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Page 1: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

1January 2018Company Presentation

Page 2: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

2

Disclaimer

This document is for information purposes only and shall not be treated as giving any investment advice and/or recommendation whatsoever. This presentation and any information (written or oral) provided to youdoes not constitute an offer of securities, nor a solicitation for an offer of securities, nor a prospectus or advertisement or a marketing or sales activity for such securities. This presentation is not directed to, orintended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution or use would be contrary to law orregulation or which would require any registration or licensing within such jurisdiction.

The shares of KTM Industries AG (the “Company”) have not been registered under the U.S. Securities Act of 1933 (the “Securities Act”) nor in Canada, U.K. or Japan. No securities may be offered or sold in theUnited States or in any other jurisdiction, which requires registration or qualification. These materials must not be copied or otherwise distributed to “U.S. persons” (according to the definition under Regulation S ofthe Securities Act as amended from time to time) or publications with general circulation in the United States. The circulation of this document may be restricted or prohibited in certain jurisdictions.

For the United Kingdom: This presentation and related material (these “Materials”) are for distribution only to persons who are members of KTM Industries AG falling within Article 43(2) of the Financial Servicesand Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the “Financial Promotion Order”) or who (i) have professional experience in matters relating to investments falling within Article 19(5) of theFinancial Promotion Order), (ii) are persons falling within Article 49(2)(a) to (d) (“high net worth companies, unincorporated associations etc”) of the Financial Promotion Order, (iii) are outside the United Kingdom,or (iv) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale ofany securities may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as “relevant persons”). These Materials are directed only at relevant persons andmust not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which these Materials relate is available only to relevant persons and will be engaged in onlywith relevant persons.

Certain statements contained herein may be statements of future expectations and other forward-looking statements, which are based on management's current views and assumptions and involve known andunknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-lookingby reason of context, words such as “may”, “will”, “should”, “expects”, “plans”, “intends”, “anticipates”, “believes”, “estimates”, “predicts”, “potential”, or “continue” and similar expressions typically identifyforward-looking statements.

By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. As such, noforward-looking statement can be guaranteed. Undue reliance should not be placed on these forward-looking statements. Many factors could cause our results of operations, financial condition, liquidity, and thedevelopment of the industries in which we compete, to differ materially from those expressed or implied by the forward-looking statements contained herein.

Subject to applicable securities law requirements, we disclaim any intention or obligation to update or revise any forward-looking statements set forth herein, whether as a result of new information, future eventsor otherwise.

We have exercised utmost diligence in the preparation of this presentation. However, rounding, transmission, printing, and typographical errors cannot be ruled out. We are not responsible or liable for anyomissions, errors or subsequent changes which have not been reflected herein and we accept no liability whatsoever for any loss or damage howsoever arising from any use of this document or its content or thirdparty data or otherwise arising in connection therewith.

The contents of this presentation are confidential and may not be copied, distributed, published or reproduced in whole or in part, or disclosed or distributed by recipients to any other person.

In receiving any information relating to the Company and its group, including information in this presentation, you will be deemed to have represented and agreed for the benefit of the Company (i) that you willonly use such information for the purposes of discussions with the Company, (ii) to hold such information in strict confidence and not to disclose it (or any discussions with the Company) to any person, except asmay be required by law, regulation or court order, (iii) not to reproduce or distribute, in whole or in part, (directly or indirectly) any information, (iv) that you are permitted, in accordance with all applicable laws,to receive such information, and (v) that you are solely responsible for your own assessment of the market position of the Company and that you will conduct your own analysis and be solely responsible forforming your own review of the potential future performance of the Company's business.

Page 3: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

3

1 Highlights 2017 and outlook at a glance 4

2 Motorcycle growth 7

3 Market and competitive environment 10

4 Pankl Racing Systems 13

5 Strategic alliances 15

6 Financials and outlook 20

A Appendix 25

Agenda

Page 4: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

4Source: KTM Industries AG1) Including units distributed by Bajaj

Highlights 2017 and outlook at a glance

Another record year for KTM Industries

▪ EUR 1,533m revenues (+14% vs 2016) and record revenues for the 7th consecutive time

▪ 238,334 motorcycles sold (+17% vs 2016)

1

Strong momentum in all relevant markets

▪ 10.1% market share in Europe and 8.3% market share in US/CA

▪ Husqvarna strong momentum maintained and posts one of the highest growth numbers in registrations (+5.2% vs 2016)

2

Enlargement of strategic partnership with Bajaj and new JV with CF Moto

▪ Later in 2018, Bajaj will add Husqvarna models Vitpilen 401 and Svartpilen 401 to its production for global markets and distribution agreement

▪ Expected production >200,000 units in India in the next years

▪ Joint venture with CF Moto strengthens KTM’s footprint in China and allows cost-efficient production of motorcycles with engines >690cc

3

Entering the eBike market, next level of e-mobility

▪ Next step to become a comprehensive power two-wheeler company

▪ Leveraging technological and market know-how

4

Successful motorsport year across all racing classes

▪ 11 championship titles in 2017 and more than 280 in KTM history

▪ Increase of brand visibility

5

New guidance and outlook

▪ >400,000 motorcycles in 2022

▪ Selected figures of new guidance:

6

2021 (NEW) 2021 (OLD)

Motorcycles sold1) >360,000 units >300,000 units

EBIT margin 8 – 10% 8 – 10%

ROIC 10 – 12% 9 – 11%

Page 5: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

5Source: KTM Industries AGNote: Simplified group structure as of January 20181) 50.1% family Puello; 2) thereof 2.45% held by Pierer Group

KTM AG PEXCO GmbH

99.9%

PTWPowered two wheelers

Design, concept development& digitalization

E-Bicycles High performancecomponents

49.9%1) 96.95%2)51.7%

74.0%

26.0%

74.0%

47.99%

Highlights 2017 and outlook at a glanceGroup structure

Integration of WP into KTM AG to fully

exploit synergies

Page 6: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

6

678,6

825,7896,3

1.086,3

1.223,6

1.343,0

1,533.4

38,947,0

59,3

93,0

112,9

122,3

132.5

0

20

40

60

80

100

120

140

160

180

0

200

400

600

800

1.000

1.200

1.400

1.600

1.800

2011 2012 2013 2014 2015 2016 2017

EB

IT (

in E

UR

m)

Reven

ues

(in

EU

Rm

)

Revenues EBIT

1)

Source: KTM Industries AG1) Preliminary figures for 2017

Highlights 2017 and outlook at a glanceRevenue and EBIT performance

Revenue CAGR 11-17: 14.6%

EBIT CAGR 11-17: 22.7%

Page 7: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

7

GROWTHMOTORCYCLE

Page 8: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

8

64,1 66,3 81,2 98,7 106,1125,7 130,6 136,7 154.3

~2028,2

14,921,6

30,836.9

~78

8,5

9,7

18,2 31,035,9

47,1

~70

~50

09A 10A 11A 12A 13A 14A 15A 16A 17A 22E

KTM units distributed by KTM Husqvarna units distributed by KTM

KTM units distributed by Bajaj (license fee model) Husqvarna units distributed by Bajaj (license fee model)

Market share1)

Europe

US/CA 6.0%5.3%4.1%2.2% 7.0%3.7%

9.6%10.0%8.8%4.3% 7.7%

3.0%2.5%

5.9%4.5%

Unit CAGR 09-1717.8%

Unit CAGR 17-22~10.9%

11.4%

203.3183.2158.8

123.9

107.2

Units in k

238.3

~400

Source: KTM Industries AG | Europe (AT, CH, DE, DK, ES, FI, FR, GR, IT, NL, NO, PT, SE, UK): ACEM, national data providers (w/o MX) | US: MIC (incl. MX) | CA: MMIC (incl. MX)1) Market share as of 31 December (calculations are 12 months rolling, declared month and previous 11 months) | Motorcycles >120cc (excl. ATVs, electric motorcycles and scooters)2) Preliminary figures for 2017

8.3%

10.1%

2)

KTM units distributed by KTM

Husqvarna units distributed by KTM

KTM units distributed by Bajaj (license fee model)

Husqvarna units distributed by Bajaj (license fee model)

Motorcycle growthSales and mid-term growth

Page 9: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

9Source: KTM Industries AG1) Preliminary figures for 2017

Unit growth by relevant region 20171)

▪ Largest growth in absolute terms is still expected from Europe and North America

▪ Largest growth in relative terms is expected from ASEAN and India

▪ The revenue mix of street vs offroad is expected to shift from 50:50 in 2017 to about 70:30 in 2022

Motorcycle growthSales and mid-term growth contribution by region

Outlook

Page 10: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

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MARKET AND COMPETITIVEENVIRONMENT

Page 11: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

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Market and competitive environmentOverall trends in market size and share

Source: KTM Industries AG | Europe (AT, CH, DE, DK, ES, FI, FR, GR, IT, NL, NO, PT, SE, UK): ACEM, national data providers (w/o MX) | US: MIC (incl. MX) | CA: MMIC (incl. MX)Note: Calculations are 12 months rolling, declared month and previous 11 months | Motorcycles >120cc (excl. ATVs, electric motorcycles and scooters)

Page 12: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

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Market and competitive environmentOverall trends in market size and share

▪ KTM Industries continued to gain market share in the US. These gains were mainly driven by the addition of Husqvarna to the KTM platform

▪ Motorcycle registrations in Europe declined throughout 2017, mainly due to the consequences of the EURO 3 / EURO 4 transition

▪ The loss in European market share in 2017 is expected to be reverted in 2018

▪ Due to the introduction of EURO 5 standards in 2020, a consolidation among manufacturers is expected

Motorcycle registrations and market shares

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Market shareKTM Group Europe

RegistrationsEurope R12

Market shareKTM Group US

RegistrationsUS R12

2017

10.1%

8.3%

0,0%

2,5%

5,0%

7,5%

10,0%

12,5%

15,0%

0k

200k

400k

600k

800k

1.000k

1.200k

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Market

sh

are

Moto

rcycle

reg

istr

ati

on

s

Source: KTM Industries AG | Europe (AT, CH, DE, DK, ES, FI, FR, GR, IT, NL, NO, PT, SE, UK): ACEM, national data providers (w/o MX) | US: MIC (incl. MX) | CA: MMIC (incl. MX)Note: Calculations are 12 months rolling, declared month and previous 11 months | Motorcycles >120cc (excl. ATVs, electric motorcycles and scooters)

Page 13: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

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WP and Pankl

Pankl Racing Systems

Page 14: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

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Racing Engine

Performance

Aerospace

Racing Drivetrain

20162017

105,4127,7

139,8165,0 173,6

186,0 195.4

7,010,4

6,2

11,9

10,213,2 11.9

15,9

0

6

12

18

24

30

0

50

100

150

200

250

2011 2012 2013 2014 2015 2016 2017

EB

IT (

in E

UR

m)

Reven

ues

(in

EU

Rm

)

Revenues EBIT (reported) EBIT (adjusted by EUR 4m one-off effect)

1)

Source: KTM Industries AG1) Preliminary figures for 2017

Pankl Racing SystemsResult in 2017 and strategic priorities

▪ In 2017, Pankl Racing Systems generated revenues of EUR 195.4m based on a highly diversified customer base:

Largest 10 customers generated 49% of revenues in 2017

Largest 5 customers: KTM (8%), Mercedes (7%), Porsche (7%), Ferrari (6%) and McLaren (5%)

▪ Decline of reported EBIT due to the ramp-up phase of the new transmission plant in Kapfenberg (one-off effect EUR 4.0m)

▪ Strategic focus is set on additive manufacturing as well as smart and flexible automation systems

▪ Further exploitation of business potentials with KTM

▪ KTM Industries initiated delisting of the shares of Pankl Racing Systems on the Vienna Stock Exchange with expected completion in 2018

Revenue CAGR 11-17: 10.8%

Revenues development by segment in 2017A

Revenues distribution by segment in 2017B

+2%

+1%

+5%

+5%

+12%

37%

17%

32%

13%36%

17%

34%

13%

Racing Engine

Performance

Aerospace

Racing Drivetrain

20162017

Page 15: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

15

STRATEGIC ALLIANCES

Page 16: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

16Source: KTM Industries AG1) Preliminary figures for 2017

▪ KTM and Bajaj celebrated the 10th anniversary of their strategic partnership in 2017

▪ Strategic decision to take Husqvarna motorcycles brand global and scale up the business multiple times together with Bajaj

▪ Later in 2018, production of Vitpilen 401 and Svartpilen401 for the global markets will be transferred to Bajaj’s Chakan factory (Pune)

▪ Production volume of KTM and Husqvarna branded motorcycles is expected to increase to over 200,000 units during the next years

KTM

Husqvarna

Strategic alliancesEnlargement of strategic partnership with Bajaj

Global roll out of Husqvarna motorcycles in 2018

Pune

Page 17: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

17Source: KTM Industries AG

Hangzhou

Strategic alliancesNew joint venture with CF Moto

Joint venture with long-term Chinese partner CF Moto

▪ KTM entering into a joint venture with its long-term partner CF Moto in order to expand the market presence in China

▪ The joint venture will focus on the industrialization of components in China and the ASEAN region and the assembly of mid-class street motorcycles with an engine capacity between 500 and 1000cc

▪ As a result, production costs of mid-class street motorcycles will be reduced, import duties into the Chinese market will be eliminated and production capacities in the Mattighofenplant will be relieved

▪ Motorcycles produced by the joint venture will be distributed worldwide

KTM 790 Duke

Currently, CF Moto is the distributor for KTM motorcycles in China. Once the joint venture will commence production, the 790 Duke will be distributed worldwide from China

Page 18: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

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▪ Increasing traffic in big cities and tightening of exhaust and noise

standards will trigger a shift from internal combustion engine (ICE)

vehicles to electric vehicles in the next decade

▪ Electric power two wheelers up to 11kW will lead the trend

▪ Based on KTM Industries’ motorcycle expertise and innovation

leadership, the strategic goal for Husqvarna Bicycles is to become

the market & innovation leader in the global eBike market

▪ Expected profitability of eBikes is comparable to offroad motorcycles

PEXCO – eBikesStrategic rationale for eBikes

Strategic rationale and positioning

Source: KTM Industries AG, PEXCO, Zweirad-Industrie-Verband E.V.

Addressable market, market growth and competitors

KEY COMPETITORS

GermanyBicycles ~4.0m units p.a.

E-bicycles ~800k units p.a.

AustriaBicycles ~400k units p.a.

E-bicycles ~100k units p.a.Switzerland

Bicycles ~400k units p.a.E-bicycles ~85k units p.a.

Around 99% of alle-bicycles sold have a maximum speed of 25

km/h

E-bicycle market DE, CH and AT: ~1.0m units p.a.Double-digit market growth for e-bicycles expected

Page 19: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

19

Husqvarna offroad and street motorcycles

PEXCO – eBikesStart with a comprehensive Husqvarna eBike model range 2017/18

Source: KTM Industries AG, PEXCO

7 models4 models

10 models

4 models 3 models 2 models 3 models

Grand

City

Grand Tourer

27.5''

Light

Tourer

Cross

Tourer

Light Cross

27.5'' and 29.0''

Light Cross +

Linkage Battery

Mountain Cross +

Linkage Battery

Different model types for eBikes

1

2

EVOLUTION STREET EVOLUTION OFFROAD

Page 20: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

20

FINANCIALSAND OUTLOOK

Page 21: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

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FinancialsConsolidated profit & loss figures under IFRS

in EURm 2015 2016 20171) ∆ 2016/17 CAGR 2015-17

Revenues 1,223.6 1,343.0 1,533.4 +14% +12%

EBITDA 178.4 198.4 219.0 +10% +11%

EBIT 112.9 122.3 132.5 +8% +8%

Earnings 65.0 89.0 84.0 -6% +14%

Earnings after minorities 30.0 52.1 44.7 -14% +22%

EBITDA margin 14.6% 14.8% 14.3% – –

EBIT margin 9.2% 9.1% 8.6% – –

Source: KTM Industries AG1) Preliminary figures for 2017

▪ As a result of the cooperation with Bajaj, the share of motorcycles sold in lower price segments (< 400cc) has further increased

1

▪ Tax rate of 28.2% in 2017 vs 18.3% in 2016 (positive one-time effects in 2016)

▪ Normalized tax rate at 25%

1

2

3

▪ One-time effects 2016 were primarily at WP and Pankl, which both have insignificant minorities

2

3

Page 22: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

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-6.7ppts +3.2ppts

Normalizedgroup tax rate

25.0%2016

18.3%20171)

28.2%

FinancialsEBIT margin bridge and effects on tax rate

Adjusted EBIT margin 2016 vs 2017

Source: KTM Industries AGNote: Percentage points (ppts)1) Preliminary figures for 2017

Deviations from normalized tax rate 2016 vs 2017

▪ Additional one-off expenses of EUR 4.0m from starting up the new transmission plant at Pankl Racing Systems in Kapfenberg

2

1 2

1)

Sale of a non-operating

property

New transmission

plant

▪ Accounting profit of EUR 3.3m in 2016 from the sale of a non-operating property in the WP Group

1

1)

9,1% 8,8%

0,3%

2016(reported)

2016(adjusted)

8,6% 8,9%

0,3%

2017(reported)

2017(adjusted)

Reasons for deviation

▪ Recognitions of loss carry forwards

at WP Group: -3.7ppts

at Pankl Racing Systems: -1.3ppts

▪ Consolidation effect (tax-free) from PF Beteiligungsverwaltungs GmbH: -4.1ppts

▪ Investment allowances: +1.9ppts

▪ Other: +0.5ppts

Reasons for deviation

▪ Allowances of loss carry forwards at Pankl Racing Systems: +1.0ppts

▪ Change of transfer price taxation at KTM AG: +1.6ppts

▪ Other: +0.6ppts

1) 1)

+0.1%

Page 23: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

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FinancialsConsolidated balance sheet and cash flow figures under IFRS

2

1

in EURm 2015 2016 20171) ∆ 2016/17

Balance sheet total 1,175.9 1,423.82) 1,470.8 +3%

Equity 386.6 454.9 528.7 +16%

Total interest bearing debt 522.6 648.22) 544.1 -16%

Net working capital (NWC) 243.3 245.2 238.7 -3%

Net debt 387.4 364.6 375.0 +3%

Net working capital as % of sales 19.9% 18.3% 15.6% –

Equity ratio 32.9% 32.0%2) 36.0% –

Gearing 100.2% 80.1% 70.9% –

Net debt / EBITDA 2.2x 1.8x 1.7x –

3

Source: KTM Industries AG1) Preliminary figures for 20172) Restated figures related to early redemption of promissory notes (Schuldscheindarlehen)

▪ Net debt / EBITDA is at the lower end of guidance due to higher EBITDA and optimization of the capital structure

2

▪ Decreased due to repayment of the bond issued by KTM AG (EUR 85m) in 2012

1

▪ Stable NWC performance despite high revenue growth in 2017 due to the cooperation model with Bajaj

▪ Stable level of NWC in absolute terms is expected going forward

3

in EURm 2015 2016 20171) ∆ 2016/17

Cash flow from operating activities 106.9 167.8 164.3 -2%

Capex3) -133.0 -144.4 -179.6 +24%

Cash flow from investing activities -110.1 -158.8 -158.5 0%

4

5

▪ Stable development of operating cash flow in 2017

4

3) Definition: Additions of property, plant & equipment (PP&E) andintangible assets according to the fixed assets schedule

▪ Stable trend of capex in absolute terms is expected going forward3)

in EURm

10,6%

10,0% 10,9% 10,8% 11,7%

2013 2014 2015 2016 2017

R&D / Tooling PP&E Other Capex/sales

96.1108.4

133.0 144.4

179.6

1)

5

Page 24: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

24

OutlookFinancial guidance

Short- and mid-term guidance 2018 (NEW) 2021 (NEW) 2021 (OLD)

Revenue growth 9 – 11% 9 – 11% CAGR 2018-21 7 – 9% CAGR 2018-21

Number of motorcycles sold1) – >360,000 units >300,000 units

EBIT margin 8 – 10% 8 – 10% 8 – 10%

Capex2) / sales 8 – 10% 8 – 10% 9 – 11%

Net debt / EBITDA 1.6 – 1.7x < 1.3 x < 1.5 x

ROIC – 10 – 12% 9 – 11%

Dividend policy Stable and conservative payout level Stable and conservative payout level Stable and conservative payout level

Source: KTM Industries AG1) Including units distributed by Bajaj2) Definition: Additions of property, plant & equipment (PP&E) and intangible assets according to the fixed assets schedule

Targeted sales of more than 400,000 motorcycles1) in 2022

Page 25: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

25

APPENDIX

Page 26: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

26Source: KTM Industries AGNote: As of January 2018

KTM AG

Stefan Pierer

▪ CEO▪ DI

Viktor Sigl

▪ CFO▪ Mag., MBA

Hubert Trunkenpolz

▪ CSO▪ Mag. Ing.

Harald Plöckinger

▪ COO▪ DI

Wolfgang Plasser

▪ CEO▪ Mag.

Christoph Prattes

▪ COO▪ DI

Stefan Seidl

▪ CTO▪ DI

Pankl Racing Systems AG

KTM Industries AG

Stefan Pierer

▪ CEO▪ DI

Friedrich Roithner

▪ CFO▪ Mag.

Wolfgang Plasser

▪ Member▪ Mag.

Michaela Friepess

▪ IR▪ Mag.

Hubert Trunkenpolz

▪ CSO▪ Mag. Ing.

AppendixManagement team

Harald Plöckinger

▪ COO▪ DI

Page 27: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

27Source: KTM Industries AGNote: Percentage points (ppts)1) Preliminary figures for 2017

AppendixFinancials FY 2017 by business segments

in EURmKTM AG WP Performance Systems GmbH Pankl Racing Systems AG

Profit and loss figures 2016 20171) ∆ 2016/17 2016 20171) ∆ 2016/17 2016 20171) ∆ 2016/17

Revenues 1,141.8 1,331.7 +17% 166.1 179.7 +8% 186.0 195.4 +5%

EBITDA 160.0 178.8 +12% 16.4 15.5 -6% 26.2 26.0 -1%

EBIT 102.8 113.1 +10% 11.8 10.2 -13% 13.2 11.9 -10%

Result for the period 72.1 79.0 +9% 14.0 7.6 -46% 10.0 5.7 -43%

Balance sheet figures 2016 20171) ∆ 2016/17 2016 20171) ∆ 2016/17 2016 20171) ∆ 2016/17

Balance sheet total 1,056.5 1,091.9 +3% 103.3 117.0 +13% 195.6 220.8 +13%

Equity 428.0 488.0 +14% 49.5 55.0 +11% 80.2 91.3 +14%

Equity ratio 40.5% 44.7% +4.2ppts 47.9% 47.0% -0.9ppts 41.0% 41.3% +0.3ppts

Net debt 80.9 73.0 -10% 24.9 19.6 -21% 73.4 88.7 +21%

Gearing 18.9% 15.0% -3.9ppts 50.2% 35.5% -14.7ppts 91.5% 97.2% +5.7ppts

Page 28: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

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73% 71%

60%55% 53%

47% 48% 48% 44% 42% 46%51% 50%

43% 40% 42%46%

41%

7% 9%

18%24% 25%

27% 29% 28%31%

26%26%

25% 27%35%

38% 38%33%

39%

5% 6% 7% 6% 6%6% 4% 3% 2%

4%4%

4% 4% 4% 4% 4% 4% 4%

5%

16% 14% 14% 15% 16% 20% 19% 20% 19% 23% 22% 19% 18% 17% 17% 16% 16% 16%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

200

400

600

800

1.000

1.200

1.400

1.600

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17

Reven

ues

(in

EU

Rm

)

Offroad Street

Sportminicycles X-Bow (and ATV's until 2013)

Parts, garments, accessories and others Revenues

1)

Source: KTM Industries AG1) Preliminary figures for 2017

AppendixDevelopment of sales mix since 2000

Revenue development and split by type

▪ KTM/Husqvarna is the largest manufacturer of offroad motorbikes worldwide

▪ In 2000, KTM entered the Street segment, i.e. a market with a global sales volume of 1,000k units in 2017

▪ In 2017, street motorcycles accounted for around 39% of KTM/Husqvarna’s total sales i.e. EUR 515m / 85,314 bikes

▪ For the KTM brand alone, Street motorcycles accounted for more than 35% of total sales in 2017

▪ Share of revenues generated with “parts, garments, accessories and others” – a high margin business –remained quite stable despite the change in overall revenue split

Page 29: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

29Source: KTM Industries AG

KTM 690 Duke Husqvarna 701 Vitpilen

KTM 450 Husqvarna 450

OFFR

OA

DS

TR

EET

Already realized platformstrategy project

Platform project launch2018

AppendixLeveraging the KTM product and distribution platform for Husqvarna

Page 30: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

30Source: KTM Industries AG

#1, Dakar RallySam Sunderland (GBR)

#2, Dakar RallyMatthias Walkner (AUT)

#1, FIM Enduro2 World Championship Josep Garcia (ESP)

#3, Dakar RallyGerard Farres Guell (ESP)

#1, Dakar RallyMatthias Walkner (AUT)

AppendixMotorsport highlights 2017

>280FOR KTM

MOTORSPORT

CHAMPION TITLES

JANUARY 2018

Page 31: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

31

Sources by market

Europe Reported countries: AT, BE CH, DE, DK, ES, FI, FR, GR, IT, NL, NO, PT, SE, UKData source: ACEM, national data providersMotorcycles: >120cc & electric, no MX available

North America Data source: MIC (US), MMIC (CA)Motorcycles: >120cc, incl. MX

South Africa Data source: eNaTisMotorcycles: >120cc, incl. MX

Australia Data source: ERGMotorcycles: >120cc, incl. MX

ASEAN Reported countries: ID, KH, MY, PH, THData source: Bajaj Market IntelligencePremium motorcycles: >120cc, MSRP >~EUR 2,500

Market share partly extrapolated due to data availability

China Data source: CAAM, import statisticsPremium motorcycles: >120cc, MSRP >~EUR 2,500

Market share partly extrapolated due to data availabilty

India Data source: Bajaj Market IntelligencePremium motorcycles: >120cc, MSRP >~EUR 2,500

Market share partly extrapolated due to data availabilty

Latin America Reported countries: AR, BR, CO, CR, PEData source: Registrations and import statisticsPremium motorcycles: >120cc, MSRP >~EUR 2,500

Market share partly extrapolated due to data availabilty

Source: KTM Industries AG

AppendixData sources for motorcycles market information and intelligence

Page 32: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

32Source: KTM Industries AG, SIX Swiss Exchange

KTM Industries AG

Edisonstrasse 1

4600 Wels

Austria

www.ktm-industries.com

Mag. Friedrich Roithner, CFO

E-mail: [email protected]

Mag. Michaela Friepess, IR

E-mail: [email protected]

Phone: +43 7242 / 69 402 205

Mobile: +43 664 916 77 11

Financial calendar 2018

March 20, 2018 Publication of annual financial statements 2017

April 16, 2018 Record date annual general meeting

April 26, 2018 21st annual general meeting

May 2, 2018 Ex-dividend day

May 3, 2018 Dividend record date

May 4, 2018 Dividend payment day

August 28, 2018 Report on the 1st half year 2018

Information on the KTM Industries AG share

ISIN AT 000 082 065 9

Swiss Security Number

504 289

Ticker Symbol KTMI

Contact details

AppendixFinancial calendar and contact details

Page 33: Company Presentation - KTM Industries · This presentation and any information ... Including units distributed by Bajaj ... Next step to become a comprehensive power

33

ARE YOU READY

TO RACE WITH KTM?