KTM READY TO

RACEK R O N R E I F & T R U N K E N P O L Z M AT T I G H O F E NHeadquarter – Mattighofen, Austria

Navin Rai (16011)Section – AICMB – School of Business Excellence

KTM-SPORTMOTORCYCLE AG• It is an Austrian based company, owned by KTM sports motorcycle AG and

Bajaj Auto Ltd.• KTM was formed in 1981.• In 1992 the company was spun off from its parent company KTM when it ran

into financial troubles(KTM Sportmotorcycle GmbH, motorcycles division, KTM Fahrrad GmbH, bicycles division, KTM Kühler GmbH, radiators division, KTM Werkzeugbau GmbH, tooling division) and at present it has more subsidiary. But here we will be focusing on Motorcycle business of the Company only.

KTM MOTORCYCLE

• KTM Sportmotorcycle GmbH started operation in 1992•  later took over the sibling tooling division KTM Werkzeugbau.• 1994, KTM Sportmotorcycle GmbH was renamed KTM-Sportmotorcycle AG• 1995 KTM acquired Swedish motorcycle maker Husaberg AB, and took

control of the Dutch company White Power Suspension.• 1997 LC4 Supermoto and LC4 Adventure motorcycles are introduced by

KTM.

OWNERSHIP

• KTM-Sportmotorcycle AG is owned by KTM AG (formerly known as KTM Power Sports AG). In November 2007, Bajaj Auto Limited of India acquired 14.5% stake in KTM Power Sports AG and increased their shareholding to 47% by 2012.

• At present KTM AG is 46% owned by CROSS KraftFahrZeug Holding GmbH, a subsidiary of CROSS Industries AG and 52% owned by Bajaj Auto. CROSS Industries is founded by KTM's current CEO Stefan Pierer.In India, Bajaj Auto has a stake of 78% while CROSS AG owns 21% of company.

SUBSIDIARIES

• KTM-Racing AG• KTM Events & Travel Service AG• KTM Dealer & Financial Services GmbH• Husaberg AB• Husqvarna

DESIGN

• Since 1990, KTM motorcycles and automobiles (X-Bow) have been designed by KiskaDesign, a Salzburg-based design firm. It is responsible for the overall branding for KTM; including the design of the vehicles, shops, exhibits and printed material.

REVENUE

•  KTM has add over 100,000 motorcycles to its volume of production, in 2015.

• the Austrians sold 180,801 KTM and Husqvarna motorcycles in 2015, making €1.02 billion in the process. This is a 14% increase over KTM’s sales in 2014, a 18% increase in revenue, and a 26% in income (€95 million, EBIT). According to KTM, this makes them the fastest growing motorcycle company in the world.

• According to the 2014 Annual Report (latest available) 54% of sales were in Europe, 23% in North America and 23% in the rest of the world. Only the 125cc and 390cc bikes are made in India, and they are not the biggest part of the sales and do not have the highest margins

• In India, its sales have more than doubled to 23,000 units in 2014-15 from 11,000 units a year ago. Buoyed by the soaring sales, the two companies are now considering co-developing the premium Husqvarna brand of off-road motorcycles in India for local and overseas markets. In January 2013, KTM acquired Husqvarna AG from the BMW group, renaming it Husqvarna Motorcycle GmbH. “India’s experience is a torch bearer for all emerging markets—of the business potential of KTM and Husqvarna brands,”

• In calendar year 2014, KTM’s turnover grew 20.7% to €864.6 million, while net profit jumped 56.6% to €57.2 million. It declared a dividend of €1.5 per share. Bajaj Auto’s share in it was Rs.55 crore, according the company’s latest annual report. The KTM models—RCs and Dukes—contribute Rs.1,000 crore to Bajaj revenue and are high-margin products. With new models in the pipeline, Bajaj and KTM plan to double volumes over the next five years, said S. Ravi Kumar, president and business development and assurance at Bajaj Auto. KTM sold a record 159,000 units globally in fiscal 2015-16.

SHARE RELATED• ISIN - AT0000A0UJP7• Market - Vienna Stock Exchange, Second Regulated Market.• Issue Volume - EUR 85,000,000• Denomination - EUR 500• Maturity - 2012 – 2017• Coupon - 4.375%• Issue Price - 101.389%• Number of shares as at 31 December 2015, is 10845000, Earning Per Share

EUR 5.89, Highest price EUR 140, Lowest Price EUR 99.69, Closing Price 122.00.

• 2515 employees as on 31 march 2015.• 382 employee in R&D

SWOT ANALYSIS

• Strength – Good connect with potential customer, Unique and attractive design, Loyal Customer, Strong Bike, high profitability and revenue.

• Weakness – High maintenance cost, Frequent Service, Fuel problem,• Opportunity – New markets, venture capital, global markets• Threat – Very Competitive Market, increasing costsScope for the Company The company has a good scope for improving the product, & need to work on distribution channels.

Thank You