Public disclosure of inside information according to article 17 MAR

Pierer Industrie AG: Pierer Industrie AG initiates proceedings under the Restructuring Ordinance (ReO) to safeguard stability of the Group

Wels (pta026/25.11.2024/15:17 UTC+1)

Ad hoc notification pursuant to Article 17 of Regulation (EU) No 596/2014 (MAR)

Wels, November 25, 2024

Pierer Industrie AG initiates proceedings under the Restructuring Ordinance (ReO) to safeguard the stability of the Pierer Industrie Group

• No reduction in claims of bond and promissory note creditors
• Deferral of maturities and repayment of the full capital amount

The Pierer Industrie Group is a leading European automotive group focussing on the global motorcycle segment and the automotive high-tech components sector. The Group employs more than 10,000 people worldwide and generated consolidated revenues of EUR 3.6 billion in 2023.

The company has been informed by the Executive Board of its main subsidiary KTM AG that it is currently in discussions with creditors and the core shareholder Pierer Bajaj AG and that it is examining all necessary restructuring measures in parallel. KTM AG is a wholly owned subsidiary of the listed PIERER Mobility AG (ISIN AT000KTMI02).

In 2020, Pierer Industrie AG issued a bond (ISIN: AT0000A2JSQ5) with a total nominal amount of EUR 100,000,000.00 (term 2020-2028) admitted to the Official Market of the Vienna Stock Exchange. Furthermore, in 2020 the company took out promissory note loans (terms 2020-2025 and 2020-2026) with a total nominal amount of EUR 132,500,000.00. In 2021, the company privately placed a bond with a total nominal amount of EUR 15,000,000.00 (term 2021-2033).

Avoidance of acceleration of maturity of claims

Pierer Industrie AG assumes that if the measures being considered at the level of KTM AG are implemented, there is a risk that the creditors of the above-mentioned bonds and promissory note loans will accelerate the maturity of the outstanding capital amounts. This would lead to the inability of Pierer Industrie AG to pay its debts (Zahlungsunfähigkeit).

Initiation of restructuring proceedings in accordance with the Restructuring Ordinance (ReO) to safeguard the stability of the Pierer Industrie Group

Pierer Industrie AG has therefore decided to initiate a European restructuring proceeding in accordance with the Austrian Restructuring Ordinance (ReO) in order to safeguard the stability of the Group. The creditors of the above-mentioned financings are affected by the restructuring proceedings. All other liabilities will be fulfilled as agreed.

Receivables are not reduced, interest paid as agreed

The procedure is not intended to result in any reduction of the creditors' claims under the above-mentioned bonds and promissory note loans. The subject is merely an extension of the maturity dates for the repayment of the full capital amount. Pierer Industrie AG is not overindebted, even if its indirect shareholding in KTM is not considered.

In the due course of its business operations, Pierer Industrie AG is in a position to fulfil its liabilities in full by taking appropriate measures. This requires the maturities of bonds and promissory note loans to be adjusted. It is intended to make interest payments as agreed.

Curator for the bondholders

As a result of the initiation of the restructuring proceedings, a joint curator is to be appointed by the court in accordance with the Austrian Curators Act (Teilschuldverschreibungsgesetz 1874). This curator will represent the bondholders in the restructuring proceedings at the level of Pierer Industrie AG.

Legal notice

THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER OF SECURITIES FOR SALE OR A SOLICITATION OF AN OFFER TO PURCHASE SECURITIES OF PIERER INDUSTRIE AG. IT IS NOT FOR DISTRIBUTION, TRANSMISSION OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OF THIS ANNOUNCEMENT WOULD BE UNLAWFUL.

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