626k) as additions

from leases, which had no cash flow effect as of the reporting date.

For more details, please refer to Note 47, “Leases as lessee”. In the

consolidated statement of cash flows, an adjustment of EUR -3,996k

(previous year: EUR -995k) was made to additions to other property,

plant and equipment to reflect transactions that had no cash flow

effect.

As of the reporting date, property, plant and equipment amounting to

EUR 42,000k (previous year: EUR 76,200k) was secured by registered

and deposited pledge agreements, primarily for liabilities owed to

credit institutions.

Investment grants for property, plant and equipment are recognized

over the expected useful life of the assets in accordance with IAS 20.

The net presentation in accordance with IAS 20 is applied, i.e. grants

for non-current assets are deducted from the carrying amount of the

asset in the consolidated statement of financial position.

163

24. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

The investments in associates accounted for under the equity

method are regarded individually as immaterial. As of December 31,

2022, the investments accounted for using the equity method are

Kiska GmbH, KTM Asia Motorcycle Manufacturing Inc., CFMOTO-

KTMR2R Motorcycles Co., Ltd., MV Agusta Motor S.P.A. and

Vöcklabrucker Metallgießerei Dambauer GmbH. The changes to

companies accounted for using the equity method are detailed in

Note 7. “Changes in the scope of consolidation”.

Kiska GmbH is a design business that provides development and

design services. The reporting date of Kiska GmbH is March 31,

which was determined prior to the acquisition of the investment. A

change in the end of the reporting period is not sought on account of

materiality considerations. For the purposes of accounting under the

equity method, unaudited interim financial statements as of

December 31 were used. PIERER Mobility AG holds 50 % of the

company.

KTM Asia Motorcycle Manufacturing Inc. was jointly founded in June

2016 in partnership with Ayala Corp. The company began the CKD

(completely knocked down) assembly of KTM motorcycles in the

Philippines in mid-2017. The KTM group's equity holding was

increased from 34 % to 40 % in the 2021 financial year.

The KTM joint venture in China conducted in partnership with

CFMOTO was established in the 2018 financial year under the name

“Zhejiang CFMOTO-KTMR2R Motorcycles Co., Ltd.”. The company

began operation in the 2021 financial year. Mid-class motorcycles are

produced in Hangzhou, China. The KTM group has an equity holding

of 49 % of the company.

In the 2022 financial year, a cooperation agreement was concluded

with the Italian motorcycle manufacturer MV Agusta. Under this

agreement, KTM will take over the global sales, marketing and

customer support for the MV Agusta motorcycle range from the 2023

financial year. In addition, KTM AG will provide MV Agusta with

support in the supply chain through MV Agusta Services S.r.l. and

take over purchasing. As part of this cooperation agreement, KTM AG

acquired 25.1 % of the shares in MV Agusta Motor S.p.A., with

registered office in Varese, Italy, as of November 15, 2022.

With an agreement dated November 21, 2022, KTM AG acquired 23 %

of the shares in Vöcklabrucker Metallgießerei Dambauer GmbH, with

registered office in Vöcklabruck. The company operates as a

manufacturer and distributor of castings made from all metals and

their alloys as well as other related activities as a supplier to the KTM

Group.

Movements in the carrying amounts of the investments accounted for using the equity method were as follows in the financial year:

EURk 2022 2021

Book value of investments on 1/1 13,562 13,252

Acquisition of holdings 16,012 773

Consolidation changes (successive acquisition) 0 -1,758

Proportionate net income 4,994 1,666

Other comprehensive income -255 425

Dividend -972 -803

Other 0 7

Book value of investments on 12/31 33,341 13,562

Notes to the consolidated nancial statements_2022

25. DEFERRED TAX ASSETS

Deferred tax assets relating to tax loss carryforwards are recognized

insofar as they can be realized within a reasonable period. Deferred

tax assets and deferred tax liabilities are reported on a net basis if

they are subject to the same tax jurisdiction and are of a similar

duration. Deferred tax liabilities are only recognized for differences

between the tax base of fully consolidated interests or interests

measured at-equity and the corresponding consolidated equity if the

difference is expected to reverse in the foreseeable future and can be

realized by the group.

Total deferred tax assets and tax liabilities were calculated from the

following statement of financial position items:

EURk 12/31/2022 12/31/2021

Deferred tax assets:

Current assets:

Inventories 9,800 6,465

Non-current assets:

Fixed assets 140 2,653

Employee benefits 2,544 4,135

Provisions 1,620 1,974

Liabilities 8,504 4,002

22,608 19,229

Offsetting -10,573 -12,689

Loss carryforwards 1,747 3,077

13,782 9,617

Deferred tax liabilities:

Currents assets -1,854 -3,269

Non-current assets -133,130 -109,288

Other -17 -109

-135,001 -112,666

Offsetting 10,573 12,689

-124,428 -99,977

Deferred tax assets in relation to non-current assets include EUR

751k (previous year: EUR 1,102k) in relation to the remaining sevenths

of write-downs of equity holdings to going concern value pursuant to

Section 12 (3) (2) of the Austrian Corporate Tax Act (KStG).

The temporary differences in deferred tax liabilities in the

“Non-current assets” item result mainly from development costs that

cannot be capitalized for tax purposes and from quasi-permanent

differences due to the recognition of the “KTM” brand as an asset.

As of December 31, 2022 (and in the previous year), it was to be

assumed either that, under current tax regulations, the differences

between the value for tax purposes of the carrying amount of

investments in consolidated subsidiaries and the proportion of equity

recognized in the consolidated IFRS financial statements (outside-

basis differences), which arise largely from retained profits/

uncovered losses, will remain untaxed in the foreseeable future, or

that their reversal can be controlled by the group. It was also to be

assumed either that the differences between the value for tax

purposes of the carrying amount of investments accounted for using

the equity method and the carrying value of those holdings (outside-

basis differences) will remain untaxed in the foreseeable future, or

that their reversal can be controlled by the group.

In accordance with IAS 12.39, no deferred tax was recognized in

connection with the taxable temporary differences of EUR 4,710k

(previous year: EUR 8,538k) arising in connection with holdings in

subsidiaries and investments accounted for using the equity method.

165

Movements in deferred taxes in the financial year were as follows:

EURk 2022 2021

Deferred tax (net) at 1/1 -90,360 -75,422

Change in scope of consolidation -3,860 -296

Deferred taxes recognized in the income statement -10,654 -13,783

Deferred taxes recognized in other comprehensive income -5,281 -942

Deferred taxes recognized in equity 7 -52

Deferred taxes from reclassification recognised directly in equity (previous year) -491 0

Foreign currency -7

135

Deferred tax (net) at 12/31 -110,646 -90,360

The tax loss carryforwards existing and capitalized in the PIERER Mobility Group can be summarized as follows:

EURk Loss

carryforward

thereof not

recognized

Remaining loss

carryforward

Deferred tax

asset

12/31/2022 12/31/2022 12/31/2022 12/31/2022

PIERER Mobility AG 74,320 -74,320 0 0

PIERER E-Commerce GmbH (formerly HDC GmbH) 11,507 -11,507 0 0

Other 7,280 0 7,280 1,747

93,107 -85,827 7,280 1,747

EURk Loss

carryforward

thereof not

recognized

Remaining loss

carryforward

Deferred tax

asset

12/31/2021 12/31/2021 12/31/2021 12/31/2021

PIERER Mobility AG 62,754 -62,754 0 0

PIERER E-Commerce GmbH (formerly HDC GmbH) 11,497 -11,497 0 0

Other 12,308 0 12,308 3,077

86,559 -74,251 12,308 3,077

The deferred tax assets of other companies relate to a future tax

benefit from the liquidation loss of WP Suspension B.V. in the amount

of TEUR 546 (previous year: TEUR 1,138). This can be claimed spread

over seven years from the liquidation date. Deferred tax assets of EUR

1,201k were recorded for loss carryforwards of PIERER New Mobility

GmbH (previous year: EUR 1,251k) and KTM Forschungs & Entwick-

lungs GmbH amounting to EUR 0k (previous year: EUR 688k).

Deductible temporary differences and unused tax losses (including

outstanding sevenths of write-downs to going concern value) for

which deferred tax assets were not capitalized amount to EUR

85,956k (previous year: EUR 74,509k). The value adjustment to loss

carryforwards and temporary differences was recognized in the

amount in which a medium-term realization of the deferred tax assets

cannot be assumed with sufficient certainty from today's perspective.

Notes to the consolidated nancial statements_2022

26. OTHER NON- CURRENT ASSETS

EURk 12/31/2022 12/31/2021

Receivables from financing activities 647 1,197

Lease receivables from subleases 511 523

Other 2,841 2,313

3,999 4,033

Other non-current assets mainly include deposits and prepayments

to suppliers as well as the investment in AC styria Mobilitätscluster

GmbH, which is measured at fair value through other comprehensive

income.

27. INVENTORIES

Inventories are measured at the lower of cost or net realizable value

on the reporting date. Net realizable value is the estimated proceeds

less estimated selling costs. Raw materials and supplies are

measured using cost averaging based on an analysis of coverage,

with write-downs in the event of limited usability. The economic value

of existing inventories is also reviewed on a case-by-case basis and

additional allowances are made as required for slow-moving items or

items with limited possibilities of sale.

Costs of acquisition include all costs that were incurred in order to

bring the object to its required condition and to the relevant location.

Costs of conversion comprise direct material and production costs

based on normal capacity usage, plus appropriate portions of

materials and production overheads. Administrative overheads and

selling costs on the other hand do not form part of the costs of

conversion. Interest on borrowings is not capitalized as the

inventories do not constitute qualifying assets as defined in IAS 23.

Inventories are made up as follows:

EURk 12/31/2022 12/31/2021

Raw materials, auxiliary materials and operating materials 163,275 127,698

Unfinished products 83,819 64,335

Finished products and goods 406,834 213,141

653,928 405,174

EURk 12/31/2022 12/31/2021

Gross inventory level 681,654 432,956

- Allowances -27,726 -27,782

Net inventory level 653,928 405,174

The carrying amount of inventories recognized at the lower net realizable value amounts to EUR 105,200k (previous year: EUR 68,502k).

167

28. TRADE RECEIVABLES

The gross value of third-party trade receivables is stated net of individual value adjustments

of EUR 5,049k (previous year: EUR 4,060k).

Movements in allowances on receivables were as follows:

EURk Trade receivables

Balance as of 01/01/2021 4,176

Currency translation -47

Additions to specific valuation allowance 1,070

Additions to expected loss allowance 28

Utilization -224

Reversals to expected loss allowance -5

Reversals -939

Balance as of 12/31/2021 = 01/01/2022 4,060

Currency translation 35

Additions to specific valuation allowance 1,848

Additions to expected loss allowance 87

Utilization -8

Reversals to expected loss allowance 0

Reversals -973

Balance as of 12/31/2022 5,049

Expenses for the complete derecognition of trade receivables amounted to EUR 149k (previous year: EUR 225k).

Notes to the consolidated nancial statements_2022

29. CURRENT RECEIVABLES AND OTHER ASSETS

Subsidies are taken into account as soon as there is assurance that they will be received by the PIERER Mobility Group

and that the group can comply with the applicable requirements

EURk 12/31/2022 12/31/2021

Receivables from derivative financial instruments 35,800 4,605

Asset backed securities (ABS) financing / Factoring financing 22,216 12,537

Receivables from related company shareholders 3,012 17,803

Other 5,338 16,862

Other current financial assets 66,366 51,807

Subsidies 19,940 14,979

Receivables due from tax offices 3,655 4,536

Receivables from value added taxes (from tax group settlement with Pierer Industrie AG) 9,784 8,928

Advance payments on inventory and other prepayments 37,832 30,508

Other 39 43

Other current non-financial assets 71,250 58,994

Other current assets 137,616 110,801

Receivables sold in connection with the current ABS and factoring

program are fully derecognized in accordance with the rules under

IFRS 9. Under the ABS program, trade receivables insured on a

revolving monthly basis are sold up to a maximum volume of EUR

250,000k (previous year: EUR 250,000k), and under the factoring

program maintained at PIERER New Mobility up to a maximum

volume of EUR 125,000k. Further information on the ABS and

factoring program can be found under Note 43 “Classification and fair

values”.

30. CASH AND CASH EQUIVALENTS

Cash and cash equivalents include cash on hand and in banks,

checks, and time deposits with a fixed term of not more than three

months (calculated from the acquisition date). For further details on

changes in the cash status, please refer to the information in the

statement of cash flows in Chapter VI of the Notes to the Consoli-

dated Financial Statements.

31. CONSOLIDATED EQUITY

The development of the consolidated equity in the 2022 financial year

and in the 2021 financial year is shown in Annex I/7.

The share capital of the company amounts to EUR 33,796,535 and is

divided into 33,796,535 bearer shares of no par value, each of which

represents an equal equity holding in the share capital. The shares

grant the rights that are usually due to stockholders under the

Austrian Stock Corporation Act. These include the right to payout of

the dividends resolved upon at the Annual General Meeting as well as

the right to vote at the Annual General Meeting. All shares have been

paid up in full. The share capital shown in the consolidated financial

statements is equal to the figure reported in the separate financial

statement of PIERER Mobility AG. In the previous year, the share

capital was increased by EUR 11,257,861 through the issue of new

shares.

169

In the previous year, 193,340 treasury shares were sold at a price of

EUR 13,595k and with a profit of EUR 5,148k. On the reporting date,

the reserve for treasury shares amounted to EUR 0k (previous year:

EUR 0k).

The reserve in accordance with IFRS 9 includes the cash flow hedge

reserve. The cash flow hedge reserve comprises the effective

portion of the cumulative net changes in the fair value of hedging

in-struments used to hedge cash flows until subsequent recognition

in profit or loss or direct recognition in the costs of acquisition or

carrying amount of a non-financial asset or a non-financial liability.

The reserve for hedging costs shows profits and losses on the

portion excluded from the designated hedging transaction that

relates to the forward element of the forward currency transaction.

These are initially recognized as other comprehensive income and

accounted for in the same way as profit and losses in the hedging

transaction.

The development of the cash flow hedge reserve and the reserve for

hedging costs is explained in Note 45 “Hedges”.

The interests held by non-controlling shareholders include the

interests of third parties in the equity of the consolidated subsidiaries:

2022

EURk

KTM AG Other Total

Percentage of non-controlling interests on reporting date 0.00%

Revenue 2,433,260 3,940 2,437,200

Profit 180,493 -9,870 170,623

Other comprehensive income 17,405 0 17,405

Total comprehensive income 197,898 -9,870 188,028

Profit assigned to non-controlling interests 695 7 702

Other comprehensive income assigned to non-controlling interests 695 7 702

Non-current assets 1,157,629 38,216 1,195,845

Current assets 1,331,019 23,771 1,354,790

Non-current liabilities -593,621 -31,988 -625,609

Current liabilities -1,006,410 -4,220 -1,010,630

Net assets 888,617 25,779 914,396

Carrying amount of non-controlling interests 6,434 227 6,661

Cash flow from operating activities 290,323 -9,988 280,335

Cash flow from investing activity -283,631 506 -283,125

Cash flow from financing activity -92,102 807 -91,295

Cash change -85,410 -8,675 -94,085

Dividends from non-controlling interests 500 0 500

Notes to the consolidated nancial statements_2022

2021

EURk

KTM AG Other Total

Percentage of non-controlling interests on reporting date 0.25%

Revenue 1,876,418 165,312 2,041,730

Profit 146,067 -3,195 142,872

Other comprehensive income 6,364 1,378 7,742

Total comprehensive income 152,431 -1,817 150,614

Profit assigned to non-controlling interests 60,201 131 60,332

Other comprehensive income assigned to non-controlling interests 2,235 -7 2,228

Non-current assets 907,154 85,660 992,814

Current assets 951,711 89,194 1,040,905

Non-current liabilities -610,265 -39,201 -649,466

Current liabilities -544,853 -73,849 -618,702

Net assets 703,747 61,804 765,551

Carrying amount of non-controlling interests 2,633 2,776 5,409

Cash flow from operating activities 359,846 7,517 367,363

Cash flow from investing activity -183,746 -11,377 -195,123

Cash flow from financing activity -35,985 8,364 -27,621

Cash change 140,115 4,504 144,619

Dividends from non-controlling interests 13,275 0 13,275

1 Until October 2021, the percentage of non-controlling shareholders was approximately 48 %.

The non-controlling interests of KTM AG include non-controlling

interests of subsidiaries of KTM AG and relate to the companies

CERO Design Studio S.L., KTM MOTOHALL GmbH, MV Agusta

Motorcycles GmbH, and PIERER & MAXCOM MOBILITY OOD. In the

2022 financial year, there was a capital increase in PIERER &

MAXCOM MOBILITY OOD. The minority shareholder's share of the

capital increase amounting to EUR 2,556k is shown in the equity

reconciliation under capital measures. For the amounts of the equity

holdings, please refer to the schedule of equity holdings in Section

XII.

The effects of the transactions with non-controlling interests and the

change in the proportion of equity attributable to the shareholders

during the financial year were as follows:

EURk 12/31/2022 12/31/2021

Carrying amount acquired (-) or disposed of (+) for non-controlling interests 1,506 340,458

Purchase price received from (+) or paid (-) to non-controlling shareholders -4,804 -30,470

Difference recorded in equity -3,298 309,988

171

The difference recognized in equity in the previous year mainly

results from the increase of the shares in KTM AG from 51.71 % to

99.75 % as of December 31, 2021, which relates to the contribution of

approximately 46.5 % of the shares in KTM AG by Pierer Bajaj AG

(parent company of PIERER Mobility AG) to PIERER Mobility AG in the

previous year. On the other hand, a further approx. 1.5 % of the shares

in KTM AG were acquired in the 2021 financial year. The equity

holding in KTM AG thus increased in the previous year from 51.71 %

to 99.75 %. In the 2022 financial year, PIERER Mobility AG acquired

the remaining shares in KTM AG and now holds 100 % of the

company..

Movements in other earnings after tax within consolidated equity

were as follows:

EURk Provision

as per

IFRS 9

Reserves

including

total

earnings

Foreign

currency

translation

reserve

Total Interests

non-

controlling

shareholders

Total

consoli-

dated

equity

2022

Currency translation differences 0 0 1,429 1,429 0 1,429

Cash flow hedge 14,909 0 0 14,909 0 14,909

Revaluation of net debt from

defined benefit plans

0 1,067 0 1,067 0 1,067

14,909 1,067 1,429 17,405 0 17,405

2021

Currency translation differences 0 0 3,437 3,437 1,480 4,917

Cash flow hedge 1,871 0 0 1,871 385 2,256

Revaluation of net debt from

defined benefit plans

0 206 0 206 363 569

1,871 206 3,437 5,514 2,228 7,742

Notes to the consolidated nancial statements_2022

32. FINANCIAL LIABILITIES

EURk 12/31/2022

Nominal

12/31/2022

Carrying amount

12/31/2022

Term < 1 year

12/31/2022

Term > 1 year

Promissory note loans 219,000 218,754 24,000 194,754

Registered bond 60,000 59,591 0 59,591

Liabilities owed to credit institutions 182,789 182,789 24,611 158,178

Liabilities from factoring program

between group companies

0 0 0 0

Liabilities from supplier finance program

between group companies

3,394 3,394 3,394 0

Lease liabilities 67,890 67,890 21,793 46,097

Other interest-bearing liabilities 2,837 2,837 2,837 0

Total financial liabilities 535,910 535,255 76,635 458,620

EURk 12/31/2021

Nominal

12/31/2021

Carrying amount

12/31/2021

Term < 1 year

12/31/2021

Term > 1 year

Promissory note loans 225,000 224,661 5,998 218,663

Registered bond 60,000 59,551 0 59,551

Liabilities owed to credit institutions 206,596 206,596 23,805 182,791

Liabilities from factoring program

between group companies

2,498 2,498 2,498 0

Liabilities from supplier finance program

between group companies

1,836 1,836 1,836 0

Lease liabilities 65,442 65,442 19,908 45,534

Other interest-bearing liabilities 2,802 2,802 2,802 0

Total financial liabilities 564,174 563,386 56,847 506,539

In July 2015, PIERER Mobility AG issued a promissory note loan with a

value of EUR 56,500k with a term of five and seven years. In January

2017, a partial amount of the promissory note loan amounting to EUR

32,000k, of which EUR 25,500k had a term of 5 years and EUR 6,500k

a term of 7 years, was repaid early. A partial amount of the promissory

note loan totaling EUR 12,500k with a term of 5 years was repaid early

by way of a termination letter dated July 13, 2018, effective July 17,

2018, and a termination letter dated October 4, 2018, effective

October 8, 2018. In July 2020 and July 2022, EUR 6,000k each of the

promissory note loan with a term of 5 years was repaid as scheduled.

As of the reporting date, the promissory note loan has now been

repaid in full.

In June 2016, a promissory note loan with an issuing volume of EUR

120,000k and a term of five, seven or ten years was placed by KTM

AG in order to refinance the bond repaid in April 2017. In June 2018, a

further promissory note loan with a volume of EUR 135,000k and

terms of seven and ten years was successfully placed. In addition,

EUR 32,500k of the promissory note loan issued in 2016 was repaid

early.

173

In May 2021, KTM AG issued registered bonds with a term of 12 years

amounting to EUR 30,000k. Furthermore, PIERER Mobility AG

previously issued a registered bond amounting to EUR 30,000k with a

term of 10 years in July 2015.

33. LIABILITIES FOR EMPLOYEE BENEFITS

Liabilities for employee benefits consist of obligations relating to severance pay and anniversary bonuses:

EURk 12/31/2022 12/31/2021

Severance payments 19,548 21,202

Anniversary bonuses 6,606 7,561

26,154 28,763

The PIERER Mobility Group is obligated by law to make a severance

payment to all employees in Austria whose employment relationship

commenced before January 1, 2003 upon termination by the

employer or upon retirement. The amount of this defined benefit

obligation (DBO) is dependent on the number of years of service and

on the relevant salary at the time of termination. For all employees in

Austria who joined after December 31, 2002, the company pays

1.53 % of their gross monthly salary each month into a staff severance

pay fund that invests the contributions in an account maintained for

the employee; at the end of the employment relationship, the amount

thus accumulated is paid out or the claim thereto is passed on. The

company’s obligation extends only to the payment of the contribu-

tions, which are recognized as expenses in the financial year for

which they were paid (defined-contribution obligation). For

employees of Austrian group companies whose employment

commenced on or after January 1, 2003, contributions amounting to

1.53 % of their wages or salaries, as the case may be, were paid into a

statutory staff severance pay fund. Total contributions of EUR 2,959k

were paid during the past financial year (previous year: EUR 2,488k).

Movements in the net liability under the defined benefit plans in

respect of severance pay were as follows during the financial year:

EURk 12/31/2022 12/31/2021

Conditional benefit:

Balance as of 01/01 21,202 21,946

Service cost 636 752

Interest expenses 240 231

Payments made -922 -622

Actuarial gain / loss -1,606 -759

Changes in the scope of consolidation 0 0

Miscellaneous -2 -346

Balance as of 12/31 19,548 21,202

The weighted durations of the severance payment obligations as of December 31, 2022

were 11 years (previous year: 12 years).

Notes to the consolidated nancial statements_2022

The actuarial profit/loss is made up of the following factors:

EURk 12/31/2022 12/31/2021

Change in expected values 2,408 -260

Change in demographic assumptions -68 -196

Change in financial assumptions -3,946 -303

Actuarial gain / loss -1,606 -759

The measurement of the obligation is based on the following assumptions:

12/31/2022 12/31/2021

Discount rate 4.17% 1.23%

Wage / salary trend 4.00% 2.75%

Retirement age (years) women / men 62 - 65 years 62 - 65 years

The discount rate was determined taking into account the average

duration and average remaining life expectancy. The discount rate is

the market yield on high quality, fixed-interest corporate bonds at the

end of the reporting period. Staff turnover is determined on a compa-

ny-specific basis and takes account of age and length of service. The

actuarial measurements are based on country-specific mortality

tables. The chosen retirement age is the statutory retirement age in

each country.

A change (+/- 0.5 percentage points) in the “discount rate” and “wage/

salary trend” parameters would have had the following effects on the

present value of future payments as of December 31, 2022:

Parameter Change

-0.50%

Change

+0.50%

Discount rate 5.3% -4.9%

Wage / salary trend -4.9% 5.3%

A change (+/- 0.5 percentage points) in the “discount rate” and “wage/salary trend” parameters would have had the following effects on the present

value of future payments as of December 31, 2021:

Parameter Change

-0.50%

Change

+0.50%

Discount rate 6.2% -5.7%

Wage / salary trend -5.6% 6.0%

The companies in the PIERER Mobility Group are obligated under

collective-bargaining agreements to pay their employees in Austria

anniversary bonuses upon attaining a certain number of years of

service (from 25 years of service upward) (defined benefit obligation).

The interest result is recognized under “Other financial result”.

Movements in obligations relating to claims to anniversary bonuses

were as follows:

175

EURk 12/31/2022 12/31/2021

Balance as of 01/01 7,561 6,719

Service cost 753 667

Interest expenses 91 77

Payments made -103 -80

Actuarial gain / loss -1,696 177

Miscellaneous 0 1

Balance as of 12/31 6,606 7,561

34. OTHER CURRENT AND NON- CURRENT LIABILITIES AND TRADE PAYABLES

Other non-current liabilities essentially comprise the following:

EURk 12/31/2022 12/31/2021

Deposits 11,611 11, 3 6 4

Other financial liabilities 3,396 1,470

Other non-current financial liabilities 15,007 12,834

Other non-current non-financial liabilities 1,400 1,353

Other non-current liabilities 16,407 14,187

Other financial liabilities mainly relate to options on non-controlling

interests in PIERER & MAXCOM MO-BILITY OOD. The change in

options on non-controlling interests is presented in the statement of

changes in equity under capital measures in an amount of

EUR 2,579k.

Other current liabilities essentially comprise the following:

EURk 12/31/2022 12/31/2021

Sales bonuses 57,059 46,678

Price rebates 6,417 3,709

Liabilities from derivative financial instruments 333 1,988

Other financial liabilities 9,126 15,954

Other current financial liabilities 72,935 68,329

Employee benefits 52,876 49,486

Prepayments 8,215 5,998

Tax liabilities 13,120 9,460

Other non-financial liabilities 6 44

Other current non-financial liabilities 74,217 64,988

Other current liabilities 147,152 133,317

Notes to the consolidated nancial statements_2022

Current employee benefits mainly include liabilities for unconsumed

vacations, liabilities for employee bonuses, liabilities to district health

insurance funds, and wage and salary liabilities.

Supplier finance:

Companies in the PIERER Mobility Group have entered into a supplier

finance program (a revolving facility for the financing of trade

payables) with an Austrian credit institution. Suppliers can sell their

receivables from the PIERER Mobility Group to the credit institution

before the due date. The PIERER Mobility Group is not released from

its original obligation and, due to a quantitative and qualitative audit,

there is no significant change in the contractual terms and conditions.

The liabilities continue to be shown under trade payables and are

reported in cash flow from operating activities. As of December 31,

2022, trade payables amounting to EUR 350,236k (previous year:

EUR 167,344k) are covered by this supplier finance program. This is

47.5 % (previous year: 42.3 %) of total trade payables as of the

reporting date amounting to EUR 737,602k (previous year: EUR

395,581k).

In addition to suppliers outside the group, such a program was also

concluded between Austrian companies in the PIERER Mobility

Group. From the point of view of the PIERER Mobility Group, no

exchange of services took place; but only external financing, which is

reported under current financial liabilities. Cash flows are reported

under cash flow from financing activities. As of December 31, 2022

the dealings between group companies amounting to EUR 3,394k

(previous year: EUR 1,836k) are presented as current financial

liabilities in the consolidated financial statements of

PIERER Mobility AG.

35. PROVISIONS

The group makes provisions relating to guarantees and warranties in

relation to known, expected individual cases. The amounts of

expected expenses are primarily based on previous experience and

are recorded at the time the products are sold as an expense

affecting profit and loss.

The estimation of future expenses is subject to uncertainties, which

may lead to an adjustment of the provisions recognized in the future.

It cannot be ruled out that the actual expenses for these measures

may be higher or lower than the provision made for these purposes in

an unforeseeable way.

Movements in provisions in the financial year were as follows:

EURk Balance as of

1/1/2022

Additions Disolutions Utilization Balance as of

12/31/2022

Current provisions

Provisions for guarantee and warranty 20,000 20,947 0 -20,000 20,947

Provisions for legal actions 635 232 -6 -104 757

Other provisions 2,470 20,310 0 -447 22,333

23,105 41,489 -6 -20,551 44,037

Provisions relating to guarantees and warranties largely relate to risks

arising from statutory and voluntary product liability. Other provisions

mainly include provisions for outstanding investments. Provisions are

measured on the basis of past experience and forward-looking

assumptions.

177

VI. NOTES ON THE STATEMENT OF CASH FLOWS

The changes in the statement of financial position items presented in

the statement of cash flows cannot be derived directly from the

statement of financial position, as non-cash effects are neutralized.

Other non-cash expenses (income) mainly include valuations of

foreign-currency receivables and liabilities, write-downs of

receivables and inventories, and non-cash income from grants. The

effects associated with changes in the scope of consolidation have

been eliminated and are accounted for in cash flow from investing

activity.

The changes in the recognized financial liabilities and the amounts

disclosed in the statement of cash flows can be reconciled as follows:

EURk Balance

as of

1/1/2022

Changes

affecting

cash flow

Changes not affecting cash flow Carrying

amount

12/31/2022

Acquisition Reclas-

sification

Scope of

consolida-

tion

changes

Transaction

costs

Accrued

interest,

foreign

exchange

effect

Current

financial liabilities

36,939 -31,336 0 48,631 600 0 8 54,842

Non-current

financial liabilities

461,005 0 0 -48,631 0 149 0 412,523

Current

lease liabilities

19,908 -23,414 0 25,299 0 0 0 21,793

Non-current

lease liabilities

45,534 0 25,662 -25,299 0 0 200 46,097

Total 563,386 -54,750 25,662 0 600 149 208 535,255

EURk Balance

as of

1/1/2021

Changes

affecting

cash flow

Changes not affecting cash flow Carrying

amount

12/31/2021

Acquisition Reclas-

sification

Scope of

consolida-

tion

changes

Transaction

costs

Accrued

interest,

foreign

exchange

effect

Current

financial liabilities

55,103 -49,976 0 32,513 -1,144 0 443 36,939

Non-current

financial liabilities

413,853 79,528 0 -32,513 0 131 6 461,005

Current

lease liabilities

19,491 -18,431 0 18,928 -80 0 0 19,908

Non-current

lease liabilities

42,236 0 23,342 -18,928 -48 0 -1,068 45,534

Total 530,683 11,121 23,342 0 -1,272 131 -619 563,386

Notes to the consolidated nancial statements_2022

VII. RISK REPORT

36. RISK MANAGEMENT

As a group of companies conducting business on a global scale, the

PIERER Mobility Group faces a multitude of possible risks that are

monitored by means of a comprehensive risk management system.

The Executive Board and Supervisory Board are periodically informed

about risks that may have a major impact on the group’s business

operations. Management takes timely action to avoid, minimize and

hedge risks.

An internal control system adapted to the company’s needs and

incorporating basic principles such as segregation of duties and dual

control has been integrated into the financial reporting process.

Internal and external audits ensure that the processes are continually

improved and optimized. Furthermore, a uniform reporting system is

in place throughout the group, for the ongoing management and

control of the risk management process. Group reporting is subject to

a continuous improvement process so that the Executive Board is

informed even sooner, and more comprehensively, about the degree

to which targets have been achieved and about changes in the

market and competition.

Continuous growth depends on a variety of factors, such as demand

behavior, product development, changes in foreign exchange rates,

the general economic setting in the individual sales markets, prices of

goods purchased from others, or talent management. Increased

market research activities and a model policy reflecting the resulting

findings are the means of responding to a market environment

characterized by rapidly changing situations.

In order to prevent risks associated with fraud, corruption, and

bribery, employees are obliged to behave in accordance with the

principles defined in the Code of Conduct. The code is binding for all

employees, managers, and board members as well as for consultants,

business partners, and customers of the PIERER Mobility Group.

Since the 2021 financial year, the Code of Conduct has been an

Annex and thus as an integral part of the existing dealer contracts.

Since the beginning of 2020, this has already been the case with new

dealer contracts and also with new contractual relationships in the

supply sector.

In order to counteract negative macroeconomic and geopolitical

effects, PIERER Mobility promotes global diversification of the sales

markets. The greatest relative growth in the coming years is expected

in Asia. In order to promote this growth, intensive cooperation with

our strategic partner Bajaj is being continuously expanded. In

addition, investments have been made in production sites with local

partners in China and the Philippines. The Russian-Ukrainian war in

particular is having a negative impact on the global economy. In

business terms, the PIERER Mobility Group is not directly affected by

the military conflict that is taking place in Ukraine. Indirectly, the

group, along with the whole industry, is confronted primarily by

further increases in energy and raw material costs and negative

effects on the capital markets.

The earnings position of PIERER Mobility AG (as an individual

company) is characterized by expenses associated with financing,

the acquisition of equity holdings and expenses for projects, and is

significantly dependent on the dividend policy of its investees. The

investment in the KTM Group is currently the largest and most

significant investment of PIERER Mobility AG.

In accordance with the requirements of Section 243(c) of the Austrian

Commercial Code, a corporate governance report has been drawn

up. In this regard, we refer to the publication in the annual report of

PIERER Mobility AG or to the website of PIERER Mobility AG.

37. MARKET RISKS

• CYCLICAL RISK

The PIERER Mobility Group operates in the motorcycle and bicycle

industry. Sales opportunities are determined by the general economic

situation in the countries and regions in which the PIERER Mobility

Group is represented with its products.

As recent years have shown, the motorcycle sector in particular is

cyclical and subject to large fluctuations regarding demand. This risk

is counteracted by our experience in this area, together with market

research and forecasting, which are taken into account in the

planning. With changes in mobility behavior, high rates of inflation and

the Russian-Ukrainian war, the global motorcycle market in particular

has stabilized at a high level.

• COMPETITION AND PRICING PRESSURE

Competition on the motorcycle market in industrialized countries is

particularly intense; the strongest competitors are four Japanese and

three European manufacturers and, to a lesser extent, a U.S.

manufacturer, some of which have greater financial resources, higher

sales figures and market shares. The street motorcycle market is

moreover characterized by high pricing pressure, and new

competitors are trying to enter the market by relying on a low-price

strategy. Thanks to its successful market strategy, the PIERER

Mobility Group is Europe's leading manufacturer of powered

179

two-wheelers. The full integration of GASGAS as the third brand and

the further development of the network of dealers has also

contributed to this. Thanks to the innovative strength which it has

demonstrated, the group sees itself as a technology leader in the

two-wheeler sector in Europe. The strategic partnership with Bajaj

and the increased level of cooperation with CFMOTO strengthens the

company’s competitiveness in global markets.

• SALES RISK

The group’s biggest individual sales markets are the European as well

as the U.S. market for motorcycles and the DACH region for New

Mobility/(E)-Bicycle products. A slump in these markets could have a

negative impact on business activities. Entering new markets involves

a major cost risk as, in some of these markets, the trend of sales as

well as the geopolitical conditions are difficult to assess. By collabo-

rating with its strategic partner Bajaj Auto Ltd., Pune, India, the

company is working steadily toward implementing a global product

strategy in the motorcycle sector.

The global impacts of high rates of inflation could ultimately also be

reflected in changes in the consumer behavior of customers, which

has been reduced overall. The group constantly monitors such

impacts on the consumer behavior of customers. For example, it was

established that there is still a high demand for products from the

group because it provides high-quality PTWs. Further increases in

interest rates in the course of fighting inflation could potentially

increase pressure on dealers and pose a sales risk. The PIERER

Mobility Group therefore works together closely with its network of

dealers, supporting them with targeted programs.

For the PIERER Mobility Group, providing support to end customers

through the network of dealers represents a key success factor. In

order to be able to continuously guarantee a high standard in this

area, mandatory dealer training sessions are held on an ongoing

basis. In these sessions new technical standards are taught and

dealers are trained in dealing with the customer. In addition, the

group in particular provides a modern communication platform which

the dealers can use to undertake the procurement process and

document the sales process.

38. INDUSTRY-SPECIFIC RISKS

• RESTRICTIONS RELATING TO MOTORCYCLING

As the group markets its products in a large number of countries, it is

exposed to the risk of changes in national regulations, terms of

licenses, taxes, trade restrictions, prices, income, and exchange

restrictions as well as to the risk of political, social, and economic

instability, inflation, and interest rate fluctuations. Among other things,

motorcycles registered for road use must comply with relevant

provisions concerning noise and exhaust gas emissions in order to be

approved for sale in each country. For all new models that are

homologated for road use, the group complies with the Euro V

European emission standard that is relevant for motorcycles. The

possible offroad uses of motorcycles are influenced significantly by

the national and legal conditions that exist in the countries where the

vehicles are sold. To counteract this risk, the respective regulations

specific to the given country are analyzed in detail prior to market

launch and continue to be monitored on an ongoing basis to be able

to react in good time to any changes.

• PROCUREMENT RISK

The current economic situation creates a procurement and sales risk

for the global economy that also affects the PIERER Mobility Group.

Essentially, this risk involves the already significant increases in the

prices of procuring raw materials, supplies and components, which

have been driven by the global shortage of goods and resources as a

result of the COVID-19 pandemic, as well as the production

overheads, which have risen to a high level, particularly in respect of

energy prices, transport and personnel costs. This primarily affects

companies involved in the energy-intensive production of raw

materials such as aluminum and steel, which could have an impact on

the level of availability in the overall market.

In the current situation, the procurement risk consists largely of failing

to receive ordered components or not receiving them on the agreed

date. On the other hand, rising energy costs are increasingly

becoming established as a significant financial risk for smaller

suppliers to the group and could therefore cause further disruption in

the supply chain. The group itself can cope with rising energy costs

because the in-house production and assembly processes are not

very energy-intensive.

The 2022 financial year panned out as the basic forecasts at the end

of 2021 suggested it would because the expected disruption to the

procurement of essential electronic components did actually occur.

Suppliers of electronic components in particular continue to face

fundamental challenges in procuring, producing and delivering them

on time. The situation, which already gradually began to improve

during the second half of 2022, is expected to continue to improve in

the second half of 2023.

In the area of new mobility, too, a significant sustained recovery in

delivery times, some of which have been sluggish, is expected in the

2023 financial year. For example, 2023 is anticipated to see a

Notes to the consolidated nancial statements_2022

reduction in current delivery times from the present level of almost 24

months to a normal level of around 8-12 months. However, the consid-

erable backlog in the processing of orders for certain components by

third parties, for example for frames and braking systems, will

continue to cause procurement delays in the 2023 financial year.

The group has largely stabilized and compensated for the supply

chain bottlenecks that have arisen with these and other specific

components, causing procurement delays, by regularly coordinating

with suppliers and approving all procurement and production at an

early stage. This means the group will be able to meet the resource

requirements of each of its production sites over the longer term. The

intense cooperation right along the supply chain means there was

only a small impact on the group.

On the procurement side, the PIERER Mobility Group is countering

the risks described above by taking several measures, such as using

alternative supply chains and engaging in appropriate activities to

reduce the costs that are incurred, implementing efficiency measures

at suppliers by providing cost engineering support and agreeing on

temporary price increases based on indices. In addition, the group

has already implemented further significant measures to secure its

supply chain and thus its production at an early stage, as mentioned

above, and introduced a market intelligence system for electronic

components. The flexibility in the production layout that is

implemented means that in exceptional cases the group is also able

to adjust its production schedules as needed to cope with global

developments that result in increasingly tight supply chains.

Ultimately, the intention is to adjust the logistical procurement

structure in order to minimize transportation distances and

associated costs.

• TECHNICAL INNOVATION, RACING

Technical innovations and the introduction of new products are

largely responsible for the PIERER Mobility Group’s competitive

position. To this end, new trends must be identified promptly. To

counteract the risk, our own products’ innovative capacity must be

ensured.

The PIERER Mobility Group therefore attaches great importance to

identifying trends at an early stage, conducting research and

development in technical and functional areas, and researching what

customers want in order to develop innovative products that reflect

what the market wants. Racing achievements are not only an

important marketing instrument for the company but also form the

basis for product development and set standards for series

development. Valuable experience is gathered whenever products

can be tested in racing conditions at racing events. Before being

introduced into series production, all technical innovations are

moreover subjected to comprehensive testing by the quality

management system so as to eliminate, to the greatest extent

possible, any technical defects that could have a negative effect on

earnings development.

• PRODUCT LIABILITY RISK

The PIERER Mobility Group is also exposed in its business activity to

claims for damages owing to accidents and injuries. This applies

especially to the U.S., where claims asserted in product liability cases

involve higher amounts of liability. In addition to existing safeguards,

this risk is minimized by comprehensive quality control in all

production areas.

39. IT RISKS

We apply the same high quality standards in the area of data security

and data protection as we do for our products.

The PIERER Mobility Group has implemented an IT security and risk

management system for the purpose of identifying and managing

company-relevant risks in the area of information security. In addition,

evi-dence of compliance and the exercising of due diligence when

handling and using information and equipment for the processing of

information is provided and documented in respect of customers, the

Executive Board and the general managers of each participating

company.

The constantly growing IT and cyber risks are countered by ongoing

evolution of IT security measures and using the latest IT security

technologies. Cyber attacks are averted with a multi-stage technical

concept using the latest security features such as intrusion

prevention systems and additional security systems which are

operated upstream or internally. Behavior-based security solutions

are also used with a view to identifying security-related abuse.

Incidents are identified and handled by a malware incident response

process. In parallel, regular internal and external vulnerability

analyses are performed and any vulnerabilities identified are

countered by means of an established patch and update

management process. Regular internal and external security audits

are documented in risk management, any findings are evaluated and

prioritized, and a solution is then applied.

Care is taken to ensure that all users of IT systems possess the

requisite knowledge and awareness for the use of IT within the scope

of their role via the provision of regular general IT security awareness

training. This training is provided in a preventative and traceable

manner.

181

The ongoing COVID-19 pandemic made it necessary for a large

number of employees to perform their work from home during the

2021 financial year and this continues to be the case. The measures

taken to develop the IT infrastructure on an ongoing basis over the

past few years have been retained, enabling the PIERER Mobility

Group to overcome these exceptional challenges and to still provide

its employees with remote workplaces in an uncomplicated and

secure manner.

40. FINANCIAL RISKS

The PIERER Mobility Group is subject to credit, market, currency and

liquidity risks regarding its assets, liabilities and planned transactions.

Financial risk management is aimed at controlling and limiting those

risks. The Executive Board and the Supervisory Board are informed

on a regular basis about risks that can have a major impact on the

group’s business operations.

The principles of financial risk management are laid down and

monitored by the Supervisory Board and the Executive Board. Group

Treasury is responsible for their implementation. To protect itself

against the financial risks described below, the PIERER Mobility

Group uses derivative financial instruments in order to safely hedge

cash flows from operating activities against fluctuations in exchange

rates and/or interest rates. The hedging horizon generally covers

currently open items and any transactions planned for the next twelve

to eighteen months. In exceptional cases, strategic hedge positions

involving longer time periods may be entered into in consultation with

the Supervisory Board.

• CURRENCY RISKS

As an enterprise doing business on a global scale, the PIERER

Mobility Group is influenced by general global economic data such as

changes in currency parities or developments in the financial

markets. As the US dollar represents the highest individual foreign

currency risk faced by KTM, movements in the US dollar exchange

rate are of particular importance to the development of revenue and

income. Due to the in-creasing importance of USD in purchasing, the

foreign currency risk associated with the USD is significantly reduced

(“natural hedge”). Approximately 34 % of revenues were earned in US

dollars in the 2022 financial year (previous year: 25 %). Currency

hedging measures, in particular hedging strategies, can largely offset

these currency shifts over at least one model year.

The group is exposed to further currency risks where financial assets

and liabilities are settled in a currency other than the local currency of

the relevant company. The companies of the group predominantly do

their invoicing in local currency and largely take out financing in local

currency. Financial investments are primarily made in the local

currency of the investing group company. For these reasons, most

resulting currency positions will be closed out naturally.

The main causes of ineffectiveness in currency hedges are:

• the impact of the credit risk of the counterparties and the group

on the fair value of the forward currency transactions that is not

reflected in the change in the fair value of the hedged cash flows

attributable to changes in foreign exchange rates;

• changes in the transaction date of the hedged items.

Sensitivity analyses have been performed on currency risks in

relation to financial instruments in order to show the effects that

hypothetical changes in the exchange rates have on profit or loss

(after taxes) and equity. In the scope of the sensitivity analysis, effects

of changes in the exchange rate of ± 10 % are shown as profit or loss,

other comprehensive income, and equity. The relevant balances as of

the reporting date and foreign currency purchases and sales

budgeted for the 2023 financial year were used as a basis. It was

assumed that the risk faced on the reporting date essentially

represents the risk present during the financial year. The group tax

rate of 25 % was used as the tax rate. Furthermore, it was assumed in

the analysis that all other variables, in particular the interest rates,

remained constant. Currency risks relating to financial instruments of

a monetary nature that are denominated in a currency other than the

functional currency were included in the analysis.

Notes to the consolidated nancial statements_2022

Currency risks from euro positions in subsidiaries with a functional

currency other than the euro were attributed to the currency risk of

the subsidiary’s functional currency. Risks from foreign currency

positions apart from the euro were aggregated on group level.

Exchange rate differences arising from the translation of financial

statements into the group currency were not taken into account.

The PIERER Mobility Group bases the analysis on the following

assumptions:

• For the sensitivity of profit and loss, the group's cash in banks,

receivables and payables are considered, as are future receipts

and payments in foreign currency that are not accounted for in the

functional currency of the group company. Account is also taken of

open derivatives on cash flow hedges where the hedged item has

already been realized on the reporting date (recognized as income).

• For the sensitivity of other comprehensive income, account is

taken of open derivatives from cash flow hedges where the hedged

item has not yet been realized on the reporting date (movements

are not recognized in profit and loss). The exposure corresponds to

the notional amount of the open derivatives.

Increase (+) / Decrease (-) 10% increase 10% devaluation

EURk 12/31/2022 12/31/2021 12/31/2022 12/31/2021

Change in net result -28,868 -23,490 35,284 28,709

Change in currency-related cash flow hedge provisions 3,636 10,995 -4,444 -13,439

Change in equity -25,232 -12,495 30,840 15,270

• INTEREST RATE RISKS

Certain financial instruments on both the assets side and the

liabilities side carry interest at variable rates. The risk therefore

comprises rising interest expenses or falling interest income resulting

from an adverse change in market interest rates.

The PIERER Mobility Group is thus exposed to the risk of interest rate

fluctuations on the market. Regular monitoring of the money and

capital markets and, in some cases, the use of interest rate swaps

(fixed interest rate payer swaps) serve to respond to this risk. Under

the interest rate swaps entered into, the concern receives variable

interest payments and, in return, pays fixed interest on the notional

amounts of the contracts entered into.

Interest rate risks thus result mainly from primary financial

instruments carrying interest at variable rates (cash flow risk).

Sensitivity analyses were performed on the interest rate risks of these

financial instruments in order to show the effects that hypothetical

changes in the market interest rate level have on profit or loss (after

tax) and equity. The relevant balances as of the reporting date were

used as a basis. It was assumed that the risk faced on the reporting

date essentially represents the risk present during the financial year.

The group tax rate of 25 % was used as the tax rate. Furthermore, it

was assumed in the analysis that all other variables, in particular the

exchange rates, remained constant.

The main causes of ineffectiveness in interest rate hedges are:

• the impact of the credit risk of the counterparties and the group on

the fair value of the interest rate derivatives that is not reflected in

the change in the fair value of the hedged cash flows attributable to

changes in interest rates; and

• differences in the parameters (e.g., interest rate adjustment dates)

between the derivatives and the hedged items

183

A sensitivity analysis was performed on interest rate risk. This showed the effects of changes in the interest rate of ±50 basis points on profit or loss,

other comprehensive income and equity.

Increase (+) / Decrease (-) Increase by 50 BP Decrease by 50 BP

EURk 12/31/2022 12/31/2021 12/31/2022 12/31/2021

Change in net result -316 324 318 -1, 311

Change in currency-related cash flow hedge provisions 1,752 -2,316 -1,757 2,316

Change in equity 1,436 -1,992 -1,439 1,005

The Group Treasury completed the changes to the reference interest

rates in the financial instruments used by the group which were

required as a result of the IBOR Reform in the 2022 financial year.

Working together closely with business partners, contracts were

appropriately amended and contractual transitional arrangements

governing the handling of temporarily or permanently unavailable

reference interest rates were utilized. The use of the new reference

interest rates has been agreed on, without exception, for contracts

and financial instruments that were newly concluded in the financial

year. The amendments had no material impact on the consolidated

financial statements.

• DEFAULT RISKS (CREDIT OR CREDITWORTHINESS RISKS)

The default risk is the risk of financial losses if a customer or counter-

party to a financial instrument fails to meet its contractual obligations.

The default risk generally arises from trade receivables.

On the assets side, the carrying amounts reported also represent the

maximum default risk. In addition, there are no general set-off

agreements, with the exception of the set-off agreement described

under note 44 in the notes to the Consolidated Financial Statements.

Trade receivables

The default risk on receivables from customers may be rated as low,

as ongoing checks of the creditworthiness of new and existing

customers are performed and collateral is requested.

Risk management carries out an analysis and assessment of new

customers. Initially, these are analyzed individually with regard to their

creditworthiness, and standardized group-wide contracts are

concluded with customers. The analysis includes external credit

ratings, where available, as well as annual financial statements and

information from credit agencies and banks. Sales limits are set for

each customer and reviewed on an ongoing basis. All sales

exceeding these limits require the approval of risk management.

Default risks are largely hedged by means of credit insurance and

bankable security (guarantees, letters of credit). The default risks and

related controls are defined in internal guidelines. Most of the

business relationships with dealers and importers have been in place

for many years. By continuously monitoring the default risk and the

creditworthiness of customers, each receivable is individually

reviewed to ascertain the need for a value adjustment.

Notes to the consolidated nancial statements_2022

A summary of the default risk on trade receivables as of December 31, 2022 is presented in the following table.

Trade receivables

EURk

Not impaired in

creditworthiness

Creditworthiness

impaired

Total

Not overdue 242,774 0 242,774

Overdue 1-30 days 16,460 0 16,460

Overdue 31-60 days 4,123 0 4,123

Overdue 61-90 days 2,592 0 2,592

Overdue > 90 days 2,627 6,895 9,522

Total gross carrying amount 268,576 6,895 275,471

Impairment loss -190 -4,859 -5,049

Total 268,386 2,036 270,422

A summary of the default risk on trade receivables as of December 31, 2021 is presented in the following table.

Trade receivables

EURk

Not impaired in

creditworthiness

Creditworthiness

impaired

Total

Not overdue 129,036 0 129,036

Overdue 1-30 days 15,182 0 15,182

Overdue 31-60 days 1,884 0 1,884

Overdue 61-90 days 1,212 0 1,212

Overdue > 90 days 2,775 4,833 7,608

Total gross carrying amount 150,089 4,833 154,921

Impairment loss -103 -3,957 -4,060

Total 149,985 876 150,861

In order to determine the need for impairment of trade receivables for

which no individual value adjustments have been made, the PIERER

Mobility Group evaluated the defaults of recent years. The analysis

showed that there is only an insignificant risk for receivables with a

certain overdue status. The estimate of loss rates is based on

historical default rates in relation to overdue receivables and

considering forward-looking information.

As regards the current portfolio of trade and other receivables that

are neither impaired nor past due, there are no indications as of the

end of the reporting period that the debtors will not meet their

payment obligations. There are no concentration risks.

Estimation of expected credit losses

Based on the actual defaults observed in the past, an average default

rate of 0.07 % (previous year: 0.06 %) of trade receivables was

determined. The risk premium for developments in the future has

been adjusted to take account of the effects of increased inflation

rates as well as the Russian-Ukrainian war. An addition of EUR 87k

(previous year: EUR 23k) to the allowance for expected losses on

trade receivables was recognized.

The impairment for expected losses as of December 31, 2022 in the

PIERER Mobility Group totals EUR 190k (previous year: EUR 103k).

Changes in value adjustments

Changes in value adjustments related to trade receivables are

described in the notes under Note 28 “Trade receivables”.

Cash and cash equivalents, other assets and derivatives

Credit losses on cash and cash equivalents and other financial assets

are determined on the basis of average default rates and the rating of

the instrument. A significant change in the credit risk is determined

185

on the basis of ratings and delay in payment. Given the short-term

nature of these items and the good rating of the banks, the group

assumes that these portfolios are financial instruments with a low

default risk and that the expected losses are negligible.

The default risk on derivative financial instruments with positive

market value is limited to their replacement cost; as all the counter-

parties are banks of good creditworthiness, the default risk can be

classified as low. There are no indications of any additional

impairment loss requirements for financial assets.

• LIQUIDITY RISKS

It is a material objective of financial risk management in the PIERER

Mobility Group to ensure solvency and financial flexibility at all times.

Factors contributing to liquidity risks include, in particular, proceeds

from revenues being below the planning assumptions due to weaker

demand. For this purpose, the group maintains a liquidity reserve in

the form of unused credit lines (cash credits and guarantee credits)

and, if needed, in the form of cash in banks of a high creditworthiness.

Top priority is given to ensuring liquidity over the short and medium

term. Another major control parameter is the maximization of free

cash flow by cost-cutting measures, proactive working capital

management and reduced investment expenditure. From today’s

perspective, sufficient commitments have been given by our strategic

financing partners for securing current liquidity requirements.

Non-current liquidity requirements are met by the issuance of

promissory note loans and by taking out bank loans.

Notes to the consolidated nancial statements_2022

The contractually agreed (undiscounted) cash flows (payments of interest and principal) and the remaining terms to maturity of the financial

liabilities are composed of the following:

EURk Carrying

amount

12/31/2022

Cash flow 2023 Cash flow 2024 to 2027 Cash flow from 2028

Fixed

inter-

est

Va-

riable

interest

Repay-

ment

Fixed

interest

Va-

riable

interest

Repay-

ment

Fixed

interest

Va-

riable

interest

Repay-

ment

Financial liabilities

measured at fair value

Fair value – hedging

instruments

Other financial liabilities -

derivatives with negative

market value that have

already been assigned to

receivables

394 0 0 394 0 0 0 0 0 0

Other financial liabilities -

derivatives with negative

market value

(cash flow hedge)

254 0 0 254 0 0 0 0 0 0

Total 648 0 0 648 0 0 0 0 0 0

Financial liabilities not

measured at fair value

At amortized cost

Interest-bearing liabilities 467,365 5,110 3,944 52,577 12,332 10,309 258,245 4,622 1,333 155,045

Lease liabilities 67,890 0 1,010 21,803 0 1,853 35,707 0 3,150 10,380

Trade payables 737,602 0 0 737,602 0 0 0 0 0 0

Other financial liabilities

(current and non-current)

87,294 0 0 87,294 0 0 0 0 0 0

Total 1,360,151 5,110 4,954 899,276 12,332 12,162 293,952 4,622 4,483 165,425

Total 1,360,799 5,110 4,954 899,924 12,332 12,162 293,952 4,622 4,483 165,425

187

EURk Carrying

amount

12/31/2021

Cash flow 2022 Cash flow 2023 to 2026 Cash flow from 2027

Fixed

inter-

est

Va-

riable

interest

Repay-

ment

Fixed

interest

Va-

riable

interest

Repay-

ment

Fixed

interest

Va-

riable

interest

Repay-

ment

Financial liabilities measured at

fair value

Fair value - hedging instruments

Other financial liabilities -

derivatives with negative market

value that have already been as-

signed to receivables

479 0 0 479 0 0 0 0 0 0

Other financial liabilities -

derivatives with negative market

value (cash flow hedge)

1,509 0 0 1,509 0 0 0 0 0 0

Total 1,988 0 0 1,988 0 0 0 0 0 0

Financial liabilities not

measured at fair value

At amortized cost

Interest-bearing liabilities 497,944 5,292 1,202 34,838 16,330 3,837 282,787 6,312 942 179,134

Lease liabilities 65,442 0 797 19,909 0 1,552 34,784 0 3,319 10,749

Trade payables 395,581 0 0 395,581 0 0 0 0 0 0

Other financial liabilities

(current and non-current)

79,175 0 7 78,029 0 11 329 0 0 817

Total 1,038,142 5,292 2,006 528,357 16,330 5,400 317,900 6,312 4,261 190,700

Total 1,040,130 5,292 2,006 530,345 16,330 5,400 317,900 6,312 4,261 190,700

Liabilities that are affected by the supplier finance program are paid

on their due date. The associated cash outflows are taken into

account in liquidity planning. The supplier finance program results in

a concentration of risk. The number of suppliers is replaced by a

concentration on a creditor bank. If this creditor bank were to

terminate the supplier finance agreement, an additional liquidity risk

would generally be incurred, which is not of great significance due to

supplier payment goals that are almost identical. As cited in Note 34,

this relates to 47.5 % of trade payables as of the reporting date. The

concentration risk is regarded as low.

Notes to the consolidated nancial statements_2022

41. OTHER RISKS

• PROCESS RISKS

There is a risk that standardized processes will not be adhered to,

particularly in production. To minimize this risk, these processes are

documented in work instructions and handbooks. Employees are

trained in the use of this documentation and the documents are freely

accessible via various systems.

• RISKS DUE TO THE LEGAL FRAMEWORK

As the PIERER Mobility Group markets motorcycles and bikes and

non-e-bikes in a large number of countries, it is exposed to the risk of

changes in national regulations, terms of licenses, taxes, trade

restrictions, prices, income, and exchange restrictions as well as to

the risk of political, social, and economic instability, inflation, and

interest rate fluctuations.

Motorcycles registered for road use must comply with relevant

provisions concerning noise and exhaust gas emissions in order to be

approved for sale in each country. For all new models that are

homologated for road use, the Group complies with the Euro V

European emission standard that is relevant for motorcycles. The

possible offroad uses of motorcycles are considerably influenced by

the national and legal conditions in the countries where the vehicles

are sold. To counteract this risk, the respective regulations specific to

the given country are analyzed in detail prior to market launch and

continue to be monitored on an ongoing basis to be able to react in

good time to any changes.

The strong focus on research and development ensures that all

products of the PIERER Mobility Group will continue to meet

regulatory requirements in the future. Fully electric motorcycles

already complement the product range today. At the same time,

research and development is also focusing on other alternative drive

technologies.

• BUSINESS AND ENVIRONMENTAL RISK

Environmental risks may relate to products, production, procurement

and non-operating factors. More detailed examinations of environ-

mental risks can also be found in the sustainability report published

annually by PIERER Mobility AG and/or the reporting it contains in

accordance with the recommendations of the Task Force on

Climate-Related Financial Disclosures (TCFD) on climate-related

opportunities and risks.

With regard to the products, risks arise in relation to emissions such

as noise and pollutants or the leakage of harmful substances such as

fuel or oil. In order to minimize these risks that may be caused by

potential malfunctions, the homologation requirements are strictly

observed in addition to other measures, each vehicle tested for its

functionality and compliance with all limit values on our own test

benches, and a laboratory is in operation to test the interaction of

materials used with people and the environment. In addition, the

development of emission-free alternative drive systems and products

is becoming an increasingly important focus.

In production, environmental risks arise due to the potential leakage

of substances, waste and material residues on the premises.

Numerous measures are undertaken to prevent these. These include

waste management concepts, an engine oil treatment plant,

emergency plans for each site and professional extraction systems

for metal chips that deposit them in the container provided for this

purpose. Emissions from operating the test benches are also caught

by extraction systems.

Environmental risks in procurement may result from the environ-

ment-related shortage and rising prices of resources, cooperation

with suppliers that do not operate with sufficient environmental

measures, and emissions from delivery routes. In order to minimize

these risks, measures are taken that include auditing suppliers,

optimizing procurement channels, prioritizing regional procurement,

and the use of resource-saving, modern production technology.

In addition, environmental risks arise from weather-related and

climate-related phenomena, such as floods and other natural

disasters. Although it is not possible to completely rule out the risk of

natural disasters, the PIERER Mobility Group makes efforts to

minimize the risk of production processes being impaired by having

suitable emergency plans and insurance policies. Due to the

geographical location of the main plants in Mattighofen and

Munderfing, the risk of natural disasters occurring is considered to

be low.

• PERSONNEL-RELATED RISKS

Especially with regard to the growth course, risks may arise if key

staff leave the company. Efficient personnel management as well as

the constant pursuit of personnel development programs are

designed to counteract the risk of managerial staff leaving the

company. The risk of a shortage of skilled staff is minimized by a

comprehensive apprentice training program in our own apprentice

workshop. The aim is to recruit employees from the region and to

retain them in the long term.

Internal and external measures to increase employer attractiveness

are an essential element in conveying the predominant spirit of the

PIERER Mobility Group to potential new employees. With various

189

cross-media employee campaigns, the company was able to largely

meet its personnel requirements in the reporting year. 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

prevent any uncertainties.

The company has taken numerous measures to protect its employees

since the outbreak of the coronavirus pandemic in Austria.

Government measures and regulations were implemented compre-

hensively and quickly and, due to the forward-looking approach and

constant engagement with the authorities, some of them were

integrated into the day-to-day business even before they were legally

required. It was therefore possible to prevent large-scale spread

within the company. Even when there was no longer any legal

obligation to do so, many of these measures, such as regular disin-

fection of workplaces, have been maintained on a voluntary basis

because they were so successful.

Notes to the consolidated nancial statements_2022

VIII. FINANCIAL INSTRUMENTS AND CAPITAL MANAGEMENT

42. BASIC PRINCIPLES

The PIERER Mobility Group holds primary and derivative financial

instruments. Primary financial instruments mainly include trade

receivables, credit balances with credit institutions, liabilities owed to

credit institutions, trade payables, and financial liabilities. The

portfolio of primary financial instruments is shown in the consolidated

statement of financial position and described in the notes to the

consolidated financial statements. Derivative financial instruments

are generally used to hedge existing interest rate fluctuation and

foreign currency risks. The use of derivative financial instruments is

subject to appropriate authorization and control procedures in the

group. The link to a hedged item is mandatory; trading transactions

are not permitted. Purchases and sales of all financial instruments are

recognised on the settlement date.

ACCOUNTING POLICIES

Categorization will take place in accordance with the contractual

cash flows and the business models on which they are based. In this

regard, the following measurement categories are provided by IFRS 9:

• AC category: At amortized cost using the effective interest method

• FVOCI category: At fair value, changes to the fair value are

recorded under other comprehensive income

• FVPL category: At fair value, changes to the fair value are recorded

in the income statement

In the case of equity instruments (such as shares in companies not

listed on the stock exchange), the FVOCI option can be exercised.

This will lead to changes in the fair value being recorded under other

comprehensive income, meaning that it will no longer be possible to

regroup the changes to fair value accumulated under other compre-

hensive income in the income statement. Insofar as this option is not

exercised, these will be assigned to the FVPL category, under which

all changes to the fair value will be recorded in the income statement.

Receivables and other assets upon initial recognition are measured at

fair value and in subsequent periods are measured at amortized cost

of acquisition. Foreign currency receivables are translated at the

closing exchange rate on the reporting date. Financial receivables are

classified as “at amortized cost” and are measured at amortized cost.

That portion of trade receivables that is part of the ABS or factoring

program is allocated to the category “Fair Value through Profit and

Loss” (FVPL).

Financial liabilities are measured at amortized cost of acquisition.

Financial liabilities are assigned to the “at amortized cost” category.

Any difference between the amount received and the amount

repayable is apportioned over the term to maturity using the effective

interest method and recognized in financial result. The fundraising

costs incurred in connection with borrowings were amortized to

profit or loss using the effective interest method. Liabilities are

measured at amortized cost. Liabilities denominated in foreign

currencies are translated at the closing rate.

All financial instruments in the FVPL category are measured at fair

value through profit or loss on the basis of the criteria in IFRS 9

(business model or SPPI test). The fair value option was not exercised.

Impairment losses

Trade receivables do not exhibit any material financing components.

For that reason, the simplified method for determining the expected

credit loss is used; this involves accounting for all instruments

with a risk provision, which is ind

ependent of their credit quality,

in the amount of the expected losses over the term to maturity.

This amounts to less than twelve months for trade receivables

and therefore corresponds to the 12-month loss. For details of the

amounts involved, please refer to Note 40 “Financial risks”.

In order to determine the expected credit loss, historic default data

for receivables were collected over the last eight to ten years and

split according to geographic regions. Current economic factors and

forecasts are also taken into account.

Individual valuation adjustments are made to financial assets if

they are deemed to be uncollectible or partially uncollectible. Signs

that an individual allowance is required are financial difficulties,

insolvency, breach of contract or considerable delay in payment

on the part of the customer. Individual value adjustments consist

of numerous individual items, none of which is material when

considered in isolation. Financial assets are only derecognized

directly if the contractual rights to receive payment cease to exist (in

particular in the case of insolvency). If, in a subsequent period, the

amount of the impairment loss decreases and the decrease can be

related objectively to an event occurring after the impairment was

recognized, the previously recognized impairment loss is reversed by

adjusting the allowance account.

Hedge accounting

The regulations on hedge accounting are applied in accordance with

IFRS 9. According to IFRS 9, the fair value of an option, the forward

element of a forward contract and any foreign currency basis spreads

can be excluded from the designation of a financial instrument as a

hedging instrument and accounted for as the cost of hedging. In this

regard, fluctuations in the value of these components that have

optionally not been designated are recorded as hedging costs under

other comprehensive income and reclassified in the income state-

191

ment in the event that the hedged item is recognized in profit or loss.

43. CLASSIFICATION AND FAIR VALUE

The fair value of a financial instrument is determined by means of

quoted market prices for identical instruments in active markets

(Level 1). If no quoted market prices in active markets are available for

the instrument, the fair value is determined by means of valuation

techniques for which the material inputs are based exclusively on

observable market data (Level 2). In all other cases, the fair value is

determined on the basis of valuation techniques for which at least

one material input is not based on observable market data (Level 3).

Reclassifications from one level to another are taken into account at

the end of the reporting period. There were no transfers between

levels in the financial year.

The table below shows the valuation techniques used to determine fair value as well

as the significant unobservable input factors used.

Financial instruments measured at fair value

Type Measurement technique Significant

unobservable input factors

Connection between

significant unobservable input factors and

measurement at fair value

Forward currency

transactions and interest

rate swaps

Fair values are based on the

market values determined using

recognized valuation models

(discounted cash flows). They

are regularly checked

for plausibility.

Not applicable Not applicable

Other financial assets

(securities)

Securities are measured at the

current stock-exchange price on

the reporting date.

Not applicable Not applicable

Financial instruments not measured at fair value

Type Measurement technique Significant unobservable

input factors

Promissory note loans, financial

liabilities

Discounted cash flows Risk premium for own

credit risk

Notes to the consolidated nancial statements_2022

The table below shows the carrying amounts and fair values of

financial assets (financial instrument shown on the assets side),

broken down by class and IFRS 9 measurement category. However, it

does not provide information on the fair value or measurement level

of financial assets and financial liabilities not measured at fair value if

the carrying amount is a reasonable approximation of fair value.

EURk Fair value Carrying amount 12/31/2022

Carrying

amount

12/31/2022

Fair value

12/31/2022

Level 1 Level 2 Level 3 Total AC

Amortised

Cost

FVOCI

Fair Value

through OCI

FVOCI

Fair Value

through OCI

(without recycling)

FVPL

Fair Value

through P&L

Fair Value -

hedging

instruments

Financial assets measured at fair value

Other current assets - derivatives with positive market value that have already been

assigned to receivables (fair value hedge)

17,281 17, 281

- 17,281 - 17,281 - - - - 17,281

Other current assets - derivatives with positive market value

(cash flow hedge)

18,519 18,519 - 18,519 - 18,519 - - - - 18,519

Trade receivables 6,765 6,765 - - 6,765 6,765 - - - 6,765 -

Other financial assets 216 216 - - 216 216 - - 216 - -

Total 42,781

Financial assets not measured at fair value

Cash and cash equivalents 278,738 -

- - - - 278,738 - - - -

Trade receivables 263,657 - - - - - 263,657 - - - -

Other financial assets 34,349 - - - - - 34,349 - - - -

Total 576,744

Total 619,525

EURk Fair value Carrying amount 12/31/2021

Carrying

amount

12/31/2021

Fair value

12/31/2021

Level 1 Level 2 Level 3 Total AC

Amortised

Cost

FVOCI

Fair Value

through OCI

FVOCI

Fair Value

through OCI

(without recycling)

FVPL

Fair Value

through P&L

Fair Value -

hedging

instruments

Financial assets measured at fair value

Other current assets - derivatives with positive market value

(cash flow hedge)

3,411 3,411

- 3,411 - 3,411 - - - - 3 , 411

Trade receivables 4,615 4,615 - - 4,615 4,615 - - - 4,615 -

Other financial assets 1,410 1,410 1,194 - 216 1,410 - - 216 1,194 -

Total 9,436

Financial assets not measured at fair value

Cash and cash equivalents 373,509 -

- - - - 373,509 - - - -

Trade receivables 146,247 - - - - - 146,247 - - - -

Other financial assets 51,020 - - - - - 51,020 - - - -

Total 570,776

Total 580,212

Receivables sold in connection with the current ABS and factoring

program are fully derecognized in accordance with the rules under

IFRS 9. Under the ABS program, trade receivables insured on a

revolving monthly basis are sold up to a maximum volume of

EUR 250,000k (previous year: EUR 250,000k), and under the factoring

program used up to a volume of EUR 125,000k (previous year:

EUR 65,000k). As of the reporting date, trade receivables of

EUR 264,904k (previous year: EUR 199,281k) had been sold to third

parties. Up to a contractually defined amount, the PIERER Mobility

Group continues to bear a risk from credit risk related defaults. As of

December 31, 2022, the expected risk of loss was EUR 3,294k

(previous year: EUR 3,321k). The expected loss is recorded as a

193

EURk Fair value Carrying amount 12/31/2022

Carrying

amount

12/31/2022

Fair value

12/31/2022

Level 1 Level 2 Level 3 Total AC

Amortised

Cost

FVOCI

Fair Value

through OCI

FVOCI

Fair Value

through OCI

(without recycling)

FVPL

Fair Value

through P&L

Fair Value -

hedging

instruments

Financial assets measured at fair value

Other current assets - derivatives with positive market value that have already been

assigned to receivables (fair value hedge)

17,281 17, 281

- 17,281 - 17,281 - - - - 17,281

Other current assets - derivatives with positive market value

(cash flow hedge)

18,519 18,519 - 18,519 - 18,519 - - - - 18,519

Trade receivables 6,765 6,765 - - 6,765 6,765 - - - 6,765 -

Other financial assets 216 216 - - 216 216 - - 216 - -

Total 42,781

Financial assets not measured at fair value

Cash and cash equivalents 278,738 -

- - - - 278,738 - - - -

Trade receivables 263,657 - - - - - 263,657 - - - -

Other financial assets 34,349 - - - - - 34,349 - - - -

Total 576,744

Total 619,525

EURk Fair value Carrying amount 12/31/2021

Carrying

amount

12/31/2021

Fair value

12/31/2021

Level 1 Level 2 Level 3 Total AC

Amortised

Cost

FVOCI

Fair Value

through OCI

FVOCI

Fair Value

through OCI

(without recycling)

FVPL

Fair Value

through P&L

Fair Value -

hedging

instruments

Financial assets measured at fair value

Other current assets - derivatives with positive market value

(cash flow hedge)

3,411 3,411

- 3,411 - 3,411 - - - - 3 , 411

Trade receivables 4,615 4,615 - - 4,615 4,615 - - - 4,615 -

Other financial assets 1,410 1,410 1,194 - 216 1,410 - - 216 1,194 -

Total 9,436

Financial assets not measured at fair value

Cash and cash equivalents 373,509 -

- - - - 373,509 - - - -

Trade receivables 146,247 - - - - - 146,247 - - - -

Other financial assets 51,020 - - - - - 51,020 - - - -

Total 570,776

Total 580,212

liability and expensed at the time of sale and is disclosed under other

current liabilities. The carrying amount represents the fair value of the

ongoing commitment. Expenses of EUR -27k (previous year:

EUR 2,327k) were recognized in the income statement during the

period under review; the cumulative total since the commencement

of the transaction is EUR 3,294k (previous year: EUR 3,321k).

Notes to the consolidated nancial statements_2022

The table below shows the carrying amounts and fair values of

financial liabilities (financial instruments shown on the liabilities side),

broken down by class and IFRS 9 measurement category. However, it

does not provide information on the fair value or measurement level

of financial liabilities not measured at fair value if the carrying amount

is a reasonable approximation of fair value.

EURk Fair value Carrying amount 12/31/2022

Carrying

amount

12/31/2022

Classification

under IFRS 9

Fair value

12/31/2022

Level 1 Level 2 Level 3 Total AC

Amortised

Cost

FVOCI

Fair Value

through OCI

FVOCI

Fair Value

through OCI

(without recycling)

FVPL

Fair Value

through P&L

Fair Value -

hedging

instruments

Financial liabilities measured at fair value

Fair value - hedging instruments

Other financial liabilities - derivatives with negative market value that have already

been assigned to receivables

394 FVPL 394

- 394 - 394 - - - - 394

Other financial liabilities - derivatives with negative market value

(cash flow hedge)

254 FVOCI 254 - 254 - 254 - - - - 254

Total 648

Financial liabilities not measured at fair value

At amortized cost

Interest-bearing liabilities 467,365 AC 449,181

- - 449,181 449,181 467,365 - - - -

Trade payables 737,602 AC - - - - - 737,602 - - - -

Other financial liabilities (current and non-current) 87,294 AC - - - - - 87,294 - - - -

Total 1,292,261

Total 1,292,909

EURk Fair value Carrying amount 12/31/2021

Carrying

amount

12/31/2021

Classification

under IFRS 9

Fair value

12/31/2021

Level 1 Level 2 Level 3 Total AC

Amortised

Cost

FVOCI

Fair Value

through OCI

FVOCI

Fair Value

through OCI

(without recycling)

FVPL

Fair Value t

hrough P&L

Fair Value -

hedging

instruments

479 FVPL 479

- 479 - 479 - - - - 479

Financial liabilities measured at fair value

Fair value - hedging instruments

Other financial liabilities

- derivatives with negative market value that have already

been assigned to receivables

Other financial liabilities - derivatives with negative market value

(cash flow hedge)

1,509 FVOCI 1,509 - 1,509 - 1,509 - - - - 1,509

Total 1,988

Financial liabilities not measured at fair value

At amortized cost

Interest-bearing liabilities 497,944 AC 519,425

- - 519,425 519,425 497,944 - - - -

Trade payables 395,581 AC - - - - - 395,581 - - - -

Other financial liabilities (current and non-current) 79,175 AC - - - - - 79,175 - - - -

Total 972,700

Total 974,688

195

EURk Fair value Carrying amount 12/31/2022

Carrying

amount

12/31/2022

Classification

under IFRS 9

Fair value

12/31/2022

Level 1 Level 2 Level 3 Total AC

Amortised

Cost

FVOCI

Fair Value

through OCI

FVOCI

Fair Value

through OCI

(without recycling)

FVPL

Fair Value

through P&L

Fair Value -

hedging

instruments

Financial liabilities measured at fair value

Fair value - hedging instruments

Other financial liabilities - derivatives with negative market value that have already

been assigned to receivables

394 FVPL 394

- 394 - 394 - - - - 394

Other financial liabilities - derivatives with negative market value

(cash flow hedge)

254 FVOCI 254 - 254 - 254 - - - - 254

Total 648

Financial liabilities not measured at fair value

At amortized cost

Interest-bearing liabilities 467,365 AC 449,181

- - 449,181 449,181 467,365 - - - -

Trade payables 737,602 AC - - - - - 737,602 - - - -

Other financial liabilities (current and non-current) 87,294 AC - - - - - 87,294 - - - -

Total 1,292,261

Total 1,292,909

EURk Fair value Carrying amount 12/31/2021

Carrying

amount

12/31/2021

Classification

under IFRS 9

Fair value

12/31/2021

Level 1 Level 2 Level 3 Total AC

Amortised

Cost

FVOCI

Fair Value

through OCI

FVOCI

Fair Value

through OCI

(without recycling)

FVPL

Fair Value t

hrough P&L

Fair Value -

hedging

instruments

Financial liabilities measured at fair value

Fair value - hedging instruments

Other financial liabilities - derivatives with negative market value that have already

been assigned to re-ceivables

479 FVPL 479

- 479 - 479 - - - - 479

Other financial liabilities - derivatives with negative market value

(cash flow hedge)

1,509 FVOCI 1,509 - 1,509 - 1,509 - - - - 1,509

Total 1,988

Financial liabilities not measured at fair value

At amortized cost

Interest-bearing liabilities 497,944 AC 519,425

- - 519,425 519,425 497,944 - - - -

Trade payables 395,581 AC - - - - - 395,581 - - - -

Other financial liabilities (current and non-current) 79,175 AC - - - - - 79,175 - - - -

Total 972,700

Total 974,688

Notes to the consolidated nancial statements_2022

The net profit or loss from the financial instruments by IFRS 9 measurement category includes net gains/losses,

total interest income/expenses and impairment losses and is made up as follows:

2022

EURk

From

Interest

From

subsequent

measurement

to fair value

From

allowance

From

disposal

income

From foreign

exchange

valuation

Net income

(total)

Financial assets -

amortized cost (AC)

4,023 0 -992 -450 -1,676 905

Fair Value through OCI (FVOCI) -

equity instruments

0 0 0 0 0 0

Fair Value through PL (FVPL) -

equity instruments

12 17 0 81 0 110

Other financial liabilities -

amortized cost (AC)

-18,102 0 0 0 441 -17,661

Total -14,067 17 -992 -369 -1,235 -16,646

2021

EURk

From

Interest

From

subsequent

measurement

to fair value

From

allowance

From

disposal

income

From foreign

exchange

valuation

Net income

(total)

Financial assets -

amortized cost (AC)

1,865 0 -122 0 8,484 10,227

Fair Value through OCI (FVOCI) -

equity instruments

0 0 0 0 0 0

Fair Value through PL (FVPL) -

equity instruments

0 365 0 0 0 365

Other financial liabilities -

amortized cost (AC)

-12,487 0 0 0 0 -12,487

Total

-10,622 365 -122 0 8,484 -1,895

Changes in allowances and the derecognition of financial assets

(amortized cost) are disclosed in other operating expenses for the

relevant overhead areas. The remaining components of the net result

are included in financial income and financial expenses, respectively.

197

44. SET- OFF OF FINANCIAL ASSETS AND LIABILITIES

The group enters into set-off agreements with banks in connection

with derivatives. Generally, the amounts owed under such

agreements by each counterparty on a given day for all outstanding

transactions in the same currency are aggregated into a single net

amount payable by one party to the other. In certain cases – e.g.

when a credit event such as a default occurs – all outstanding trans-

actions under the agreement are terminated, their value as of

termination is determined, and only a single net amount is payable for

settling all transactions. These items are not set off in the statement

of financial position, as such, as the net set-off of multiple transac-

tions under the same framework agreements does not generally

occur.

The tables below show financial assets and liabilities that have

actually been offset along with amounts that are subject to a set-off

agreement but which have not been offset, as they do not fulfill the

criteria for set-off prescribed under IFRS.

EURk Financial

assets (gross)

Offset balance

items (gross)

Accounted

financial

assets (net)

Effect of

general

offsetting

agreements

Net amounts

Financial assets 2022

Other financial assets - Derivatives with positive

market value that have already been assigned to

receivables

Forward currency transactions 17,803 0 17,803 -254 17,549

Interest rate swaps 17,998 0 17,998 0 17,998

Total 35,801 0 35,801 -254 35,547

Financial assets 2021

Other financial assets - Derivatives with positive

market value that have already been assigned to

receivables

Forward currency transactions 385 0 385 -341 44

Interest rate swaps 3,026 0 3,026 0 3,026

Total 3,411 0 3,411 -341 3,070

Notes to the consolidated nancial statements_2022

EURk Financial

assets (gross)

Offset balance

items (gross)

Accounted

financial

assets (net)

Effect of

general

offsetting

agreements

Net amounts

Financial liabilities 2022

Other financial liabilities - Derivatives with

negative market value that have already been

assigned to receivables

Forward currency transactions 330 0 330 -254 76

Interest rate swaps 3 0 3 0 3

Total 333 0 333 -254 79

Financial liabilities 2021

Other financial liabilities - Derivatives with

negative market value that have already been

assigned to receivables

Forward currency transactions 1,940 0 1,940 -341 1,599

Interest rate swaps 48 0 48 0 48

Total 1,988 0 1,988 -341 1,647

45. HEDGES

The group enters into derivative financial instruments (forward

currency transactions and interest rate swaps) to hedge foreign

currency and interest rate risk. The aim of using derivative financial

instruments is to offset fluctuations in cash flows from future transac-

tions. Expected revenues in foreign currencies serve as the basis for

planning future cash flows.

The group only recognizes changes in the spot rate component of

forward currency transactions as a hedging instrument in cash flow

hedges. The change in the forward component is accounted for

separately as a cost of hedging and transferred to a reserve for

hedging costs in equity or reclassified in the income statement if the

hedged item affects profit or loss (as part of the financial result).

Derivatives are generally measured at fair value in accordance with

IFRS 9. The group applies the rules for cash flow hedge accounting

defined by IFRS 9 to these derivative financial instruments.

However, the main contractual criteria of the hedged item and the

hedging instrument are identical but oppositely structured (“critical

terms match”), ensuring an economic context for the hedging

relationship. As of December 31, 2022 (as well as during the previous

year), there were no derivative financial instruments for which no

hedging relationships were able to be established.

A cash flow hedge is present if variable cash flows from recognized

assets and/or liabilities or forecast business transactions that are

subject to a market price risk are being hedged. If the requirements

for a cash flow hedge are met, the effective portion of the change in

the market value of hedging instruments must be recognized directly

in consolidated equity. However, it is not recognized in profit or loss

until the hedged item transaction occurs.

Where foreign currency hedges are used, the change in the market

value of the derivatives is recognized in profit or loss. From that date,

the change in the market value can be compared to the end-of-period

closing rate of the foreign currency trade payables or foreign

currency trade receivables. Any changes in earnings that are caused

by the ineffectiveness of derivative financial instruments are

recognized in profit or loss in the consolidated income statement.

To measure the effectiveness of a currency hedge, the hedged items

and the hedging transactions are grouped together in so-called

maturity bands according to the hedged risk. The maturity bands

should not cover more than one quarter-year. The prospective effec-

tiveness is assessed at the inception of the hedging relationship and

reviewed at each measurement date as well as in the event of a

significant change in the circumstances that affect the criteria for

assessing effectiveness. In the case of interest rate hedges,

199

prospective effectiveness is measured using a sensitivity analysis

and retrospective effectiveness testing is performed using the dollar

offset approach.

Derivatives are measured at fair value. The fair value is the market

value and is determined using accepted methods of financial

mathematics. The basis for measuring the derivatives is the market

data (interest rate, exchange rates, etc.) prevailing on the reporting

date. The forward rate applicable on the reporting date is used for

measuring forward currency transactions. In the case of positive

market values, the creditworthiness of the counterparty is included in

the measurement by means of a credit value adjustment (CVA). In the

case of negative market values, a debit value adjustment (DVA) is

deducted in order to account for the group's own default risk. Special

models are used to estimate the measurement. They are checked for

plausibility by means of bank valuations.

The following derivative financial instruments used as hedging instruments are employed

as of December 31, 2022 or December 31, 2021:

12/31/2022 Currency Notional amount

in 1000 local

currency

Market

values

in EURk

Gross

Exposures

in EURk

Term

up to 1

year

Average

foreign

exchange

rate

Term

1 - 5

years

Average

foreign

exchange

rate

Forward

currency

transactions

USD 180,000 11,028 198,411 180,000 1 0 -

JPY 3,750,000 396 -43,076 3,750,000 141.64 0 -

CAD 45,000 1,965 111, 672 45,000 1.37 0 -

GBP 25,000 676 105,214 25,000 0.87 0 -

CHF 28,115 14 47,717 28,115 0.98 0 -

AUD 64,000 3,075 116,229 64,000 1.46 0 -

NZD 13,000 256 14,122 13,000 1.64 0 -

CNY 60,000 62 -38,841 60,000 7.42 0 -

Notional amount

in 1000 local

currency

Market

values

in EURk

Annualy

Exposures

in EURk

Term

up to 1

year

Average

interest

rate

Term

1 - 5

years

Average

interest

rate

Interest rate

swaps

172,316 17,995 0 433 2.11% 171,883 -2.69%

Notes to the consolidated nancial statements_2022

12/31/2021

Currency Notional amount

in 1000 local

currency

Market

values

in EURk

Gross

Exposures

in EURk

Term

up to 1

year

Average

foreign

exchange

rate

Term

1 - 5

years

Average

foreign

exchange

rate

Forward

currency

transactions

USD 60,000 -787 46,156 60,000 0.77 - -

JPY 600,000 30 -35,946 600,000 65.79 - -

CAD 49,000 116 68,080 49,000 - - -

GBP 38,000 -411 88,909 38,000 0.85 - -

CHF 19,744 -133 36,270 19,744 1.04 - -

AUD 51,000 -418 83,157 51,000 1.58 - -

NZD 14,000 48 15,975 14,000 1.67 - -

Notional amount

in 1000 local

currency

Market

values

in EURk

Annualy

Exposures

in EURk

Term

up to 1

year

Average

interest

rate

Term

1 - 5

years

Average

interest

rate

Interest rate

swaps

166,144 2,979 0 893 2,11 % 165,221 0,25 %

In cash flow hedge accounting, both variable future cash flows arising

from non-current liabilities with maturity dates up to 2025 or up to

2031 and future operating cash flows (receipts as well as payments)

planned for the next twelve months are hedged.

At the reporting date, the amounts relating to items designated as

hedged items were as follows.

EURk Cash flow hedge

reserve

Costs of hedging

hedge reserve

Balances remaining in the cash flow hedge

reserve from hedging relationships for which

hedge accounting is no longer applied

12/31/2022

Foreign currency risk

Sales and receivables 2,639 -541 0

Inventory purchases 309 0 0

Interest rate risk

Variable-rate instruments 13,729 0 0

Total 16,677 -541 0

12/31/2021

Foreign currency risk

Sales and receivables -1,242 486 0

Inventory purchases 144 0 0

Interest rate risk

Variable-rate instruments 1,985 0 0

Total 887 486 0

201

The hedging transactions designated as of the reporting date are composed of the following:

EURk Nominal amount Carrying amount Line item in the statement of financial

position where the hedging instrument

is included

Assets Liabilities

12/31/2022

Foreign currency risk

Foreign currency forwards -

sales and receivables

312,442 17,284 -217 Other current assets, other

current liabilities

Foreign currency forwards -

inventory purchases

35,481 519 -113 Other current assets, other

current liabilities

Interest rate risk

Interest rate swaps 172,316 17,998 -3 Other current liabilities

Total 520,239 35,801 -333

12/31/2021

Foreign currency risk

Foreign currency forwards -

sales and receivables

183,302 349 -1,934 Other current assets, other

current liabilities

Foreign currency forwards -

inventory purchases

4,615 36 -6 Other current assets, other

current liabilities

Interest rate risk

Interest rate swaps 16 6 ,114 3,026 -48 Other current liabilities

Total 354,031 3 ,411 -1,988

Notes to the consolidated nancial statements_2022

The cash flow hedge reserve and the reserve for hedging costs (after taxes) developed as follows:

EURk Reserve for

hedging costs

Cash flow

hedge reserve

Total

As of 1/1/2021 -102 -938 -1,040

Amount reclassified to the income statement

Realization of hedged item (recognized in revenues - currency risk) 0 -1,265 -1,265

Realization of hedged item (recorded in net interest income - currency risk) 102 0 102

Realization of hedged item (recorded in net interest income -

interest rate risk)

0 373 373

Inventories

Realization of hedged item (recorded in inventories / production costs -

currency risk)

0 156 156

Change in fair value

Addition - interest rate risk 0 2,417 2,417

Addition - currency risk 486 143 629

Cash flow hedge reserve from initial consolidation 0 0 0

Balance as of 12/31/2021 = balance as of 1/1/2022 486 886 1,372

Amount reclassified to the income statement

Realization of hedged item (recognized in revenues - currency risk) 0 1,242 1,242

Realization of hedged item (recorded in net interest income - currency risk) -486 0 -486

Realization of hedged item (recorded in net interest income -

interest rate risk)

0 -230 -230

Inventories

Realization of hedged item (recorded in inventories / production costs -

currency risk)

0 -144 -144

Change in fair value

Addition - interest rate risk 0 11, 975 11, 975

Addition - currency risk -541 2,948 2,407

Cash flow hedge reserve from initial consolidation 0 0 0

As of 12/31/2022 -541 16,677 16,136

As of December 31, 2022, ineffective components of the derivative financial instruments classified as cash flow hedges

yielded a net result (after tax) of EUR 0k (previous year: EUR 0k).

203

FORWARD CURRENCY TRANSACTIONS

The PIERER Mobility Group enters into forward currency transactions

to hedge intended future revenue and cost of materials denominated

in foreign currency against the risk of exchange rate fluctuations.

INTEREST RATE SWAPS

In order to control the interest rate risk in relation to variable euro

interest rates, amortizing interest rate swaps with a nominal value of

EUR 50,000k and a term of 10 years were entered into during the 2021

financial year. In 2020, USD interest rate swaps with a nominal value

of USD 130,000k and a term of 5 years were concluded to hedge

variable USD financing.

As of December 31, 2022, the outstanding notional amount was

EUR 172,316k (previous year: EUR 166,114k).

In the 2022 financial year, EUR 17k (previous year: EUR -365k) from

the measurement of interest rate swaps was recognized in the

income statement.

46. CAPITAL MANAGEMENT

The aim of the group is to preserve a strong capital structure in order

to maintain investor, creditor and market confidence and to ensure

the company’s sustainable development. The Executive Board

regularly monitors the return on capital as well as the amounts of the

dividends that will be paid to the holders of ordinary shares.

The strategy of the PIERER Mobility Group aims to ensure that

PIERER Mobility AG and the other group companies have an equity

base that meets the local requirements. The principal key figures

used for capital management control are equity ratio, net financial

debt, gearing and the dynamic debt level. Some loan agreements

include financial covenants regarding the equity ratio and dynamic

debt level, non-compliance with which would lead to a premature

repayment of the financial liabilities. All financial covenants were met

in the reporting year.

The equity ratio is as follows:

EURk 12/31/2022 12/31/2021

Equity 914,396 765,551

Balance sheet total 2,550,635 2,033,719

Equity ratio 35.8% 37.6%

The net financial debt is defined on the basis of the current and

non-current financial liabilities (bonds, loans, lease liabilities and

other interest-bearing liabilities) minus cash and cash equivalents.

The objectives in this regard are to secure liquidity in the long term,

the efficient use of external financing, and minimizing the financial

risk while simultaneously optimizing returns.

EURk 12/31/2022 12/31/2021

Non-current financial liabilities 458,620 506,539

Current financial liabilities 76,635 56,847

535,255 563,386

Cash and cash equivalents -278,738 -373,509

Net financial debt 256,517 189,877

Notes to the consolidated nancial statements_2022

The key figures of “gearing” (ratio of net debt to equity) and “dynamic debt level” (ratio of net financial debt to EBITDA)

for monitoring the capital are as follows:

EURk 12/31/2022 12/31/2021

Equity 914,396 765,551

Net financial debt 256,517 189,877

Gearing 28.1% 24.8%

EURk 12/31/2022 12/31/2021

Net financial debt 256,517 189,877

EBITDA 381,108 332,202

Dynamic debt level 0.7 0.6

205

IX. LEASES

47. LEASES AS LESSEE (IFRS 16)

The PIERER Mobility Group has concluded rental and lease

agreements for the use of land, operating and administrative

buildings, or office space and storage areas, machines (including

CNC machines) and in respect of the vehicle fleet.

The PIERER Mobility Group also leases IT equipment with contractual

terms of between one and five years. These rental and lease

agreements are short-term and/or for items of low value. The group

has exercised the option under IFRS 16.5-.8 and has not recognized

any rights of use or leasing liabilities for these rental and lease

agreements.

Furthermore, leases have been entered into for tools (special leasing)

and machines with terms of 3-10 years.

Right-of-use assets and lease liabilities

The carrying amount of the right-of-use assets is as follows:

EURk Land and

buildings

Machinery Plant & office

furniture and

equipment

Total

2022

As of 1/1 29,269 17,527 16,090 62,886

- Depreciation and amortization -10,170 -5,673 -7,313 -23,156

+ Additions right-of-use assets 14,825 3,645 7,407 25,877

- Disposals right-of-use assets -574 0 -238 -812

+/- Currency effects, reclassifications 11 -1 184 194

Carrying amount as of 12/31/2022 33,361 15,498 16,130 64,989

2021

As of 1/1 29,991 16,180 13,891 60,063

- Depreciation and amortization -8,399 -5,429 -6,480 -20,308

+ Additions right-of-use assets 8,975 6,792 8,859 24,626

- Disposals right-of-use assets -1,419 0 -285 -1,704

+/- Currency effects, reclassifications 121 -16 105 210

Carrying amount as of 12/31/2021 29,269 17,527 16,090 62,886

Notes to the consolidated nancial statements_2022

The cash value of the minimum lease payments is as follows:

EURk Future minimum lease

payments

Interest payments Present value of future

minimum lease payments

2022

Up to 1 year 22,803 1,010 21,793

Longer than 1 year and up to 5 years 37,571 1,853 35,717

Over 5 years 13,530 3,150 10,380

Total 73,904 6,013 67,890

2021

Up to 1 year 20,706 797 19,909

Longer than 1 year and up to 5 years 36,336 1,552 34,783

Over 5 years 14,069 3,319 10,750

Total 71,111 5,668 65,442

Payment obligations under leases are disclosed in the consolidated statement of

financial position under financial liabilities, see Note 32.

Amounts recognized in the income statement and statement of cash flows

2022 - Leases according to IFRS 16 EURk

Interest expenses on lease liabilities 1,087

Income from sublease of right-of-use assets 214

Expenses relating to short-term leases 5,556

Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets 14,102

2021 - Leases according to IFRS 16 EURk

Interest expenses on lease liabilities 895

Income from sublease of right-of-use assets 208

Expenses relating to short-term leases 3,787

Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets 9,482

The expenses for leases for low-value assets relate to rental and

lease agreements for IT equipment.

The statement of cash flows recorded net cash outflows for leases

amounting to EUR 43,945k (previous year: EUR 32,387k). Cash flow

from financing activities included repayments of lease liabilities

amounting to EUR 23,414k (previous year: EUR 18,431k). The

remaining EUR 20,531k (previous year: EUR 13,956k) relate to

short-term and low-value leases as well as interest expenses and

income from subleases of right-of-use assets and are presented in

cash flow from operating activities.

207

Options for prolongation

Some rental and lease agreements contain options for prolongation,

which can be exercised by the group up to one year before the end of

the fixed term. Wherever possible, the group seeks to include options

for prolongation when concluding new rental contracts and leases in

order to ensure operational flexibility. On the date of provision, the

group assesses whether the right to exercise options for prolongation

is sufficiently certain. The group reassesses whether it is reasonably

certain that an option for prolongation will be exercised if a material

event or change in circumstances occurs that is within its control.

48. LEASES AS LESSOR (IFRS 16)

From the lessor's perspective, all leases are classified as operating

leases, as they are structured in such a way that the PIERER Mobility

Group essentially retains all the risks and opportunities associated

with ownership.

This does not apply to one sublease which the group classifies as a

finance lease. This relates to the sublease of a building which was

reported as a right of use under property, plant and equipment. No

new sublease was concluded and recognized in the 2022 financial

year. In addition, the group recognized interest income on leasing

receivables in 2022 amounting to EUR 10k (previous year: EUR 8k).

As of December 31, 2022, the leasing receivables from subleases

amounted to EUR 763k (previous year: EUR 850k). Of these, EUR 251k

(previous year: EUR 327k) is due in less than one year and EUR 511k

(previous year: EUR 523k) is due in 1-5 years.

Notes to the consolidated nancial statements_2022

X. EXPLANATIONS REGARDING RELATED PARTIES AND

THE CORPORATE BODIES

49. RELATED PARTY DISCLOSURES

According to the provisions of IAS 24, details of related party transac-

tions are to be provided.

On the reporting date of Saturday, December 31, 2022, 73.82 % of the

shares in PIERER Mobility AG were held by Pierer Bajaj AG, which is

50.10 % owned by Pierer Industrie AG. Furthermore, Pierer Konzern-

gesellschaft mbH holds 2.53 % of the shares in PIERER Mobility AG.

Pierer Industrie AG is 100.00 % owned by Pierer Konzerngesellschaft

mbH. The sole shareholder of Pierer Konzerngesellschaft mbH is

Stefan Pierer.

Stefan Pierer held the following key positions in the Pierer Konzern-

gesellschaft mbH Group as of December 31, 2022:

• Chairman of the Executive Board of Pierer Industrie AG, Wels

• Chairman of the Executive Board of Pierer Bajaj AG, Wels

• Chairman of the Executive Board of PIERER Mobility AG, Wels

• Chairman of the Executive Board of KTM AG, Mattighofen

• Chairman of the Supervisory Board of Pankl AG, Kapfenberg

• Chairman of the Supervisory Board of Pankl Racing Systems AG,

Kapfenberg

• Member of the Supervisory Board of SHW AG, Aalen, Germany

In the PIERER Mobility Group, transactions with related parties are

grouped according to “sharehold-er-related companies”, “associates”

and “other companies”.

PIERER Mobility AG is part of the same group as Pierer Konzernge-

sellschaft mbH, the ultimate parent company of the group, and its

subsidiaries and is included within the consolidated financial

statements of that group. All the companies included within the

consolidated financial statements of Pierer Kon-zerngesellschaft

mbH and controlled by Pierer Konzerngesellschaft mbH are shown as

related companies in the “shareholder-related companies” category.

Associates can be seen from the schedule of equity holdings (see

Chapter XII) and concern all investments accounted for using the

equity method.

Other companies are defined as all companies controlled by key

management. PIERER Mobility AG principally defines key

management as members of the Executive Board and Supervisory

Board and, where appropriate, further managers in key positions who

may exert a significant influence on the finance and business policy

decisions of the group. In addition, family members of key

management and their companies are also taken into account.

In the 2022 financial year and in the previous year, there were no

material transactions with related parties (apart from Executive Board

and Supervisory Board earnings, see Note 51.). The business transac-

tions with related companies are represented as follows according to

the grouping described:

EURk Shareholder related companies Associated companies Other companies

12/31/2022 12/31/2021 12/31/2022 12/31/2021 12/31/2022 12/31/2021

Receivables 26,887 32,013 44,669 11,494 3,884 2,474

Liabilities -10,153 -12,890 -20,782 -2,752 -8,342 -9,849

Revenues 4,023 2,551 57,586 35,291 17,613 17,835

Expenses -127,273 -118,548 -100,108 -32,365 -247,560 -223,712

Dividend -25,371 -7,372 0 0 -72 0

209

All transactions with related companies were carried out at arm’s

length. Materia

l business relationships are disclosed below:

SHAREHOLDER-RELATED COMPANIES:

Since the investment in 2014, PIERER Mobility AG has been a group

member of Pierer Konzerngesellschaft mbH, Wels, in accordance

with Section 9 of the Austrian Corporate Tax Act (KStG). KTM AG has

been a member of this tax group within the meaning of the Austrian

Corporate Tax Act since 2017. The taxable incomes of the group

members are allocated to the group parent. The tax compensation

between the group parent and each individual group member was

regulated by a group taxation and tax transfer agreement. Tax losses

are reserved at the level of the respective subsidiaries and can be

offset at this level against future tax profits.

In the 2022 financial year, expenses totaling EUR 26,347k were

incurred with Pierer Konzerngesellschaft mbH (previous year: EUR

33,078k) and interest income amounting to EUR 42k (previous year:

EUR 2k) was accrued. Furthermore, as of the reporting date, there

were outstanding liabilities amounting to EUR 4,017k (previous year:

EUR 8,223k) and receivables of EUR 13,487k (previous year: EUR

257k).

Since October 1, 2018, Pierer Industrie AG has formed a tax group for

VAT purposes with the PIERER Mobility Group. As of the reporting

date, the PIERER Mobility Group had receivables totaling EUR 9,789k

(previous year: EUR 8,933k), in particular from the tax group

settlement with Pierer Industrie AG.

In the 2022 financial year, Pierer Bajaj AG received dividends

amounting to EUR 24,781k (previous year: EUR 6,762k), and Pierer

Konzerngesellschaft mbH received dividends amounting to EUR 590k

(previous year: EUR 483k), from PIERER Mobility AG from the previous

financial year. In the previous year, a dividend of EUR 128k was also

paid to Pierer Industrie AG.

Other transactions with shareholder-related companies on the

expenses side mainly concern the Pankl Racing Group, which acts as

a supplier of purchased parts for the PIERER Mobility Group. The

Pankl Racing Group is part of the Pierer Industrie Group and is

controlled via Pankl AG.

ASSOCIATES:

For development and design services as well as services in relation to

brand development for Kiska GmbH, expenses amounting to EUR

17,860k (previous year: EUR 14,210k) were incurred in the past

financial year. As of December 31, 2022, accounts payable to Kiska

GmbH stood at EUR 1,231k (previous year: EUR 2,752k).

Other transactions with associates relate to the companies which are

explained below with an ongoing operating business relationship

described in each case.

KTM Asia Motorcycle Manufacturing Inc. was jointly founded in June

2016 in partnership with Ayala Corp. The company began the CKD

(completely knocked down) assembly of KTM motorcycles in the

Philippines in mid-2017.

The joint venture in China conducted in partnership with CF Moto

was established in the 2018 financial year under the name “Zhejiang

CFMOTO-KTMR2R Motorcycles Co., Ltd.” Mid-range motorcycles

have been produced in the Chinese city of Hangzhou since 2021.

With effect from November 15, 2022, 25.1 % of the shares in MV

Agusta Motor S.p.A. were acquired. In addition, in the 2022 financial

year the KTM Group concluded a cooperation agreement with the

traditional Italian manufacturer MV Agusta, with its head office in

Varese. Under this agreement, the KTM Group will take over the

purchasing and global distribution of MV Agusta products.

In addition, in December 2022 the group acquired 23 % of the shares

in Vöcklabrucker Metallgießerei Dambauer GmbH, Vöcklabruck. The

company produces aluminum castings and acts as a supplier of

series material for KTM AG.

OTHER COMPANIES:

Cooperation with the Indian Bajaj group has been in place since 2007.

The Bajaj Group is India’s second largest manufacturer of

motorcycles, selling approximately 4.3 million motorcycles and three-

wheelers during the last financial year (reporting date: March 31,

2022). The cooperation focuses on the joint development of

entry-level street motorcycles, which are produced in India and

distributed under the KTM brand by both companies in their

respective core markets.

The Deputy Chairman of the Supervisory Board of PIERER Mobility

AG, Rajiv Bajaj, is Managing Director and CEO of Bajaj Auto Ltd.,

Pune, India. Srinivasan Ravikumar, a member of the Supervisory

Board of PIERER Mobility AG, is a director of Bajaj Auto International

Holdings B.V., Amsterdam, Netherlands, and President of Business

Development and Assurance, Bajaj Auto Ltd., Pune, India. Following

the simplifi-cation of the ownership structure in the 2021 financial

year, Bajaj Auto International Holdings B.V., a subsidiary of Bajaj Auto

Ltd., now owns 49.9 % of Pierer Bajaj AG, which in turn is the majority

shareholder (73.82 %) of PIERER Mobility AG. As of December 31,

2022, there was a liability to Bajaj Auto Ltd. of EUR 7,788k (previous

year: EUR 9,681k). The expenses in the category “Other companies”

also largely relate to Bajaj Auto Ltd.

Notes to the consolidated nancial statements_2022

Third-party deliveries of motorcycles and spare parts were made to

dealers (KTM Braumandl GmbH, MX - KTM Kini GmbH, SO

Regensburg GmbH, KTM Wien GmbH). Revenues and receivables

from other companies mainly relate to transactions with these

dealers. The minority interests in the dealers are held via Pierer

Industrie AG.

50. CORPORATE BODIES OF PIERER MOBILITY AG

The following individuals were appointed as members of the Executive Board with collective power of representation:

Stefan P i e r e r , CEO

Friedrich R o i t h n e r , CFO

Hubert T r u n k e n p o l z , CSO

Viktor S i g l , MBA

The following individuals were appointed as members of the Supervisory Board:

Josef B l a z i c e k , Chairman

Rajiv B a j a j , Deputy Chairman

Dr. Iris Fi l z w i e s e r

Michaela F r i e p e ß

Srinivasan R a v i k u m a r

Klaus R i n n e r b e r g e r

51. EXECUTIVE BOARD AND SUPERVISORY BOARD REMUNERATION

The remuneration for the 2022 Executive Board of PIERER Mobility

AG includes salaries, benefits in kind, bonuses, severance payments

as well as payments into the company’s staff severance pay fund and

amounted to EUR 7,451k (previous year: EUR 8,256k). Furthermore,

earnings from previous periods for members of the Executive Board

did not result in any subsequent payment. In addition, there are no

agreements regarding a company retirement scheme for the

Executive Board and no pension fund payments were made to the

Executive Board in the 2022 financial year.

It is proposed that the remuneration to be paid to the Supervisory

Board of PIERER Mobility AG for the 2022 financial year (payout in the

2023 financial year) shall amount to a total of EUR 40k (previous year:

EUR 73k).

No loans or advances have been granted to the members of the

Supervisory Board of PIERER Mobility AG as of the reporting date.

XI. EVENTS AFTER THE REPORTING DATE

Events that occurred after December 31, 2022 and are material for the measurement of the assets and liabilities

have either been reflected in these financial statements or are not known.

211

XII. GROUP COMPANIES (SCHEDULE OF EQUITY HOLDINGS)

The schedule of equity holdings comprises all companies that have been included in the consolidated financial statements

in addition to the parent companies.

Company Initial con-

solidation

date

12/31/22 12/31/21

Interest

Consolida-

tion type

Interest

Consolida-

tion type

Fully consolidated companies:

KTM AG, Mattighofen 5/31/2005 100.00 FC 99.75 FC

KTM Immobilien GmbH, Mattighofen 5/31/2005 100.00 FC 99.75 FC

KTM North America, Inc., Murrieta, CA, USA 5/31/2005 100.00 FCA 99.75 FCA

KTM-Motorsports Inc., Murrieta, CA, USA 5/31/2005 100.00 FCA 99.75 FCA

KTM Japan K.K., Tokyo, Japan 5/31/2005 100.00 FCA 99.75 FCA

KTM-Racing AG, Frauenfeld, Switzerland 5/31/2005 100.00 FCA 99.75 FCA

KTM Sportcar GmbH, Mattighofen 5/31/2005 100.00 FC 99.75 FC

KTM Motorcycles S.A. Pty. Ltd., Midrand, South Africa 3/1/2009 100.00 FCA 99.75 FCA

KTM Sportmotorcycle Mexico C.V. de S.A., Lerma, Mexico 6/1/2009 100.00 FCA 99.75 FCA

KTM Sportmotorcycle GmbH, Mattighofen 3/31/2011 100.00 FC 99.75 FC

KTM-Sportmotorcycle India Private Limited, Pune, India 6/1/2012 100.00 FCA 99.75 FCA

Husqvarna Motorcycles GmbH, Mattighofen 1/1/2013 100.00 FC 99.75 FC

KTM Sportmotorcycle Deutschland GmbH, Ursensollen,

Germany

12/31/2013 100.00 FCA 99.75 FCA

KTM Switzerland Ltd., Frauenfeld, Switzerland 12/31/2013 100.00 FCA 99.75 FCA

KTM Sportmotorcycle UK Ltd., Northamptonshire, UK 12/31/2013 100.00 FCA 99.75 FCA

KTM-Sportmotorcycle Espana S.L., Terrassa, Spain 12/31/2013 100.00 FCA 99.75 FCA

KTM Sportmotorcycle France SAS, Saint-Priest, France 12/31/2013 100.00 FCA 99.75 FCA

KTM Sportmotorcycle Italia S.r.l., Meran, Italy 12/31/2013 100.00 FCA 99.75 FCA

KTM-Sportmotorcycle Nederland B.V., Malden, Netherlands 12/31/2013 100.00 FCA 99.75 FCA

KTM Sportmotorcycle Scandinavia AB, Örebro, Sweden 12/31/2013 100.00 FCA 99.75 FCA

KTM-Sportmotorcycle Belgium S.A., Gembloux, Belgium 12/31/2013 100.00 FCA 99.75 FCA

KTM Canada Inc., Chambly, Canada 12/31/2013 100.00 FCA 99.75 FCA

KTM Hungária Kft., Budapest, Hungary 12/31/2013 100.00 FCA 99.75 FCA

KTM Central East Europe s.r.o., Bratislava, Slovakia 12/31/2013 100.00 FCA 99.75 FCA

KTM Österreich GmbH, Mattighofen 12/31/2013 100.00 FC 99.75 FC

KTM Nordic Oy, Vantaa, Finnland 12/31/2013 100.00 FCA 99.75 FCA

KTM Sportmotorcycle d.o.o., Marburg, Slovenia 12/31/2013 100.00 FCA 99.75 FCA

KTM Czech Republic s.r.o., Pilsen, Czech Republic 12/31/2013 100.00 FCA 99.75 FCA

KTM Sportmotorcycle SEA PTE. Ltd., Singapore, Singapore 1/1/2014 100.00 FCA 99.75 FCA

Husqvarna Motorcycles North America, Inc., Murrieta, CA, USA 12/31/2013 100.00 FCA 99.75 FCA

Husqvarna Motorsports, Inc., Murrieta, CA, USA 4/1/2015 100.00 FCA 99.75 FCA

Husqvarna Motorcycles S.A. Pty. Ltd., Northriding, South Africa 4/1/2015 100.00 FCA 99.75 FCA

KTM Logistikzentrum GmbH, Mattighofen 9/16/2016 100.00 FC 99.75 FC

WP Suspension GmbH, Mattighofen 11/30/2016 100.00 FC 99.75 FC

WP Suspension North America, Inc., Murrieta, CA, USA 8/31/2017 100.00 FCA 99.75 FCA

Notes to the consolidated nancial statements_2022

Company Initial con-

solidation

date

12/31/22 12/31/21

Interest

Consolida-

tion type

Interest

Consolida-

tion type

KTM do Brasil Ltda., Sao Paulo, Brazil 12/31/2017 100.00 FCA 99.75 FCA

KTM Components GmbH, Munderfing 11/3 0/2007 100.00 FC 99.75 FC

WP Immobilien GmbH, Munderfing 4/30/2005 100.00 FC 99.75 FC

KTM Beteiligungs GmbH, Mattighofen 4/30/2018 100.00 FC 99.75 FC

KTM Australia Holding Pty Ltd., Prestons,

Australia

7/1/2019 100.00 FCA 99.75 FCA

KTM Australia Pty Ltd., Prestons, Australia 7/1/2019 100.00 FCA 99.75 FCA

HQVA Pty Ltd., Prestons, Australia 7/1/2019 100.00 FCA 99.75 FCA

KTM Motorcycles Distributers NZ Limited Wellington Central,

New Zealand

7/1/2019 100.00 FCA 99.75 FCA

Cero Design Studio S.L., Barcelona, Spain 10/1/2019 50.01 FCA 49.88 FCA

GASGAS Motorcycles GmbH, Mattighofen 10/31/2019 100.00 FC 99.75 FC

GASGAS Motorcycles Espana S.L.U.

(fomerly: Canepa Investments S.L.), Terrassa, Spain

1/1/2020 100.00 FCA 99.75 FCA

KTM MOTOHALL GmbH, Mattighofen 1/1/2020 90.00 FC 89.78 FC

KTM Racing GmbH, Mattighofen 2/29/2020 100.00 FC 99.75 FC

KTM Forschungs & Entwicklungs GmbH, Mattighofen, Austria 3/31/2021 100.00 FC 99.75 FC

KTM Technologies GmbH, Anif

10/1/2008 100.00 FC 99.75 FC

CFMOTO Motorcycles Distribution GmbH

(formerly: CFMOTO Europa GmbH), Mattighofen

6/25/2022 100.00 FC - -

PIERER IMMOREAL NORTH AMERICA LLC., Murrieta, CA, USA 7/7/2022 100.00 FCA - -

KTM (SHANGHAI) MOTO CO., LTD., Shanghai, China 7/15/2022 100.00 FCA - -

MV Agusta Motorcycles GmbH, Mattighofen, Austria 9/21/2022 74.90 FC - -

MV Agusta Motorcycles North America, Inc., Murrieta, CA, USA 9/30/2022 100.00 FCA - -

MV Agusta Services S.r.l., Meran, Italy 10/24/2022 100.00 FCA - -

PIERER Produktion GmbH, Munderfing 11/26/2022 100.00 FC - -

PIERER New Mobility GmbH

(formerly: PIERER E-Bikes GmbH), Munderfing

2/25/2020 100.00 FC 100.00 FC

PIERER New Mobility Deutschland GmbH (formerly: PIERER

E-Bikes Deutschland GmbH), Schweinfurt, Germany

12/31/2019 100.00 FCA 100.00 FCA

PIERER E-Bikes Suisse GmbH, Frauenfeld, Switzerland 12/31/2019 100.00 FCA 100.00 FCA

PIERER E-Bikes Espana S.L., Terrassa, Spain 12/31/2013 100.00 FCA 100.00 FCA

PIERER New Mobility France SAS (formerly: PIERER E-Bikes

France SAS), Saint-Priest, France

12/31/2013 100.00 FCA 100.00 FCA

PIERER New Mobility Italia S.r.l. (formerly: PIERER E-Bikes

Italia S.r.l), Meran, Italy

12/31/2013 100.00 FCA 100.00 FCA

PIERER E-Bikes Scandinavia AB, Örebro, Sweden 12/31/2013 100.00 FCA 100.00 FCA

PIERER New Mobility North America, Inc. (formerly: PIERER

E-Bikes North America Inc.), Murrieta, CA, USA

10/1/2020 100.00 FCA 100.00 FCA

PIERER New Mobility UK Ltd. (formerly: PIERER E-Bikes UK

Ltd.), Northamptonshire, UK

12/31/2013 100.00 FCA 51.71 FCA

PIERER New Mobility Benelux (formerly: PIERER E-Bikes

Benelux), Gembloux, Belgium

11/29/2021 100.00 FCA 100.00 FCA

Felt GmbH, München, Germany 11/17/2021 - - 100.00 FCA

213

Company Initial con-

solidation

date

12/31/22 12/31/21

Interest

Consolida-

tion type

Interest

Consolida-

tion type

PIERER & MAXCOM MOBILITY OOD, Plovdiv, Bulgaria 12/2/2021 50.00 FCA 50.00 FCA

PIERER E-Bikes Asia Ltd., Taichung City, Taiwan 5/25/2022 100.00 FCA - -

PIERER NEW MOBILITY AUSTRALIA PTY LTD, New South

Wales, Australia

10/13/2022 100.00 FCA - -

PIERER E-Commerce GmbH, Munderfing

(formerly: HDC GmbH, Wels)

12/31/2016 100.00 FC 100.00 FC

PIERER E-Commerce North America Inc., Murrieta, CA, USA 6/21/2022 100.00 FCA - -

PIERER Innovation GmbH, Wels 3/31/2018 100.00 FC 100.00 FC

DealerCenter Digital GmbH, Landshut, Germany

7/31/2021 75.46 FCA 75.46 IEA

Avocodo GmbH, Linz 4/30/2019 100.00 FC 100.00 FC

Platin 1483. GmbH, Schweinfurt, Germany 12/31/2019 100.00 FCA 100.00 FCA

Associated companies:

KTM Asia Motorcycle Manufacturing Inc., Binan, Laguna,

Philippines

- 40.00 IEA 39.90 IEA

Zhejiang CFMOTO-KTMR2R Motorcycles Co., Ltd., Hangzhou

City, Zhejiang, China

- 49.00 IEA 48.88 IEA

MV Agusta Motor S.P.A., Varese, Italy 25.10 IEA - - -

Vöcklabrucker Metallgießerei Dambauer GmbH, Vöcklabruck 23.00 IE - -

Kiska GmbH, Anif - 50.00 IE 50.00 IE

Other non-current financial assets:

AC styria Mobilitätscluster GmbH, Grambach - 12.33 - 12.33 -

Legend:

FC Full Consolidation, Austria

FCA Full Consolidation, abroad

IE Inclusion at-equity, Austria

IEA Inclusion at-equity, abroad

1 held via the PIERER Mobility AG in the previous year

Notes to the consolidated nancial statements_2022

XIII. APPROVAL OF THE CONSOLIDATED FINANCIAL STATEMENTS

The consolidated financial statements were approved by the

Executive Board on March 22

2022 (previous year: March 23

2021)

for review by the Supervisory Board, for submission to the annual

general meeting and for subsequent publication. Within the scope of

the review it is required to perform, the Supervisory Board may

require changes to be made to the consolidated financial statements.

Wels, March 15

2022

The Executive Board of PIERER Mobility AG

Stefan Pierer Friedrich Roithner Hubert Trunkenpolz Viktor Sigl

215

Annual report_2022

Auditor’s Report

REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS

AUDIT OPINION

We have audited the consolidated financial statements of

PIERER Mobility AG, Wels, Austria,

and its subsidiaries ("the Group"), which comprise the consolidated

statement of financial position as at 31 December 2022, and the

consolidated income statement and consolidated statement of

comprehensive income, consolidated statement of changes in equity

and consolidated statement of cash flows for the year then ended,

and the notes to the consolidated financial statements.

In our opinion, the consolidated financial statements comply with the

legal requirements and present fairly, in all material respects, the

consolidated financial position of the Group as at 31 December

2022, and its consolidated financial performance and consolidated

cash flows for the year then ended in accordance with International

Financial Reporting Standards (IFRSs) as adopted by the EU, and the

additional requirements pursuant to Section 245a UGB (Austrian

Commercial Code).

BASIS FOR OUR OPINION

We conducted our audit in accordance with the EU Regulation

537/2014 ("AP Regulation") and Austrian Standards on Auditing.

These standards require the audit to be conducted in accordance

with International Standards on Auditing (ISAs). Our responsibilities

under those standards are further described in the "Auditor’s Respon-

sibilities" section of our report. We are independent of the audited

Group in accordance with Austrian company law and professional

regulations, and we have fulfilled our other responsibilities under

those relevant ethical requirements. We believe that the audit

evidence we have obtained up to the date of the auditor’s report is

sufficient and appropriate to pro-vide a basis for our audit opinion on

this date.

KEY AUDIT MATTERS

Key audit matters are those matters that, in our professional

judgment, were of most significance in our audit of the consolidated

financial statements. These matters were addressed in the con- text

of our audit of the consolidated financial statements as a whole,

however, we do not provide a separate opinion thereon.

Recognition of Development Costs

Refer to note 22

Risk for the Consolidated Financial Statements

In the consolidated financial statements of PIERER Mobility AG,

development costs of EUR 421 million are reported under the balance

sheet item "Intangible assets" and therefore represent a significant

portion of the group's assets. According to IAS 38, the Group

recognizes research costs are as expenses, while development costs

for future serial products are capitalized if the capitalization require-

ments according to IAS 38.57ff. are fulfilled.

The main requirments for recognizing development costs as assets

are the feasibility of the development projects (including the

possibility of technical realization, the intention to complete and the

ability to use) and the expected achievement of future economic

benefits. The complexity of research and development projects is

increasing due to the group’s technology leadership as the leading

powered two-wheeler manufacturer in Europe and the associated

new development projects (including investments in electromobility

and a range of zero-emission products). The assessment of project

feasibility plays an important role in this context and is subject to

discretionary decicions by management.

In addition to meeting the recognition requirements in accordance

with IAS 38.57ff. the recording of time and cost for development

projects also plays an important role in accuratley calculating

development costs.

Our Response

We assessed the recognition of development costs as follows:

• We obtained an understanding of managements process for the

distinction between research and development costs and the

evaluation of the recognition requirements of development costs

according to IAS 38.57ff.

• We evaluated the design, establishment and effectiveness of

management's process-related controls over the capitalization

of development costs, including review of management's project

feasibility documentation.

• We assessed, on the basis of random samples, whether a proper

distinction has been made between research and development

costs capitalized as intangible assets.

• We evaluated, on a sample basis, the adequacy of capitalized

expenses by reconciling material costs, overheads and

accumulated engineering hours to external invoices and internal

time- sheets and payslips.

OTHER INFORMATION

Management is responsible for other information. Other information

217

is all information provided in the annual re-port, other than the consol-

idated financial statements, the group management report and the

auditor’s report.

Our opinion on the consolidated financial statements does not cover

other information and we do not provide any kind of assurance

thereon.

In conjunction with our audit, it is our responsibility to read this other

information and to assess whether, based on knowledge gained

during our audit, it contains any material inconsistencies with the

consolidated financial statements or any apparent material

misstatement of fact.

If, on the basis of our work on the other information obtained before

the date of the auditor's report, we conclude that there is a material

misstatement of fact in other information, we must report that fact.

We have nothing to report in this regard.

RESPONSIBILITIES OF MANAGEMENT AND THE AUDIT

COMMITTEE FOR THE CONSOLIDATED FINANCIAL

STATEMENTS

Management is responsible for the preparation and fair presentation

of the consolidated financial statements in accordance with Interna-

tional Financial Reporting Standards (IFRSs) as adopted by the EU,

the additional requirements pursuant to Section 245a UGB (Austrian

Commercial Code) and for such internal controls as management

determines are necessary to enable the preparation of consolidated

financial statements that are free from mate-rial misstatement,

whether due to fraud or error.

Management is also responsible for assessing the Group’s ability to

continue as a going concern, disclosing, as applicable, matters

related to going concern and using the going concern basis of

accounting, unless management either intents to liquidate the Group

or to cease operations, or has no realistic alternative but to do so.

The audit committee is responsible for overseeing the Group’s

financial reporting process.

AUDITOR’S RESPONSIBILITIES

Our objectives are to obtain reasonable assurance about whether the

consolidated financial statements as a whole are free from material

misstatement, whether due to fraud or error, and to issue an auditor’s

report that includes our audit opinion. Reasonable assurance

represents a high level of assurance, but provides no guarantee that

an audit conducted in accordance with the AP Regulation and

Austrian Standards on Auditing (and therefore ISAs), will always

detect a material misstatement, if any. Misstatements may result from

fraud or error and are considered material if, individually or in

aggregate, they could reasonably be expected to influence the eco-

nomic decisions of users taken on the basis of these consolidated

financial statements.

As part of an audit in accordance with the AP Regulation and Austrian

Standards on Auditing, we exercise professional judgment and

maintain professional skepticism throughout the audit.

Moreover:

• We identify and assess the risks of material misstatement in the

consolidated financial statements, whether due to fraud or error,

we design and perform audit procedures responsive to those risks

and obtain sufficient and appropriate audit evidence to serve as

a basis for our audit opinion. The risk of not detecting material

misstatements resulting from fraud is higher than for one resulting

from error, as fraud may involve collusion, forgery, intentional

omissions, misrepresentations or override of internal control.

• We obtain an understanding of internal control relevant to the audit

in order to design audit procedures that are appropriate in the

circumstances, but not for the purpose of expressing an opinion on

the effectiveness of the Group's internal control.

• We evaluate the appropriateness of accounting policies used

and the reasonableness of accounting estimates and related

disclosures made by management.

• We conclude on the appropriateness of management’s use of

the going concern basis of accounting and, based on the audit

evidence obtained, whether a material uncertainty exists related

to events or conditions that may cast significant doubt on the

Group’s ability to continue as a going concern. If we conclude that

a material uncertainty exists, we are required to draw attention in

our audit report to the respective note in the consolidated financial

statements. If such disclosures are not appropriate, we will modify

our audit opinion. Our conclusions are based on the audit evidence

obtained up to the date of our auditor’s report. How- ever, future

events or conditions may cause the Group to cease to continue as

a going concern.

• We evaluate the overall presentation, structure and content of

the consolidated financial statements, including the notes, and

whether the consolidated financial statements represent the

underlying transactions and events in a manner that achieves fair

presentation.

• We obtain sufficient appropriate audit evidence regarding the

financial information of the entities and business activities within

the Group to express an opinion on the consolidated financial

statements. We are responsible for the direction, supervision and

performance of the group audit. We remain solely responsible for

our audit opinion.

Annual report_2022

• We communicate with the audit committee regarding, amongst

other matters, the planned scope and timing of our audit as well as

significant findings, including any significant deficiencies in internal

control that we identify during our audit.

• We communicate to the audit committee that we have complied

with the relevant professional requirements in respect of our

independence, that we will report any relationships and other

events that could reasonably affect our independence and, where

appropriate, the related safeguards.

• From the matters communicated with the audit committee, we

determine those matters that were of most significance in the audit

i.e. key audit matters. We describe these key audit matters in our

auditor’s report unless laws or other legal regulations preclude

public disclosure about the matter or when in very rare cases,

we determine that a matter should not be included in our audit

report because the negative consequences of doing so would

reasonably be expected to outweigh the public benefits of such

communication.

219

REPORT ON OTHER LEGAL REQUIREMENTS

GROUP MANAGEMENT REPORT

In accordance with Austrian company law, the group management

report is to be audited as to whether it is consistent with the consoli-

dated financial statements and prepared in accordance with legal

requirements.

Management is responsible for the preparation of the group

management report in accordance with Austrian company law and

other legal or regulatory requirements.

We have conducted our audit in accordance with generally accepted

standards on the audit of group management reports.

Opinion

In our opinion, the group management report is consistent with the

consolidated financial statements and has been prepared in

accordance with legal requirements. The disclosures pursuant to

Section 243a UGB (Austrian Commercial Code) are appropriate.

Statement

Based on our knowledge gained in the course of the audit of the

consolidated financial statements and our under-standing of the

Group and its environment, we did not note any material misstate-

ments in the group management report.

ADDITIONAL INFORMATION IN ACCORDANCE WITH ARTICLE

10 AP REGULATION

We were elected as auditors at the Annual General Meeting on

29 April 2022 and were appointed by the supervisory board on 22

June 2022 to audit the financial statements of Company for the

financial year ending on 31 December 2022.

We have been auditors of the Company, without interruption, since

the consolidated financial statements as at 31 December, 2014.

We declare that our opinion expressed in the "Report on the Consoli-

dated Financial Statements" section of our report is consistent with

our additional report to the Audit Committee, in accordance with

Article 11 AP Regulation.

We declare that we have not provided any prohibited non-audit

services (Article 5 Paragraph 1 AP Regulation) and that we have

ensured our independence throughout the course of the audit, from

the audited Group.

ENGAGEMENT PARTNER

The engagement partner is Mr Dr. Helge Löffler.

Linz, 15 March 2023

KPMG Austria GmbH

Wirtschaftsprüfungs- und Steuerberatungsgesellschaft

Dr. Helge Löffler Wirtschaftsprüfer

(Austrian Chartered Accountant)

This report is a translation of the original report in German, which is solely valid.

The consolidated financial statements together with our auditor's opinion may only be published if the consolidated financial statements and the

group management report are identical with the audited version attached to this report. Section 281 Paragraph 2 UGB (Austrian Commercial Code)

applies.

kpmg

PIERER Mobility AG,

Wels

Jahresabschluss

und Lagebericht zum

31. Dezember 2022

zum 31. Dezember 2022PIERER Mobility AG

Bilanz

€

31.12.2022

€

31.12.2021

Aktiva

A. Anlagevermögen

I. Immaterielle Vermögensgegenstände

1. Software 53.383,37 0,03

II. Sachanlagen

1. Betriebs- und Geschäftsausstattung 281.958,20 346.593,64

2. Anlagen in Bau 0,00 14.960,00

281.958,20 361.553,64

III. Finanzanlagen

1. Anteile an verbundenen Unternehmen 1.241.189.038,91 1.236.131.439,39

2. Ausleihungen an verbundene Unternehmen 250.000,00 250.000,00

3. Beteiligungen 9.701.000,00 9.701.000,00

4. Wertpapiere (Wertrechte) des A nlagevermögens 206.031,20 206.031,20

1.251.346.070,11 1.246.288.470,59

1.251.681.411,68 1.246.650.024,26

B. Umlaufvermögen

I. Forderungen und sonstige Vermögensgegenstände

1. Forderungen aus Lieferungen und Leistungen 5.229,46 12.690,38

2. Forderungen gegenüber verbundenen Unternehmen 90.268.530,89 58.046.481,81

davon aus Lieferungen und Leistungen 3.746.216,30 3.730.803,41

davon sonstige 86.522.314,59 54.315.678,40

3. Forderungen gegenüber Unternehmen, mit denen ein

Beteiligungsverhältnis besteht 0,00 23.478,00

davon aus Lieferungen und Leistungen 0,00 23.478,00

4. sonstige Forderungen und Vermögensgegenstände 280.349,99 510.338,20

90.554.110,34 58.592.988,39

II. Wertpapiere und Anteile

1. sonstige Wertpapiere und Anteile 0,00 1.194.288,76

III. Guthaben bei Kreditinstituten 19.458.595,56 16.786.433,45

110.012.705,90 76.573.710,60

C. Rechnungsabgrenzungsposten

1.436.825,01 3.357.333,28

Summe Aktiva 1.363.130.942,59 1.326.581.068,14

€

31.12.2022

€

31.12.2021

Passiva

A. Eigenkapital

I. eingefordertes Grundkapital 33.796.535,00 33.796.535,00

übernommenes Grundkapital 33.796.535,00 33.796.535,00

einbezahltes Grundkapital 33.796.535,00 33.796.535,00

II. Kapitalrücklagen

1. gebundene 9.949.093,87 9.949.093,87

2. nicht gebundene 1.091.905.445,97 1.091.905.445,97

1.101.854.539,84 1.101.854.539,84

III. Gewinnrücklagen

1. gesetzliche Rücklagen 3.379.653,50 3.379.653,50

IV. Bilanzgewinn 187.171.633,58 142. 257.203,61

davon Gewinnvortrag 108.460.668,61 86.964.079,73

1.326.202.361,92 1.281.287.931,95

B. Rückstellungen

1. sonstige Rückstellungen 2.530.223,56 2.539.736,43

C. Verbindlichkeiten

1. Anleihen und Schuldverschreibungen 30.000.000,00 36.000.000,00

davon mit einer Restlaufzeit von bis zu einem Jahr 0,00 6.000.000,00

davon mit einer Restlaufzeit von mehr als einem Jahr 30.000.000,00 30.000.000,00

2. Verbindlichkeiten gegenüber Kreditinstituten 26,22 0,00

davon mit einer Restlaufzeit von bis zu einem Jahr 26,22 0,00

3. Verbindlichkeiten aus Lieferungen und Leistungen 1.600.354,23 1.248.570,13

davon mit einer Restlaufzeit von bis zu einem Jahr 1.600.354,23 1.248.570,13

4. Verbindlichkeiten gegenüber verbundenen Unternehmen 2.236.919,80 4.556.490,57

davon aus Lieferungen und Leistungen 2.234.560,43 4.554.193,70

davon sonstige 2.359,37 2.296,87

davon mit einer Restlaufzeit von bis zu einem Jahr 2.236.919,80 4.556.490,57

5. sonstige Verbindlichkeiten 561.056,86 948.339,06

davon im Rahmen der sozialen Sicherheit 1.726,52 1.689,98

davon mit einer Restlaufzeit von bis zu einem Jahr 561.056,86 948.339,06

34.398.357,11 42.753.399,76

davon mit einer Restlaufzeit von bis zu einem Jahr 4.398.357,11 12.753.399,76

davon mit einer Restlaufzeit von mehr als einem Jahr 30.000.000,00 30.000.000,00

Summe Passiva 1.363.130.942,59 1.326.581.068,14

1.1.2022 bis 31.12.2022PIERER Mobility AG

Gewinn- und Verlustrechnung

€

2022

€

2021

1. Umsatzerlöse 19.108.694,38 14.106.939,47

2. sonstige betriebliche Erträge

a) Erträge aus der Auflösung von Rückstellungen 0,00 250.000,00

b) übrige 17.343,68 24.349,82

17.343,68 274.349,82

3. Aufwendungen für Material und sonstige bezogene

Herstellungsleistungen

a) Aufwendungen für bezogene Leistungen 14.172.408,25 10.300.519,16

4. Personalaufwand

a) Gehälter 21.699,12 44.354,86

b) soziale Aufwendungen 8.362,50 -21.844,83

aa) Aufwendungen für Abfertigungen und Leistungen an

Mitarbeitervorsorgekassen 0,00 -48.254,67

bb) Aufwendungen für gesetzlich vorgeschriebene

Sozialabgaben sowie vom Entgelt abhängige Abgaben und

Pflichtbeiträge 0,00 22.015,06

30.061,62 22.510,03

5. Abschreibungen

a) auf immaterielle Gegenstände des Anlagevermögens und

Sachanlagen

79.149,43 72.973,08

6. sonstige betriebliche Aufwendungen

a) Steuern, soweit sie nicht unter Steuern vom Einkommen

fallen 9.103,70 6.492,04

b) übrige 15.922.432,15 14.743.799,35

15.931.535,85 14.750.291,39

7. Zwischensumme aus Z 1 bis 6 (Betriebsergebnis) -11.087.117,09 -10.765.004,37

8. Erträge aus Beteiligungen 90.914.362,00 84.512.060,86

9. Erträge aus Ausleihungen des Finanzanlagevermögens 5.190,42 2.610,42

davon aus verbundenen Unternehmen 5.190,42 2.610,42

10. sonstige Zinsen und ähnliche Erträge 101.393,40 114.807,37

davon aus verbundenen Unternehmen 42.529,16 114.177,95

11. Erträge aus dem Abgang von und der Zuschreibung zu

Finanzanlagen und Wertpapieren des Umlaufvermögens 80.711,24 0,00

12. Aufwendungen aus Finanzanlagen 0,00 16.275.509,22

davon Abschreibungen auf Finanzanlagen 0,00 16.275.509,22

13. Zinsen und ähnliche Aufwendungen 1.300.075,00 1.359.895,08

14. Zwischensumme aus Z 8 bis 13 (Finanzergebnis) 89.801.582,06 66.994.074,35

15. Ergebnis vor Steuern (Summe aus Z 7 und Z 14) 78.714.464,97 56.229.069,98

1.1.2022 bis 31.12.2022PIERER Mobility AG

Gewinn- und Verlustrechnung

€

2022

€

2021

16. Steuern vom Einkommen 3.500,00 3.500,00

davon weiterverrechnet vom Gruppenträger 3.500,00 3.500,00

17. Ergebnis nach Steuern 78.710.964,97 56.225.569,98

18. Jahresüberschuss 78.710.964,97 56.225.569,98

19. Auflösung von Kapitalrücklagen 0,00 193.340,00

20. Zuweisung zu Gewinnrücklagen 0,00 1.125.786,10

21. Gewinnvortrag aus dem Vorjahr 108.460.668,61 86.964.079,73

22. Bilanzgewinn 187.171.633,58 142.257.203,61

Anhang

PIERER Mobility AG

Anhang

Bilanzierungs- und Bewertungsmethoden

Allgemeine Grundsätze

Der Jahresabschluss wurde nach den Vorschriften der §§ 189 ff des Unternehmensgesetzbuchs (UGB) unter

Beachtung der Grundsätze ordnungsmäßiger Buchführung, sowie unter Beachtung der Generalnorm, ein

möglichst getreues Bild der Vermögens-, Finanz- und Ertragslage des Unternehmens zu vermitteln,

aufgestellt.

Bei der Gesellschaft handelt es sich um eine große Kapitalgesellschaft im Sinne des § 221 UGB.

Bei Vermögensgegenständen und Verbindlichkeiten, die unter mehrere Posten der Bilanz fallen, wurde die

Zugehörigkeit zu anderen Posten im Anhang angegeben.

Bei der Erstellung des Jahresabschlusses wurde der Grundsatz der Vollständigkeit entsprechend den

gesetzlichen Regelungen eingehalten.

Bei der Bewertung der einzelnen Vermögensgegenstände und Schulden wurde der Grundsatz der

Einzelbewertung beachtet und eine Fortführung des Unternehmens unterstellt.

Dem Vorsichtsprinzip wurde dadurch Rechnung getragen, dass nur die am Abschlussstichtag verwirklichten

Gewinne ausgewiesen wurden. Alle erkennbaren Risiken und drohenden Verluste wurden - soweit gesetzlich

geboten - berücksichtigt.

Die Gesellschaft ist ein konsolidierungspflichtiges Mutterunternehmen im Sinne des §244 UGB und hat einen

Konzernabschluss, der beim Landesgericht Wels unter der Nummer FN 78112x hinterlegt wird, aufzustellen.

Die Gesellschaft ist ein Konzernunternehmen iSd § 15 AktG (§ 115 GmbHG) und gehört als verbundenes

Unternehmen gem. § 244 UGB zum Konsolidierungskreis der Pierer Konzerngesellschaft mbH.

Anlagevermögen

Immaterielles Anlagevermögen

Die erworbenen immateriellen Vermögensgegenstände wurden zu Anschaffungskosten bewertet, die um die

planmäßigen Abschreibungen vermindert sind.

Die planmäßigen Abschreibungen wurden linear vorgenommen.

Gemäß den steuerrechtlichen Vorschriften wird für Zugänge im ersten Halbjahr eine volle

Jahresabschreibung, für Zugänge im zweiten Halbjahr eine halbe Jahresabschreibung vorgenommen.

Folgende Nutzungsdauern wurden den planmäßigen Abschreibungen zugrunde gelegt:

Nutzungsdauer

in Jahren

Software 3

Anhang

PIERER Mobility AG

Sachanlagen

Das abnutzbare Sachanlagevermögen wurde zu Anschaffungs- oder Herstellungskosten bewertet, die um

die planmäßigen Abschreibungen vermindert werden. Die geringwertigen Vermögensgegenstände bis zu

einem Wert von EUR 800,00 wurden im Zugangsjahr voll abgeschrieben.

Die planmäßigen Abschreibungen wurden linear der voraussichtlichen Nutzungsdauer entsprechend

vorgenommen.

Gemäß den steuerrechtlichen Vorschriften wird für Zugänge im ersten Halbjahr eine volle

Jahresabschreibung, für Zugänge im zweiten Halbjahr eine halbe Jahresabschreibung vorgenommen.

Folgende Nutzungsdauern wurden den planmäßigen Abschreibungen zugrunde gelegt:

Nutzungsdauer

in Jahren

Betriebs- und Geschäftsausstattung 1 - 20

Finanzanlagen

Das Finanzanlagevermögen wurde zu Anschaffungskosten vermindert um außerplanmäßige

Abschreibungen – soweit diese notwendig sind, um dauernden Wertminderungen Rechnung zu tragen –

angesetzt. Die im Jahresabschluss ausgewiesenen Anteile an verbundenen Unternehmen, Beteiligungen und

Wertpapiere (Wertrechte) des Anlagevermögens werden im Anlassfall auf ihre Werthaltigkeit untersucht.

Zum 31. Dezember 2022 lag bei den wesentlichen Anteilen an verbundenen Unternehmen kein Anlassfall für

eine Werthaltigkeitsprüfung vor. Anlassbezogene Bewertungen werden auf Basis von diskontierten

Netto-Zahlungsmittelzuflüssen, die im Wesentlichen von zukünftigen Umsatz- und Margenerwartungen und

von abgeleiteten Diskontierungszinssätzen abhängig sind, durchgeführt. Für Anteile die kurz vor dem

Bilanzstichtag erworben wurden, bildet der Kaufpreis die Grundlage für die geführte Werthaltigkeitsprüfung.

Bei der Werthaltigkeitsprüfung ergaben sich keine Abwertungserfordernisse.

Umlaufvermögen

Forderungen und sonstige Vermögensgegenstände

Die Forderungen und sonstigen Vermögensgegenstände wurden mit dem Nennwert angesetzt.

Im Falle erkennbarer Einzelrisken wurde der niedrigere beizulegende Wert angesetzt.

Anhang

PIERER Mobility AG

Rückstellungen

Sonstige Rückstellungen

In den sonstigen Rückstellungen wurden unter Beachtung des Vorsichtsprinzips alle im Zeitpunkt der

Bilanzerstellung erkennbaren Risiken und der Höhe oder dem Grunde nach ungewissen Verbindlichkeiten

mit den Beträgen berücksichtigt, die nach bestmöglicher Schätzung zur Erfüllung der Verpflichtung

aufgewendet werden müssen. Sämtliche Rückstellungen haben eine Laufzeit von weniger als einem Jahr.

Verbindlichkeiten

Verbindlichkeiten wurden mit ihrem Erfüllungsbetrag angesetzt.

Änderungen von Bilanzierungs- und Bewertungsmethoden

Die bisher angewandten Bilanzierungs- und Bewertungsmethoden wurden auch bei der Erstellung des

vorliegenden Jahresabschlusses beibehalten.

Anhang

PIERER Mobility AG

Erläuterungen der Bilanz und der Gewinn- und Verlustrechnung

Erläuterungen zur Bilanz

Anlagevermögen

Die Entwicklung der einzelnen Posten des Anlagevermögens und die Aufgliederung der Jahresabschreibung

nach einzelnen Posten sind in folgendem Anlagenspiegel dargestellt:

Anschaffungs-/Herstellungskosten Abschreibungen kumuliert Buchwert

1.1.2022

31.12.2022

Zugänge

Abgänge

Umbuchungen

1.1.2022

31.12.2022

Abschreibungen

Zuschreibungen

Abgänge

1.1.2022

31.12.2022

EUR EUR EUR EUR EUR EUR

Anlagevermögen

Immaterielle Vermögensgegenstände

Software 109 034,82 0,00 109 034,79 10 676,66 0,00 0,03

173 094,82 0,00 119 711,45 0,00 53 383,37

64 060,00

Sachanlagen

Betriebs- und Geschäftsausstattung 1 340 245,24 3 837,33 993 651,60 68 472,77 1 967,33 346 593,64

1 342 115,24 1 967,33 1 060 157,04 0,00 281 958,20

0,00

Anlagen in Bau 14 960,00 49 100,00 0,00 0,00 0,00 14 960,00

0,00 0,00 0,00 0,00 0,00

-64 060,00

1 355 205,24 52 937,33 993 651,60 68 472,77 1 967,33 361 553,64

1 342 115,24 1 967,33 1 060 157,04 0,00 281 958,20

-64 060,00

Finanzanlagen

Anteile an verbundenen Unternehmen 1 267 656 947,61 5 057 599,52 31 525 508,22 0,00 0,00 1 236 131 439,39

1 272 714 547,13 0,00 31 525 508,22 0,00 1 241 189 038,91

0,00

Ausleihungen an verbundene Unternehmen 250 000,00 0,00 0,00 0,00 0,00 250 000,00

250 000,00 0,00 0,00 0,00 250 000,00

0,00

Beteiligungen 9 701 000,00 0,00 0,00 0,00 0,00 9 701 000,00

9 701 000,00 0,00 0,00 0,00 9 701 000,00

0,00

Wertpapiere (Wertrechte) des

Anlagevermögens 266 031,20 0,00 60 000,00 0,00 0,00 206 031,20

266 031,20 0,00 60 000,00 0,00 206 031,20

0,00

1 277 873 978,81 5 057 599,52 31 585 508,22 0,00 0,00 1 246 288 470,59

1 282 931 578,33 0,00 31 585 508,22 0,00 1 251 346 070,11

0,00

Summe Anlagenspiegel 1 279 338 218,87 5 110 536,85 32 688 194,61 79 149,43 1 967,33 1 246 650 024,26

1 284 446 788,39 1 967,33 32 765 376,71 0,00 1 251 681 411,68

0,00

Die Finanzanlagen haben sich insbesondere durch folgende Transaktionen verändert:

Mit Notariatsakt vom 11.7.2022 hat die PIERER Mobility AG 100% Anteile an der PIERER E-Bikes GmbH

(nunmehr: PIERER New Mobility GmbH) in die KTM AG eingebracht.

In der außerordentlichen Hauptversammlung der KTM AG am 16.2.2022 wurde der Beschluss über den

Ausschluss der Minderheitsaktionäre gemäß § 1 GesAusG und die Übertragung von deren Aktien der KTM

AG auf den Hauptgesellschafter PIERER Mobility AG, gegen Gewährung einer angemessenen Barabfindung

gemäß § 2 GesAusG gefasst. Die PIERER Mobility AG als Alleinaktionär der KTM AG hält zum Stichtag

10.652.191 Stk. Aktien (100% Anteile).

Mit Einbringungsvertrag vom 25.5.2022 hat die PIERER Mobility AG 100% Anteile an der KTM Technologies

GmbH, Anif in die KTM Forschungs & Entwicklungs GmbH, Mattighofen, eingebracht.

Mit Einbringungs- und Sacheinlagevertrag vom 25.5.2022 hat die Gesellschaft 75,46% Anteile an der

DealerCenter Digital GmbH, Neuried, Deutschland, in die PIERER Innovation GmbH eingebracht. Die

PIERER Mobility AG hält nun zum Stichtag keine Anteile mehr an der DealerCenter Digital GmbH.

Anhang

PIERER Mobility AG

Der gesamte Umgründungsmehrwert in Höhe von EUR 57 253 610,76 (Vorjahr: TEUR 57 254) wird dem

Tochterunternehmen KTM AG, Mattighofen, zugeordnet.

Im laufenden Geschäftsjahr sowie im Vorjahr wurden keine Zuschreibungen auf Anteile an verbundenen

Unternehmen sowie keine Abschreibungen an Wertpapiere (Wertrechte) des Anlagevermögens

vorgenommen.

Forderungen und sonstige Vermögensgegenstände

Die Forderungen gegenüber verbundenen Unternehmen in Höhe von EUR 90 268 530,89 (Vorjahr:

EUR 58 046 481,81) betreffen im Wesentlichen Forderungen aus Dividendenanspruch in Höhe von

EUR 85 429 648,00 (Vorjahr: EUR 53 393 530,00), Forderungen aus Finanzierungsdarlehen und sonstige

Verrechnungen in Höhe von EUR 1 092 666,59 (Vorjahr: EUR 922 148,40 ) sowie Forderungen aus

laufenden Verrechnungen EUR 3 746 216,30 (Vorjahr: EUR 3 730 803,41 ).

Die Forderungen gegenüber Unternehmen, mit denen ein Beteiligungsverhältnis besteht, resultieren in Höhe

von EUR 0,00 (Vorjahr: EUR 23 478,00) aus Finanzierungsdarlehen sowie Forderungen aus laufenden

Verrechnungen in Höhe von EUR 0,00 (Vorjahr: EUR 23 478,00).

Die sonstigen Forderungen und Vermögensgegenstände in Höhe von EUR 280 349,99 (Vorjahr:

EUR 510 338,20) betreffen im Wesentlichen Forderungen aus geleisteten Anzahlungen in Höhe von

EUR 108 592,31 (Vorjahr: EUR 148 298,41) sowie Forderungen aus Versicherungsleistungen für ehemalige

Mitarbeitern in Höhe von EUR 0,00 (Vorjahr: EUR 299 702,99).

Sämtliche Forderungen haben wie im Vorjahr eine Restlaufzeit von unter einem Jahr.

Wertpapiere und Anteile

Die Wertpapiere des Umlaufvermögens in Höhe von EUR 1 194 288,76 wurden im laufenden Geschäftsjahr

zur Gänze verkauft.

Eingefordertes und einbezahltes Nennkapital (Grundkapital)

Das eingeforderte und einbezahlte Nennkapital (Grundkapital) der Gesellschaft beträgt EUR 33 796 535,00

(Vorjahr: EUR 33 796 535,00) und ist in 33.796.535 Stück (Vorjahr: 33 796 535 Stück) auf Inhaber lautende

nennbetragslose Stückaktien, von denen jede eine gleiche Beteiligung am Grundkapital repräsentiert,

aufgeteilt. Zum Stichtag hält die Gesellschaft keine eigenen Aktien.

Der Vorstand wurde bis 26.04.2023 ermächtigt gemäß § 169 AktG das Grundkapital mit Zustimmung des

Aufsichtsrats um bis zu weitere EUR 11 269 337,00 durch Ausgabe von bis zu 11 269 337 Stück neue, auf

Inhaber oder Namen lautende Stammaktien (Stückaktien) gegen Bar- und/oder Sacheinlage – allenfalls in

mehrere Tranchen – zu erhöhen und die weiteren Einzelheiten der Durchführung der Kapitalerhöhung im

Einvernehmen mit dem Aufsichtsrat festzusetzen. Diese Ermächtigung wurde vom Vorstand der PIERER

Mobility AG zur Durchführung der Sachkapitalerhöhung im Oktober 2021 im Ausmaß von

EUR 11 257 861,00 durch Ausgabe von 11.257.861 Stück auf Inhaber lautende nennbetragslose Stückaktien

ausgenützt.

Anhang

PIERER Mobility AG

In der Hauptversammlung vom 29. April 2022 wurde der Vorstand gemäß § 169 Aktiengesetz ermächtigt mit

Zustimmung des Aufsichtsrat das Grundkapital der Gesellschaft von EUR 33 796 535,00 allenfalls in

mehreren Tranchen gegen Bar- und/oder Sacheinlagen um bis zu EUR 16 898 267,00 durch Ausgabe von

bis zu 16 898 267 Stück auf Inhaber lautende nennbetragslose Stückaktien auf bis zu EUR 50 694 802,00 zu

erhöhen und den Ausgabebetrag und die weiteren Einzelheiten der Durchführung der Kapitalerhöhung im

Einvernehmen mit dem Aufsichtsrat festzusetzen sowie allenfalls die neuen Aktien im Wege des mittelbaren

Bezugsrechtes gemäß § 153 Abs 6 AktG den Aktionären zum Bezug anzubieten.

Seit dem 14. November 2016 sind die Aktien der PIERER Mobility AG im International Reporting Standard

der SIX Swiss Exchange primärkotiert. Am 29. März 2017 wurden die Aktien der PIERER Mobility AG in den

Swiss Performance Index (SPI) der SIX Swiss Exchange aufgenommen. Seit dem 1. März 2022 notieren die

Aktien der PIERER Mobility AG auch im prime market, dem Top-Segment des Amtlichen Handels der

Wiener Börse. Das Listing an der Frankfurter Wertpapierbörse (General Standard) wurde am 18. Oktober

2022 (letzter Handelstag) beendet. Zudem wurde die Aktien der PIERER Mobility AG ebenfalls am 19.

September 2022 in den ATX Global Players Index (ATX GP) der Wiener Börse aufgenommen.

Die gesetzliche Rücklage wurde im Geschäftsjahr um EUR 0,00 (Vorjahr: EUR 1 125 786,10) erhöht.

Rückstellungen

Zusammensetzung und Entwicklung der Rückstellungen:

Stand 1.1.2022 Verwendung Zuweisung Stand 31.12.2022

EUREUREUREUR

1. sonstige Rückstellungen

Rückstellung für

Rechtsberatungskosten 15 000,00 15 000,00 22 758,13 22 758,13

Rückstellung für

Wirtschaftsprüfung 176 500,00 176 500,00 230 800,00 230 800,00

Rückstellung für

Steuerberatung 29 600,00 29 600,00 146 544,05 146 544,05

Sonstige Rückstellungen 2 318 636,43 2 318 636,43 2 130 121,38 2 130 121,38

Summe Rückstellungen 2 539 736,43 2 539 736,43 2 530 223,56 2 530 223,56

Die sonstigen Rückstellungen in Höhe von EUR 2 130 121,38 (Vorjahr: EUR 2 318 636,43) beinhalten im

Wesentlichen Rückstellungen für Haftungen und Risiken im Zusammenhang mit dem Beteiligungsportfolio in

Höhe von EUR 2 011 507,38 (Vorjahr: EUR 2 172 136,43) sowie Rückstellung für Aufsichtsratsvergütungen

in Höhe von EUR 40 000,00 (Vorjahr: EUR 67 000,00).

Verbindlichkeiten

Die PIERER Mobility AG hat im Juli 2015 ein Schuldscheindarlehen in Höhe von EUR 56 500 000,00

begeben, welches in Höhe von EUR 44 000 000,00 mit einer Laufzeit von 5 Jahren und in Höhe von

EUR 12 500 000,00 mit einer Laufzeit von 7 Jahre abgeschlossen wurde. Am 14.7.2022 wurde das noch

offene Schuldscheindarlehen in Höhe von EUR 6 000 000,00 mit einem fixen Zinssatz zur Gänze

rückgeführt.

Am 17.7.2015 hat die PIERER Mobility AG eine Namensschuldverschreibung in Höhe von

EUR 30 000 000,00 mit einer fixen Laufzeit von 10 Jahren begeben.

Die Verbindlichkeiten gegenüber verbundenen Unternehmen in Höhe von EUR 2 236 919,80 (Vorjahr:

EUR 4 556 490,57) betreffen im Wesentlichen Verbindlichkeiten aus Lieferungen und sonstige Leistungen in

Höhe von EUR 2 019 735,00 (Vorjahr: EUR 4 182 868,27).

Anhang

PIERER Mobility AG

Die sonstigen Verbindlichkeiten in Höhe von EUR 561 056,86 (Vorjahr EUR 948 339,06) betreffen im

Wesentlichen Zinsen Namensschuldverschreibungen sowie Schuldscheindarlehen im Vorjahr in Höhe von

EUR 542 663,01 (Vorjahr: EUR 623 855,35), Verbindlichkeiten aus Lieferungen und Leistungen in Höhe von

EUR 15 115,62 (Vorjahr: EUR 21 253,46) sowie sonstige Verbindlichkeiten in Höhe von EUR 3 278,23

(Vorjahr: EUR 301 540,27).

Die Summe der Verbindlichkeiten mit einer Restlaufzeit von mehr als fünf Jahren beträgt EUR 0,00 (Vorjahr:

EUR 0).

In den sonstigen Verbindlichkeiten sind Aufwendungen in Höhe von EUR 561 056,86 (Vorjahr:

EUR 405 676,05) enthalten, die erst nach dem Abschlussstichtag zahlungswirksam werden.

Haftungsverhältnisse und sonstige wesentliche finanzielle Verpflichtungen

Die PIERER Mobility AG hat für die DealerCenter Digital GmbH, Landshut, Deutschland gegenüber der RLB

OÖ, aus Verpflichtungen gegenüber Lieferanten eine Garantie bis zu einem Höchstbetrag von

EUR 500 000,00 (Vorjahr: EUR 500 000,00) abgegeben.

Verpflichtungen aus der Nutzung von in der Bilanz nicht ausgewiesenen Sachanlagen

Zusammensetzung:

des folgenden

Geschäftsjahres

des folgenden

Geschäftsjahres

der folgenden

fünf

Geschäftsjahre

der folgenden

fünf

Geschäftsjahre

2022 2021 2022 2021

EUR TEUR EUR TEUR

Verpflichtungen aus Mietverträgen

2 198 329,39

1 558 11 004 100,75 9 484

Anhang

PIERER Mobility AG

Erläuterungen zur Gewinn- und Verlustrechnung

Die Gewinn- und Verlustrechnung wurde nach dem Gesamtkostenverfahren erstellt.

Aufgliederung der Umsatzerlöse

Die Umsatzerlöse setzen sich wie folgt zusammen bzw. haben sich wie folgt entwickelt (Angaben in TEUR):

2022 2021

TEUR TEUR

Umsatzerlöse

Erlöse Inland 19 100 14 078

Erlöse EU 929

Skonti 00

19 109 14 107

Zusammensetzung der Aufwendungen für Abfertigungen und Leistungen an

Mitarbeitervorsorgekassen:

2022 2021

EUR EUR

Dotierung Abfertigung 0,00 -100,00

Veränderung Rückstellung für Abfertigung (Angestellte) 0,00 -49 500,00

MV-Beitrag Angestellte 0,00 1 345,33

0,00 -48 254,67

Sonstige betriebliche Aufwendungen

Die übrigen sonstigen betrieblichen Aufwendungen betreffen im Wesentlichen Aufwendungen für

konzerninterne Dienstleistungen und Umlagen, Aufwendungen für Vorstandstätigkeiten,

Steuerberatungsaufwand sowie Rechts- und Beratungsaufwand.

Bezüglich der Aufwendungen für den Abschlussprüfer wird § 238 (1) Z 18 UGB in Anspruch genommen.

Erträge aus Beteiligungen

Die Erträge aus Beteiligungen in Höhe von EUR 90 914 362,00 (Vorjahr: EUR 84 512 060,86) betreffen

Dividendenerträge, davon aus verbundenen Unternehmen EUR 89 929 648,00 (Vorjahr:

EUR 83 699 674,61).

Sonstige Zinsen und ähnliche Erträge

Sonstige Zinsen und ähnliche Erträge in Höhe von EUR 101 393,40 (Vorjahr: EUR 114 807,37) betreffen im

Wesentlichen Zinsen aus Darlehen.

Anhang

PIERER Mobility AG

Erträge aus dem Abgang von und der Zuschreibung zu

Finanzanlagen und Wertpapieren des Umlaufvermögens

Die Erträge aus dem Abgang von und der Zuschreibung zu Finanzanlagen und Wertpapieren des

Umlaufvermögens resultieren zur Gänze aus dem Verkauf von Wertpapieren des Umlaufvermögens.

Steuern vom Einkommen und vom Ertrag

Seit der Veranlagung 2014 ist die Gesellschaft Gruppenmitglied der Gruppe der Pierer Konzerngesellschaft

mbH iSd § 9 KStG.

Die steuerlichen Ergebnisse der Gruppenmitglieder werden dem Gruppenträger zugerechnet. Die zu

leistenden Steuerumlagen zwischen dem Gruppenträger und jedem einzelnen Gruppenmitglied wurde in

Form von einer Gruppen- und Steuerumlagevereinbarung geregelt.

Die im Jahresabschluss ausgewiesenen Steuern vom Einkommen und vom Ertrag betreffen in Höhe von

EUR 3 500,00 (Vorjahr: EUR 3 500,00) die Steuerumlage an den Gruppenträger (25%).

Die Pierer Mobility AG, Wels, ist seit 1.10.2018 Gruppenmitglied einer Organschaft im umsatzsteuerlichen

Sinn, die von der Pierer Industrie AG, Wels, gebildet wird.

Zur Unternehmensgruppe gehören folgende Gesellschaften (Gruppenmitglieder):

Pierer Industrie AG, Wels (Gruppenträger)

PIERER Mobility AG, Wels

PIERER New Mobility GmbH (vorm. PIERER E-Bikes GmbH), Munderfing

KTM Technologies GmbH, Anif

KTM AG, Mattighofen

KTM Sportmotorcycle GmbH, Mattighofen

KTM Österreich GmbH, Mattighofen

KTM Sportcar GmbH, Mattighofen

KTM Immobilien GmbH, Mattighofen

KTM Logistikzentrum GmbH, Mattighofen

KTM MOTOHALL GmbH, Mattighofen

PIERER Innovation GmbH, Wels

Husqvarna Motorcycles GmbH, Mattighofen

Pankl Racing Systems AG, Kapfenberg

Pankl Immobilienverwaltung GmbH, Kapfenberg

Pankl Aerospace Systems Europe GmbH, Kapfenberg

Krenhof GmbH, Köflach

KTM Components GmbH, Munderfing

WP Immobilien GmbH, Munderfing

WP Suspension GmbH, Mattighofen

GASGAS Motorcycles GmbH, Mattighofen

Anhang

PIERER Mobility AG

Avocodo GmbH, Linz

bikes&wheels 2 Radhandels GmbH, Wels

PIERER E-Commerce GmbH, Munderfing

KTM Forschungs & Entwicklungs GmbH, Mattighofen

KTM Racing GmbH, Munderfing

CFMOTO Motorcycles Distribution GmbH, Mattighofen

MV Agusta Motorcycles GmbH, Mattighofen

Es existieren temporäre Unterschiede zwischen steuerlichen und unternehmensrechtlichen Wertansätzen im

Wesentlichen auf Grund von Bewertungsunterschieden im Sachanlagevermögen und bei der Bewertung von

Personalrückstellungen. Da zum Bilanzstichtag weder passive latente Steuern zur Gegenverrechnung, als

auch substantielle Hinweise für die Rechtfertigung eines Ansatzes aktiver latenter Steuern vorliegen, wurden

keine aktiven latenten Steuern angesetzt.

Sonstige Angaben

Ergebnisverwendung

Es wird vorgeschlagen, aus dem Bilanzgewinn in Höhe von EUR 187 171 633,58 eine Dividende von

EUR 2,00 je Aktie, das sind in Summe EUR 67 593 070,00 auszuschütten und den Restbetrag auf neue

Rechnung vorzutragen.

Ereignisse nach dem Bilanzstichtag

Es sind keine wesentlichen Ereignisse nach dem Abschlussstichtag eingetreten.

Unternehmen, das den Konzernabschluss für den größten Kreis von Unternehmen aufstellt

Gemäß § 238 Abs.1 Z 7 und 8 UGB wird wie folgt berichtet:

Name des Mutterunternehmens: Pierer Konzerngesellschaft mbH, FN 134766k

Sitz des Mutterunternehmens: Wels, Österreich

Ort der Offenlegung: Landesgericht Wels

Anhang

PIERER Mobility AG

Beteiligungen

Firmenname Firmensitz Eigenkapital

Anteil in

% Letztes Ergebnis Bilanzstichtag

KTM AG 5230 Mattighofen 430 624 680,24 100,0 78 086 633,09 31.12.2022

PIERER Innovation GmbH 4600 Wels 2 452 706,06 100,0 146 546,59 31.12.2022

Avocodo GmbH 4020 Linz 2 651 677,02 100,0 1 578 506,85 31.12.2022

PIERER E-Commerce GmbH

(vorm. HDC GmbH) 5222 Munderfing 111 053,28 100,0 -11 839,58 31.12.2022

Platin 1483. GmbH

(in Liquidation)

97424 Schweinfurt,

Deutschland 217 715,65 100,0 -271,46 30.4.2022

Kiska GmbH 5081 Anif 6 500 566,06 50,0 1 658 282,84 31.3.2022

zum 31.12.2022PIERER Mobility AG

ANLAGENSPIEGEL

€€€€€€€€€€€€

Anschaffungs-/Herstellungskosten kumulierte Abschreibungen Buchwerte

Stand

1.1.2022

Zugänge Abgänge Umbuchungen Stand

31.12.2022

Stand

1.1.2022

Abschreibungen Zuschreibungen Abgänge Stand

31.12.2022

Stand

1.1.2022

Stand

31.12.2022

A. Anlagevermögen

I. Immaterielle Vermögensgegenstände

1. Software

109.034,82 0,00 0,00 64.060,00 173.094,82 109.034,79 10.676,66 0,00 0,00 119.711,45 0,03 53.383,37

II. Sachanlagen

1. Betriebs- und Geschäftsausstattung 1.340.245,24 3.837,33 1.967,33 0,00 1.342.115,24 993.651,60 68.472,77 0,00 1.967,33 1.060.157,04 346.593,64 281.958,20

2. Anlagen in Bau 14.960,00 49.100,00 0,00 -64.060,00 0,00 0,00 0,00 0,00 0,00 0,00 14.960,00 0,00

1.355.205,24 52.937,33 1.967,33 -64.060,00 1.342.115,24 993.651,60 68.472,77 0,00 1.967,33 1.060.157,04 361.553,64 281.958,20

III. Finanzanlagen

1. Anteile an verbundenen Unternehmen

1.267.656.947,61

5.057.599,52 0,00 0,00

1.272.714.547,13

31.525.508,22 0,00 0,00 0,00 31.525.508,22

1.236.131.439,39 1.241.189.038,91

2. Ausleihungen an verbundene Unternehmen 250.000,00 0,00 0,00 0,00 250.000,00 0,00 0,00 0,00 0,00 0,00 250.000,00 250.000,00

3. Beteiligungen 9.701.000,00 0,00 0,00 0,00 9.701.000,00 0,00 0,00 0,00 0,00 0,00 9.701.000,00 9.701.000,00

4. Wertpapiere (Wertrechte) des Anlagevermögens 266.031,20 0,00 0,00 0,00 266.031,20 60.000,00 0,00 0,00 0,00 60.000,00 206.031,20 206.031,20

1.277.873.978,81 5.057.599,52 0,00 0, 00 1.282.931.578,33 31.585.508,22 0,00 0,00 0,00 31. 585.508,22 1.246.288.470,59 1.251.346.070,11

SUMME ANLAGENSPIEGEL 1.279.338.218,87 5.110.536,85 1.967,33 0,00 1.284.446.788,39 32.688.194,61 79.149,43 0,00 1.967,33 32.765.376,71 1.246.650.024,26 1.251.681.411,68

Lagebericht

PIERER Mobility AG

per 31.12.2022

der PIERER Mobility AG , Wels

Da diese Gesellschaft eine geschäftsleitende Holdinggesellschaft ist, beinhaltet der Lagebericht neben den

Informationen des Einzelabschlusses auf Basis UGB (Teil 1) auch die Informationen des

Konzernabschlusses auf Basis IFRS (Teil 2).

I) Einzelabschluss der PIERER Mobility AG (nach UGB):

A. Geschäftsverlauf und Lage des Unternehmens

Das Geschäftsjahr für den Einzelabschluss der PIERER Mobility AG umfasst den Zeitraum vom 1.1.2022 bis

31.12.2022.

Die PIERER Mobility AG ist seit der außerordentlichen Hauptversammlung der KTM AG mit Beschlussdatum

vom 16.2.2022 über den Ausschluß der Minderheitsaktionäre gemäß § 1 Ges AusG nun Alleinaktinärin der

KTM AG und hält 10.652.191 Stk. Aktien (100% Anteile). Zum Stichtag 31.12.2022 hält die PIERER Mobility

AG unverändert 100% Anteile an der PIERER Innovation GmbH, 100% der Anteile an der PIERER

E-Commerce GmbH (vorm. HDC GmbH) und 100% Anteile an der Avocodo GmbH. Die Pierer Mobility AG

hat im Mai 2022 ihre 100% Anteile an der KTM Technologies GmbH in die KTM Forschungs- und

Entwicklungs GmbH eingebracht und hält die Anteile nun mittelbar über die KTM AG. Seit Juli 2022 hält die

PIERER Mobility AG mittelbar über die KTM AG 100% Anteile an der PIERER New Mobility GmbH (vorm.

PIERER E-Bikes GmbH). An der Kiska GmbH hält die Gesellschaft unverändert 50% sowie an der AC styria

Mobilitätscluster GmbH 12,33%. Weiters hat die PIERER Mobility AG ihre 75,46% Anteile an der

DealerCenterDigital GmbH, Neuried, Deutschland, in die PIERER Innovation GmbH eingebracht.

Da die PIERER Mobility AG im Wesentlichen die Aufgaben einer geschäftsleitenden Holdinggesellschaft

erfüllt, wird im Lagebericht auch auf die Entwicklungen des Geschäftsjahres 2022 ihrer

Tochtergesellschaften sowie des Konzerns insgesamt eingegangen.

B. Ertrags- und Vermögenslage

Ergebnisanalyse

Die PIERER Mobility AG hat im abgelaufenen Geschäftsjahr einen Jahresüberschuss von € 78,7 Mio.

(Vorjahr: € 56,2 Mio.) erzielt. Positiv wirkten sich im Wesentlichen Dividendenerträge aus den

Beteiligungsunternehmen in Höhe von € 90,9 Mio. aus. Negativ wirkten sich vor allem die sonstigen

betrieblichen Aufwendungen aus. Diese betreffen im Wesentlichen Aufwendungen für konzerninterne

Dienstleistungen und Umlagen, Aufwendungen für Vorstandstätigkeiten, Steuerberatungsaufwand sowie

Rechts- und Beratungsaufwand.

Beilage II

Lagebericht

PIERER Mobility AG

Bilanzanalyse

Die Bilanzsumme zum 31.12.2022 in Höhe von € 1.363,1 Mio (Vorjahr: € 1.326,6 Mio) hat sich um € 36,5

Mio. erhöht, was im Wesentlichen auf die Erhöhung der Forderungen gegenüber verbundene Unternehmen

zurückzuführen ist.

Das Anlagevermögen hat sich im Geschäftsjahr 2022 auf € 1.251,7 Mio. erhöht (Vorjahr: € 1.246,7 Mio.) und

ist im Wesentlichen auf die Erhöhung der Anteile an der KTM AG auf 100% Anteile zurückzuführen, die in

der außerordentlichen Hauptversammlung der KTM AG mit Beschluss vom 16.2.2022 über den Ausschluss

der Minderheitsaktionäre gemäß § 1 GesAusG gegen Gewährung einer angemessenen Barabfindung

gemäß § 2 GesAusG gefasst wurde.

Das Umlaufvermögen hat sich im Geschäftsjahr 2022 auf € 110,0 Mio. erhöht (Vorjahr: € 76,6 Mio.) und ist

im Wesentlichen auf die Erhöhung der Forderungen gegenüber verbundenen Unternehmen zurückzuführen.

Die liquiden Mittel haben sich gegenüber dem Vorjahr um € 2,7 Mio. erhöht. Die Forderungen gegenüber

verbundenen Unternehmen betragen zum Stichtag € 90,3 Mio. (Vorjahr: € 58,0 Mio.) und betreffen im

Wesentlichen Forderungen aus Dividendenanspruch, Finanzierungsforderungen sowie Forderungen aus

laufenden Verrechnungen und sonstigen Forderungen.

Das Eigenkapital hat sich erhöht und beträgt zum Stichtag € 1.326,2 Mio. (Vorjahr: € 1.281,3 Mio.). Die

Eigenkapitalquote beträgt 97,29% und liegt somit auf einem sehr hohen Niveau.

Die Verbindlichkeiten haben sich im abgelaufenen Geschäftsjahr reduziert und lagen zum 31.12.2022 bei €

34,4 Mio. (Vorjahr: € 42,8 Mio.). Die Reduktion der Verbindlichkeiten resultiert im Wesentlichen aus der

Rückführung des Schuldscheindarlehen in Höhe von € 6 Mio. Von den kurz- und langfristigen

Verbindlichkeiten betreffen € 30,0 Mio. (Vorjahr: € 30,0 Mio.) Namensschuldverschreibungen, € 1,6 Mio.

(Vorjahr: € 1,2 Mio.) Verbindlichkeiten aus Lieferungen und Leistungen, € 2,2 Mio. (Vorjahr: € 4,6 Mio.)

Verbindlichkeiten gegenüber verbundenen Unternehmen sowie € 0,6 Mio. (Vorjahr: € 1,0 Mio.) sonstige

Verbindlichkeiten.

C. Mitarbeiter

Im Jahresdurchschnitt beschäftigte die Gesellschaft keine (Vorjahr: 1) MitarbeiterInnen.

Beilage II/2

LAGEBERICHT ZUM KONZERNABSCHLUSS

PER 31.12.2022 DER PIERER MOBILITY AG, WELS

1. ENTWICKLUNG DER PIERER MOBILITY-GRUPPE

Das Unternehmen

Die PIERER Mobility AG ist die Leitgesellschaft für Europas führenden Hersteller motorisierter Zweiräder im

Segment der Sportmotorräder und E-Bikes. Der Bereich Motorräder umfasst die vollständige Premium-

Markenpalette von KTM, GASGAS und Husqvarna Motorcycles. Mit ihrer Innovationskraft ist die Gruppe durch

ihre Motorradmarken ein wegweisender Technologieführer für nachhaltige Verbrennerkonzepte und die E-

Mobilität. Mit den Fahrradmarken Husqvarna E-Bicycles, GASGAS Bicycles, FELT Bicycles und R Raymon wird

das Zweiradsortiment komplementiert. Das Premium-Markenangebot bietet weiters Hochleistungskomponenten

der Marke WP sowie im 4-Radbereich den KTM X-BOW Hochleistungssportwagen. Im Rahmen von strategischen

Partnerschaften konnte das Unternehmen die Produktionskapazitäten in den letzten Jahren diversifizieren und

die Wettbewerbsfähigkeit auf dem globalen Markt erhöhen. Dabei hervorzuheben ist die mittlerweile 15-jährige

sehr erfolgreiche Allianz mit Bajaj in Indien. Daneben stärken die Kooperationen mit CFMOTO in China und das

Joint Venture mit Maxcom in Bulgarien sowohl die Fahrrad- als auch die Motorradproduktion nachhaltig. Mit

führender Technologie im Bereich der Niedervolt-Elektromobilität will PIERER Mobility weltweit Marktführer bei

elektrischen Zweirädern im Leistungsbereich von 250W bis 15 kW werden.

Seit dem 14. November 2016 sind die Aktien der PIERER Mobility AG im International Reporting Standard der

SIX Swiss Exchange primärkotiert. Am 29. März 2017 wurden die Aktien der PIERER Mobility AG in den Swiss

Performance Index (SPI) der SIX Swiss Exchange aufgenommen. Seit dem 1. März 2022 notieren die Aktien der

PIERER Mobility AG auch im prime market in Wien, dem Top-Segment des Amtlichen Handels der Wiener Börse.

Zudem wurde die Aktien der PIERER Mobility AG am 19. September 2022 in den ATX Global Players Index (ATX

GP) der Wiener Börse aufgenommen. Das Listing an der Frankfurter Wertpapierbörse (General Standard) wurde

am 18. Oktober 2022 (letzter Handelstag) beendet.

Absatz- und Umsatzentwicklung im Geschäftsjahr 2022

Die PIERER Mobility-Gruppe steigerte im Geschäftsjahr 2022 trotz höchster Herausforderungen in der

Zulieferkette den Konzernumsatz um 19,4 % auf einen neuen Rekordwert von € 2.437,2 Mio. (Vorjahr: € 2.041,7

Mio.). Mit 375.492 verkauften Motorrädern (Vorjahr: 332.881) im Geschäftsjahr 2022 erreichte der

Motorradbereich ein Absatzplus von rund 13 %. Trotz massiver Versorgungsprobleme konnte die Fahrrad-

Division ebenfalls ein Absatzwachstum von mehr als 15 % erzielen und 118.465 E-Bicycles & Fahrräder (Vorjahr:

102.753) verkaufen.

In Europa lag der Absatz an die Händler bei 122.028 Motorrädern (+2 %) und 96.056 Fahrrädern (-5 %). Knapp

zwei Drittel der Motorräder (253.464 Stück) wurden in den Märkten außerhalb Europas, und hier insbesondere in

Nordamerika (+67 %) abgesetzt. Im Fahrradbereich stellt die DACH-Region nach wie vor den größten

Absatzmarkt mit rund 67 % dar. In 2022 konnte in der Fahrrad-Division der Absatzanteil in Nordamerika von

knapp 1 % auf rund 11 % erhöht werden.

Die PIERER Mobility-Gruppe konnte die globalen Zulassungen weiterhin auf hohem Niveau halten. Nach einem

starken Anstieg der globalen Nachfrage nach Motorrädern im Vorjahr haben sich sowohl der europäische (-3 %)

bei einem Volumen von ca. 730.000 Stück, als auch der nordamerikanische Motorradmarkt (-5,7 %) und einer

Größe von ca. 470.000 Stück im Jahr 2022 geringfügig verringert und auf hohem Niveau stabilisiert. Der

Marktanteil aller drei Marken (KTM, GASGAS und Husqvarna Motorcycles) liegt somit in Europa bei rund 10 %

bzw. bei 12 % in Nordamerika. Ebenfalls leicht rückgängig ist der australische (inklusive Neuseeland)

Motorradmarkt mit einem 10%-igen Rückgang auf 60.000 neu registrierte Motorräder. Dennoch gelang in diesem

Markt ein Anstieg des Marktanteiles der drei Marken gesamt auf rund 21 %. Der relevante indische Motorradmarkt

Beilage II/3

befindet sich hingegen deutlich im Aufschwung (+23 %). Bajaj setzte in Indien knapp 50.000 KTM und Husqvarna

Motorräder ab, resultierend in einem Marktanteil von 5 %.

Globaler Meilenstein: Das 1.000.000-ste KTM-Motorrad verließ das Produktionswerk des strategischen

Partners Bajaj in Pune/Indien

Die PIERER Mobility AG hat mit ihrer führenden Premium-Motorradmarke KTM in Indien einen bedeutenden

Meilenstein erreicht. Das einmillionste Motorrad - eine KTM Adventure 390 - ist im Bajaj-Produktionswerk Chakan

in Pune vom Produktionsband gefahren. In diesem Werk der Bajaj Auto Limited werden Motorräder der Marken

KTM (125 cm³ bis 390 cm³) und Husqvarna (125 cm³ bis 401 cm³) seit 2011 für den globalen Vertrieb mitentwickelt

und produziert.

Strategische Kooperation mit MV Agusta & Übernahme des europäischen Vertriebs für CFMOTO

Motorräder

Im November 2022 erwarb die KTM AG im Rahmen einer Kapitalerhöhung 25,1 % an der MV Agusta Motor S.p.A.

mit Sitz in Varese (Italien). MV Agusta ist ein traditionsreicher europäischer Motorradhersteller im Top-

Premiumsegment, dessen Marke ein Symbol für die italienische Design- und Ingenieurskunst ist. Im Rahmen

dieser strategischen Partnerschaft der beiden europäischen Motorradhersteller wird KTM die MV Agusta bei der

Supply Chain unterstützen und den Einkauf übernehmen. Darüber hinaus wird im Zuge dieser Kooperation MV

Agusta ihre Produktpalette exklusiv über das weltweite Vertriebsnetz der PIERER Mobility vertreiben.

Die Intensivierung der Zusammenarbeit mit CFMOTO wird auch durch die neu gegründete Tochtergesellschaft

CFMOTO Motorcycles Distribution GmbH, Munderfing, Österreich, vorangetrieben. Das Unternehmen übernimmt

den Vertrieb von CFMOTO-Motorrädern in Europa, insbesondere in Deutschland, Österreich, der Schweiz,

Spanien und Großbritannien.

Große Erfolge im Rennsport 2022 - PIERER Mobility gewinnt mit KTM Rally Dakar 2023

Mit weiteren 17 Weltmeistertiteln im Jahr 2022 blickt die PIERER Mobility AG auf ein herausragendes

Motorsportjahr zurück. Sowohl in der E1 als auch in der GP Klasse der klassischen EnduroGP Meisterschaft

krönte sich GASGAS zum Sieger. Izan Guevara unterstrich eine perfekte Rennsaison mit dem Titel in der

Moto3™-Weltmeisterschaft. Mit Manuel Lettenbichler sicherte sich KTM den Weltmeistertitel in der FIM Hard

Enduro Weltmeisterschaft. Mit Speed und Konstanz entschied auch der Markenkollege Tom Vialle die MX2

Motocross Weltmeisterschaft für sich. Augusto Fernandez gewann in einem mitreißenden Finale den Moto2™

Weltmeistertitel für KTM. Durch zwei Laufsiege und mehreren Podiumsplatzierungen konnte sich das KTM

Factory Racing Team den zweiten Platz in der Teamwertung der MotoGP sichern. Auch die Marke Husqvarna

kann auf ein erfolgreiches Jahr zurückblicken. Billy Bolt dominierte in der FIM SuperEnduro Weltmeisterschaft

und gewann nicht nur den Titel, sondern auch die Teamwertung für Husqvarna.

Genauso erfolgreich wie das vergangene Jahr endete, ging es mit dem ersten großen Erfolg im neuen Jahr weiter.

Anfang des Jahres 2023 sicherte sich die PIERER Mobility AG den Dakar Titel Nummer 20 durch den Argentinier

Kevin Benavides auf KTM in Saudi-Arabien. Toby Price (KTM) und Skyler Howes (Husqvarna) komplettieren mit

den Rängen zwei und drei das Podium und somit einen perfekten Start in die Motorsportsaison 2023.

Auswirkungen des russisch-ukrainischen Krieges

Das Geschäft der PIERER Mobility-Gruppe ist von den militärischen Auseinandersetzungen in der Ukraine nicht

direkt betroffen. PIERER Mobility hat keine Investitionen, sonstige Vermögenswerte oder sonstige wesentliche

Geschäftsbeziehungen in der Ukraine, Russland oder Weißrussland und unterhält auch keine wesentlichen

Geschäftsbeziehungen zu Lieferanten oder Händlern in diesen Ländern.

Strategische Unternehmensentscheidungen, Ziele und Maßnahmen wurden durch den Krieg bisher nicht

beeinflusst und werden als solche auch nicht erwartet. In Summe ergeben sich damit keine wesentlichen

finanziellen Auswirkungen auf den Abschluss des Geschäftsjahres 2022. Die PIERER Mobility-Gruppe erwartet

Beilage II/4

auch keine direkten wesentlichen Auswirkungen des Krieges auf die erwarteten zukünftigen Cashflows, die

Vermögens-, Finanz- und Ertragslage sowie auf die aus heutiger Sicht absehbaren Entwicklungen.

Indirekt erhöht sich jedoch – wie in der gesamten Branche – das Geschäftsrisiko für die PIERER Mobility-Gruppe

insbesondere durch weiter steigende Energie- und Rohstoffkosten sowie durch negative Auswirkungen auf die

Weltwirtschaft.

2. WIRTSCHAFTLICHES UMFELD UND

MARKTENTWICKLUNG

Im vergangenen Geschäftsjahr 2022 hat sich die Entwicklung der Weltwirtschaft aufgrund des russisch-

ukrainischen Krieges deutlich verlangsamt, was zu einer erheblichen Eintrübung der wirtschaftlichen Aussichten

führte. Die nachgelagerten Auswirkungen der COVID-19-Pandemie sind unterdessen immer noch spürbar,

insbesondere im Hinblick auf Beschaffung und globale Lieferketten. So zeigt die zeitgleiche Überlappung vor

allem dieser beiden Ereignisse im vergangenen Geschäftsjahr die vielen Seiten der Destabilisierung von

Lieferketten. Eine der vielfältigen Auswirkungen sind Versorgungsengpässe und erhebliche Preissteigerungen

nicht nur für die Weltwirtschaft, sondern auch für die Menschen weltweit.

Weitere wichtige, beispielhafte Ergebnisse dieser vielschichtigen Krise sind die Inflationsraten, die sich kurz- und

mittelfristig auf einem hohen Niveau einzupendeln scheinen. Gleichzeitig trägt die erst zum Jahresende

aufgegebene Null-COVID-19-Politik in China durch Überlastung chinesischer Infrastruktur und Transportwege zu

den Engpässen bei den weltweit verfügbaren Ressourcen und Gütern bei. Dies stellt einen weiteren Treiber für

Rohstoffpreise dar, was wiederum den Inflationsdruck erhöht und die Realeinkommen und Ausgaben

beeinträchtigt. Darüber hinaus hat der Krieg in der Ukraine insbesondere zu einer erheblichen Steigerung der

Energiepreise geführt, was sich auf die bereits angespannte Versorgungslage und damit auf die Wirtschaft

insgesamt auswirkt.

Die oben beschriebene Situation resultiert schließlich in mit hoher Unsicherheit behafteten, stetig angepassten

globalen Wachstumsprognosen führender Organisationen auf diesem Gebiet, wie dem Internationalen

Währungsfonds (IWF), der Organisation für wirtschaftliche Zusammenarbeit und Entwicklung (OECD) und der

Weltbank. Die jüngsten Schätzungen zeigen eine Erhöhung der Wachstumsprognosen für 2023 im Vergleich zu

vorhergehenden Schätzungen zum Jahresende 2022. Dies spiegelt einerseits die vorherrschende Dynamik und

Volatilität der wirtschaftlichen Entwicklung wider, andererseits deuten die Anhebungen der Wachstumsprognosen

auf abflachende weltwirtschaftliche Risiken und Inflationsraten, gestraffte Geld- und Fiskalpolitik sowie steigende

Wirtschaftskraft hin. Die Einschätzungen des IWF basieren auf zahlreichen Annahmen zu den vielseitigen

makroökonomischen Einflussfaktoren, insbesondere zur Preisentwicklung bei fossilen Energieträgern und

sonstigen Ressourcen sowie dem allgemeinen Zinsniveau.

Für Industrieländer rechnet der IWF für das Jahr 2023 mit einem Wachstum von 1,2 % und für das nächste Jahr

2024 von 1,4 %. Für die Euro-Zone wird für 2023 ein Wachstum von 0,7 % prognostiziert. Für das Jahr 2024

rechnet der IWF mit einem Wachstum von 1,6 % für die Euro-Zone, während das Wachstum insbesondere in

Deutschland mit 0,1 % für 2023 und 1,4 % für 2024 unterdurchschnittlich prognostiziert wird.

Für die Schwellen- und Entwicklungsländer prognostiziert der IWF für das Jahr 2023 ein Wachstum der

Wirtschaftsleistung von 4,0 %, für 2024 von 4,2 %. Für China wird eine Wachstumsrate von 5,2 % für das Jahr

2023 und 4,5 % für das Jahr 2024 prognostiziert. Für Indien wird ein Anstieg der Wirtschaftsleistung von 5,4 %

für 2023 und von 6,8 % für 2024 prognostiziert.

Der IWF prognostiziert Inflationsraten in Höhe von 6,6 % für 2023 und in Höhe von 4,3 % für 2024. Damit liegt

der IWF mit seinen Schätzungen der künftigen Inflationsraten ca. 1,7 Prozentpunkte über dem erwarteten Niveau

von OECD und Weltbank. Der IWF hält fest, dass die Risiken für den weltwirtschaftlichen Ausblick weiterhin

ungewöhnlich groß sind, da die künftige weltwirtschaftliche Entwicklung entscheidend von der erfolgreichen

Beilage II/5

Kalibrierung der Geldpolitik, dem Verlauf des Krieges in der Ukraine und der wirtschaftlichen Erholung in China

unter den Auswirkungen der aufgegebenen Null-COVID-19-Politik abhängt. Diese Einschätzung wird von der

OECD und der Weltbank im Wesentlichen geteilt. Die Risiken für ein noch im Jahr 2022 prognostiziertes Szenario

wirtschaftlicher Stagnation und zeitgleicher monetärer Inflation sind nach Einschätzung von IWF, OECD und Welt-

bank deutlich gesunken, sodass ein solches Szenario nicht erwartet wird. Zusammenfassend lässt sich festhalten,

dass die Projektionen der wichtigsten Organisationen trotz der einleitend angeführten Herausforderungen

niedrige globale Wachstumsraten erwarten lassen. Der globale Wirtschaftsabschwung wird als weniger

schwerwiegend erwartet als dies die letzten Prognosen aus 2022 vermuten ließen, wenngleich alle Projektionen

der globalen Wirtschaftsentwicklung mit großer Unsicherheit behaftet sind.

Im abgelaufenen Geschäftsjahr 2022 entwickelte sich der globale

Motorradmarkt positiv (+5,7 %). In Europa

sank der Motorradmarkt auf ein Volumen von ca. 730.000 Neuzulassungen zum 31.12.2022, was einem leichten

Minus von -3 % entspricht. Der Marktanteil straßenzugelassener Motorräder von KTM, Husqvarna und GASGAS

liegt bei 10,0 % (Vorjahr: 11,5 %; Werte ohne Einbezug von Motocross-Modellen). Während beispielsweise in

Italien (+7 %) der Gesamtmarkt zulassungsfähiger Motorräder wuchs, zeichnete sich in großen Teilen Europas

durchschnittlich ein leichter Rückgang (-3 %) ab.

In Nordamerika

, einem der wichtigsten Absatzmärkte für die PIERER Mobility-Gruppe, schrumpfte zwar der

Gesamtmarkt leicht von 495.000 im Vorjahr auf 470.000 in 2022 (-5,7 %), der Marktanteil in der Gruppe stieg

allerdings von 11,6 % im Vorjahr auf 11,8 %.

In Australien kühlte sich der Markt in etwa auf das Niveau von 2020 ab (-10 % bei einem gesamten Marktvolumen

von 60.000 Stück; Vorjahr: +8 %). Die Marken KTM, Husqvarna und GASGAS konnten ihren Marktanteil

allerdings ausbauen und weisen nunmehr einen Marktanteil von 20,6 % (Vorjahr: 19,7 %) auf. Neben dem

Heimatmarkt Österreich stellt dies den größten prozentualen Marktanteil der PIERER Mobility-Gruppe weltweit

dar.

Der relevante indische Motorradmarkt (S2/S3-Segment) befindet sich deutlich im Aufschwung (+23 %) und

übersteigt 2022 das Volumen von 1 Mio. Einheiten. Dabei setzte der strategische Partner Bajaj in Indien knapp

50.000 Motorräder der Marken KTM und Husqvarna ab, was einem Marktanteil von 5 % (Vorjahr: 7 %) entspricht.

Sowohl in China (Premium-Importeursmarkt) als auch in Japan (Motorräder >250 cm

) verzeichneten die Märkte

einen leichten (-4,4 % in Japan), bzw. einen deutlichen (-14 % in China) Rückgang, wobei speziell in China die

restriktiven Coronamaßnahmen im Jahr 2022 zu dieser Verringerung geführt haben. Dennoch liegt der Marktanteil

der PIERER Mobility-Gruppe in Japan, dem Heimatmarkt der großen japanischen Motorradhersteller, bei stabilen

3 % (Vorjahr: 3,3 %), während sich die Nachfrage in China nach KTM- und Husqvarna-Modellen in einem

Marktanteil von 10,3 % (Vorjahr: 10,2 %) niederschlägt.

Der E-Mobility-Markt birgt großes Wachstumspotenzial. Es ist absehbar, dass sich darauf hochwertige Produkte

durchsetzen bzw. durchsetzen werden. Das gestiegene Qualitäts- und Umweltbewusstsein der Verbraucher führt

unmittelbar zu einer höheren Nachfrage auf dem relevanten Markt – ein nachgewiesener Trend, insbesondere

auf Basis der Daten für den deutschen Absatzmarkt, der nach aktuellen wissenschaftlichen Erkenntnissen nicht

zuletzt von der sich verändernden und umweltbewussteren Bevölkerungsstruktur abhängt. Gleichzeitig ist

anzumerken, dass aktuelle makroökonomische Unsicherheiten, wie einleitend dargelegt, sowie Einflüsse auf

Verbraucherpreise nicht zuletzt aufgrund von hohen Inflationsraten unvorhersehbare Auswirkungen auf das

Nachfrageverhalten bergen.

Der jüngste Bericht 2022 der Confederation of the European Bicycle Industry (CONEBI) weist für das Jahr 2021

ein europäisches Absatzvolumen von rund 22 Millionen New Mobility-Produkten – in der Terminologie von

CONEBI EPACs – aus. Dies ist ein moderates Wachstum im Vergleich zu 2020 von 0,8 %. Die Verkäufe von

elektrifizierten Produkten übertreffen jedoch den gesamten Markt mit einem Anstieg von +11,5 % im Vergleich zu

2020 und einem Anteil von 22,8 % an den insgesamt verkauften Produkten. Die wichtigsten Länder in Bezug auf

Bezogen auf die wesentlichen Absatzmärkte der KTM Gruppe: DE, FR, IT, UK, ES, SE, BE, NL, AT, CH, FL, DK, NO, GR, PL, SL, HU, BALTIC, USA, CAN, AUS, NZ, JP, SA, TH, CN,

AR, BR, CO.

Motorräder = 120 cm³ ohne Motocross, Scooters und ATV’s, inkl. Elektromotorräder in den Märkten DE, FR, IT, UK, ES, SE, BE, NL, AT, CH, FI, NO, BALTIC.

Motorräder = 120 cm³ inklusive Motocross, ohne Scooters und ATV’s, inkl. Elektromotorräder in den beiden Märkten US und CA.

Beilage II/6

das Verkaufsvolumen bleiben dem Bericht zufolge Deutschland (4,7 Millionen Einheiten), Großbritannien (3,3

Millionen Einheiten) und Frankreich (2,0 Millionen Einheiten).

Nach Angaben des Zweirad-Industrie-Verbandes (ZIV) wurden in Deutschland im Jahr 2021 rund 4,7 Mio. New

Mobility-Produkte abgesetzt, was einem Absatzrückgang von rund 5 % gegenüber dem Rekordjahr 2020

entspricht. Damit stabilisiert sich der Absatz auf einem deutlich erhöhten Niveau im Vergleich zum Zeitraum vor

der COVID-19-Pandemie. Dieser Rückgang resultiert ausschließlich aus dem Segment nicht-elektrifizierter

Zweiräder (-13,0 %), während die Verkäufe von elektrifizierten Produkten gegen den Trend um 3 % stiegen. In

seinem Bericht für das Gesamtjahr 2021 bestätigt der ZIV die äußerst positiven Prognosen der Vergangenheit für

den relevanten Markt. So rechnete der ZIV für 2021 mit 2,0 Millionen verkauften elektrifizierten Produkten in

Deutschland (Vorjahr: 1,95 Millionen elektrifizierte Produkte). Deren Marktanteil liegt damit bei 42,6 % (Vorjahr:

38,7 %). Auch für ihren mittelfristigen Marktanteil hat der ZIV seine Schätzung erhöht: Mittelfristig soll der Anteil

elektrifizierter New Mobility-Produkte am gesamten relevanten Markt in Deutschland 50 % betragen

(Vorjahresschätzung: 40-50 %).

Auch eine Trendstudie der Wirtschaftsprüfungs- und Beratungsgesellschaft PwC aus dem Jahr 2021

zeigt, dass

der relevante Markt in den kommenden Jahren weltweit mit einer durchschnittlichen Rate von ca. 5,5% jährlich

wachsen wird. Getrieben wird diese Entwicklung vor allem durch stark wachsende Verkaufszahlen bei

elektrifizierten New Mobility-Produkten (7,4 % p.a. laut Studie). Die größten Wachstumspotenziale liegen der

Studie zufolge in den ostasiatischen sowie europäischen und nordamerikanischen Märkten mit einem

geschätzten Absatzvolumen von ca. 210,4 Mio. Produkten (geschätzter Wert des Absatzvolumens: ca. 80 Mrd.

Euro), die im Jahr 2025 weltweit verkauft werden. Andere aktuelle Studien, z. B. von Grand View Research

oder

Precedence Research

, bestätigen denselben erwarteten starken Wachstumstrend mit berechneten jährlichen

globalen Wachstumsraten von 8,2 % bzw. 7,4 %, wobei Europa den am schnellsten wachsenden Markt (10,4 %

bzw. 10,5 % CAGR) und das Segment elektrifizierter New Mobility-Produkte den am schnellsten wachsenden

Produktbereich (10,2 % bzw. 10,3 % CAGR) darstellt.

Für weitere Informationen, siehe https://www.pwc.com/it/it/publications/docs/pwc-global-bike-and-accessories-market.pdf (Stand: 26. Jänner 2023).

Für einen Überblick, siehe https://www.grandviewresearch.com/industry-analysis/bicycle-market (Stand: 26. Jänner 2023).

Für einen Überblick, siehe https://www.precedenceresearch.com/bicycle-market (Stand: 26. Jänner 2023).

Beilage II/7

3. FINANZIELLE LEISTUNGSINDIKATOREN

BEDEUTSAMSTE FINANZIELLE LEISTUNGSINDIKATOREN:

ERTRAGSKENNZAHLEN

2021

2022

VDG. IN %

Umsatzerlöse

in € Mio.

2.041,7

2.437,2

19,4%

Betriebsergebnis vor Abschreibung (EBITDA)

in € Mio.

332,2

381,1

14,7%

EBITDA

-Marge

in %

16,3%

15,6%

Ergebnis der betrieblichen Tätigkeit (EBIT)

in € Mio.

193,5

235,3

21,6%

EBIT-Marge

in %

9,5%

9,7%

WEITERE FINANZIELLE KENNZAHLEN:

ERTRAGSKENNZAHLEN

2021

2022

VDG. IN %

Ergebnis nach Steuern

in € Mio.

142,9

170,6

19,4%

Ergebnis nach Minderheiten

in € Mio.

82,5

169,9

> 100%

BILANZKENNZAHLEN

31.12.2021

31.12.2022

VDG. in %

Bilanzsumme

in € Mio.

2.033,7

2.550,6

25,4%

Eigenkapital

in € Mio.

765,6

914,4

19,4%

Eigenkapitalquote

in %

37,6%

35,8%

Working Capital Employed

in € Mio.

160,5

186,7

16,4%

Nettoverschuldung

in € Mio.

189,9

256,5

35,1%

Gearing

in %

24,8%

28,1%

CASH-FLOW UND INVESTITIONEN

2021

2022

VDG. in %

Cash-Flow aus Betriebstätigkeit

in € Mio.

367,4

280,3

23,7%

Cash

-Flow aus Investitionstätigkeit

in € Mio.

195,1

283,1

45,1%

Free Cash-Flow

in € Mio.

172,2

-2,8

< 100%

Cash

-Flow aus Finanzierungstätigkeit

in € Mio.

27,6

91,3

< 100%

Investitionen

in € Mio.

178,5

267,5

49,9%

WERTSCHAFFUNG

31.12.2021

31.12.2022

ROCE (Return on Capital Employed)

in %

17,4%

19,2%

ROE (Return on Equity)

in %

20,1%

20,3%

ROIC (Return on Invested Capital)

in %

13,0%

15,5%

1) Working Capital Employed = Vorräte + Forderungen aus Lieferungen und Leistungen - Verbindlichkeiten aus Lieferungen und Leistungen

2) Nettoverschuldung = Finanzverbindlichkeiten (kurzfristig, langfristig) - Zahlungsmittel

3) Gearing = Nettoverschuldung / Eigenkapital

4) Free Cash-Flow = Cash-Flow aus Betriebstätigkeit + Cash-Flow aus Investitionstätigkeit

5) Zugänge von Sachanlagen und immateriellen Vermögenswerten laut Anlagespiegel; ohne Leasingzugänge (IFRS 16) iHv. € 25,9 Mio. (Vorjahr: € 24,6 Mio.)

6) ROCE: EBIT / durchschnittliches Capital Employed; Capital Employed = Sachanlagen + Firmenwert + Immaterielle Vermögenswerte + Working Capital Employed

7) ROE = Ergebnis nach Steuern / durchschnittliches Eigenkapital

8) ROIC = NOPAT / durchschnittliches Capital Employed; NOPAT = EBIT – Steuern

Beilage II/8

GESCHÄFTSENTWICKLUNG UND ANALYSE DER ERTRAGSKENNZAHLEN

Die PIERER Mobility-Gruppe blickt trotz anhaltender Supply Chain-Disruptionen auf ein neues

Rekordgeschäftsjahr zurück. Im Geschäftsjahr 2022 erzielte die PIERER Mobility-Gruppe einen Rekordumsatz in

Höhe von € 2.437,2 Mio. nach € 2.041,7 Mio. im Vorjahr, was einem Umsatzplus von 19,4 % entspricht. Rund

95% der Umsatzerlöse wurden außerhalb von Österreich erzielt. Regional betrachtet entfielen 46,5 % der

Umsatzerlöse auf Europa (-9,5 Prozentpunkte zum Vorjahr), 33,9 % auf Nordamerika inkl. Mexiko (+11,0

Prozentpunkte zum Vorjahr) und 19,6 % auf den Rest der Welt (-1,5 Prozentpunkte zum Vorjahr).

Das operative Betriebsergebnis (EBIT) verbesserte sich um 21,6 % auf € 235,3 Mio. (Vorjahr: € 193,5 Mio.), was

einer EBIT-Marge von 9,7 % entspricht. Das operative Ergebnis vor Abschreibungen (EBITDA) liegt mit € 381,1

Mio. um knapp € 50 Mio. über dem Vorjahreswert von € 332,2 Mio. Die EBITDA-Marge beläuft sich auf 15,6 %.

Das Ergebnis nach Steuern liegt mit € 170,6 Mio. um 19,4 % über dem Vorjahr.

Die Gesamtabsatzzahlen der PIERER Mobility-Gruppe sowie der Absatz von PTWs (Motorräder und E-Bicycles)

stellen sich wie folgt dar:

Die beiden Segmente „Motorcycles“ und „Bicycles“ stellen die operativen Hauptbereiche der PIERER Mobility-

Gruppe dar, auf deren Entwicklung im Folgenden eingegangen wird.

MOTORCYCLES

Im Geschäftsjahr 2022 konnte in der Motorrad-Division ein Umsatz von € 2.262,5 Mio. (Vorjahr: € 1.876,4 Mio.)

erzielt werden. Angetrieben durch die anhaltend hohe globale Nachfrage nach motorisierten Zweirädern konnte

somit eine Steigerung um 20,6 % gegenüber der Vergleichsperiode des Vorjahres verzeichnet werden. Das

EBITDA in Höhe von € 381,2 Mio. (Vorjahr: € 325,2 Mio.) und das EBIT in Höhe von € 241,0 Mio. (Vorjahr: €

192,8 Mio.) erhöhten sich damit deutlich gegenüber dem Vorjahr. Diese entsprechen einer EBITDA-Marge von

16,8 % (Vorjahr: 17,3 %) und einer EBIT-Marge von 10,7 % (Vorjahr: 10,3 %).

In Nordamerika verzeichnete der Motorradbereich ein Umsatzwachstum von 74,0 % auf € 811,3 Mio. Damit

wurden 35,9 % des Umsatzes in Nordamerika erzielt (Vorjahr: 24,8 %). In Europa blieb der Umsatz in etwa auf

Vorjahresniveau bei € 977,4 Mio. (Vorjahr: € 980,8 Mio.), was einem Anteil von 43,2 % entspricht (Vorjahr: 52,3

%). In den übrigen Ländern konnte der Umsatz gegenüber dem Vorjahr um 10,3 % auf € 473,8 Mio. gesteigert

werden. Der Umsatzanteil in den übrigen Ländern beträgt 20,9 % (Vorjahr: 22,9 %).

Mit 268.575 verkauften KTM Motorrädern, 75.266 verkauften HUSQVARNA Motorrädern und 31.651 verkauften

GASGAS Motorrädern im Geschäftsjahr 2022 konnte ein Absatz von 375.492 Motorrädern (2021: 332.881 Stück)

erzielt werden (dies unter Berücksichtigung der in Indien und Indonesien von Partner Bajaj verkauften

Motorräder). Die Motorrad-Division erreichte somit ein Absatzplus von 12,8 % und festigte damit mit ihren drei

Motorradmarken ihre Präsenz in den wichtigen Motorradabsatzmärkten.

Beilage II/9

In den Vertriebsregionen von Europa lag der Absatz bei 122.028 Motorrädern (+1,6 %). Rund zwei Drittel der

produzierten Motorräder (253.464) wurden in Märkten außerhalb Europas abgesetzt. Besonders stark war das

Wachstum in Nordamerika, wo 109.711 Motorräder abgesetzt wurden, was einem Plus von 66,8 % im Vergleich

zum Vorjahr entspricht. Erfreulich zeigte sich auch die Absatzentwicklung in Südamerika mit 37.613 (+15,5 %)

und in Asien mit 31.803 (+6,6 %) abgesetzten Motorrädern. Der Absatz in Australien war mit rund 19.478

abgesetzten Motorrädern in etwa auf Vorjahresniveau (Vorjahr: 20.811 Stück). In Indien/Nepal lag der Absatz bei

rund 51.484 Stück (-14,6 %).

Im Geschäftsjahr 2022 wurden am Produktionsstandort Mattighofen 222.041 Motorräder produziert. Im Vergleich

zum Vorjahr entspricht dies einer Steigerung von 43.049 Stück oder +24,1 %. Unter Berücksichtigung der von

unserem Partner Bajaj Auto Ltd. in Indien produzierten kleinmotorigen KTM- und Husqvarna-Modelle sowie der

in Spanien produzierten GASGAS-Trials wurden weltweit 381.823 Motorräder (+17,9 %) produziert.

Beilage II/10

BICYCLES

In der Fahrrad-Division ist der Auf- und Ausbau der vier Marken „Husqvarna E-Bicycles“, „GASGAS Bicycles“,

„FELT Bicycles“ und „R Raymon“ in vollem Gange. Die Sichtbarkeit aller Marken steigt durch Veranstaltungen,

Messen und die neue Auftragsrunde für das Modelljahr 2022 stark an.

Um die notwendigen Produktionskapazitäten zu sichern, wurde im Vorjahr ein Joint Venture mit MAXCOM Ltd.

gegründet, einem der größten Fahrradhersteller Osteuropas und einem bestehenden Hersteller der PIERER New

Mobility GmbH. Auf einer Fläche von 130.000 Quadratmetern wird eine hochmoderne (E-)Bike-Produktionsstätte

entstehen, die auch internationalen Anbietern die Möglichkeit bietet, sich am Standort anzusiedeln. Die jährliche

Produktionskapazität wird bei rund 350.000 Einheiten liegen. Zudem wurde auch aufgrund der globalen

Lieferkettenproblematik im Juni 2022 eine Tochtergesellschaft in Taiwan, die PIERER E-Bikes Asia Ltd.

gegründet. Die PIERER E-Bikes Asia Ltd. wird die PIERER New Mobility in ihrem Supply Chain Management

maßgeblich unterstützen und somit das Beschaffungsrisiko durch den direkten Zugang zum asiatischen Markt

reduzieren. Schließlich soll die neue Tochtergesellschaft in Taiwan dazu beitragen, die gesetzten langfristigen

Unternehmens- und Umsatzziele zu erreichen.

Im Geschäftsjahr 2022 konnte in der Fahrrad-Division ein Umsatz in Höhe von € 171,2 Mio. erzielt werden

(Vorjahr: € 162,7 Mio.). Dies bedeutet ein Umsatzplus von 5,2 % im Jahresvergleich. Der Umsatz lag

hauptsächlich aufgrund von Engpässen in der Lieferkette und hier insbesondere bei den elektrischen

Komponenten unter den budgetierten Erwartungen. Diesbezüglich ist das Unternehmen im ständigen Dialog mit

ihren Lieferanten, um weitere mögliche Engpässe zu reduzieren. Das EBITDA lag in 2022 bei € 6,5 Mio. (Vorjahr:

€ 11,4 Mio.) und das EBIT bei € 2,5 Mio. (Vorjahr: € 7,0 Mio.). Dies entspricht einer EBITDA-Marge von 3,8 %

(Vorjahr: 7,0 %) und einer EBIT-Marge von 1,4 % (Vorjahr: 4,3 %).

Mit 74.479 E-Bicycles (Vorjahr: 76.916) und 43.986 non-E-Bicycles (Vorjahr: 25.837) konnte die Fahrrad-Division

mit den Marken HUSQVARNA, R RAYMON, GASGAS und FELT ein Absatzwachstum von in Summe 15,3 %

erzielen und insgesamt 118.465 Fahrräder verkaufen (Vorjahr: 102.753). Von den im Geschäftsjahr 2022

abgesetzten E-Bicycles wurden 71,4 % unter der Marke R Raymon, 20,6 % unter der Marke Husqvarna E-

Bicycles sowie 8,0 % unter der Marke GASGAS verkauft. Die Absätze der Fahrräder ohne Elektroantrieb verteilen

sich auf die beiden Marken FELT und R Raymon annähernd gleich (im Vorjahr ausschließlich R Raymon).

Rund 81 % des Absatzes entfallen auf Europa und hier insbesondere auf die DACH-Region. Weitere 11 %

betreffen die nordamerikanische und rund 7 % die asiatische Vertriebsregion. Der restliche Absatz (rund 1%)

betrifft Südamerika und Australien.

Beilage II/11

BILANZANALYSE

Die Bilanzstruktur der PIERER Mobility-Gruppe setzt sich wie folgt zusammen:

2021 2022

Mio. €

in %

Mio. €

in %

Langfristige Vermögenswerte

992,8

48,8%

1.195,8

46,9%

Kurzfristige Vermögenswerte

1.040,9

51,2%

1.354,8

53,1%

Vermögenswerte

2.033,7

100,0%

2.550,6

100,0%

Eigenkapital

765,6

37,6%

914,4

35,8%

Langfristige Schulden

649,5

31,9%

625,6

24,5%

Kurzfristige Schulden

618,7

30,4%

1.010,6

39,6%

Eigenkapital und Schulden

2.033,7

100,0%

2.550,6

100,0%

Die Bilanzsumme der PIERER Mobility-Gruppe erhöhte sich gegenüber dem Konzernabschluss zum 31.

Dezember 2021 von € 2.033,7 Mio. auf € 2.550,6 Mio. um 25,4 %.

Die Erhöhung der langfristigen Vermögenswerte von € 992,8 Mio. auf € 1.195,8 Mio. liegt insbesondere analog

zu den Vorjahren im Bereich von Entwicklungsprojekten, welche über den Abschreibungen liegen und zu einer

Steigerung der immateriellen Vermögenswerte führten. Zudem stieg auch das Sachanlagevermögen vor allem

aufgrund der Errichtung des neuen Headquarters von KTM North America im kalifornischen Murrietta.

Innerhalb der kurzfristigen Vermögenswerte erhöhten sich insbesondere die Vorräte um € 248,8 Mio. Die weiteren

Veränderungen betreffen einerseits den Anstieg der Forderungen aus Lieferungen und Leistungen und sonstigen

Vermögenswerte und andererseits die Reduktion der Zahlungsmittel. Dies führte insgesamt zu einer Erhöhung

der kurzfristigen Vermögenswerte um 30,2 % auf € 1.354,8 Mio.

Die kurzfristigen Schulden erhöhten sich gegenüber dem 31. Dezember 2021 um € 391,9 Mio. (+63,4 %). Der

Anstieg ist größtenteils auf den Anstieg der Verbindlichkeiten aus Lieferungen und Leistungen zurückzuführen.

Die langfristigen Schulden reduzierten sich leicht um 3,7 % auf € 625,6 Mio.

Das Eigenkapital erhöhte sich im Geschäftsjahr 2022 um € 148,8 Mio. von € 765,6 Mio. auf € 914,4 Mio. Einerseits

wurde durch das Ergebnis nach Steuern in Höhe von € 170,6 Mio. das Eigenkapital gestärkt. Andererseits führten

Dividendenzahlungen in Höhe von € 34,3 Mio. und der Zukauf der Anteile an der KTM AG (Erhöhung der Anteile

von 99,75 % auf 100 %) in Höhe von € 5,1 Mio. zu einer Verringerung des Eigenkapitals. Die sonstigen Effekte

in Höhe von € 17,6 Mio. betreffen im Wesentlichen die ergebnisneutrale Erfassung von

Beilage II/12

Fremdwährungsdifferenzen, die Bewertung von Finanzinstrumenten sowie die Neubewertung der Nettoschuld

aus leistungsorientierten Versorgungsplänen. Die Eigenkapitalquote liegt mit 35,8% aufgrund der beschriebenen

Bilanzerhöhung unter dem Wert per 31. Dezember 2021 von 37,6%.

LIQUIDITÄTSANALYSE

Der Cash-Flow aus dem operativen Bereich lag im Geschäftsjahr 2022 bei € 280,3 Mio. und damit um 23,7 %

unter dem Vorjahreswert von € 367,4 Mio., wofür insbesondere der Anstieg im Working Capital

hauptverantwortlich war.

Der Zahlungsmittelabfluss aus Investitionen betrug € -283,1 Mio. und liegt insgesamt deutlich über dem

Vorjahreswert von € -195,1 Mio. Dieser Anstieg resultiert im Wesentlichen aufgrund der höheren Auszahlungen

für den Erwerb von immateriellen Vermögenswerten und Sachanlagen (Effekt € -64,6 Mio.). Zudem wurden die

Investitionsausgaben durch die Investition in das neue US-Headquarter sowie den Kauf von 25,1 % der Anteile

an der MV Agusta Motor S.p.A. erhöht.

Aufgrund dieses hohen Investitionsniveaus und einer gestiegenen Kapitalbindung im Working Capital ist der Free

Cash-Flow mit € -2,8 Mio. im Jahr 2022 leicht negativ. In den letzten drei Geschäftsjahren wurde ein

durchschnittlicher Free Cash-Flow von 5,6 % vom Umsatz erwirtschaftet, welcher über der nachhaltigen

Zielbandbreite von 3 bis 5 % des Umsatzes liegt.

Nach Berücksichtigung des Cash-Flows aus Finanzierungsaktivitäten in Höhe von € -91,3 Mio. verringerten sich

die liquiden Mittel im Vergleich zum 31. Dezember 2021 um € 94,8 Mio. (inklusive Fremdwährungseffekte von €

-0,7 Mio.) auf € 278,7 Mio.

Durch die starke Eigenkapitalbasis und die langfristigen Finanzierungen stehen ausreichende Liquiditätsreserven

nachhaltig zur Verfügung.

INVESTITIONEN

Im laufenden Geschäftsjahr wurden in der PIERER Mobility-Gruppe Gesamtinvestitionen in Höhe von € 293,4

Mio. (Vorjahr: € 203,1 Mio.) inklusive IFRS 16 Leasingzugänge in Höhe von € 25,9 Mio. (Vorjahr: € 24,6 Mio.)

getätigt. Die Investitionen ohne Leasingprojekte verteilen sich auf Entwicklungsprojekte (inkl. Werkzeuge),

Sachanlagen und immaterielle Vermögensgegenstände wie folgt:

Beilage II/13

Im abgelaufenen Geschäftsjahr wurden wie gewohnt hohe Investitionen in Serienentwicklungsprojekte (inkl.

Werkzeuge) vorgenommen. Die nachhaltig hohen Investitionen in die Serienproduktentwicklung stellen einen der

wesentlichen Erfolgsfaktoren der PIERER Mobility-Gruppe dar.

Eine der bedeutendsten Einzelinvestitionen in die Infrastruktur (Sachanlagen) des Geschäftsjahres 2022 stellte

der Weiterbau und die Fertigstellung des neuen Headquarters von KTM North America in Murrieta, Kalifornien

dar. Auf einer Fläche von ca. 14.000 m² entstand ein Firmencampus, der sowohl Büro- und Motorsportgebäude

als auch Lagerflächen umfasst. Das Investitionsvolumen für den Bau des Gebäudes belief sich auf rund 53 Mio.

USD.

Weitere wesentliche Einzelinvestitionsprojekte umfassten in 2022 die Anschaffung neuer Produktionsanlagen zur

Modernisierung der Fertigung, den Kauf von Grundstücken zur Sicherung zukünftiger Expansionen sowie

Innenausbauten des im Geschäftsjahr in Betrieb genommenen neuen Logistikzentrums in Munderfing. Darüber

hinaus wurde in den neuen Produktionsstandort für GASGAS Trial-Modelle in Terrassa, Spanien, nördlich von

Barcelona, investiert, wo im Juni 2022 die Serienproduktion aufgenommen wurde.

In 2022 wurden auch umfassende Investitionen in das gemeinschaftliche Projekt mit MAXCOM Ltd. in Bulgarien

getätigt. Dabei handelt es sich um eines der bedeutendsten Investitionsprojekte von PIERER New Mobility in den

nächsten Jahren.

Der Anstieg der Investitionen in immaterielle Vermögensgegenstände resultiert, neben den laufenden

Investitionen in IT und Lizenzen, größtenteils aus dem Zugang von Markenrechten.

Aufgrund der hohen Investitionen in Kapazitäten und Infrastruktur in den letzten Jahren und der Verlagerung der

kleinmotorigen Husqvarna Motorcycles Straßenmodelle zum strategischen Partner Bajaj sind die benötigten

Produktionskapazitäten in Österreich für die nächsten Jahre sichergestellt. Trotz makroökonomischer

Herausforderungen auf globaler Ebene haben Investitionen in die (Weiter-)Entwicklung bestehender und neuer

Modelle, Elektromobilität und High-Tech-Modernisierung aktuell und auch in Zukunft höchste Priorität. Im

Einklang mit den strategischen Zielen werden die Ausgaben für Investitionen in Forschung und Entwicklung dem

bereits hohen Niveau der Vorjahre entsprechen.

Beilage II/14

4. NICHTFINANZIELLE ERKLÄRUNG

Die Gesellschaft erstellte für die PIERER Mobility-Gruppe einen konsolidierten nichtfinanziellen Bericht gemäß §

267a UGB für das Geschäftsjahr 2022, welcher Angaben zu Konzepten, nichtfinanziellen Risiken, Due Diligence

Prozessen sowie Ergebnissen und Leistungsindikatoren hinsichtlich Umwelt-, Sozial- und Arbeitnehmerbelangen,

der Achtung von Menschenrechten, sowie der Bekämpfung von Korruption und Bestechung, enthält. Dieser

Bericht wurde vom Aufsichtsrat gemäß § 96 AktG geprüft und ist online verfügbar unter

https://www.pierermobility.com/nachhaltigkeit/nachhaltigkeitsberichte.

Der Corporate Governance Bericht ist auf der Webseite der Gesellschaft verfügbar unter

https://www.pierermobility.com/investor-relations/corporate-governance.

5. FORSCHUNG & ENTWICKLUNG UND NEUE

MODELLE

Für die PIERER Mobility AG als führender Hersteller von Premium Powered-Two-Wheelers (PTW)-Fahrzeugen

in Europa ist es erklärtes Ziel, durch kontinuierliches Wachstum die Vorreiterrolle in Bezug auf Technologie,

Vertrieb und Image in der Motorradwelt weiter auszubauen. Der Bereich Forschung- und Entwicklung steht daher

seit Jahren besonders im Fokus. Als Resultat der verfolgten F&E-Strategie entstehen innovative Produkte, die

den hohen Kundenerwartungen hinsichtlich Technologie und Performance gerecht werden. Gleichzeitig

ermöglicht dies, nachhaltig neue Märkte zu erschließen.

Besonders hohe Priorität wird dabei der frühzeitigen Erkennung von Trends im Powered Two-Wheeler (PTW)-

Segment und der Weiterentwicklung des Produktportfolios in technischer und funktioneller Sicht beigemessen.

Gleichzeitig wird hohes Engagement zur Verfolgung, Erkennung und Umsetzung der Kundenanforderungen an

die Produkte und Dienstleistungen der PIERER Mobility-Gruppe aufgebracht, um die in der Vergangenheit

erarbeitete Vorreiterrolle weiter auszubauen und eine marktnahe Produktentwicklungsstrategie gewährleisten zu

können.

Dank der global agierenden Forschungs- und Entwicklungsorganisation verfügt die PIERER Mobility-Gruppe über

ein Netzwerk an hoch qualifizierten Mitarbeitern etwa im Bereich Konstruktion, Berechnung und Simulation.

Dieses Netzwerk wird durch den betriebsinternen Maschinen- und Anlagenpark, der für Produktion, Aufbau und

Validierung neu entwickelter Prototypen verantwortlich ist, unterstützt. Diese Kombination ermöglicht es, mit

hoher Flexibilität auf sich ändernde Anforderungen und die damit einhergehende Komplexität zu reagieren.

Operativ, ohne Nebeneffekt aus der Aktivierung und Abschreibung von Entwicklungsaufwendungen, wurden

8,7 % des Gesamtumsatzes für den Bereich Forschung und Entwicklung aufgewendet, dies entspricht in

absoluten Werten € 213,2 Mio. (Vorjahr: € 162,4 Mio.).

Der Forschungs- und Entwicklungsbereich der PIERER Mobility-Gruppe ist mit dezentralen Standorten in Europa

(insbesondere Österreich und Spanien) und Amerika global organisiert. Die zentrale Steuerung der

Entwicklungsprogramme erfolgt im F&E-Hauptquartier in Mattighofen sowie in Munderfing, wo ein Großteil der

MitarbeiterInnen aus dem Forschungs- und Entwicklungsbereich angesiedelt ist. Das Forschungs- und

Entwicklungszentrum am Hauptsitz in Mattighofen ist ein Innovationsstandort mit einer Nutzfläche von über

20.000 m², wo richtungsweisende Produkte für das Powersport-Segment konzipiert, entwickelt und mit

modernsten Mitteln erprobt werden.

Die

KTM Technologies

GmbH mit Sitz in Anif bei Salzburg, Österreich, ist spezialisiert auf Mobilitätskonzepte

der Zukunft insbesondere in den Bereichen Konzept-, Technologieentwicklung und Leichtbau. Ein wesentlicher

Erfolgsfaktor ist die anwendungsorientierte Entwicklung neuer Lösungen und Technologien, wobei im Bereich der

Entwicklung von Fahrzeugkonzepten, unter anderem durch den Einsatz von Multimaterial, Composite und

additiven Fertigungstechnologien, ein hohes Maß an Expertise vereint wird. Die KTM Technologies GmbH

Beilage II/15

arbeitet als Innovations-Hub eng mit der KTM Forschungs- und Entwicklungs GmbH und Kunden aus anderen

Industriezweigen zusammen. Zum Kreis von Partnern und Kunden gehören etablierte OEMs und Start-Ups aus

Branchen wie Automobil und Luftfahrt, Maschinenbau und der Sportartikelindustrie.

Mit der Markteinführung der KTM Freeride E im Jahr 2014 gilt die PIERER Mobility-Gruppe als Pionier auf dem

Gebiet der Elektromobilität. In den letzten Jahren wurde das Spektrum an elektrifizierten Fahrzeugen

verschiedener Leistungskategorien auf alle Konzernmarken ausgedehnt. Die Entwicklung elektrifizierter

Motorradmodelle erfolgt zum überwiegenden Teil in dem in den letzten Jahren aufgebauten, hauseigenen

Kompetenzzentrum in Anif bei Salzburg.

Da elektrifizierte Antriebssysteme zum gegenwärtigen Zeitpunkt aufgrund ihrer geringen Leistungsdichte mit

weitreichenden Einschränkungen hinsichtlich der Nutzbarkeit eines Motorrads einhergehen, zählt insbesondere

die Reduktion der Abgas- und Lärmemissionen im Bereich des Verbrennungsmotorenportfolios der PIERER

Mobility-Gruppe zu den wesentlichen Agendapunkten des abgelaufenen Forschungsjahres. Um die oberen

Fahrzeugsegmente mit höheren Leistungs- und Reichweitenanforderungen weiterhin dynamisch betreiben zu

können, wurde beispielsweise die Untersuchung zukunftsfähiger synthetischer Kraftstoffe, sogenannter E-Fuels,

und die Erprobung von Kraftstoffen mit erhöhtem Bioethanol-Anteil intensiv vorangetrieben.

Das Lärmemissionsverhalten von Motorrädern hat sich in den vergangenen Jahren zu einem bedeutenden

Akzeptanzkriterium für diese Fahrzeugkategorie entwickelt. Aus diesem Grund wurde im vergangenen Jahr

proaktiv an der Erforschung der Geräuschquellen der Offroad-Modelle und davon abgeleiteten Lösungsansätzen

zur signifikanten Reduktion von Lärmemissionen gearbeitet.

Die

KTM Forschungs und Entwicklungs

GmbH ist Gründungsmitglied des Swappable Batteries Motorcycle

Consortium (SBMC). Das im September 2021 nach intensiver Vorbereitungsarbeit gemeinsam mit weiteren,

führenden Motorradherstellern gegründete Konsortium wird in den kommenden Jahren einen gemeinsamen

technischen Standard für ein Batterie-Wechselsystem inklusive entsprechender Lade- und Tauschstationen

erarbeiten. Ziel ist es, durch internationale Standardisierung des Batteriesystems die Kundenerwartungen

hinsichtlich Reichweite, Ladezeit und Kosten zu erfüllen und so einen wichtigen Beitrag zur weiteren Verbreitung

elektrifizierter Mobilitätskonzepte in urbanen Lebensbereichen zu leisten.

Zu den Erfolgen des abgelaufenen Jahres zählen etwa ein hybrider Bremsscheibenschutz und ein Motorschutz,

die mit der im Haus entwickelten, patentierten CONEXUS Technologie hergestellt wurden. Diese neuartige

Technologie ermöglicht das stoffschlüssige Verbinden verschiedener Materialien ohne einen zusätzlichen

Fügeprozess wie Kleben oder Schrauben. Durch CONEXUS können aufwendige Prozesse, Energie und damit

einhergehend CO2 eingespart werden. Vor allem aber können durch den zielgerichteten Materialeinsatz

Eigenschaftsprofile optimal ausgeschöpft werden. Die beiden Hybridbauteile zeichnen sich durch leichte,

hochleistungsfähige Carbon-Composite Strukturen aus, welche mit einem schlagzähen Kunststoff gefügt werden.

Die CONEXUS Technologie ermöglicht auch eine einfache und sortenreine Trennung der verwendeten

Materialien zur Wiederverwertung. Um das CO2-Einsparungspotential der Technologie zu verdeutlichen, wurde

ein Bremsscheibenschutz entwickelt, der durch den Einsatz von natürlichen Flachsfasern anstelle von

Carbonfasern und der Verwendung eines bio-basierten Kunststoffes den CO2-Fußabdruck beim Materialeinsatz

um circa 70 % reduziert. Diese Innovation wurde in Paris mit dem „JEC Composites Innovation Award“, der

höchsten Auszeichnung in der Composite-Industrie, prämiert. Im November folgte die renommierte Auszeichnung

der Society of Plastic Engineers Europe, der SPE Award „Automotive Body Exterior“. Diese Auszeichnungen

haben großes Interesse aus anderen Branchen an dieser Technologie geweckt, sodass bereits konkrete Projekte

mit Partnern aus der Automobil- und Luftfahrtbranche initiiert wurden. Im Rahmen der Aktivitäten zur

Verbesserung der Nachhaltigkeit wurden die zur Ökobilanzierung verwendeten Methoden und Tools stark

weiterentwickelt. Die Ermittlung des CO2-Fußabdrucks der eingesetzten Materialien ist ein wichtiges Element

einer vollständigen Ökobilanz von Bauteilen und Gesamtfahrzeugen.

Für das Unternehmen „H2X Global“, einem australischen Start-Up, das im Bereich von Nutzfahrzeugen mit

Wasserstoff-Brennstoffzellenantrieb tätig ist, wurde ein neuartiges Karosseriekonzept entwickelt. Durch die

innovative, an ein Origami angelehnte Konstruktion können die Energie- und Einmalkosten für neue Fahrzeuge

Beilage II/16

reduziert werden. Dies stellt besonders für Nutzfahrzeuge mit geringeren Stückzahlen einen großen Kostenvorteil

dar.

Im August 2022 initiierte KTM Technologies GmbH im Rahmen der internationalen Gala „Living Legends of

Aviation“ einen „Innovation Talk“. Zielsetzung der Diskussionsrunde war die Vernetzung von Luftfahrt- und

Automobilbranche, um Synergien für nachhaltige Mobilitätslösungen der Zukunft zu identifizieren.

Die Virtualisierung der Produktentwicklung ist ein wichtiger Baustein zur Reduktion von Entwicklungszeiten, -

kosten und Qualitätsrisiken. Letztlich ist die physische Freiprüfung von Komponenten und Gesamtfahrzeugen auf

entsprechenden Prüfständen ein unerlässlicher Baustein in der Erprobung von Neuprodukten. Hierzu wurde am

Standort Anif eine mit neuesten Prüfständen ausgestattete Prüffläche im Ausmaß von 300 m² geschaffen, um

entwicklungsbegleitend die Qualitätssicherung der Produkte gewährleisten zu können.

Neben der Weiterentwicklung der 2021 erstmals in einem Serienmodell erhältlichen, adaptiven

Geschwindigkeitsregelanlage und den in enger Zusammenarbeit mit BOSCH entwickelten Systemen für die

neigungswinkelabhängige Traktionskontrolle und das Antiblockier-Bremssystem wurde im abgelaufenen

Forschungsjahr an einer Vielzahl weiterer intelligenter Sicherheits- und Assistenzsysteme gearbeitet und

umfassende Erprobungen durchgeführt. Stellvertretend für eine Vielzahl an parallel vorangetriebenen

Technologieentwicklungsprojekten ist die Forschung an kamerabasierten Assistenzsystemen und die Erprobung

hochentwickelter radarbasierter Sensorik zur Erkennung von Objekten zu nennen. Ein weiterer Schwerpunkt des

abgelaufenen Jahres lag beispielsweise in der Entwicklung neuer Ansätze im Bereich Lichttechnologien mit dem

Ziel, Motorradfahrten bei Dunkelheit durch bessere Ausleuchtung der Fahrbahn sicherer zu machen. Mit der

Einführung neuartiger Sicherheits- und Komfortfunktionen im Fahrzeug ging in den letzten Jahren eine deutliche

Erhöhung der Komplexität des Elektrik-/Elektronik-Systems von Motorrädern einher. Aus diesem Grunde wurde

im Jahr 2022 vor allem auch an der Entwicklung einer modularen Plattformarchitektur für Elektronikkomponenten

gearbeitet. Ziel dieser Initiative ist es, schneller auf Produktanforderungen reagieren zu können, den

Komplexitätsgrad in der Elektronik-Komponentenentwicklung zu reduzieren und das Funktions- und

Qualitätsniveau weiter zu erhöhen.

Konnektivität-Funktionen, die einen Datenaustausch zwischen Fahrzeug und Zubehör wie etwa Smartphones

ermöglichen, wurden in den letzten Jahren intensiv weiterentwickelt und zählen insbesondere im

Premiumsegment zu unverzichtbaren Ausstattungsmerkmalen. Neben der Entwicklung von Komfortfunktionen

wie Telefonie und Navigation stellen insbesondere die Entwicklung und Erprobung von Kommunikationssystemen

zwischen dem Motorrad und anderen Fahrzeugen bzw. zwischen dem Motorrad und (Verkehrs-)Infrastruktur, wie

etwa Ampelanlagen, einen zentralen Bestandteil der Aktivitäten des vergangenen Jahres dar.

Der Einsatz hochwertiger Materialien in allen Fahrzeugen, die darin begründete Reduktion des Fahrzeuggewichts

und das damit einhergehende Potential zur

Verbrauchs- und Emissionsreduktion

sowie Verbesserung der

Fahrbarkeit sind eine weitere Säule der verfolgten Entwicklungsphilosophie. Durch die intensiven Bemühungen

der letzten Jahre konnte etwa das Gewicht unserer Offroad-Competition-Modelle mit jeder Generation weiter

reduziert werden. Stellvertretend für eine Vielzahl an Forschungs- und Entwicklungsprojekten im Bereich der

Material- und Oberflächenentwicklung wurde an der Entwicklung und Erprobung von Rädern und

Fahrwerkskomponenten aus Faserverbundwerkstoffen sowie an der Weiterentwicklung des Fertigungsprozesses

von Kunststoffteilen mit Designelementen in Hybridbauweise gearbeitet. Ein zusätzlicher Schwerpunkt ist die

Untersuchung des Einsatzes von Recyclingmaterialien und biologisch basierenden Werkstoffen auf Bauteilebene.

Die im Rahmen des globalen Motorsportengagements siegreich erprobten KTM und HUSQVARNA Motocross-

Modelle wurden ihren abschließenden Dauerhaltbarkeitstests unterzogen, erfolgreich in Serie übergeleitet und in

den weltweiten Verkauf gebracht. Besonders hervorzuheben sind hierbei eine Vielzahl an technischen

Lösungsansätzen – allen voran ein neuartiges Hybrid-Heckrahmenkonzept sowie weitreichende Überarbeitungen

im Bereich des plattformübergreifend eingesetzten hochfesten Stahlrahmens. Der Serienhochlauf der vollständig

überarbeiteten GASGAS Trial-Modelle stellt einen weiteren Meilenstein für die spanische Traditionsmarke dar.

Die Serienüberleitung im Bereich elektrisch angetriebener Motorradmodelle wird durch die markenübergreifend

angebotenen KTM SX E3-, HUSQVARNA EE3- und GASGAS MC E-3-Modelle abgerundet.

Beilage II/17

Das breit aufgestellte Portfolio an Street-Modellen der Konzernmarken KTM, HUSQVARNA und GASGAS

erstreckt sich von Naked-Bikes, Supersport- und Touring-Modellen im Einstiegssegment über ein breites

Mittelklassesegment mit Ein- und Reihenzweizylindermodellen bis hin zu Premium-Motorrädern mit effizienten

und leistungsstarken Zweizylindermotoren. Hinsichtlich der Serienüberleitungen stand das Forschungsjahr 2022

besonders im Zeichen der Mittelklasse-Plattformen. Die finale Erprobung der HUSQVARNA 901 Norden Explorer,

einer Weiterentwicklung des im Vorjahr vorgestellten, erfolgreichen Schwestermodells HUSQVARNA 901

Norden, sowie die Erprobung und Produktionsüberleitung der KTM 890 ADVENTURE- und KTM 890

ADVENTURE R-Modelle gehörten zu den umfangreichsten Projekten. Der Serienhochlauf der ersten GASGAS

Straßenmodelle, der agilen Supermoto GAGAS 700 SM und dessen Pendant für raues Gelände, die GASGAS

700 ES, sind ein wichtiger Teil der Markenstrategie der Gruppe.

Das Forschungsjahr 2023 hält eine Vielzahl an Projektinitiativen in den Bereichen Grundlagenforschung,

Technologie- und Gesamtfahrzeugentwicklung bzw. Erprobung und Validierung bereit. Analog zu den Tätigkeiten

des abgelaufenen Jahres liegen die Schwerpunkte in der Motorenentwicklung insbesondere in der weiteren

Effizienzsteigerung durch Optimierung des thermodynamischen Systems, Forschung an E-Fuels sowie generell

an der Entwicklung und Erprobung von rein elektrischen Antriebssystemen und Energiespeichermodulen. Der

Bereich Elektrik-/Elektronikentwicklung umfasst die Entwicklung neuer Sicherheits- und Assistenzsysteme und

innovativer Mensch-Maschine-Schnittstellen-Konzepte, die einen nachhaltigen Beitrag zur Reduktion von

Unfällen leisten sollen. Weiters wird die Konsortialarbeit im Bereich Connected Motorcycles intensiv fortgesetzt.

Bei KTM Technologies wird in 2023 der Fokus auf der Entwicklung neuer Konzepte im Bereich Bauteil- und

Gesamtfahrzeug liegen, sowohl für die Unternehmensgruppe als auch für Kunden aus anderen Branchen. Ein

weiterer Schwerpunkt wird im Bereich Technologietransfer und Qualifikation von Materialien gesetzt sowie auf

Prozesse und Methoden zur Optimierung der Nachhaltigkeit von Produkten und Bauteilen. Die Kernkompetenzen

der KTM Technologies im Bereich Leichtbau und Composite sollen in diversen branchenübergreifenden

Entwicklungsprojekten von Produkten für die Mobilität der Zukunft eingesetzt werden.

MODELLE MOTORRÄDER

Im Geschäftsjahr 2022 wurden für den immer größer werdenden Kundenstamm wieder eine Vielzahl an neuen

oder überarbeiteten Modellen der Marken KTM, Husqvarna Motorcycles und GASGAS, sowohl im Offroad- als

auch im Straßenbereich in den Markt gebracht. Nach dem Erscheinen der

KTM

890 DUKE R Anfang 2020 brachte

KTM im Februar 2022 die neue, überarbeitete 2022 KTM 890 DUKE R heraus. Die 2023 KTM 890 ADVENTURE

R und die 2023 KTM 890 ADVENTURE richten sich an ein wachsendes Kundensegment, das Freiheit beim

Motorradfahren sucht. Die mittelschweren Motorräder wurden als Lösung für potenzielle „neue“ Adventure-Fahrer

präsentiert. Die überarbeitete 2023 KTM SXs-Modellpalette legt den Grundstein, um die Dominanz von KTM im

Offroad-Segment weiter auszubauen. Als Teil der KTM SX-Modellreihe brachte KTM im August 2022 die neue

2023 KTM 50 SX Factory Edition heraus. Die 2023 KTM 450 SMR ist seit Juni 2022 erhältlich. Mit der neuesten

Iteration der KTM EXC- und EXC-F-Modelle im Jahr 2023 untermauert KTM seinen Anspruch auf die

Klassenführerschaft im Enduro-Offroad-Segment für alle Fahrer und Terrains, beginnend mit der 2-Takt-

Einstiegsmaschine KTM 150 EXC und gekrönt von der klassenbesten 4-Takt-Maschine KTM 500 EXC-F. Die

neuen Enduro-Modelle sind seit Mai 2022 bei den Händlern.

Darüber hinaus präsentierte KTM im dritten Quartal eine weitere Ergänzung des Produktportfolios auf vier

Rädern. Mit dem neuen Supersportwagen KTM X-BOW GT-XR kombiniert KTM die im Motorsport bewährte

READY TO RACE-DNA des KTM X-BOW GT2 mit den Anforderungen an ein straßentaugliches Fahrzeug.

Husqvarna Motorcycles

hat sein Straßenprogramm, konkret die Svartpilen 401, Vitpilen 401 und die erst im

letzten Jahr eingeführte Svartpilen 125, einer Generalüberholung unterzogen. Nach der Neugestaltung der

Straßenmodelle ist auch die TE- und FE-Enduro-Reihe von Husqvarna Motorcycles des Modelljahres 2023 bei

autorisierten Husqvarna Motorcycles-Händlern erhältlich. Ähnlich der Enduro-Modellreihe wurde auch die TC-

und FC-Modellreihe 2023 von Husqvarna Motorcycles tiefgehend überarbeitet und dem neuesten Stand der

Technik angepasst – mit dem Ziel die Technologieführerschaft zu behaupten. Ergänzend zum bereits

überarbeiteten Modelljahr 2023 des Motocross- und Enduro-Lineups von Husqvarna Motorcycles und dessen

neuen Spezifikationen und verwendeten Komponenten hat Husqvarna Motorcycles die neue Heritage-Serie

dieser Motorräder vorgestellt, die seit September 2022 in streng limitierter Stückzahl über das Händlernetz

Beilage II/18

erhältlich ist. Für die im vergangenen Jahr vorgestellte NORDEN 901, ein dynamisches und vielseitiges

Tourenmotorrad für Abenteuer mit hervorragender Leistung auf der Straße und im Gelände, wurde im ersten

Quartal 2022 technisches Zubehör vorgestellt, das seither erhältlich ist. Seit Juni 2022 ist auch die Husqvarna

Motorcycles 2023 FS 450 erhältlich. Auch mit den beiden Motorrädern der 701 Enduro und 701 Supermoto des

Modelljahres 2023 setzt Husqvarna Motorcycles neue Maßstäbe im Segment von Einzylinder-Motorrädern.

Husqvarna Motorcycles setzt seine Pionierarbeit auf dem Gebiet der

elektrifizierten Motorräder

fort und

überarbeitete 2022 seine elektrifizierten Kleinmotorräder EE 3 und EE 5 auf gewohnt hohem Qualitätsstandard

der Marke. Mit einer Leistung, die der von benzinbetriebenen 50

cm³

-Motorrädern entspricht, führt das EE 3 junge

Fahrer in die Welt des Motocross ein, während sich das leistungsstärkere EE 5 auf den Motocross-Wettbewerb

konzentriert. Die elektrischen Miniräder sind seit dem 3. Quartal über das Händlernetz erhältlich.

GASGAS Motorcycles

hat die MC 450F Troy Lee Designs vorgestellt, das erste Team Edition Motocross-Bike.

Darüber hinaus hat GASGAS seine Motocross-Baureihe für das neue Modelljahr 2023, das seit dem ersten

Quartal 2022 erhältlich ist, mit einem neuen, lebendigen Look ausgestattet. Im zweiten Quartal 2022 stellte

GASGAS Motorcycles seine ersten beiden Straßenmotorräder vor: Die GASGAS SM 700 und die GASGAS ES

700. Beide Modelle wurden im Laufe des Jahres 2022 in verschiedenen Ländern bei den Händlern zugänglich

gemacht, wobei die Markteinführung in Nordamerika erst für 2023 geplant ist. Die in den letzten zwei Jahren

entwickelte neue 2023er-Generation der GASGAS-Trial-Bikes wurde in vielen wesentlichen Punkten verbessert.

Die neuen Trial-Bikes von GASGAS sind seit Ende August 2022 im Handel erhältlich.

Mit der streng limitierten 2023 GASGAS RX 450F Replica können Kunden ein Motorrad erwerben, das dem

Motorrad, mit dem Sam Sunderland 2022 die Rallye Dakar gewonnen hat, fast vollständig entspricht. Zugleich

hat GASGAS zwei neue Factory-Editionen veröffentlicht: Die GASGAS MC 450F Factory Edition und GASGAS

MC 250F Factory Edition bieten höchste Offroad-Performance mit Komponenten der neuesten Generation.

In der ersten Jahreshälfte 2022 erfolgte die Markteinführung der aktualisierten Versionen der beiden so

genannten Electric-Balance Bikes (kurz:

E-Balance Bikes

) 12eDRIVE und 16eDRIVE von STACYC™, die als

Modelle aller drei Konzernmarken KTM, Husqvarna Motorcycles und GASGAS erhältlich sind. Bei diesen Rädern

handelt es sich um elektrisch betriebene Fahrzeuge, die mit ihren vielfältigen Einsatzmöglichkeiten und ihrer

Vielseitigkeit die perfekte Einstiegsplattform für die allerjüngsten zukünftigen Biker bieten und gleichzeitig ein

neues Marktsegment darstellen. Mit einer Akkulaufzeit von bis zu 60 Minuten und einer Ladezeit von 30-60

Minuten für den 2-Ah-Akku des 12eDRIVE bzw. 45-60 Minuten für den 4-Ah-Akku des 16eDRIVE sowie einem

Gewicht von nur 7,7 bzw. 9 kg bieten beide E-Balance Bikes dem Nachwuchs einen idealen Einstieg in das

Erlernen des Fahrens auf zwei Rädern. E-Balance Bikes werden über die Vertriebswege von KTM, d. h.

Motorradhändler, als auch über die Vertriebswege von PIERER New Mobility vertrieben.

MODELLE FAHRRÄDER

Der Startschuss für das neue Modelljahr 22 und die Präsentation der gesamten New Mobility-Produktkollektion

aller Marken erfolgte vor allem während des Media Summit am 26. April 2022.

Husqvarna E-Bicycles

setzt den Fokus fundamental auf Innovation im Bereich der E-Mobilität ein. Die Motivation

der Marke besteht vorrangig darin, zukunftsorientierte New Mobility-Produkte zu entwickeln. Husqvarna E-

Bicycles präsentierte auf dem Media Summit das neue Husqvarna Mountain Cross 6 (MC6), ein Vollcarbon-E-

MTB mit neuer Geometrie und Kinematik. Das MC6 wird die Position von Husqvarna E-Bicycles in der E-MTB-

Branche dank seines ausgeprägten Carbon-Rahmendesigns mit einzigartiger Motormontageposition verbessern

und dient als Blaupause für zukünftige innovative Produktentwicklungen. Das Jahr 2022 markierte auch die erste

vollständige Saison von Husqvarna E-Bicycles in den Elite-Wettbewerben der beliebten Enduro World Series

Electric mit drei Elite-Rennfahrern.

GASGAS Bicycles

baut auf dem Erfolg und der Marke von GASGAS im Motorradbereich auf und bietet Fahrern

die Möglichkeit, Offroad-Trails mit leistungsstarken eMTBs zu erleben. Mit seinen Wurzeln in der Welt des

Offroad-Motorradsports hat GASGAS im Jahr 2022 neue Wege beschritten und eine Vielzahl neuer elektrifizierter

Beilage II/19

New Mobility-Produkte auf den Markt gebracht, die eine breite Produktpalette vom leichten All-Mountain-Bike bis

zum leistungsstarken Enduro-Bike abdecken.

Als jüngste Marke im Portfolio von PIERER New Mobility ist

FELT

auf Geschwindigkeit und Wettbewerb

ausgerichtet. Die Marke brachte im Geschäftsjahr 2022 unter anderem zwei neue Plattformen auf den Markt: Das

Breed Carbon Gravel Race Bike und das triathlonspezifische IA 2.0. Für 2023 wird sich die Marke auf jene beiden

Kernprodukte konzentrieren, um in den kommenden Jahren ein zentraler Akteur im Radrennsport zu werden und

das Angebot auf alle Rennsegmente, einschließlich des Off-Road-Bereichs, bei zeitgleicher Erweiterung des

Modellportfolios auszuweiten.

R RAYMON

fokussiert ein ausgewogenes Preis-/Leistungsverhältnis. Ein weiterer Beweis dafür ist die Plattform

der neuen, leichten E-Mountain-Trial-Bikes (E-MTBs). Der Entwicklungsfokus lag auf einer weitergehenden

Harmonisierung der drei Säulen Motor, Akku und Gewicht. Im Geschäftsjahr 2022 wurde das AirRay, ein leichtes

Trial-eMTB, neu eingeführt. Mit dieser neuen Produktkategorie setzte R RAYMON einen wichtigen Meilenstein in

einem stark wachsenden Produktsegment. Im E-All-Mountain-Segment präsentierte R RAYMON mit den neuen

2022er TrailRay E-Modellen weitere Neuheiten.

6. CHANCEN- UND RISIKOBERICHT

Als Europas führender „Powered Two-Wheeler“-Hersteller (PTW) zählt die PIERER Mobility-Gruppe mit ihren

Motorradmarken KTM, Husqvarna Motorcycles und GASGAS zu den europäischen Technologie- und

Marktführern. Die Geschäftstätigkeit der PIERER Mobility-Gruppe ist von laufenden Veränderungen geprägt. Die

Nutzung der sich durch diese Veränderungen ergebenden Chancen ist der wesentliche Grundstein des Erfolges

der PIERER Mobility-Gruppe. Zur Sicherung des zukünftigen unternehmerischen Erfolgs und Nutzung der sich

ergebenden Chancen muss die Gruppe bewusst Risiken eingehen.

Das Management von Chancen und Risiken ist die Basis, um auf Änderungen politischer, wirtschaftlicher,

technischer oder rechtlicher Rahmenbedingungen adäquat zu reagieren. Sofern es wahrscheinlich ist, dass die

identifizierten Chancen beziehungsweise Risiken eintreten, sind sie bereits in den Aussagen im Konzernanhang

und -lagebericht verarbeitet. Die nachfolgenden Ausführungen beinhalten mögliche künftige Entwicklungen oder

Ereignisse, die zu einer für die PIERER Mobility-Gruppe positiven (Chancen) beziehungsweise negativen

(Risiken) Abweichung von der Unternehmensprognose führen können.

Im Rahmen des Risikomanagements werden alle Einzel- und kumulierten Risiken, die den Erfolg des

Unternehmens gefährden könnten, überwacht und gesteuert. Bestandsgefährdende Risiken werden

grundsätzlich vermieden. Der Risikokonsolidierungskreis entspricht dem Konsolidierungskreis des

Konzernabschlusses der PIERER Mobility-Gruppe.

RISIKOMANAGEMENTSYSTEM

Der Hauptzweck des Risikomanagements der PIERER Mobility-Gruppe besteht in der Sicherung und Stärkung

des Unternehmens durch eine richtige und transparente Einschätzung der finanziellen, operativen und

strategischen Risiken. Der Vorstand übernimmt dabei gemeinsam mit dem Management der wesentlichen

Konzerngesellschaften, insbesondere der KTM AG, umfangreiche Steuerungs- und Controlling-Aufgaben im

Rahmen eines internen, alle wesentlichen Standorte umfassenden, integrierten Kontrollsystems. Das rechtzeitige

Erkennen, Evaluieren und Reagieren auf strategische und operative Risiken ist ein wesentlicher Bestandteil der

Führungstätigkeit dieser Einheiten und leistet einen wesentlichen Wertbeitrag für das Unternehmen. Grundlagen

dafür sind ein einheitliches und konzernweites, auf Monatsbasis aufgebautes Berichtswesen und eine laufende

Überwachung der operativen und strategischen Pläne.

Die PIERER Mobility-Gruppe verfügt über ein mehrstufiges Risikomanagementsystem, bei dem die

konzernweiten Risiken nach Standorten bzw. geografischen Bereichen erhoben werden. Die operative

Beilage II/20

Verantwortung und die Bewertung der konzernweiten Risiken erfolgt durch das Risikomanagement der KTM AG

und dem lokalen Management und wird direkt an den Vorstand berichtet und von diesem sowie vom

Konzernvorstand überwacht.

Eine präventive Analyse von potenziellen oder Beinahe-Ereignissen ist ebenso Ziel des Risikomanagements.

Zusätzlich ist es auch Aufgabe des Risikomanagements, Risiken aktiv zu steuern und entsprechende

Maßnahmen mit den betroffenen Unternehmensbereichen zu evaluieren.

RISIKOMANAGEMENTSTRATEGIE

Die PIERER Mobility-Gruppe orientiert sich im Rahmen Ihrer Risikomanagementstrategie auf eine Risikoanalyse

und Risikobewertung nach dem COSO® Framework. Demgemäß hat der Konzern folgende Kernbereiche der

Risikomanagementstrategie definiert:

Das auf Ebene der KTM AG eingerichtete Risikomanagement führt regelmäßig Risikoanalysen für ausgewählte

Produktions- und Vertriebsstandorte durch. Es werden nur Risiken außerhalb der Konzern-Bilanz und der

Konzern-GuV dargestellt.

RISIKOMITIGATION

Es wird versucht, je nach Auswirkung auf das Unternehmen, Risiken durch entsprechende Maßnahmen zu

minimieren, zu vermeiden oder auch in bestimmten Fällen bewusst einzugehen.

RISIKOBEWERTUNG

Ziel der Risikobewertung ist die kontinuierliche, qualitative und quantitative Bewertung aller identifizierten

Chancen und Risiken zur Priorisierung von Risikosteuerungsmaßnahmen. Die Chancen- und Risikobewertung

bei der PIERER Mobility-Gruppe soll folgenden Anforderungen entsprechen:

 Objektivität: Die Bewertung soll nach möglichst objektiven Maßstäben erfolgen.

 Vergleichbarkeit: Damit die Chancen und Risiken miteinander verglichen werden können, erfolgt eine

quantitative Bewertung anhand einheitlich definierter Werte (sofern sinnvoll und möglich).

Beilage II/21

BEWERTUNGSMETHODIK

Chancen und Einzelrisiken werden anhand ihrer Eintrittswahrscheinlichkeit und ihrer Bedeutung für die

Vermögens-, Finanz- und Ertragslage des Konzerns beurteilt. Diese Beurteilung basiert auf Informationen über

a) tatsächlich in der Vergangenheit eingetretenen Risiken, b) Benchmark-Werten aus der Branche oder c) selbst

erstellten realistischen Expertenschätzungen.

Die quantitative Bewertung folgt einem Szenario orientiertem Ansatz, bei dem folgende Kategorien unterschieden

werden: Best Case (BC), Most Likely Case (MLC), und Worst Case (WC). Hierbei handelt es sich um eine

klassische Dreiecksverteilung. Für vereinzelte Risiken kann, wenn notwendig, zusätzlich eine qualitative

Bewertung verwendet werden, bzw. können für schwankungsorientierte Risiken alternative Verteilungen

(Normalverteilung, etc.) herangezogen werden. Die Wahl der jeweiligen Verteilung ist abhängig von der Art des

Risikos.

RISIKOÜBERWACHUNG /-KONTROLLE

Kernpunkt des operativen Risikomanagements ist die Identifizierung, Evaluierung und Beherrschung von

wesentlichen Risiken aus dem operativen Geschäft. Dieser Prozess wird insbesondere von den oberen und

mittleren Managementebenen der KTM AG durchgeführt und vom Vorstand der PIERER Mobility AG

überwacht.

CHANCEN- UND RISIKOBERICHT

Die folgende Übersicht dient dem Gesamtüberblick über alle identifizierten Risiken und Chancen und zeigt

deren Bedeutung für die PIERER Mobility-Gruppe auf. Gesamthaft hat die PIERER Mobility-Gruppe weder zum

Bilanzstichtag noch zum Zeitpunkt der Aufstellung des Abschlusses bestandsgefährdende Risiken identifiziert.



MARKTRISIKEN

Konjunkturelles Risiko

Die PIERER Mobility-Gruppe ist schwerpunktmäßig in der Motorrad- und Fahrradbranche tätig. Die

Absatzmöglichkeiten sind von der allgemeinen konjunkturellen Lage in den Ländern und Regionen bestimmt, in

denen die PIERER Mobility-Gruppe mit ihren Produkten vertreten ist. Wie die letzten Jahre gezeigt haben, ist

insbesondere die Motorradbranche zyklisch und unterliegt starken Nachfrageschwankungen. Durch

entsprechende Marktforschungen und -prognosen, welche in der Planung berücksichtigt werden, wird dem Risiko

entgegengewirkt.

Führende Wirtschaftsinstitute gehen davon aus, dass die derzeit hohen Inflationsraten mittelfristig nicht anhalten

werden, es sich also um ein vorübergehendes Phänomen handelt. Dennoch ergibt sich aus der aktuellen Situation

ein globales konjunkturelles Beschaffungs- und Absatzrisiko, das auch die PIERER Mobility-Gruppe betrifft. Im

Wesentlichen liegt dieses Risiko in den – bereits durch die globale Verknappung getriebenen – gestiegenen

Beschaffungspreisen für Roh-, Hilfs- und Betriebsstoffe und Komponenten sowie in den gestiegenen

Produktionsgemeinkosten, insbesondere bei den Energiepreisen, und den stark steigenden Transportkosten.

Auf der Beschaffungsseite begegnet die Gruppe dem Risiko aus steigenden Beschaffungspreisen durch mehrere

Maßnahmen, wie z.B. die Nutzung alternativer Lieferketten und entsprechende Aktivitäten zur Reduktion der

anfallenden Kosten, die Umsetzung von Effizienzmaßnahmen bei Lieferantenpartnern durch Support Cost

Engineering sowie die Vereinbarung von zeitlich befristeten Preiserhöhungen auf Basis von Indizes. Darüber

hinaus hat die Gruppe bereits weitere wesentliche Maßnahmen zum Aufbau von Lagerbeständen und zur

Absicherung der Produktion gesetzt. Aufgrund der Flexibilität im implementierten Produktionslayout ist die Gruppe

auch in der Lage, bei globalen Entwicklungen, die zu immer engeren Lieferketten führen, die Produktionspläne

bei Bedarf anzupassen. Schließlich ist PIERER Mobility bestrebt, die logistische Beschaffungsstruktur so

anzupassen, dass die Transportwege und die damit verbundenen Kosten minimiert werden.

Beilage II/22

Die globalen Auswirkungen der hohen Inflationsraten könnten sich aber letztlich auch in einem veränderten,

insgesamt reduzierten Konsumverhalten der Kunden niederschlagen. PIERER Mobility beobachtet derartige

Auswirkungen auf das Konsumverhalten der Kunden laufend und stellt fest, dass die Nachfrage nach Produkten

der PIERER Mobility-Gruppe als Qualitätsanbieter von PTWs nach wie vor ein hohes Niveau aufweist. Weiter

steigende Zinsen im Zuge der Inflationsbekämpfung könnten möglicherweise den Druck auf die Händler erhöhen

und ein Absatzrisiko für die Gruppe darstellen. Die Gruppe steht daher in enger Abstimmung mit ihrem

Händlernetz und unterstützt dieses mit gezielten Programmen.

Wettbewerb und Preisdruck

Speziell der Motorradmarkt in Industriestaaten ist von intensivem Wettbewerb geprägt, wobei die stärksten

Konkurrenten von KTM vier japanische, drei europäische und in geringerem Ausmaß ein amerikanischer

Hersteller sind und manche von ihnen größere finanzielle Ressourcen, höhere Absatzzahlen und Marktanteile

besitzen. Im Straßenmotorradmarkt herrscht zudem ein hoher Preisdruck und neu hinzukommende Mitbewerber

versuchen, über Niedrigpreisstrategien den Markteintritt zu schaffen. Durch die erfolgreiche Marktstrategie ist

KTM Europas führender „Powered Two-Wheeler“ Hersteller. Dies wurde unter anderem auch durch die

vollständige Integration von GASGAS als dritte Motorradmarke und die weitere Entwicklung des Händlernetzes

unterstützt. Durch unsere Innovationsstärke sehen wir uns als Technologieführer im Zweirad-Sektor in Europa.

Die strategische Partnerschaft mit Bajaj, Indiens zweitgrößtem Motorradhersteller, und der Intensivierung der

Zusammenarbeit mit CFMOTO, festigt die Wettbewerbsfähigkeit in den globalen Märkten.

Der Fahrradmarkt entwickelt sich stark angebotsseitig: Einer moderaten Steigerung der Nachfrage steht eine

höhere Steigerung des Angebots durch eine Entspannung der Lieferketten-Situation bei bestehenden Anbietern

entgegen. So entstehen Preisdruck und ein verstärktes Ringen um Marktanteile. Die PIERER Mobility-Gruppe

kann hier ihr renommiertes und umfassendes Händlernetz als Vorteil nutzen. Zudem wird durch Integration von

Marken wie zuletzt FELT Bicycles oder mit Lastenfahrrädern der Marke Johansson das Portfolio in verschiedene

Richtungen attraktiv erweitert. Die Kooperation mit MAXCOM in Bulgarien verlagert die Wertschöpfungskette

entscheidend nach Europa, schafft somit Resilienz und ermöglicht eine bessere Preisgestaltung.

Absatzrisiko

Die größten Einzelabsatzmärkte der PIERER Mobility-Gruppe stellen der europäische sowie der US-

amerikanische Markt dar. Ein Einbruch dieser Märkte könnte nachteilige Auswirkungen auf die Geschäftstätigkeit

haben. Der Markteintritt in neue Märkte stellt im Wesentlichen ein Kostenrisiko dar, da in manchen dieser Märkte

die Absatzentwicklung sowie die politischen Rahmenbedingungen schwer einschätzbar sind. Durch die

Zusammenarbeit mit dem strategischen Partner Bajaj Auto Ltd., Pune, Indien, wird gemeinsam konsequent an

der Umsetzung einer globalen Produktstrategie im Motorradbereich gearbeitet. Um das Absatzrisiko zu

diversifizieren, verfolgt auch die Fahrrad-Division das Ziel in weiteren Märkten erfolgreich zu expandieren.

Geopolitische Risiken

Darüber hinaus gilt es auch die geopolitischen Risiken verstärkt im Auge zu behalten. Insbesondere der Ukraine-

Krieg wird die Weltwirtschaft negativ beeinflussen. Die PIERER Mobility Gruppe ist geschäftlich nicht unmittelbar

von den militärischen Auseinandersetzungen in der Ukraine betroffen. Indirekt sieht sich die PIERER Mobility-

Gruppe, wie die gesamte Industrie auch, vor allem mit weiter steigenden Energie- und Rohstoffkosten sowie

negativen Auswirkungen auf die Kapitalmärkte konfrontiert.



BRANCHENSPEZIFISCHE RISIKEN

Beschränkungen des Motorradfahrens

Der Umsatz der Gruppe hängt unter anderem von den Einsatzmöglichkeiten der Motorräder im Gelände ab und

wird daher erheblich von nationalen gesetzlichen Rahmenbedingungen in den Absatzländern beeinflusst, die

den Geländemotorsport, Motorradzulassungen und Lenkerberechtigungen regeln.

Aufgrund der Einführung der Abgasnorm Euro 5 am 1. Januar 2020 stand die Aktualisierung des gesamten

Motorrad Street-Produktportfolios auf die neuen regulatorischen Anforderungen im Mittelpunkt der F&E-

Beilage II/23

Aktivitäten und wurde in 2020 abgeschlossen. Im Laufe des Kalenderjahres 2020 wurden sämtliche für den EU-

Raum und den Betrieb auf öffentlichen Straßen vorgesehenen Modelle nach den „Euro 5“-Vorschriften neu

typgenehmigt bzw. deren Typgenehmigung per Nachtrag von „Euro 4“ auf „Euro 5“ angehoben. Die

Serienproduktion des ersten „Euro 5“ Modells erfolgte im Juli 2020 (Musterserie der KTM 890 Adventure

Modelle). Das letzte „Euro 4“ Modell für den EU-Raum wurde im Dezember 2020 produziert. Seit 01.01.2021

werden für den EU-Raum und den Betrieb auf öffentlichen Straßen ausschließlich „Euro 5“ Fahrzeuge

produziert (EU-Verordnung 168/2013 – zu den Euro 5-Anforderungen wird hier für weitere Informationen auf

Seite 74 im Nachhaltigkeitsbericht 2021 verwiesen).

Beschaffungsrisiko

Im zweiten Jahr nach Ausbruch der COVID-19-Pandemie wurde der Konzern zunehmend mit der Halbleiterkrise

und den damit verbundenen Engpässen von elektronischen Komponenten konfrontiert. Um die Lieferanten in

dieser Situation zu unterstützen, griff PIERER Mobility aktiv in die Beschaffung von Elektronikkomponenten ein

und konnte damit größere Ausfälle sowohl bei den Lieferanten als auch in den eigenen Produktionsstandorten

verhindern. Zusätzlich zur Knappheit bei Elektrokomponenten kam es auch bei Rohmaterialien wie etwa

Aluminium und Kunststoffgranulat zu vermehrten Engpässen, welche aber durch intensive Zusammenarbeit in

der Supply Chain nur unwesentliche Auswirkungen hatten.

Das erste Halbjahr 2022 bestätigte die Prognosen von Ende 2021 und führte zu Störungen in der Beschaffung

wesentlicher elektrischer Komponenten. Dank der engen Zusammenarbeit entlang der gesamten Lieferkette

konnten die entstandenen Rückstände kontrolliert und gegen Ende des ersten Halbjahres aufgeholt werden. Auch

wenn es in der zweiten Jahreshälfte zu Verzögerungen durch globale Lieferkettenengpässe bei der Beschaffung

bestimmter Komponenten kam, konnte der Bedarf der jeweiligen Produktionsstandorte längerfristig gedeckt

werden.

Das Beschaffungsrisiko der Motorrad-Division liegt in der aktuellen Situation im Wesentlichen darin, bestellte

Komponenten gar nicht oder nicht zum vereinbarten Termin zu erhalten. Um die Verfügbarkeit von Komponenten

bestmöglich sicherzustellen, legt die PIERER Mobility großen Wert auf eine langfristige Zusammenarbeit mit

unseren Lieferpartnern sowie die sorgfältige Auswahl leistungsfähiger neuer Lieferanten nach festgelegten

Kriterien. Die Gruppe arbeitet kontinuierlich an der Weiterentwicklung der Beziehungen zu ihren Lieferanten. Ein

tiefes gegenseitiges Verständnis der Prozesse ist dabei aus Sicht des Unternehmens wesentlich. Da die Qualität

der Motorräder maßgeblich von der Qualität und den Eigenschaften der zu beschaffenden Subkomponenten

geprägt ist, wird insbesondere auf geeignete Betriebseinrichtungen und Produktionsprozesse der Lieferanten

aber auch auf deren Finanzkraft und die Einhaltung ökologischer, sozialer und ethischer Standards geachtet.

In der Fahrrad-Division wird die Beschaffung der Komponenten und Fahrräder mittelfristig geplant. Durch

entsprechende Lagerkapazitäten können auch kurzfristige Schwankungen ausgeglichen werden. Die Produkte

werden auf Basis fix verhandelter Einkaufspreise kalkuliert. Dabei werden mit den Lieferanten Preise und

Kapazitäten im Vorfeld vereinbart und gesichert. Die PIERER Mobility-Gruppe hat mehrere Lieferanten aus

verschiedenen Ländern für E-Bicycles im Portfolio, um das Risiko der Abhängigkeit weitestgehend zu reduzieren

und die Stabilität der Lieferketten zu erhöhen. Rechtzeitige Verfügbarkeit der Rahmen und Antriebskomponenten

als Risiko stellen erhöhte Anforderungen an die Lieferanten für E-Bicycles.

Forschung und Entwicklung, Rennsport

Technische Innovationen und die Einführung neuer Produkte sind maßgeblich für die Marktstellung der PIERER

Mobility-Gruppe verantwortlich. Dazu müssen neue Trends rechtzeitig erkannt werden. Um dem Risiko

entgegenzuwirken, ist es wichtig, die Innovationsfähigkeit der eigenen Produkte zu gewährleisten. Die Leistungen

im Rennsport sind für das Unternehmen nicht nur als Marketinginstrument von großer Bedeutung, sondern bilden

auch die Grundlage für die Produktentwicklung und sind Maßstab für die Serienentwicklung. Aus der Möglichkeit,

Produkte unter Rennbedingungen bei Rennsportereignissen zu testen, werden wertvolle Erfahrungen gewonnen.

Weiters werden technische Neuerungen vor der Serieneinführung einer umfassenden Prüfung durch das

Qualitätsmanagementsystem unterzogen, um technische Fehler mit negativen Auswirkungen auf die

Ergebnisentwicklung weitestgehend auszuschließen.

Beilage II/24

Um unsere technologische Vorreiterrolle weiter auszubauen und auch mit den großen Mitbewerbern mitzuhalten,

verfolgt die PIERER Mobility-Gruppe eine sehr intensive Forschungs- und Entwicklungsstrategie. Das erklärt auch

die relativ hohe Forschungsquote – aktuell liegt sie bei rund 8-9 % des Umsatzes.



IT-RISIKEN

ln der PIERER Mobility-Gruppe wird ein lT-Security- und Riskmanagement-System mit dem Ziel betrieben,

unternehmensrelevante Risiken im Bereich lnformationssicherheit erkennen und steuern zu können. Für weitere

Ausführungen zu IT-Risiken wird auf den Konzernanhang (Kapitel VII) der PIERER Mobility AG verwiesen.



FINANZIELLE RISIKEN

Für weitere Ausführungen zum Risikobericht sowie zu Finanzinstrumenten, einschließlich der konkreten

Maßnahmen zur Mitigierung von Risiken durch den Einsatz von Finanzinstrumenten (z.B. Hedging von

Fremdwährungspositionen mit Futures, Swaps etc.) wird auf den Konzernanhang (Kapitel VII und VIII) der

PIERER Mobility AG verwiesen.



SONSTIGE RISIKEN

Risiken durch Rechtliche Rahmenbedingungen

Da die PIERER Mobility-Gruppe ihre Produkte (Motorräder, E-Fahrräder bzw. Fahrräder ohne Elektroantrieb) in

eine Vielzahl von Ländern vertreibt, ist sie dem Risiko der Veränderung von nationalen Vorschriften,

Lizenzbedingungen, Steuern, Handelsbeschränkungen, Preisen, Einkommen und Devisenbeschränkungen,

ferner dem Risiko von politischer, sozialer und ökonomischer Instabilität, Inflation und Zinsschwankungen,

ausgesetzt. Für den Straßeneinsatz zugelassene Motorräder müssen entsprechende Lärm- und

Abgasemissionsbestimmungen erfüllen, um am Markt des jeweiligen Landes zugelassen zu werden. Auch die

Einsatzmöglichkeiten von Motorrädern im Gelände werden erheblich von nationalen gesetzlichen

Rahmenbedingungen in den Absatzländern beeinflusst. Um dem Risiko entgegenzuwirken und bei Änderungen

von nationalen gesetzlichen Rahmenbedingungen rechtzeitig handeln zu können, werden die jeweiligen

länderspezifischen Regelungen vor dem Markteintritt eingehend überprüft und laufend überwacht.

Betriebliches- und Umweltrisiko

Umweltrisiken können sich auf Produkte, die Produktion, die Beschaffung und auf nichtbetriebliche Faktoren

beziehen. Hinsichtlich der Produkte ergeben sich Risiken durch etwaige Emissionen wie Lärm und Schadstoffe

oder den Austritt umweltschädlicher Substanzen wie Treibstoff oder Öl. Um diese, ausgelöst durch etwaige

Fehlfunktionen, zu minimieren, werden neben weiteren Maßnahmen vor allem die Homologationsauflagen strikt

eingehalten, jedes Fahrzeug auf seine Funktionsfähigkeit und Einhaltung aller Grenzwerte auf eigenen

Prüfständen geprüft und ein Labor zur Untersuchung der Wechselwirkung eingesetzter Werkstoffe mit Menschen

und der Umwelt betrieben. Zudem wird zunehmend auf die Entwicklung emissionsfreier alternativer

Antriebsysteme und Produkte gesetzt.

In der Produktion ergeben sich Umweltrisiken durch den etwaigen Austritt von Substanzen, Abfällen und

Materialresten auf dem Gelände. Um diese zu verhindern, werden zahlreiche Maßnahmen umgesetzt, die

beispielsweise Abfallwirtschaftskonzepte, eine Motorölaufbereitungsanlage, Notfallpläne je Standort und

professionelle Absauganlagen von Metallspänen in dafür vorgesehene Container umfassen. Emissionen aus dem

Betrieb der Prüfstände werden ebenfalls durch Absaugungsanlagen abgefangen.

Umweltrisiken in der Beschaffung können sich aus der umweltbedingten Knappheit und Verteuerung der

Ressourcen, der Zusammenarbeit mit Lieferanten ohne ausreichende Umweltbestrebungen und durch

Emissionen aus Lieferwegen ergeben. Um diese Risiken zu minimieren, werden Maßnahmen getroffen, die eine

Überprüfung der Lieferanten, eine Optimierung der Beschaffungswege sowie einen hohen Fokus auf regionale

Beschaffung und den Einsatz ressourcenschonender, moderner Produktionstechnologie einschließen.

Beilage II/25

Zudem ergeben sich Umweltrisiken aus wetter- und klimabedingten Phänomenen wie Hochwasser und anderen

Naturkatastrophen. Obwohl eine vollständige Risikoausschließung bei Naturgewalten nicht möglich ist, wird

versucht, das Risiko einer Beeinträchtigung von Produktionsabläufen durch geeignete Notfallpläne und

Versicherungen zu minimieren.

Personelle Risiken

Insbesondere in Hinblick auf den Wachstumskurs können sich Risiken aus dem Ausscheiden von

Schlüsselkräften aus dem Unternehmen ergeben. Durch ein effizientes Personalmanagement sowie der stetigen

Weiterführung von Personalentwicklungsprogrammen wird dem Risiko des Ausscheidens von Schlüsselkräften

entgegengewirkt. Dem Risiko des Fachkräftemangels wird unter anderem durch ein umfassendes

Lehrlingsausbildungsprogramm in einer eigenen Lehrwerkstätte begegnet. Ziel ist die Rekrutierung von

Mitarbeitern aus der Region und eine langfristige Bindung an das Unternehmen.

Interne und externe Maßnahmen zur Erhöhung der Arbeitgeber-Attraktivität sind ein wesentlicher Baustein, um

den vorherrschenden Spirit der PIERER Mobility-Gruppe zu potenziellen neuen Mitarbeitern hinauszutragen. Mit

diversen crossmedialen Mitarbeiterkampagnen konnte das Unternehmen den Personalbedarf im Berichtsjahr

weitgehend abdecken. Im Bereich Lehre wurde nicht nur auf eine zielgruppengerechte Ansprache geachtet,

sondern auch ein eigener Bereich für die Eltern der zukünftigen Auszubildenden geschaffen, um frühzeitig über

Chancen und Möglichkeiten zu informieren und Ungewissheiten vorzubeugen.

Die PIERER Mobility-Gruppe hat seit Ausbruch der Corona-Pandemie in Österreich zahlreiche Maßnahmen zum

Schutz der Mitarbeiter getroffen. Maßnahmen und Verordnungen der Regierung wurden umfänglich und rasch

umgesetzt und durch die vorausschauende Arbeitsweise und den stetigen Austausch mit den Behörden zum Teil

bereits vor ihrer gesetzlichen Verpflichtung in den Unternehmensalltag integriert. Daher konnte eine großflächige

Ausbreitung im Unternehmen verhindert werden.

Geplante Regulierung in der Europäischen Union für Verbrennungsmotoren

Als Baustein zur Erreichung des European Green Deal, der Nachhaltigkeitsstrategie der Europäischen

Kommission, verfolgt die sogenannte „Fit for 55“-Strategie das Ziel, die Netto-Treibhausgasemissionen in der

Europäischen Union bis 2030, um mindestens 55 % gegenüber dem Basisjahr 1990 zu senken.

Teil dieses Pakets ist die Änderung der Verordnung der CO

-Emissionsnormen für Pkw und leichte

Nutzfahrzeuge, indem ab 2035 neu zugelassene Pkw und leichte Nutzfahrzeuge zu 100% emissionsfrei sein

müssen. Als emissionsfreie Fahrzeuge gelten – nach dem derzeitigen Vorschlag des EU-Rates –

Elektrofahrzeuge, Fahrzeuge mit Brennstoffzellenantrieb oder mit Wasserstoff betriebene Fahrzeuge. Um dem

technologischen Fortschritt Rechnung zu tragen, ist eine Überprüfung alternativer Antriebslösungen im Jahr 2026

geplant; dies beinhaltet insbesondere auch den Einsatz von synthetischen Kraftstoffen, sogenannten E-Fuels.

Motorräder sind von der Verordnung nicht erfasst.

Als ACEM-Mitglied (European Association of Motorcycle Manufacturers) auf der Ebene der KTM AG unterstützt

PIERER Mobility die Strategie zur Dekarbonisierung, die sich an den Zielen des europäischen Green Deal und

des Klimaschutzgesetzes sowie der Strategie für nachhaltige und intelligente Mobilität der Europäischen

Kommission orientiert. Elektromobilität wird hierbei eine essenzielle Rolle speziell in urbanen Lebensräumen

spielen. In schwer zu elektrifizierenden Marktsegmenten wie etwa im Bereich der Freizeit- und Reisemotorräder,

für die in Bezug auf die Leistungsfähigkeit des Antriebes und der Reichweiten wesentlich höhere Anforderungen

gelten, werden auch Lösungsansätze auf Basis des Verbrennungsmotors wichtig sein. Dazu werden neben der

Elektrifizierung des Antriebes auch die Verwendung von CO

-neutralen E-Fuels in Verbrennungsmotoren

eingeschlossen. Diese Strategie gibt für die PIERER Mobility AG die Leitlinie zur Bearbeitung des wesentlichen

ESG-Themas „Nachhaltige Mobilität“ vor; hier werden unter anderem alternative Antriebstechnologien oder

Schadstoffausstoß der Fahrzeuge betrachtet.

Unabhängig von regulatorischen Vorgaben ist die PIERER Mobility-Gruppe bestrebt, Lösungen anzubieten,

Emissionen nachhaltig zu reduzieren. Technologieoffenheit ist dafür ein wesentlicher Erfolgsfaktor. Ein Mix aus

Beilage II/26

elektrifizierten Motorrädern (48 Volt) im unteren Hubraumbereich (bis max. 250 cm

) und solchen darüber, die mit

E-Fuels betrieben werden, wird global als Zukunftsszenario in der Zweiradindustrie gesehen.

Hier wird auf die weiteren Ausführungen betreffend nichtfinanzielle bzw. nachhaltigkeitsbezogene Risiken (ESG

Risiken) und klimabezogene Risiken im Nachhaltigkeitsbericht 2022 und TCFD Bericht 2022 verwiesen.

7. ANGABEN GEMÄß § 243A (ABS 1) UGB

1. Das Grundkapital beträgt EUR 33.796.535. Es ist zerlegt in 33.796.535 Stück auf Inhaber lautende,

Stückaktien mit Stimmrecht, wobei jede Stammaktie am Grundkapital in gleichem Umfang beteiligt ist. Die

Aktien gewähren die gewöhnlichen nach dem österreichischen Aktiengesetz den Aktionären zustehenden

Rechte. Dazu zählt das Recht auf die Auszahlung der in der Hauptversammlung beschlossenen Dividende

sowie das Recht auf Ausübung des Stimmrechtes in der Hauptversammlung. Sämtliche Aktien der PIERER

Mobility AG sind seit dem 14. November 2016 an der SIX Swiss Exchange (SIX) im International Reporting

Standard hauptkotiert (ISIN AT0000KTMI02). Zudem waren die Aktien der PIERER Mobility AG vom 3. März

2020 bis zum 18. Oktober 2022 im regulierten Markt (General Standard) der Frankfurter Wertpapierbörse

gelistet. Seit dem 1. März 2022 sind die Aktien der PIERER Mobility AG zusätzlich an der Wiener Börse

(Amtlicher Handel) gelistet. Im Geschäftsjahr 2022 kam es zu keiner Änderung im Grundkapital der

Gesellschaft. Ebenso wenig wurden eigene Aktien erworben oder veräußert, weshalb die Gesellschaft zum

Stichtag 31. Dezember 2022 keine eigenen Aktien hielt.

2. Zwischen der Pierer Konzerngesellschaft mbH, der Pierer Industrie AG und der Pierer Bajaj AG einerseits (die

„Pierer-Gruppe“) und der Bajaj Auto Ltd. und Bajaj Auto International Holdings B.V. andererseits (die „Bajaj-

Gruppe“) besteht seit 29. September 2021 ein Syndikatsvertrag (der „Syndikatsvertrag 2021“), der die Rechte

und Pflichten der beiden Unternehmensgruppen in Bezug auf die Beteiligung der Pierer Industrie AG und der

Bajaj Auto International Holdings B.V. an der Pierer Bajaj AG als Mehrheitsaktionärin der PIERER Mobility AG

regelt. Der Syndikatsvertrag 2021 sieht vor, dass die Geschäftsordnung für den Vorstand und den Aufsichtsrat

der Pierer Bajaj AG im Falle einer Übertragung des Eigentums von Aktien der PIERER Mobility AG der

Zustimmung der von Bajaj nominierten Aufsichtsratsmitglieder der Pierer Bajaj AG bedarf. Die Pierer Bajaj

AG, die wirtschaftlich Herrn DI Stefan Pierer zuzurechnen ist, unterliegt angesichts des Syndikatsvertrags auf

der Ebene der Pierer Bajaj AG somit Veräußerungsbeschränkungen. Dem Vorstand sind keine weiteren

Beschränkungen bekannt, die Stimmrechte oder die Übertragung von Aktien betreffen.

3. Nach Kenntnis der Gesellschaft bestand per 31. Dezember 2022 folgende direkte oder indirekte Beteiligung

am Kapital der PIERER Mobility AG, die zumindest 10 von Hundert betragen:

• Pierer Bajaj AG: 73,82 % (direkte Beteiligung);

• Pierer Industrie AG: 73,82 % (indirekte Beteiligung);

• Pierer Konzerngesellschaft mbH (direkte und indirekte Beteiligung): 2,53 % (direkte Beteiligung) und

73,82 % (indirekte Beteiligung).

4. Es gibt keine Aktien mit besonderen Kontrollrechten.

5. Es bestehen derzeit keine Mitarbeiterbeteiligungsmodelle.

6. Es bestehen keine über das Gesetz hinausgehenden Bestimmungen hinsichtlich der Ernennung und

Abberufung der Mitglieder des Vorstandes und des Aufsichtsrates und über die Änderung der Satzung.

7. Möglichkeiten, Aktien auszugeben oder zurückzukaufen:

Berücksichtigt werden nur Möglichkeiten Aktien auszugeben oder zurückzukaufen, die zum Stichtag

31. Dezember 2022 noch aufrecht waren:

Beilage II/27

Aufgrund der in der Hauptversammlung vom 27. April 2017 beschlossenen Satzungsänderung enthält die

Satzung der Gesellschaft als § 5a „Bedingtes Kapital“ folgende Bestimmung:

Das Grundkapital der Gesellschaft wird gemäß § 159 Abs 2 Z 1 AktG um bis zu EUR 25.000.000,00 durch

Ausgabe von bis zu 25.000.000 auf Inhaber lautende Stammaktien ohne Nennwert (Stückaktien) zur

Ausgabe an Gläubiger von Finanzinstrumenten gemäß § 174 AktG, die unter Ausnutzung der in dieser

Hauptversammlung eingeräumten Ermächtigung von der Gesellschaft ausgegeben werden, erhöht. Die

Kapitalerhöhung darf nur soweit durchgeführt werden, als die Gläubiger der Finanzinstrumente von ihrem

Umtausch und/oder Bezugsrecht auf Aktien der Gesellschaft Gebrauch machen. Der Ausgabebetrag und

das Umtauschverhältnis sind nach Maßgabe anerkannter finanzmathematischer Methoden sowie des

Aktienkurses in einem anerkannten Preisfindungsverfahren zu ermitteln. Die neu ausgegebenen Aktien

der bedingten Kapitalerhöhung sind im gleichen Maße wie die bereits bestehenden Aktien der

Gesellschaft dividendenberechtigt. Der Vorstand ist ermächtigt mit Zustimmung des Aufsichtsrates die

weiteren Einzelheiten der Durchführung der bedingten Kapitalerhöhung festzusetzen. Der Aufsichtsrat ist

ermächtigt, Änderungen der Satzung, die sich durch die Ausgabe von Aktien aus dem bedingten Kapital

ergeben, zu beschließen.

Diese bedingte Kapitalerhöhung dient zur Ausgabe von neuen Aktien an Gläubiger von

Finanzinstrumenten gemäß § 174 AktG, die unter Ausnutzung der in der Hauptversammlung vom

27. April 2017 eingeräumten Ermächtigung von der Gesellschaft ausgegeben werden. Diese von der

Hauptversammlung vom 27. April 2017 eingeräumte Ermächtigung Finanzinstrumente gemäß

§ 174 AktG auszugeben, ist im Geschäftsjahr 2022 ohne Inanspruchnahme ausgelaufen. Eine bedingte

Kapitalerhöhung im Sinne von Punkt § 5a „Bedingtes Kapital“ in der zum Stichtag geltenden Fassung der

Satzung wird somit nicht stattfinden.

In der außerordentlichen Hauptversammlung vom 4. Oktober 2019 wurde folgender Beschluss gefasst:

Der Vorstand wird für die Dauer von fünf Jahren ermächtigt, mit Zustimmung des Aufsichtsrates eigene

Aktien auch auf andere Art als über die Börse oder durch ein öffentliches Angebot zu jedem gesetzlich

zulässigen Zweck zu veräußern oder zu verwenden und hierbei auch das quotenmäßige Kaufrecht der

Aktionäre auszuschließen (Ausschluss des Bezugsrechtes) und die Veräußerungsbedingungen

festzusetzen. Die Ermächtigung kann ganz oder teilweise oder auch in mehreren Teilbeträgen und in

Verfolgung eines oder mehrerer Zwecke ausgeübt werden.

Zum Stichtag 31. Dezember 2022 besteht jedoch weder eine Ermächtigung des Vorstands eigene Aktien

zu erwerben noch hält die Gesellschaft eigene Aktien.

In der Hauptversammlung vom 29. April 2022 wurden folgende Beschlüsse gefasst:

a) Der Vorstand wird gemäß § 169 AktG ermächtigt, bis 29.04.2027 mit Zustimmung des Aufsichtsrates das

Grundkapital der Gesellschaft von EUR 33.796.535,00, allenfalls in mehreren Tranchen, gegen Bar-

und/oder Sacheinlagen um bis zu EUR 16.898.267,00 durch Ausgabe von bis zu 16.898.267 Stück auf

Inhaber lautende nennbetragslose Stückaktien auf bis zu EUR 50.694.802,00 zu erhöhen und den

Ausgabebetrag sowie die Ausgabebedingungen und die weiteren Einzelheiten der Durchführung der

Kapitalerhöhung im Einvernehmen mit dem Aufsichtsrat festzusetzen sowie allenfalls die neuen Aktien

im Wege des mittelbaren Bezugsrechts gemäß § 153 Abs 6 AktG den Aktionären zum Bezug anzubieten.

b) Der Vorstand wird ermächtigt, mit Zustimmung des Aufsichtsrates das Bezugsrecht der Aktionäre ganz

oder teilweise auszuschließen,

(i) wenn die Kapitalerhöhung gegen Bareinlagen erfolgt und in Summe der rechnerisch auf die gegen

Bareinlagen unter Ausschluss des Bezugsrechts ausgegebenen Aktien entfallende Anteil am

Grundkapital der Gesellschaft die Grenze von 10 % des Grundkapitals der Gesellschaft zum

Zeitpunkt der Einräumung nicht übersteigt,

(ii) wenn die Kapitalerhöhung gegen Sacheinlagen erfolgt,

Beilage II/28

(iii) zur Bedienung einer Mehrzuteilungsoption (Greenshoe), und / oder

(iv) für den Ausgleich von Spitzenbeträgen.

8. Vereinbarungen der Gesellschaft, die bei einem Kontrollwechsel infolge eines Übernahmeangebotes wirksam

werden, sich ändern oder enden sowie deren Wirkungen werden seitens der Gesellschaft nicht bekannt

gegeben, da dies der Gesellschaft erheblich schaden würde.

9. Es existieren keine Entschädigungsvereinbarungen zwischen der Gesellschaft und ihren Vorstands- und

Aufsichtsratsmitgliedern oder Arbeitnehmern für den Fall eines öffentlichen Übernahmeangebotes.

8. WESENTLICHE MERKMALE DES INTERNEN

KONTROLLSYSTEMS § 243A (ABS2) UGB

Das interne Kontrollsystem der PIERER Mobility-Gruppe hat die Aufgabe, die Ordnungsmäßigkeit und

Zuverlässigkeit der Finanzberichterstattung, die Einhaltung der für das Unternehmen maßgeblichen gesetzlichen

und unternehmensinternen Vorschriften sowie die Wirksamkeit und Wirtschaftlichkeit der betrieblichen Tätigkeit

einschließlich des Schutzes des Vermögens vor Verlusten durch Schäden und Malversationen sicherzustellen.

In der Gestaltung der Elemente des internen Kontrollsystems wurden international anerkannte Rahmenwerke für

Interne Kontrollsysteme (z.B. COSO-Framework) berücksichtigt. Das System umfasst:

Konzernweite Vorgaben für die Rechnungslegung

Funktionstrennung als organisatorische Maßnahme

Systemgestützte und prozessabhängige Kontrollen

Prozessunabhängige Kontrollen

x Management von Risiken der Bilanzerstellung

Die PIERER Mobility-Gruppe setzt auf eine kontinuierliche Weiterentwicklung und Verbesserung des internen

Kontrollsystems. Dazu erfolgt regelmäßig eine Überwachung seiner Funktionsfähigkeit durch Prozess- und

Datenanalysen sowie unabhängige, externe Prüfungstätigkeiten. Im Folgenden werden die wesentlichen

Merkmale des internen Kontrollsystems im Hinblick auf den Rechnungslegungsprozess dargestellt.

KONTROLLUMFELD

Die Organisationsstruktur der PIERER Mobility-Gruppe bildet die Basis für das Kontrollumfeld und das interne

Kontrollsystem im Unternehmen. Im Bereich der Aufbauorganisation im (Konzern-)Rechnungswesen bestehen

eindeutige Kompetenz- und Verantwortungsbereiche auf den unterschiedlichen Führungs- und Hierarchieebenen

des Konzerns. Dies betrifft einerseits die Konzernzentrale in Wels sowie die österreichischen und alle

internationalen Tochtergesellschaften. Die Bereiche Treasury und Business Process Finance sind in den

operativen Bereichen der Gruppe angesiedelt, wobei auch hier die Aufgaben und Verantwortungen klar aufgeteilt

sind.

Der starken internationalen Ausrichtung der PIERER Mobility-Gruppe und der damit zusammenhängenden

dezentralen Gesellschafts- und Standortstrukturen wird durch die Zentralisierung von wesentlichen

Unternehmensfunktionen im Bereich der Finanzberichterstattung in den österreichischen Standorten

(insbesondere in Mattighofen) Rechnung getragen. Die Wahrnehmung und Steuerung der nationalen

Geschäftstätigkeiten obliegt dem jeweiligen lokalen Management und wird vom Vorstand der KTM AG sowie vom

Konzernvorstand überwacht.

In der Ablauforganisation setzt die PIERER Mobility-Gruppe auf ein ausgeprägtes und umfangreiches Regelwerk

an Bilanzierungs-, Bewertungs- und Kontierungsvorgaben. Dies stellt eine angemessene Basis für ein starkes

Kontrollumfeld und Kontrollsystem dar. Neue Bilanzierungsstandards werden hinsichtlich ihrer Auswirkung auf

die Rechnungslegung der PIERER Mobility-Gruppe beurteilt. Die Vorgaben an die Rechnungslegung und die

Rechnungslegungsprozesse werden laufend überprüft und mindestens jährlich, bei Bedarf häufiger angepasst.

Beilage II/29

Die Überwachung der Einhaltung der rechnungslegungsbezogenen Regelungen und Kontrollen liegt in der

Verantwortung des jeweils zuständigen Managements.

RISIKOBEURTEILUNG

Risiken in Bezug auf den Rechnungslegungsprozess werden durch das Management erhoben und überwacht

sowie im Risikomanagementprozess berücksichtigt. Der Fokus wird dabei auf jene Risiken gelegt, die als

wesentlich zu betrachten sind.

Die wesentlichen Risiken im Bereich der Rechnungslegung umfassen die nicht vollständige Erfassung von

bilanzierungsrelevanten Sachverhalten, Fehler in der Belegerfassung sowie fehlerhafte Berechnungen.

Komplexe Bilanzierungsgrundsätze könnten zu einem erhöhten Fehlerrisiko, unrichtigen Ausweis sowie

verspätete Bilanzerstellung führen. Zudem besteht das Risiko eines Datenzugriffes von unberechtigten Personen

bzw. Datenmanipulation, Ausfall von IT-Systemen und Datenverlust.

Für die Erstellung des Abschlusses müssen regelmäßig Schätzungen vorgenommen werden, bei denen das

immanente Risiko besteht, dass die zukünftige Entwicklung von diesen Schätzungen abweicht. Dies trifft

insbesondere auf die folgenden Sachverhalte/Posten des Konzernabschlusses zu: Sozialkapital, Ausgang von

Rechtsstreitigkeiten, Werthaltigkeit von Forderungen, Beteiligungen und Vorräten. Teilweise werden externe

Experten zugezogen bzw. wird auf öffentlich zugängliche Quellen abgestellt, um das Risiko einer

Fehleinschätzung zu minimieren.

KONTROLLMAßNAHMEN

Die PIERER Mobility-Gruppe hat ihre Kontrollen direkt in die (Konzern-)Rechnungslegungsprozesse integriert.

Wesentliches Element ist dabei, neben prozessunabhängigen externen Kontrollmechanismen, das Prinzip der

Funktionstrennung. Zur Gewährleistung einer vollständigen, zeitgerechten und richtigen Bilanzerstellung wurden

in allen am Buchungsprozess beteiligten Bereichen Qualitätssicherungs- und Kontrollmaßnahmen implementiert.

Sämtliche Kontrollmaßnahmen werden im laufenden Geschäftsprozess angewandt, um sicherzustellen, dass

potenzielle Fehler in der Finanzberichterstattung vorgebeugt bzw. diese entdeckt und korrigiert werden. Des

Weiteren führt die Anwendung von unternehmensinternen Richtlinien zu einer einheitlichen Behandlung der

Geschäftsfälle sowie zu einer einheitlichen Bilanzierung und Berichterstattung.

In den wichtigen IT-Systemen mit Rechnungslegungsrelevanz sind Kontrollen integriert, die unter anderem die

falsche Erfassung von Geschäftsvorfällen verhindern, die vollständige Erfassung von Geschäftsvorfällen

beziehungsweise Bewertung der Geschäftsvorfälle entsprechend den Rechnungslegungsvorschriften

sicherstellen oder die Überprüfung der Konsolidierung unterstützen sollen. Im Hinblick auf die steigenden

Anforderungen an IT-Systeme in der Rechnungslegung sowie den ständig steigenden technischen Möglichkeiten

führt die PIERER Mobility Gruppe regelmäßig IT-gestützte Analysen der Wirksamkeit der gesetzten Maßnahmen

durch, um etwaige aufgetretene Kontrollschwächen zu erkennen und anschließend zu beseitigen.

Kontrollmaßnahmen in Bezug auf die IT-Sicherheit stellen einen Eckpfeiler des internen Kontrollsystems dar. So

wird die Trennung von sensiblen Tätigkeiten durch eine restriktive Vergabe von IT-Berechtigungen unterstützt.

Durch die eingesetzte ERP Software finden automatisierte Prüfungen statt, wie z.B. die automatisierten Kontrollen

bei Rechnungsfreigabe und Rechnungsprüfung.

KOMMUNIKATION UND ÜBERWACHUNG

Die Verantwortung für die Wirksamkeit des internen Kontrollsystems im (Konzern-)Rechnungslegungsprozess ist

klar geregelt und liegt bei den verantwortlichen Führungskräften und Prozessverantwortlichen. In die Beurteilung

der Wirksamkeit fließen neben den Ergebnissen aus der unternehmensinternen Einschätzung auch jene von

externen Prüfungen, z. B. im Rahmen der Jahresabschlussprüfung oder von externen IT-Security Audits, sowie

des Aufsichtsrats und des Prüfungsausschusses ein. Schwächen im Kontrollsystem werden unter

Berücksichtigung ihrer möglichen Auswirkung auf die Rechnungslegungsprozesse behoben.

Beilage II/30

Neben den gesetzlich vorgeschriebenen Abschlüssen, welche den Führungsebenen zur Verfügung gestellt

werden, wurde im Konzern auch ein umfangreiches Internes Berichtswesen implementiert, das je nach

Berichtsempfänger in unterschiedlichen Aggregationstiefen erstellt und verteilt wird.

Weitere zentrale Instrumente der Risikoüberwachung und -kontrolle sind die unternehmensweiten Richtlinien über

den Umgang mit wesentlichen Risiken, der Planungs- und der Controlling-Prozesse, sowie die laufende

Berichterstattung. Die Richtlinien umfassen die Festsetzung und Kontrolle von Limits und Handlungsabläufen zur

Begrenzung finanzieller Risiken sowie die strikte Vorgabe des Vier-Augen-Prinzips bei Rechnungs- und

Zahlungsfreigaben.

Darüber hinaus basiert das interne Kontrollsystem auf genauen Informationen über die Prozesse für die

Rechnungslegung und Finanzberichtserstattung und schließt auch deren vorgelagerte Unternehmensprozesse,

z. B. Bestellanforderungen oder Logistikprozesse, mit ein. Die Wirksamkeit des internen Kontrollsystems wird

vom Management dahingehend überprüft, dass die Ergebnisse, die in komprimierter Berichtsform an das

Management übermittelt werden von ihm analysiert, bewertet und kommentiert werden.

Vorstand und Prüfungsausschuss werden jährlich über die Einschätzung zur Wirksamkeit des internen

Kontrollsystems in der Rechnungslegung unterrichtet. Bei wesentlichen Veränderungen der Wirksamkeit des

internen Kontrollsystems erfolgt eine unverzügliche Berichterstattung an den Vorstand und gegebenenfalls an

den Aufsichtsrat sowie eine Ergreifung adäquater Maßnahmen zur Erhöhung der Wirksamkeit.

9. AUSBLICK

Die PIERER Mobility-Gruppe setzt im Geschäftsjahr 2023 weiterhin auf Wachstum in ihren Kernbereichen, sowohl

bei den Motorrädern als auch bei den (E-)Fahrrädern. Der Vorstand rechnet mit einem Umsatzwachstum

zwischen 6 und 10 % bei einer EBIT-Marge von 8 bis 10 %.

Trotz des herausfordernden Umfeldes, insbesondere des Krieges in der Ukraine sowie der hohen Inflationsraten

konnten die Motorradmarken KTM, Husqvarna Motorcycles und GASGAS ihre Marktanteile in allen wichtigen

Absatzmärkten weitgehend behaupten. Obschon konfrontiert mit anhaltenden Problemen in den globalen

Lieferketten, konnte die PIERER Mobility-Gruppe mit der Verfügbarkeit des neuen Modelljahres 2023 ihre

Marktpräsenz stärken.

Die PIERER Mobility-Gruppe geht von einem mittel- bis langfristig wachsenden Motorradmarkt aus, obwohl

aktuelle Entwicklungen zu einer kurzfristigen Abschwächung der Nachfrage nach Motorrädern führen können.

Das Wachstum beim Absatz von Motorrädern wird vor allem von der anhaltend hohen Nachfrage in Nordamerika

und Australien getragen werden. Für Europa wird mit einem leichten Rückgang des Marktes gerechnet. In Bezug

auf die Absatzzahlen erwartet das Unternehmen, dass der Motorradmarkt für Qualitäts-Premiumprodukte

insgesamt positiv bleibt.

Im Bereich New Mobility / (E-)Bicycles birgt der Markt für E-Mobilität im Allgemeinen kurz-, mittel- und langfristig

großes Wachstumspotenzial. Als Teil dieses Marktes stellen neue Mobilitätskonzepte eine gesunde, nachhaltige

und individuelle Fortbewegungsart dar. Analog zum Motorradmarkt geht die Gruppe von einem mittel- bis

langfristig wachsenden Markt aus, wobei auch hierbei die aktuellen Entwicklungen zu einer kurzfristigen

Abschwächung der Nachfrage in 2023 führen können.

Mit dem Angebot einer breiten Palette von innovativen Produkten durch die Marken Husqvarna E-Bicycles, R

RAYMON, GASGAS und FELT ist die PIERER Mobility-Gruppe auch im Fahrradbereich nachhaltig zuversichtlich

und bestrebt, ihren Marktanteil weiter auszubauen. Durch die verfolgte Markenstrategie und durch die

Fokussierung auf neue Produktentwicklungen soll der Umsatz kontinuierlich gesteigert werden.

Im Geschäftsjahr 2022 sah sich die Gruppe mit Herausforderungen in den internationalen Lieferketten

konfrontiert, da Kapazitäts- und Lieferengpässe bei einzelnen Lieferanten sowie in der internationalen

Transportlogistik zu Lieferverzögerungen führten. Zwar rechnet die Gruppe für das Geschäftsjahr 2023 mit einer

Beilage II/31

Milderung dieser Problematiken, die Situation dürfte jedoch weiter angespannt bleiben. Die PIERER Mobility-

Gruppe hat bereits verschiedene Maßnahmen gesetzt, um negative Auswirkungen im Bereich des Supply Chain-

Managements zu erkennen und zu minimieren. Die zu erwartenden Herausforderungen und deren Folgen sollen

durch die in den vergangenen Jahren überarbeitete und sukzessiv verfeinerte Lieferantenrisikobewertung sowie

das implementierte Frühwarnsystem bei Auftreten globaler Ereignisse, die direkt oder indirekt die Lieferkette

betreffen, gemäßigt werden. Neben Maßnahmen, die als Reaktion auf diese globalen Probleme in der Lieferkette

ergriffen wurden, wurde im Juni 2022 die PIERER E-Bikes Asia Ltd als lokale Präsenz in Taiwan gegründet. Diese

neu gegründete Tochtergesellschaft wird die PIERER Mobility-Gruppe in ihrem Supply Chain Management

maßgeblich unterstützen und somit das Beschaffungsrisiko durch den direkten Zugang zum asiatischen Markt

reduzieren.

Entsprechend der Vision der Gruppe, ein globaler Marktführer bei elektrisch betriebenen Zweirädern mit einer

Motorleistung von 250W bis 15KW zu werden, wird der Schwerpunkt der Entwicklungsarbeit bei Motorrädern in

den nächsten Jahren verstärkt auf alternative, insbesondere elektrifizierte Antriebe im Bereich bis 250 cm³ liegen.

Die urbane Mobilität der Zukunft ist von Geschwindigkeitsbegrenzungen und kurzen Distanzen gekennzeichnet

und könnte daher von elektrisch betriebenen Antrieben profitieren. Daher wird der Schwerpunkt der

Entwicklungsarbeit auf die Entwicklung von verschiedenen Modellen mit Niedrigvolt-Technologie (48 Volt) liegen.

Die Mitgliedschaft im „Swappable Battery Motorcycle Consortium“ (SBMC) soll die Entwicklung und Verbreitung

von tauschbaren Batteriesystemen und die Öffnung von technischen Standards beschleunigen. Die PIERER

Mobility-Gruppe geht davon aus, dass die Elektrifizierung von Zweirädern mit höheren Anforderungen an Leistung

und Distanz (über 250 cm³), abgesehen von einigen wenigen Nischenprodukten, keine geeignete Alternative für

die Masse darstellt. Hierfür können synthetische Kraftstoffe („E-Fuels“) einen Beitrag zur CO2 Neutralität leisten.

Im Jänner 2023 wurde die Produktion des 1.000.000sten Motorrads der Marken KTM und Husqvarna seit

Bestehen der strategischen Partnerschaft mit der Bajaj-Gruppe in dessen Produktionswerk in Pune, Indien

gefeiert. Die Kooperation mit Bajaj wird um die gemeinsame Entwicklung einer 48-Volt-Elektro-Zweiräder-

Plattform erweitert. Die PIERER Mobility-Gruppe erwartet, dass bis 2030 zumindest ein Drittel des

Konzernumsatzes mit elektrifizierten Zweirädern erwirtschaftet wird.

Die vertieften bzw. neu geschlossenen Kooperationen mit CFMOTO und MV Agusta erweitern das Portfolio an

vertriebenen Motorrädern durch die PIERER Mobility-Gruppe. Die Umsetzung erfolgt über die Integration von

CFMOTO- und MV Agusta-Produkten in ihr Vertriebsnetz, beginnend mit dem Geschäftsjahr 2023. Während sich

der Vertrieb von CFMOTO-Produkten auf bestimmte Länder in Europa konzentrieren wird, werden MV Agusta-

Motorräder weltweit über neu gegründete Gesellschaften vertrieben werden.

Mit der Erweiterung der Produktpalette setzt die PIERER Mobility-Gruppe über die PIERER New Mobility GmbH

ihre Philosophie als Anbieter nachhaltiger Mobilitätslösungen der Zukunft weiter fort. Die nächsten

Expansionsschritte visieren die Erschließung der Märkte in Großbritannien, Australien, Neuseeland sowie

Südafrika an. Eigenständige, differenzierte Vertriebskanäle sind die Säulen der erfolgreichen New Mobility-

Strategie der Gruppe. Die Zusammenarbeit mit MAXCOM Ltd. wurde im Geschäftsjahr 2022 weiter intensiviert

und ein Joint Venture zur Abwicklung der Supply Chain, Lagerung und Logistik gegründet. Die Inbetriebnahme

ist in der zweiten Jahreshälfte 2023 geplant. Um die zukünftige anvisierte Produktions- und Absatzmenge durch

die PIERER New Mobility GmbH und damit das angestrebte nachhaltige Unternehmenswachstum verwirklichen

zu können, wurden in 2022 und werden auch in 2023 Investitionen in das gemeinschaftliche Projekt mit MAXCOM

Ltd. getätigt werden.

kpmg

PIERER Mobility AG, Wels

Bericht über die Prüfung des Jahresabschlusses zum 31. Dezember 2022

15. März 2023

4. Bestätigungsvermerk

Bericht zum Jahresabschluss

Prüfungsurteil

Wir haben den Jahresabschluss der

PIERER Mobility AG,

Wels,

bestehend aus der Bilanz zum 31. Dezember 2022, der Gewinn- und Verlustrechnung für das an

diesem Stichtag endende Geschäftsjahr und dem Anhang, geprüft.

Nach unserer Beurteilung entspricht der Jahresabschluss den gesetzlichen Vorschriften und ver-

mittelt ein möglichst getreues Bild der Vermögens- und Finanzlage zum 31. Dezember 2022 so-

wie der Ertragslage der Gesellschaft für das an diesem Stichtag endende Geschäftsjahr in Über-

einstimmung mit den österreichischen unternehmensrechtlichen Vorschriften.

Grundlage für das Prüfungsurteil

Wir haben unsere Abschlussprüfung in Übereinstimmung mit der EU-Verordnung Nr 537/2014

(im Folgenden AP-VO) und mit den österreichischen Grundsätzen ordnungsgemäßer Abschluss-

prüfung durchgeführt. Diese Grundsätze erfordern die Anwendung der International Standards

on Auditing (ISA). Unsere Verantwortlichkeiten nach diesen Vorschriften und Standards sind im

Abschnitt "Verantwortlichkeiten des Abschlussprüfers für die Prüfung des Jahresabschlusses"

unseres Bestätigungsvermerks weitergehend beschrieben. Wir sind von der Gesellschaft unab-

hängig in Übereinstimmung mit den österreichischen unternehmens- und berufsrechtlichen Vor-

schriften und wir haben unsere sonstigen beruflichen Pflichten in Übereinstimmung mit diesen

Anforderungen erfüllt. Wir sind der Auffassung, dass die von uns erlangten Prüfungsnachweise

bis zum Datum dieses Bestätigungsvermerkes ausreichend und geeignet sind, um als Grundlage

für unser Prüfungsurteil zu diesem Datum zu dienen.

Besonders wichtige Prüfungssachverhalte

Besonders wichtige Prüfungssachverhalte sind solche Sachverhalte, die nach unserem pflichtge-

mäßen Ermessen am bedeutsamsten für unsere Prüfung des Jahresabschlusses des Geschäfts-

jahres waren. Diese Sachverhalte wurden im Zusammenhang mit unserer Prüfung des Jahresab-

schlusses als Ganzes und bei der Bildung unseres Prüfungsurteils hierzu berücksichtigt und wir

geben kein gesondertes Prüfungsurteil zu diesen Sachverhalten ab.

Wir haben bestimmt, dass es keine besonders wichtigen Prüfungssachverhalte gibt, die in unse-

rem Vermerk mitzuteilen sind.

kpmg

PIERER Mobility AG, Wels

Bericht über die Prüfung des Jahresabschlusses zum 31. Dezember 2022

15. März 2023

Verantwortlichkeiten der gesetzlichen Vertreter und des Prüfungsausschusses

für den Jahresabschluss

Die gesetzlichen Vertreter sind verantwortlich für die Aufstellung des Jahresabschlusses und

dafür, dass dieser in Übereinstimmung mit den österreichischen unternehmensrechtlichen Vor-

schriften ein möglichst getreues Bild der Vermögens-, Finanz- und Ertragslage der Gesellschaft

vermittelt. Ferner sind die gesetzlichen Vertreter verantwortlich für die internen Kontrollen, die

sie als notwendig erachten, um die Aufstellung eines Jahresabschlusses zu ermöglichen, der frei

von wesentlichen falschen Darstellungen aufgrund von dolosen Handlungen oder Irrtümern ist.

Bei der Aufstellung des Jahresabschlusses sind die gesetzlichen Vertreter dafür verantwortlich,

die Fähigkeit der Gesellschaft zur Fortführung der Unternehmenstätigkeit zu beurteilen, Sachver-

halte im Zusammenhang mit der Fortführung der Unternehmenstätigkeit – sofern einschlägig –

anzugeben, sowie dafür, den Rechnungslegungsgrundsatz der Fortführung der Unternehmens-

tätigkeit anzuwenden, es sei denn, die gesetzlichen Vertreter beabsichtigen, entweder die Ge-

sellschaft zu liquidieren oder die Unternehmenstätigkeit einzustellen oder haben keine realis-

tische Alternative dazu.

Der Prüfungsausschuss ist verantwortlich für die Überwachung des Rechnungslegungsprozes-

ses der Gesellschaft.

Verantwortlichkeiten des Abschlussprüfers

für die Prüfung des Jahresabschlusses

Unsere Ziele sind hinreichende Sicherheit darüber zu erlangen, ob der Jahresabschluss als Gan-

zes frei von wesentlichen falschen Darstellungen aufgrund von dolosen Handlungen oder Irrtü-

mern ist und einen Bestätigungsvermerk zu erteilen, der unser Prüfungsurteil beinhaltet. Hinrei-

chende Sicherheit ist ein hohes Maß an Sicherheit, aber keine Garantie dafür, dass eine in Über-

einstimmung mit der AP-VO und mit den österreichischen Grundsätzen ordnungsgemäßer Ab-

schlussprüfung, die die Anwendung der ISA erfordern, durchgeführte Abschlussprüfung eine we-

sentliche falsche Darstellung, falls eine solche vorliegt, stets aufdeckt. Falsche Darstellungen

können aus dolosen Handlungen oder Irrtümern resultieren und werden als wesentlich ange-

sehen, wenn von ihnen einzeln oder insgesamt vernünftigerweise erwartet werden könnte, dass

sie die auf der Grundlage dieses Jahresabschlusses getroffenen wirtschaftlichen Entscheidun-

gen von Nutzern beeinflussen.

Als Teil einer Abschlussprüfung in Übereinstimmung mit der AP-VO und mit den österreichischen

Grundsätzen ordnungsgemäßer Abschlussprüfung, die die Anwendung der ISA erfordern, üben

wir während der gesamten Abschlussprüfung pflichtgemäßes Ermessen aus und bewahren eine

kritische Grundhaltung.

Darüber hinaus gilt:

— Wir identifizieren und beurteilen die Risiken wesentlicher falscher Darstellungen aufgrund von

dolosen Handlungen oder Irrtümern im Abschluss, planen Prüfungshandlungen als Reaktion

auf diese Risiken, führen sie durch und erlangen Prüfungsnachweise, die ausreichend und

geeignet sind, um als Grundlage für unser Prüfungsurteil zu dienen. Das Risiko, dass aus do-

losen Handlungen resultierende wesentliche falsche Darstellungen nicht aufgedeckt werden,

ist höher als ein aus Irrtümern resultierendes, da dolose Handlungen kollusives Zusammen-

wirken, Fälschungen, beabsichtigte Unvollständigkeiten, irreführende Darstellungen oder das

Außerkraftsetzen interner Kontrollen beinhalten können.

kpmg

PIERER Mobility AG, Wels

Bericht über die Prüfung des Jahresabschlusses zum 31. Dezember 2022

15. März 2023

— Wir gewinnen ein Verständnis von dem für die Abschlussprüfung relevanten internen Kon-

trollsystem, um Prüfungshandlungen zu planen, die unter den gegebenen Umständen ange-

messen sind, jedoch nicht mit dem Ziel, ein Prüfungsurteil zur Wirksamkeit des internen Kon-

trollsystems der Gesellschaft abzugeben.

— Wir beurteilen die Angemessenheit der von den gesetzlichen Vertretern angewandten Rech-

nungslegungsmethoden sowie die Vertretbarkeit der von den gesetzlichen Vertretern darge-

stellten geschätzten Werte in der Rechnungslegung und damit zusammenhängende An-

gaben.

— Wir ziehen Schlussfolgerungen über die Angemessenheit der Anwendung des Rechnungsle-

gungsgrundsatzes der Fortführung der Unternehmenstätigkeit durch die gesetzlichen Vertre-

ter sowie, auf der Grundlage der erlangten Prüfungsnachweise, ob eine wesentliche Unsi-

cherheit im Zusammenhang mit Ereignissen oder Gegebenheiten besteht, die erhebliche

Zweifel an der Fähigkeit der Gesellschaft zur Fortführung der Unternehmenstätigkeit aufwer-

fen können. Falls wir die Schlussfolgerung ziehen, dass eine wesentliche Unsicherheit be-

steht, sind wir verpflichtet, in unserem Bestätigungsvermerk auf die dazugehörigen Angaben

im Jahresabschluss aufmerksam zu machen oder, falls diese Angaben unangemessen sind,

unser Prüfungsurteil zu modifizieren. Wir ziehen unsere Schlussfolgerungen auf der Grund-

lage der bis zum Datum unseres Bestätigungsvermerks erlangten Prüfungsnachweise. Zu-

künftige Ereignisse oder Gegebenheiten können jedoch die Abkehr der Gesellschaft von der

Fortführung der Unternehmenstätigkeit zur Folge haben.

— Wir beurteilen die Gesamtdarstellung, den Aufbau und den Inhalt des Jahresabschlusses ein-

schließlich der Angaben sowie ob der Jahresabschluss die zugrunde liegenden Geschäftsvor-

fälle und Ereignisse in einer Weise wiedergibt, dass ein möglichst getreues Bild erreicht wird.

— Wir tauschen uns mit dem Prüfungsausschuss unter anderem über den geplanten Umfang

und die geplante zeitliche Einteilung der Abschlussprüfung sowie über bedeutsame Prüfungs-

feststellungen, einschließlich etwaiger bedeutsamer Mängel im internen Kontrollsystem, die

wir während unserer Abschlussprüfung erkennen, aus.

— Wir geben dem Prüfungsausschuss auch eine Erklärung ab, dass wir die relevanten berufli-

chen Verhaltensanforderungen zur Unabhängigkeit eingehalten haben und uns mit ihm über

alle Beziehungen und sonstigen Sachverhalte austauschen, von denen vernünftigerweise an-

genommen werden kann, dass sie sich auf unsere Unabhängigkeit und – sofern einschlägig

– damit zusammenhängende Schutzmaßnahmen auswirken.

— Wir bestimmen von den Sachverhalten, über die wir uns mit dem Prüfungsausschuss ausge-

tauscht haben, diejenigen Sachverhalte, die am bedeutsamsten für die Prüfung des Jahresab-

schlusses des Geschäftsjahres waren und daher die besonders wichtigen Prüfungssachver-

halte sind. Wir beschreiben diese Sachverhalte in unserem Bestätigungsvermerk, es sei denn,

Gesetze oder andere Rechtsvorschriften schließen die öffentliche Angabe des Sachverhalts

aus oder wir bestimmen in äußerst seltenen Fällen, dass ein Sachverhalt nicht in unserem

Bestätigungsvermerk mitgeteilt werden sollte, weil vernünftigerweise erwartet wird, dass die

negativen Folgen einer solchen Mitteilung deren Vorteile für das öffentliche Interesse über-

steigen würden.

kpmg

PIERER Mobility AG, Wels

Bericht über die Prüfung des Jahresabschlusses zum 31. Dezember 2022

15. März 2023

Sonstige gesetzliche und andere rechtliche Anforderungen

Bericht zum Lagebericht

Der Lagebericht ist aufgrund der österreichischen unternehmensrechtlichen Vorschriften darauf

zu prüfen, ob er mit dem Jahresabschluss in Einklang steht und ob er nach den geltenden recht-

lichen Anforderungen aufgestellt wurde.

Die gesetzlichen Vertreter sind verantwortlich für die Aufstellung des Lageberichts in Überein-

stimmung mit den österreichischen unternehmensrechtlichen Vorschriften.

Wir haben unsere Prüfung in Übereinstimmung mit den Berufsgrundsätzen zur Prüfung des Lage-

berichts durchgeführt.

Urteil

Nach unserer Beurteilung ist der Lagebericht nach den geltenden rechtlichen Anforderungen auf-

gestellt worden, enthält die nach § 243a UGB zutreffenden Angaben, und steht in Einklang mit

dem Jahresabschluss.

Erklärung

Angesichts der bei der Prüfung des Jahresabschlusses gewonnenen Erkenntnisse und des ge-

wonnenen Verständnisses über die Gesellschaft und ihr Umfeld haben wir keine wesentlichen

fehlerhaften Angaben im Lagebericht festgestellt.

Zusätzliche Angaben nach Artikel 10 AP-VO

Wir wurden von der Hauptversammlung am 29. April 2022 als Abschlussprüfer gewählt und am

13. Juni 2022 vom Aufsichtsrat mit der Abschlussprüfung der Gesellschaft für das am

31. Dezember 2022 endende Geschäftsjahr beauftragt.

Wir sind ohne Unterbrechung seit dem Jahresabschluss zum 31. Dezember 2014 Abschluss-

prüfer der Gesellschaft.

Wir erklären, dass das Prüfungsurteil im Abschnitt "Bericht zum Jahresabschluss" mit dem zu-

sätzlichen Bericht an den Prüfungsausschuss nach Artikel 11 der AP-VO in Einklang steht.

Wir erklären, dass wir keine verbotenen Nichtprüfungsleistungen (Artikel 5 Abs 1 der AP-VO) er-

bracht haben und dass wir bei der Durchführung der Abschlussprüfung unsere Unabhängigkeit

von der geprüften Gesellschaft gewahrt haben.

kpmg

PIERER Mobility AG, Wels

Bericht über die Prüfung des Jahresabschlusses zum 31. Dezember 2022

Dieses Dokument wurde qualifiziert elektronisch signiert und ist nur in dieser Fassung gültig. Die

Veröffentlichung oder Weitergabe des Jahresabschlusses mit unserem Bestätigungsvermerk darf nur in der

von uns bestätigten Fassung erfolgen. Dieser Bestätigungsvermerk bezieht sich ausschließlich auf den

deutschsprachigen und vollständigen Jahresabschluss samt Lagebericht. Für abweichende Fassungen sind

die Vorschriften des § 281 Abs 2 UGB zu beachten.

Auftragsverantwortlicher Wirtschaftsprüfer

Der für die Abschlussprüfung auftragsverantwortliche Wirtschaftsprüfer ist Herr Dr. Helge

Löffler.

Linz, 15. März 2023

KPMG Austria GmbH

Wirtschaftsprüfungs- und Steuerberatungsgesellschaft

qualifiziert elektronisch signiert:

Dr. Helge Löffler

Wirtschaftsprüfer

Statement by the

Executive Board

Pursuant to Section 124 (1) (3) of the Austrian Stock Exchange Act

We confirm to the best of our knowledge that the consolidated

financial statements give a true and fair view of the assets, liabilities,

financial and earnings position of the Group as required by the

applicable accounting standards and that the consolidated

management report gives a true and fair view of the development and

performance of the business and the position of the Group, together

with a description of the principal risks and uncertainties the Group

faces.

We confirm to the best of our knowledge that the annual financial

statements of the parent company give a true and fair view of the

assets, liabilities, financial and earnings position of the parent

company as required by the applicable accounting standards and

that the management report gives a true and fair view of the

development and performance of the business and the position of the

parent company, together with a description of the principal risks and

uncertainties the parent company faces.

Wels, March 2023

Executive Board

Stefan Pierer Friedrich Roithner Hubert Trunkenpolz Viktor Sigl

IMPRINT

Owner and publisher

PIERER Mobility AG

Edisonstrasse 1

4600 Wels, Austria

FN 78112 x / Wels Provincial and Commercial Court

CONTACT

Melinda Busáné Bellér

Investor Relations, Sustainability

Telefon: +43 1 533 1 433 - 70

E-Mail: ir@pierermobility.com

Website: www.pierermobility.com

CI-Conzept: LX media GmbH, 4600 Wels, www.lx-media.at‚

Design: Grafik-Buero Elena Gratzer, 4600 Wels, www.grafik-buero.at

Photos: KTM archive, Husqvarna Motorcycles archive, WP archive, Husqvarna E-Bicycles archive, GASGAS archive, R Raymon-archive, FELT-archive, KISKA-archive,

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 half-year 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 case of doubt, the German version shall prevail.

GENERAL COMPANY DATA:

Reporting company: PIERER Mobility AG

Registered office of the company: Austria

Legal form of the company: Aktiengesellschaft

Country in which the company is registered as a legal entity: Austria

Address of registered office: Edisonstrasse 1, 4600 Wels

Headquarters of the business activity: Edisonstrasse 1, 4600 Wels

Name of the parent company: Pierer Bajaj AG

Name of the ultimate parent company: Pierer Konzerngesellschaft mbH

Business activity: PIERER Mobility AG is the parent company for Europe‘s leading manufacturer

of powered two-wheelers in the sport motorcycles and e-bikes segment.