KTM Industries AG: Focus on the two-wheeler industry

Sale of Pankl-Group

Wels (pta027/04.06.2018/17:55 UTC+2) Today, the Management Board and the Supervisory Board of KTM Industries AG have decided to sell the entire share package of Pankl Racing Systems AG Group, in which KTM Industries AG holds approximately 98.2%, to Pierer Industrie AG.

The purchase price amounts to approximately EUR 130.5 million and corresponds therefore to the price offered to the shareholders of Pankl Racing Systems AG until March 2018 in the course of the public takeover bid. This will provide the strategic and financial basis for an even greater focus of the KTM Industries-Group on the two-wheeler industry, in particular the development of electro-mobility, over the next few years.

Through the sale of the Pankl-Group, the balance sheet structure of KTM Industries-Group will be strengthened considerably. KTM Industries AG will use a part of the proceeds of the sale to repurchase the perpetual bond with a nominal value of EUR 60.0 million; as a result it will significantly reduce its future interest expenses.

Wolfgang Plasser, CEO of Pankl Racing Systems AG and member of the management board of KTM Industries AG, will leave the management board of KTM Industries AG in the course of the sale.

The transaction (signing and closing) will be completed in June 2018.

Legal disclaimer

THIS ANNOUNCEMENT DOES NEITHER CONSTITUTE AN OFFER TO SELL NOR AN INTIMATION TO SUBMIT A PROPOSAL FOR THE ACQUISITION OF SECURITIES OF KTM INDUSTRIES AG. THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, INTO OR WITHIN THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT.

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Emitter:	KTM Industries AG Edisonstraße 1 4600 Wels Austria
Contact Person:	Mag. Michaela Friepeß
Phone:	+43 7242 69402
E-Mail:	ir@ktm-industries.com
Website:	www.ktm-industries.com
ISIN(s):	AT0000500913 (Bond) AT0000A0WQ66 (Bond) AT0000A1MBL8 (Bond) AT0000KTMI02 (Share)
Stock Exchange(s):	Vienna Stock Exchange (Official Trade); Free Market in Frankfurt