PIERER Mobility — Market dynamics remain favourable

PIERER Mobility (AV: PMAG)

Last close As at 27/03/2024

81.00

1.00 (1.25%)

Market capitalisation

2,738m

More on this equity

Research: Industrials

PIERER Mobility — Market dynamics remain favourable

PIERER Mobility delivered an impressive year in 2020 despite disruptions caused by the pandemic. Market share in its main motorcycle sales regions rose 177bps to 13.1%, the GASGAS acquisition was completed in July, and the newly consolidated e-bikes business exceeded planned sales and profitability. We expect the strong H220 momentum to continue into FY21 with group returns exceeding FY19 levels. The potential change to the ownership structure may also unlock additional value for shareholders.

Andy Chambers

Written by

Andy Chambers

Director, Industrials

Industrials

PIERER Mobility

Market dynamics remain favourable

FY21 prelims/Bajaj shares

Automobiles & parts

15 February 2021

Price

€70.00

Market cap

€1.58bn

€0.93/CHF

Net debt (€m) at 31 December 2020

312

Shares in issue

22.5m

Free float

34%

Code

PMAG

Primary exchange

SIX Swiss Exchange

Secondary exchange

Frankfurt Stock Exchange

Share price performance

%

1m

3m

12m

Abs

0.0

29.9

44.8

Rel (local)

(0.1)

6.9

52.6

52-week high/low

€70.50

€22.60

Business description

PIERER Mobility is a leading manufacturer of powered two wheelers, focusing on premium motorcycles and two-wheeled electric vehicles including e-bikes. With its well-known brands – KTM, HUSQVARNA and GASGAS – it is the largest sports motorcycle manufacturer in Europe.

Next events

EGM

26 February 2021

FY20 accounts

30 March 2021

Analyst

Andy Chambers

+44 (0)20 3681 2525

PIERER Mobility is a research client of Edison Investment Research Limited

PIERER Mobility delivered an impressive year in 2020 despite disruptions caused by the pandemic. Market share in its main motorcycle sales regions rose 177bps to 13.1%, the GASGAS acquisition was completed in July, and the newly consolidated e-bikes business exceeded planned sales and profitability. We expect the strong H220 momentum to continue into FY21 with group returns exceeding FY19 levels. The potential change to the ownership structure may also unlock additional value for shareholders.

Year end

Revenue (€m)

EBIT*
(€m)

EPS*
(€)

DPS
(€)

P/E
(x)

Yield
(%)

12/19

1,520

131.7

2.42

0.00

28.9

N/A

12/20

1,530

107.2

1.55

0.30

45.2

0.4

12/21e

1,829

154.7

2.62

0.30

26.7

0.4

12/22e

2,014

179.0

3.13

0.30

22.4

0.4

Note: *EBIT and EPS are normalised, excluding amortisation of acquired intangibles and exceptional items.

Strong momentum into FY21

PIERER Mobility delivered a resilient FY20 performance despite the global pandemic. Record revenues of €1.53bn were achieved, up 1% on FY19 (€1.52bn), and EBIT of over €107m was generated, a margin of 7.0%. The motorcycles performance was nevertheless very strong in H220 following the temporary manufacturing halt in H120 due to COVID-19. The group achieved record market share in its three main markets of Europe (13.3%), the US (11.6%) and Australasia (20.4%), with all three markets growing in FY20. The e-bike division saw unit sales grow more than 33% on the prior year. We expect the encouraging demand trends to continue in FY21, with PIERER targeting further motorcycle market share growth largely through organic development. The rapidly growing e-bike business will expand into Europe beyond the traditional DACH region and enter the US market in 2022. The e-scooter project with Bajaj is also expected to launch next year, adding another revenue stream in urban e-mobility.

Positive changes to shareholder structure

It is being proposed that Bajaj Auto should transfer its shareholder interest from the KTM subsidiary levels to be part of the parent ownership thus cementing its involvement in both the historical motorcycle core of PIERER Mobility and its growing e-mobility activities. The legal framework for the transaction is subject to free-float shareholder approval at an EGM on 26 February 2021. It would appear that the proposed transaction should significantly enhance returns for shareholders, including the free-float, although the level of benefit is contingent to a degree on the yet to be agreed valuation. The strong partnership across all activities supports emobility growth through both technology development and marketing reach.

Valuation: e-mobility value yet to be reflected

Our DCF value currently stands at €71.3 per share for the core motorcycles operations only. A separate DCF for the e-bikes operation shows €23.6 per share of potential value, which we feel the proposed ownership change may help to unlock.

Strong H220 provides momentum into 2021

Following a resilient H120 performance in the face of the pandemic, PIERER Mobility saw a strong recovery in trading performance in H220 as demand for powered two-wheelers (PTWs) remained very high. While economic disruption due to lockdowns continued, the trends towards private transport and leisure activity benefited demand for both e-bikes and motorcycles, especially in the off-road segment. In part the availability of funding was driven by changes to spending patterns as areas such as travel reduced sharply. The performance more than compensated for the disrupted H120, including the temporary eight-week suspension of production in Austria. Record revenues and a stronger than expected operating margin augmented strong cash flow management and leaves PIERER well positioned to benefit from the positive demand momentum, despite ongoing COVID-19 lockdowns in various markets as it enters FY21. Key financial highlights were:

Having fallen 21% in H120, group revenues rose 1% in the full year to €1.53bn (FY19: €1.52bn), including a first full consolidation of €112.5m from the e-bikes activity.

EBITDA was slightly lower at €239.0m (FY19: €240.8m), a margin of 15.6%, with the strong H220 performance almost recovering the H120 shortfall.

EBIT fell 19% to €107.2m (FY19: €131.7m) following a 21% increase in depreciation and amortisation, partially due to the consolidation of the e-bikes business, but primarily reflecting high levels of investment in the core motorcycle business, including the addition of GASGAS.

Net income fell 36% to €34.9m (FY19: €54.5m).

Net debt at the end of FY20 stood at €312.2m, down from €395.8m at the start of the year reflecting a strong operating cash inflow of €313.0m (FY19: €257.4m).

Exhibit 1: PIERER Mobility FY20 results summary

2019

2020

% change

€m

H1

H2

FY

H1

H2

FY

H1

H2

FY

Revenue

Motorcycles

749.9

762.9

1512.8

529.4

884.6

1414.0

-29%

16%

-7%

PIERER E-bicycles*

68.3

44.2

112.5

Other

5.0

2.3

7.3

2.3

1.5

3.8

-54%

-36%

-48%

Group revenue

754.9

765.2

1520.1

600.0

930.3

1530.3

-21%

22%

1%

EBITDA

Motorcycles

97.5

131.5

229.0

57.2

174.0

231.2

-41%

32%

1%

PIERER E-bicycles*

-0.7

9.4

8.7

5.6

0.9

6.5

N/A

-90%

-26%

Other

1.2

1.2

2.4

1.4

-0.1

1.3

17%

n.m.

-46%

Consolidation

0.5

0.2

0.7

0.0

0.0

0.0

-90%

-123%

-100%

EBITDA

98.5

142.3

240.8

64.2

174.8

239.0

-35%

23%

-1%

D&A

Motorcycles

-51.3

-56.4

-107.7

-59.7

-66.2

-125.9

16%

17%

17%

PIERER E-bicycles*

-2.1

-2.2

-4.3

Other

-0.6

-0.8

-1.4

-0.7

-0.9

-1.6

17%

11%

13%

D&A

-51.9

-57.2

-109.1

-62.5

-69.3

-131.8

20%

21%

21%

Operating profit

Motorcycles

46.2

75.1

121.3

-2.5

107.8

105.3

n.m.

44%

-13%

PIERER E-bicycles*

-0.7

9.4

8.7

3.5

-1.3

2.2

Other

0.6

0.4

1.0

0.7

-1.0

-0.3

17%

-356%

-130%

Consolidation

0.5

0.2

0.7

0.0

0.0

0.0

-90%

-125%

-100%

Operating profit

46.6

85.1

131.7

1.7

105.5

107.2

-96%

24%

-19%

Profit after tax

29.3

66.4

95.7

-9.6

79.0

69.4

n.m.

19%

-27%

Minorities

-14.5

-26.7

-41.2

4.8

-39.3

-34.5

n.m.

47%

-16%

Net income

14.8

39.7

54.5

-4.8

39.7

34.9

n.m.

0%

-36%

EPS (€)

0.66

1.76

2.42

-0.21

1.76

1.55

n.m.

0%

-36%

Number of shares for EPS (m)

22.5

22.5

22.5

22.5

22.5

22.5

Source: Company reports. Note: *Equity accounted 2019, fully consolidated 2020.

As can be seen from Exhibit 1, the H220 performance showed significant year-on-year improvement in total group revenues (+22%), EBITDA (+23%), EBIT (+24%) and profit after tax (+19%). After a proportionately larger minority charge, net income was flat on H219.

Free cash improved 74% to an inflow of €166.0m (FY19: €91.6m) before the €40.5m consolidation and recapitalisation of KTM Motohall. Management had guided for free cash flow to be around €130m in December 2020 and the additional improvement seems to have been due to working capital declines, primarily in motorcycle dealership inventories where an anticipated rebuild of stock levels was deferred due to the continued strong levels of demand. We still expect dealership inventories to return to more normal levels in 2021, as reflected in management guidance for aggregate free cash flow for 2020 and 2021 of €200m.

A €13.7m cash dividend was paid to the minority shareholder in KTM AG (Bajaj 48%) and the anticipated return of this in H220 does not appear to have occurred, presumably due to the stronger than expected overall cash performance.

Strong motorcycle demand maintained through H220

H220 saw a strong recovery in motorcycle performance following the lockdown disruptions that shut dealerships in many countries in the first half. After a 29% decline in H120 revenues to €529.4m, H220 revenues grew 16% to €884.6m. Some 30k units were lost because of the eight-week production shutdown in H120 in Austria, but around half of that was recovered through higher year-on-year output in H220. Full year production in Austria was 142k motorcycles. Following the accelerated takeover that was completed in July, GASGAS added 3,433 units from its Girona, Spain, facility. GASGAS with its strong MotoX presence becomes the third major motorcycle brand in the PIERER portfolio alongside KTM and HUSQVARNA and is positioned as entry level models for a younger rider demographic.

Exhibit 2: PIERER Mobility main motorcycle markets* and registrations in FY20

Units

2019

2020

% change

H1

H2

FY

H1

H2

FY

H1

H2

FY

Total Market

Europe

374,531

242,769

617,300

319,478

323,053

642,531

-14.7%

33.1%

4.1%

North America

240,852

179,237

420,089

245,057

203,231

448,288

1.7%

13.4%

6.7%

AUS/NZ

30,090

32,401

62,491

33,447

39,295

72,742

11.2%

21.3%

16.4%

Total

645,473

454,407

1,099,880

597,982

565,579

1,163,561

-7.4%

24.5%

5.8%

India

470,637

418,096

888,733

265,545

462,478

728,023

-43.6%

10.6%

-18.1%

KTM & Husqvarna

Europe

42,412

31,857

74,269

37,590

47,661

85,251

-11.4%

49.6%

14.8%

North America

22,558

18,295

40,853

26,677

26,844

53,521

18.3%

46.7%

31.0%

AUS/NZ

4,253

5,624

9,877

5,926

8,148

14,074

39.3%

44.9%

42.5%

Total

69,223

55,776

124,999

70,193

82,653

152,846

1.4%

48.2%

22.3%

India

32,001

31,443

63,444

19,807

39,745

59,552

-38.1%

26.4%

-6.1%

Market share

Change (bps)

Europe

11.3%

13.1%

12.0%

11.8%

14.8%

13.3%

44

163

124

North America

9.4%

10.2%

9.7%

10.9%

13.2%

11.9%

152

300

221

AUS/NZ

14.1%

17.4%

15.8%

17.7%

20.7%

19.3%

358

338

354

Total

10.7%

12.3%

11.4%

11.7%

14.6%

13.1%

101

234

177

India

6.8%

7.5%

7.1%

7.5%

8.6%

8.2%

66

107

104

Source: PIERER Mobility. Note: *Market for motorcycles >120cc excluding ATV, scooters and e-motorcycles.

Motorcycle demand recovered very strongly in KTM’s major markets of Europe, North America and Australasia throughout H220, with an aggregate increase of almost 25% following a year-on-year decline of 7.5% in H120. Even the Indian market rose by 11% in H220 year-on-year following a near 44% decline in H120.

PIERER continued to outperform the major markets despite the pandemic, increasing market share in all of its main territories. In addition, the share increased in each market in both H120 and H220. The market share of its main addressable markets globally rose by 177bps to 13.1%. In India the market share improved 104bps to 8.2%.

The European market recovered strongly following the H120 decline to finish the year up 4%. While higher-volume countries such as France, Italy, Spain, the UK and Austria did not fully recover, strong demand continued in the largest market, Germany (+30%) and Sweden (+23%). Overall PIERER Mobility brands saw registrations in Europe rise by almost 15% to 85.2k (FY19: 74.3k) units. Market share rose to 13.3%.

In North America, PIERER’s brands achieved healthy growth in market share to 11.9% (+221bp), with registrations increasing by 31% to 53.5k motorcycles, driven primarily by strong off-road demand. The US market grew for the first time since 2015. In the smaller Australia and New Zealand market, the strong growth apparent in H120 accelerated in H220 and PIERER Mobility brands increased registration by 43% in FY20, representing an FY20 market share of 19.3%, exceeding 20% in H220.

Demand in India bounced backed strongly with sales increasing by almost 11% in H220 year-on-year following a 44% decline in H120. Again, KTM and HUSQVARNA units distributed by KTM outperformed the market in both halves, although recording a full-year decline of 6%. Licence fee models produced and distributed by Baja Auto were also down by 7%, still outperforming the market and benefiting from the first HUSQVARNA models produced in Chakan, India, as well as new KTM model launches. The total India volume for KTM and HUSQVARNA of around 125.5k units in 2020 is expected by management to grow rapidly to around 200k units in 2022, of which around 120k will be licenced production, double the 2020 level.

Wholesales to dealers fell by just 3.5% to 270,407 motorcycles (including 8,648 GASGAS bikes) in FY20 following the 33% H120 fall, as production resumed to meet demand following the eight-week production stoppage in Austria from mid-March to manage COVID-19 and supply chain disruption at suppliers. PIERER’s extensive global dealership network now totals almost 3,300 dealers.

Exhibit 3: PIERER Mobility global motorcycle wholesales

Wholesales

H119

H219

FY19

H120

H220

FY20

Europe

59,545

49,150

108,695

41,634

58,133

99,767

India

32,547

33,659

66,206

20,160

41,434

61,594

North America

20,833

30,907

51,740

11,683

41,109

52,792

South America

7,211

10,333

17,544

4,619

15,398

20,017

Australia/NZ

6,691

8,652

15,343

6,296

10,211

16,507

Asia

7,337

8,948

16,285

4,790

11,040

15,830

Africa/Middle East

1,555

2,731

4,286

1,149

2,751

3,900

Total

135,719

144,380

280,099

90,331

180,076

270,407

Unit change

-45,388

35,696

-9,692

Source: PIERER Mobility

E-bike demand remains strong and ahead of plan

The newly formed e-bike business operates as PIERER E-Bikes selling under the Husqvarna, RRaymon and GASGAS brands. The currently European business is fully consolidated in the income statement for the first time in FY20. It sells through a largely independent dealership network of around 1,280 dealers in a European e-bike market estimated by PIERER Mobility at 3.4m units and expected by management to grow to 5m units by 2025. Management has been extending the dealership reach beyond the traditional DACH (Germany, Austria and Switzerland) selling region, in order to increase European share. It is also increasing the number of its own motorcycle dealerships that sell the e-bikes with 140 accredited in 2020, which will extend to 340 in 2021. We also expect PIERER to use its global motorcycle dealership network to help facilitate expansion into markets such as the US in 2022. Management maintains its target of 250k unit sales by 2025 generating revenues of approximately €500m. FY20 revenues of €112.5m exceeded guidance of €110.0m but this had been originally set at €100m earlier in the year.

Exhibit 4: FY20 PIERER e-bike sales

Units

H120

H220

FY20

e-bikes

34,351

21,713

56,064

Traditional bicycles

8,492

8,721

17,213

Total

42,843

30,434

73,277

Source: PIERER Mobility

In FY20 PIERER e-bikes sold 56,064 Husqvarna and R-Raymon e-bikes entirely in Europe, an increase of around a third on FY19. The GASGAS e-bike brand will be added alongside the pan European roll-out in the current year. Production is carried out by a supplier in Bulgaria where there are no perceived capacity constraints at present, enabling a strong ramp up in volumes sold.

The market opportunity is also growing rapidly as reflected in management estimates shown below.

Exhibit 5: Selected e-bike market development estimates (m)

2020

2025e

Europe

3.4

5.0

North America

0.3

1.0

Oceania

0.1

0.2

Source: PIERER Mobility

Outlook

The encouraging trends seen in the major markets have continued and while renewed lockdowns have been apparent in many markets in January, we think the main drivers remain supportive. These include a shift in attitudes towards public transport and the relative freedom for individuals offered by PTWs. Off-road and e-bike demand has been particularly strong, according to the company, benefiting from a trend towards healthy lifestyles as well as changes to income allocation (eg lower holiday spend).

Earnings revisions

Exhibit 6: PIERER Mobility earnings estimates revisions

Year to 31 December

2020

2021e

2022e

€m

Prior

Prelim

Change

Prior

New

Change

New

Revenues

Core Motorcycle business

1,403.7

1,403.5

0.7%

1,623.8

1,641.2

1.1%

1,739.7

e-bikes

110.0

112.5

2.3%

154.0

169.9

10.3%

230.3

E-motorcycles

10.5

12.0

40.0

Other

3.8

3.8

3.8

Total revenues

1,513.7

1,530.3

1.1%

1,777.8

1,828.8

2.9%

2,013.8

EBITDA

225.5

239.0

6.0%

297.6

306.3

2.9%

335.0

D&A

(126.0)

(131.8)

4.6%)

(144.3)

(151.6)

5.1%

(156.0)

EBIT

99.5

107.2

7.7%

153.3

154.7

0.9%

179.0

PBT (2020 estimated)

84.0

91.4

8.8%

141.0

142.9

1.3%

167.6

Net Income

32.2

34.9

8.5%

58.3

59.1

1.3%

70.5

EPS (€)

1.43

1.55

8.5%

2.59

2.62

1.3%

3.13

Dividend (€)

0.30

0.30

0.0%

0.3

0.30

0.0%

0.30

Adjusted net debt

322

312

-3.1%

296

302

1.9%

215

Source: Company reports, Edison Investment Research estimates

We have modestly increased our earnings estimates, as shown in Exhibit 6. We have assumed slightly increased motorcycles sales with a volume increase of over 20% on FY20 as production recovers to above FY19 levels to meet strong demand and rebuild dealership inventories.

We have also assumed a slight acceleration in the e-bikes development as demand appears to be driving performance at least in line with management’s plan, and the target for 2025 looks increasingly attainable. Our ebike revenues continue to track below that goal.

We have also shown our expectations for e-motorcycles revenues for the first time. There were already €10.5m of revenues in 2020, which relate to existing smaller e-motorcycles for children that KTM produces. From 2022, e-scooter revenues from the launch in Europe of the first HUSQVARNA model based on a Bajaj platform will be sold in Europe.

Overall, we continue to expect the positive momentum from H220 to be maintained in FY21 despite the pandemic. Our revenue expectations increase by 2.1% in FY21. We also introduce our FY22 estimates, showing further growth of around 10% in group revenues.

Potential Bajaj shareholding adjustment

At present Baja Auto holds a 48% stake in PIERER Mobility’s motorcycle operating subsidiary, KTM AG. However, in order to participate in the expected growth of e-mobility, which is external to KTM, it is being proposed that the ownership structure should be simplified. It is being proposed that Bajaj exchanges its current holding in KTM for participation in a parent entity of PIERER Mobility.

To facilitate the proposed transaction, PIERER Industrie has already created a new holding company, PTW Holdings, and transferred a 60% holding in PIERER Mobility to it. Bajaj would transfer its interest in KTM AG as a payment in kind into PTW Holdings in exchange for new PIERER Mobility shares held by PTW. PIERER Mobility has also sold the treasury shares (0.86% of the existing capital) in the market, becoming part of the free float.

The result of the current structure and an example of the new structure are shown below:

Exhibit 7: Current shareholder structure

Exhibit 8: Potential shareholder structure*

Source: PIERER Mobility

Source: PIERER Mobility. * based on 49.78% capital increase

Exhibit 7: Current shareholder structure

Source: PIERER Mobility

Exhibit 8: Potential shareholder structure*

Source: PIERER Mobility. * based on 49.78% capital increase

The proposed change would result in an increase in the capital of PIERER Mobility depending on the valuation placed on the Bajaj stake in KTM AG. As the stake is being used as a payment in kind to access the overall future potential e-mobility of PIERER Mobility, we would expect Bajaj’s indirect holding through PTW Holdings to be smaller than the current 48% held in KTM.

PIERER Industrie would retain control through at least a 51% share in the main shareholder, PTW Holdings, providing for the appointment of the majority of board members.

In our view, from a free-float shareholder’s perspective the proposed transaction would mean:

No change to the number of shares in free float, although the proportional ownership of PIERER Mobility would decrease in line with the capital increase derived from the value of the Bajaj stake.

Elimination of the minority payment to Bajaj by KTM leading to an enhanced earnings per share for PIERER Mobility according to the documentation values.

Potential for increased dividends. If Bajaj wants to maintain its dividend stream, PIERER Mobility is likely to have to increase the payout ratio and probably initiate a progressive future dividend policy, which would benefit all shareholders.

A sacrifice of a proportion of the future value potential from the e-mobility operations that Bajaj currently had no direct stake in, but where it is an active partner.

Enhanced cooperation with Bajaj on technology and market reach for the e-mobility business.

Clearly the ultimate proposition depends on the value placed on the Bajaj stake.

From the documentation submitted ahead of the EGM, a range of between around €600m (requiring a 39.55% capital increase in PMAG) and €760m (requiring a 49.78% capital increase, used in Exhibit 8) is implied for Bajaj’s KTM stake, which compares to a book value of just over €300m and implies an FY21 P/E of between 12.1x and 15.4x (value/FY21 estimated minority share of net income) for the stake. As the amount is core to the negotiation it is unclear whether these are mere indications or likely values as Bajaj is undoubtedly making its own value assessment.

Assuming the more conservative higher value we calculate the following impacts:

FY21 and FY22 EPS enhanced by just over 20%.

Adjusting the DCF valuation for the motorcycles business would result in an increase of €20.2 per share (from €71.3 to €91.5) as the minority deduction in our DCF was much higher than the indicated value.

Similarly, the sacrifice of value from the e-bikes activity would equate to around €7.8 per share (from €23.6 to €15.8). When we initiated last year, the value was €9.5 per share but since then we have significantly increased our estimates for growth, and profitability has been ahead of plan. An initial drag on cashflow has been eliminated, and the model assumptions are higher although still well below management guidance for €500m of revenues by 2025. Historically we have not included this in our DCF based valuation for PIERER Mobility and have seen it as upside potential.

The overall aggregated DCF value adjustment would be an uplift of €12.4 from €94.9 to €107.3 per share, a 13% increase.

This takes no account of the future potential for e-motorcycles where we expect a meaningful revenue stream to be established beyond 2025.

Exhibit 9: Financial summary

Accounts: IFRS, year-end: December, €m

 

 

2018

2019

2020P

2021e

2022e

INCOME STATEMENT

 

 

 

 

 

 

 

Total revenues

 

 

1,462

1,520

1,530

1,829

2,014

Cost of sales

 

 

(1,031)

(1,074)

(1,094)

(1,310)

(1,446)

Gross profit

 

 

431

446

437

518

567

SG&A (expenses)

 

 

(194)

(191)

(173)

(186)

(203)

R&D costs

 

 

(27)

(24)

(25)

(26)

(29)

Other income/(expense)

 

 

1

10

(0)

(0)

(0)

Depreciation and amortisation

 

 

(82)

(109)

(132)

(152)

(156)

Reported EBIT

 

 

129

132

107

155

179

Finance income/(expense)

 

 

(15)

(14)

(15)

(12)

(11)

Other income/(expense)

 

 

(1)

0

(1)

0

0

Reported PBT

 

 

112

118

91

143

168

Income tax expense

 

 

(27)

(22)

(22)

(34)

(40)

Minorities

 

 

(44)

(41)

(35)

(50)

(57)

Reported net income (post-minorities)

 

 

41

54

35

59

71

Basic average number of shares, m

 

 

23

23

23

23

23

Basic EPS (€)

 

 

2.99

2.42

1.55

2.62

3.13

Dividend per share

 

 

0.30

0.00

0.30

0.30

0.30

Adjusted EBITDA

 

 

211

241

239

306

335

Adjusted EBIT

 

 

129

132

107

155

179

Adjusted PBT

 

 

112

118

91

143

168

Adjusted EPS (€)

 

 

1.82

2.42

1.55

2.62

3.13

Adjusted diluted EPS (€)

 

 

1.82

2.42

1.55

2.62

3.13

BALANCE SHEET

 

 

 

 

 

 

 

Property, plant and equipment

 

 

283

326

403

391

377

Goodwill

 

 

96

130

131

131

131

Intangible assets

 

 

327

392

431

451

469

Other non-current assets

 

 

39

29

27

26

26

Total non-current assets

 

 

745

878

992

1,000

1,003

Cash and equivalents

 

 

89

161

218

209

275

Inventories

 

 

287

322

262

311

326

Trade and other receivables

 

 

220

248

225

259

280

Other current assets

 

 

13

5

5

5

5

Total current assets

 

 

609

736

710

784

886

Non-current loans and borrowings

 

 

339

470

433

413

393

Other non-current liabilities

 

 

95

118

120

121

122

Total non-current liabilities

 

 

435

589

552

534

515

Trade and other payables

 

 

191

223

233

251

277

Current loans and borrowings

 

 

73

86

98

98

98

Other current liabilities

 

 

104

98

105

105

105

Total current liabilities

 

 

368

407

436

454

480

Equity attributable to company

 

 

297

338

400

432

474

Non-controlling interest

 

 

253

280

314

364

421

CASH FLOW STATEMENT

 

 

 

 

 

 

 

Profit for the year

 

 

114

96

69

109

127

Taxation expenses

 

 

29

22

22

34

40

Net finance expenses

 

 

(16)

(18)

12

14

13

Depreciation and amortisation

 

 

91

109

132

152

156

Movements in working capital

 

 

(83)

71

94

(65)

(9)

Interest paid / received

 

 

(15)

(13)

(13)

(12)

(11)

Income taxes paid

 

 

(36)

(10)

(4)

(34)

(40)

Cash from operations (CFO)

 

 

85

257

313

197

276

Capex

 

 

(167)

(157)

(150)

(160)

(160)

Acquisitions & disposals net

 

 

70

(13)

3

0

0

Other investing activities

 

 

(6)

4

0

0

0

Cash used in investing activities (CFIA)

 

 

(102)

(166)

(147)

(160)

(160)

Movements in debt

 

 

(38)

5

(54)

(20)

(20)

Dividends paid

 

 

(19)

(20)

(14)

(26)

(29)

Other financing activities

 

 

(6)

(0)

(37)

0

0

Cash from financing activities (CFF)

 

 

(63)

(21)

(109)

(46)

(49)

Currency translation differences and other

 

 

0

0

0

0

0

Increase/(decrease) in cash and equivalents

 

 

(80)

72

57

(10)

67

Cash and equivalents at end of period

 

 

89

161

218

209

275

Net (debt)/cash

 

 

(323)

(396)

(312)

(302)

(215)

Movement in net (debt)/cash over period

 

 

52

(73)

84

10

87

Source: Company reports, Edison Investment Research estimates. Note: *P = preliminary.


General disclaimer and copyright

This report has been commissioned by PIERER Mobility and prepared and issued by Edison, in consideration of a fee payable by PIERER Mobility. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2021 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

General disclaimer and copyright

This report has been commissioned by PIERER Mobility and prepared and issued by Edison, in consideration of a fee payable by PIERER Mobility. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2021 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

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