S U S TA I N A BI L I T Y RE P O R T
20 20(CONSOLIDATED NON-FINANCIAL REPORT)2

ABOUT THIS
RE P O R T
This sustainability report (non-financial report pursuant to Section 267a of the AustrianCommercial Code (UGB)) has been drawn up in accordance with the internationally recognized framework for sustainability reporting “GRI Standards”: “Core” option.
The GRI Content Index, starting on page 64, contains a detailed list of the minimum requirements in this regard and of our compliance or omission.
This consolidated non-financial report, as it is known, essentially covers all
fully consolidated subsidiaries of PIERER Mobility AG. In addition to KTM AG, thiscomprises KTM E-Technologies GmbH, KTM Innovation GmbH, Avocodo GmbH andPIERER E-Bikes GmbH. The key environmental figures generally reflect the key figuresof the main company and production sites: In addition to PIERER Mobility AG, this comprises
KTM AG, KTM Innovation GmbH, KTM E-Technologies GmbH and KTM Sportcar GmbH.
PIERER E-Bikes GmbH* is not included here. The key environmental figures and emissions
associated with this company are not published in this report.
External assurance
The published information has been audited by KPMG Austria GmbH Wirtschaftsprüfungsund Steuerberatungsgesellschaft, Linz/Austria. Our aim is to document the validation andtrustworthiness of the disclosed information for the public in a comprehensible manner
through the external assurance. The corresponding confirmation can be found in the Independent Assurance Report at the end of this Sustainability Report.
* The (e-)bikes of PIERER E-Bikes GmbH are sourced from two external, independent assembly sites. The assembly sites are inturn supplied directly by various component manufacturers. PIERER E-Bikes GmbH therefore does not perform any assembly
work itself.

SUSTAINABILITY REPORT 2020

CONTENTSINTRODUCTION BY THE EXECUTIVE BOARD .......................................................... 4
I. COMPANY
Overview of PIERER Mobility . ......................................................................... 6Group Structure . ............................................................................................ 7
Products and Developments . ......................................................................... 8
Our Value Chain ........................................................................................... 10
Our Stakeholders . ........................................................................................ 11
Materiality Analysis and Key Sustainability Topics........................................ 16
Our Values & Understanding of Business (Business Compliance) ............... 18
		 Anti-Corruption and Fair Competition ................................................... 18
		 Respect for Human Rights .................................................................... 19
		 Cooperation Partners ............................................................................ 19
		 Data Protection and Cybersecurity ........................................................ 19
Our Contribution to the SDGs ....................................................................... 21
II. EMPLOYEES AND SOCIETY
Our Employees ............................................................................................. 23
Occupational Safety and Employee Health ................................................... 25
Education and Training . .............................................................................. 28
Diversity and Equal Treatment ..................................................................... 33
Our Commitments ........................................................................................ 34
III. ENVIRONMENT AND RESOURCES, INNOVATION AND PRODUCTION
Research & Development ............................................................................. 37
Responsible Procurement . ........................................................................... 40
Environmental Aspects Along the Product Life Cycle . .................................. 43
		 Environmental Aspects in Development and Production ....................... 43
		 Pollutant emissions from vehicles (Emissions) . ................................... 44
		 Energy and Water Consumption ............................................................ 44		 Measures to reduce consumption . ........................................................ 45
		 Waste Management .............................................................................. 47
Logistics and Sales ...................................................................................... 48
IV. PRODUCTS AND CUSTOMERS
Product Quality and Product Safety . ............................................................ 49
Product Use and Recycling . ......................................................................... 53
Customer Service ......................................................................................... 55
APPENDIX .......................................................................................................... 56
Key Figures.......................................................................................................... 58
GRI Content Index............................................................................................... 64
Independent Assurance Report........................................................................... 69

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I N T RO D U C T I O N BY
T H E E X ECU T I V E B O A RD
Mobility
We are particularly pleased that, for the first time, we haveachieved the “Core” option according to the “GRI Standards” with this sustainability report. Our reporting has been With its many years of research work, the PIERER MobilityGroup is one of the pioneers of electric mobility and certainly
gradually expanded over the past three years in order that
we can inform our stakeholders and the public about the key one of the most experienced in this field. In order to bring
together know-how and activities in this area, in 2020 weissues and current measures in the PIERER Mobility Group.
There have been some recent developments, owing to chang- established our own e-mobility competence center locatedin Anif near Salzburg. At the new e-mobility center, all future
es in society as a whole and in general policy, which haveconcepts from the 48-volt platform (15 hp) to electric bicyprompted us to revise and conduct the materiality analysis
in 2020. In addition to assessing the impact of our business cles and electric motorcycles - from the Freeride light to an
activities on the environment and society, the key topics were electric scooter in the 125cc class - will be developed.
One of the cornerstones of our product strategy is develalso assessed to determine their influence on stakeholder
decisions and actions. As part of this, we have included new oping solutions and concepts for sustainable mobility inurban environments. Energy-efficient, electrically powered
key topics in our assessment, such as vehicle emissions,
two-wheelers in particular are a key part of the solution. We
alternative drive technologies, the circular economy, andtherefore understand a sustainable approach to mean, aboveroad safety. In general, all topics surveyed were assessed
all, the phased reduction of emissions over the entire productas being more important than in previous years. The topics
life cycle. The focus here is particularly on using electric moof “Research and development” and “Product quality andbility, which will predominantly be used for short distances insafety for customers” are, as in previous years, the mostthe low-voltage range.
highly rated, and are at the top of our topic ranking.
COVID measures

R&D and innovations

Extraordinary times also call for special concepts. Due to the For us as a technology-driven motorcycle manufacturer,
research and development has been the focus of our activoutbreak of the coronavirus pandemic, from spring onward
special measures were taken on an ongoing basis to protect ities for many years. A progressive R&D strategy produces
innovative products which meet the high expectations of ouremployees. Thanks to this forward-looking approach andcustomers in terms of technology and quality. It is particuconstant engagement with the authorities, it was possilarly important for us to identify trends in the PTW (Powered
ble to implement these measures as well as government
Two-Wheeler) segment at an early stage and to continuously
regulations comprehensively and quickly. This prevented
develop our product range. We pursue a very intensive R&D
any extensive spread within the company and the risk ofcontracting COVID-19 within the company is considered to be strategy in order to further expand our role as a leading
minimal. The immediate effects of the coronavirus pandemic, technology pioneer and also to keep pace with our majorfor example with suppliers affected by illness, as well as the competitors. This also explains the relatively high research
upheaval in the global economy as a result of the coronavi- budget - currently around 9%. In the 2020 financial year,
development activities on our range of internal combustion
rus crisis, also place greater demands on safeguarding theavailability of parts. In order to be able to specifically identify engines were intensively advanced. Particular focus wasplaced on improving performance while at the same timeand resolve risks emerging from the coronavirus pandemic
reducing fuel consumption and emissions. For example, someat an early stage, the supplier risk assessment has beenmodels that comply with the new Euro 5 emissions standard
revised and the corresponding risks have been reassessed
were successfully transferred to series production in 2020.
for each country.
We have also set ourselves the goal of manufacturing extra
safe and high-quality products. Our mission is to reduce thenumber of avoidable motorcycle accidents to a technicallyfeasible minimum by using rider assistance systems, among

SUSTAINABILITY REPORT 2020

other things. Here, for example, “vehicle-to-vehicle (V2V) communication”
offers great potential and initial tests carried out on our prototypes in thesummer of 2020 showed the inherent possibilities of this new technology.
In addition, a PTW bend warning system was developed and a patentapplication for it was filed. This warning system is intended to reduce therisk of collision with a motor vehicle that cannot be seen.

“Euro 4” model for the EU area was produced in December 2020. Since
January 2021, only “Euro 5” vehicles have been manufactured for the EU
area and for operation on public roads. Our R&D development team is also
already working on technologies that provide for a further reduction in
pollutant emissions for future generations of engines.

The outlook for the two-wheeler division is very positive for the years
ahead because the role of electric mobility will continue to increase.
According to a survey conducted by Deloitte among all PTW manufacturThe products which we develop, produce and sell are various vehicle con- ers, the total market share of electric mobility in the European market
is forecast to be approx. 30% by 2030. Here we will see an accelerated
cepts adapted to the various usage profiles of our customers. Thanks toour broad product range, we are able to ensure a sustainable reduction in delivery of electrification in the coming years, especially in urban areas.
emissions in all mobility areas and along the entire life cycle - from prod- The market for “urban mobility” and “short distance mobility” will switch
uct development and product manufacturing to product use. Activities for entirely to electric drives in the small performance classes up to 11 kW.
Not least because of climate change, regulations are placing increasing
the purpose of safeguarding the environmental goals are coordinated in
the respective departments of the company. In addition, work is currently pressure on vehicle manufacturers around the world. In the future, more
PTWs will be developed for urban areas and for shorter ranges (60 to 70
underway to implement an environmental management system inaccordance with ISO 14001:2015. In the course of the implementation, our kilometers): motorcycle models in the small-volume displacement rangeof between 50 and 125 cubic centimeters or new types of products withsustainability goals will also be defined.
electric powertrains. The level of interest in e-bikes is also continuing togrow enormously.
Waste management was expanded further in 2020. During the courseof motorcycle production, we have to deal with considerable amounts ofwaste. A large part of the waste produced comes from certain steps dur- Sustainability is one of the most important aspects in the future ofing production. With our measures, we take the necessary steps to avoid mobility and electrification will play a major role in achieving this goal.
For powered two-wheelers, electric drives are still severely limited whenor reduce waste and to recycle secondary raw materials.
it comes to range, charging time and cost. A swappable battery system
Furthermore, with the creation of one of Austria's largest photovoltaic in- based on international technical standards is a proven way to address
stallations on the roof of our logistics center in Munderfing, we are taking these challenges. Considering the entire life cycle of a product, widespread use of batteries that comply with a common standard will support
another step toward a future that conserves resources. The electricity
their reuse as well as the circular economy. This is why we are veryis fed into the public grid and enables a broader use of renewable solar
pleased to be one of the four founding members (KTM, Honda, Yamaha
energy in the region. In the first construction phase, a total of 12,000
Motor, Piaggio) of a consortium for standardized and swappable batteries
modules and 60 inverters with an output of four megawatts will be put
for motorcycles and light electric vehicles (L-category vehicles). As part
into operation over an area of 24,000 m² in 2021.
of this consortium, we are able to strengthen our activities in close
The reduction of emissions was also successfully advanced in the report- collaboration with interested stakeholders and national, European andinternational standardization bodies in order to achieve our goals in theing year. The average CO2 emissions of our reported vehicle fleet were
78.44 g/km in 2020. This means that we reduced CO2 fleet emissions by e-mobility sector.
0.65 g/km in the reporting year. This is also thanks to the growth in salesof electrified and ICE models with small and medium displacements (<900cc) (2019: 79.09 g/km). The introduction of new models with drive
technologies featuring lower fuel consumption and emissions is also having a positive impact on our average fleet values. In the 2020 reporting
year, the average fuel consumption was 3.4 l/100km.
Stefan Pierer
Chairman of the Executive Board
Outlook
Environment

Due to the introduction of the Euro 5 emissions standard on January 2020,
updating the entire Motorcycle Street product range to comply with the
new regulatory requirements was the focus of our R&D activities and will
be completed in 2021. Series production of the first “Euro 5” model took
place in July 2020 (sample series of KTM 890 Adventure models). The last

5

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I.

COMPANYOV E R V I E W O F
P I E RE R M O BI L I T Y
product range extends from e-bikes, e-scooters and light motorcycles
The PIERER Mobility Group is Europe’s leading “Powered Two-Wheeler”(“PTW”) manufacturer and is among the European technology and market licensed for use on the road to various sports vehicles for off-road use. As
a service provider, the company also works with third-party customers on
leaders, particularly in the premium motorcycle segment. In addition to
strategically meaningful projects.
powered two-wheelers, which are equipped with combustion engines orwith new types of electric powertrains, the product range also includes
e-bikes. The Group’s activities are divided into three value creation pillars: KTM Innovation GmbH, which was founded in 2018 and has its registeredoffice in Wels, Austria, focuses on trending topics from various fields
Motorcycles, E-Bikes as well as Design, Concept and Digitalization (seeof technology for the digitalization of products and processes. Classic
also the Group Structure shown on page 7). As a pioneer in the field ofelectric mobility for two-wheelers in the low-voltage range (48 volts), the software development and methods of machine learning, artificial intelligence, big data, blockchain and business modeling are applied. The focus
Group has the foundations in place with its strategic partner Bajaj Autois on developing digital products and services for the motorcycle segment
Ltd. of Pune, India, to assume a leading global role in this market segment. Thanks to our innovative strength, we see ourselves as a technology and on improving efficiency and the user experience in the sales channel.
The aim is to facilitate a profound digital transformation in all areas; onleader in the two-wheeler sector in Europe.
the motorcycle, in production and along the supply chain, in marketingand sales, in communication with riders, and in services that we provide
KTM AG, with registered office in Mattighofen, Austria, combines theto the users of our products.
activities of the globally renowned motorcycle brands KTM, Husqvarna
Motorcycles and GASGAS as well as the component manufacturer WP Suspension. The product range covers all relevant motorcycle segments in the Since mid-2020, the e-mobility division of the PIERER Mobility Group has
capacity classes from 50 to 1,300 cc and is continuously being expanded. been trading under the name PIERER E-Bikes GmbH, with registeredoffice in Munderfing, Austria. Among other developments, PEXCO GmbH,
In addition, KTM was a pioneer in 2014 when it presented the electric
FREERIDE E. The segment of electrically powered sports motorcycles has which was acquired in December 2019, was incorporated into this newly
since also been expanded to include sport minicycles (SX-E, EE5 and the founded company. The focus for PIERER E-Bikes is on the development
MC-E 5). Alongside motorcycles and components, the sports car division as well as the sale of (e-)bikes. In the past financial year, the E-Bikes
completes the KTM AG model range with the KTM X-BOW. Working in close activities were marketed under the Husqvarna E-Bicycles and R Raymon
cooperation with 31 international sales organizations, the company serves brands in order to participate in the attractive market growth in the
e-bicycle segment and develop into a significant international player ina worldwide dealer network on behalf of KTM Sportmotorcycle GmbH,
Husqvarna Motorcycles GmbH and GASGAS Motorcycles GmbH, as well as this segment. To make the issue of electric mobility accessible to an evenbroader target audience, an additional brand was added to the portfolio:a growing network of WP Authorized Centers.
GASGAS. From spring 2021, the Spanish brand will manage a complete
e-bike fleet under the umbrella of PIERER E-Bikes GmbH and, with theTrue to the motto “DRIVEN BY THE NEW”, KTM E-TECHNOLOGIES GmbHdevelops innovative electric vehicles. In 2020, the company’s site in Anif specialist motorcycle trade, will exploit a sales channel that has so far
been largely untapped in the bicycle industry.
near Salzburg was expanded to become the PIERER Mobility Group’s
development center for e-mobility, where all development activities
AVOCODO GmbH, with registered office in Linz, Austria, is a full-service
related to the electric drivetrain are brought together. The employees’
provider specializing in mobile applications, web applications and busibroad expertise in electrics, electronics and software combined with
their leading overall vehicle and lightweight construction know-how form ness solutions. The company’s focus is particularly on digital solutions
and individual developments.
the basis for the development of impressive and sustainable products.
The focus of technology development is on low-voltage drive and battery
systems with maximum continuous power of up to 11 kW. The current

SUSTAINABILITY REPORT 2020

G RO U P S T RU C T U RE
A S O F 12 / 31 / 2 0 2 0 S I M P L I F I E D P R E S E N TAT I O N

51.7%

100%

50%

E-Bikes GmbH

100%

74%

100%

100%

100%

100%

100%

100%

45%

100%

Motorcycles

Other shareholdings:

Design, concept
development& digitalization

ACstyria Mobilitätscluster GmbH 12.3%

E-Bikes7

8

P RO D U C T S &DEVELOPMENTS
K T M 890 DU K E R

G A SG A S EC 300

	With the 890 DUKE R, an increase in overall efficiency was achievedby reducing the weight of the vehicle by 3 kg (compared to the 790
DUKE) and improving the combustion efficiency of the 899 cm3
two-cylinder engine. As a result, engine performance has beensignificantly improved (~ 15.6% increase in power) with only aminimal increase in CO2 emissions (~ 7.7%).
	The Euro 5 compliant exhaust system guarantees that all pollutant
emission specifications are met.

	The innovative 2-stroke TPI (Transfer-Port-Injection) electronic fuelinjection ensures that the optimum fuel quantity is supplied in every
situation. This guarantees controlled power output and reduced
pollutant emissions.
	The rear frame is made of lightweight aluminum and offers a shortand compact profile. This helps to centralize mass while keeping theweight to a minimum of 106.2 kg.
	The GASGAS Enduro Competition models are the first Euro 5 compliant
products in the market segment with an additional catalytic converter
and evaporative emission system canister.

K T M 390 A DV EN T URE

HUSQVA RN A M OU N TA IN
CROS S 7

	The first KTM model in the entry-level travel segment has several
innovative features: fully adjustable WP APEX suspension, up anddown quickshifter, lean-angle-dependent cornering ABS and a 5-inch
TFT display.
	The lightweight trellis frame made of high-strength steel helps tocentralize mass and is also the basis for the excellent stability, andprecise and nimble handling. This makes the 390 ADVENTURE thelightest and most agile model in the segment with a READY TO RACE
weight (all fluids, excluding fuel) of just 161 kg.
	In addition, the Euro 5 compliant exhaust system reduces pollutant
emissions to 78 g / km of CO2 and the low weight ensures economicalfuel consumption of just 3.37 l / 100 km.

	The new Shimano EP8 represents a completely new motor generation:
The 36% reduction in frictional resistance ensures greater efficiency
and easier pedaling.
	Weighing just 2.6 kg, the EP8 drive unit is 300 grams lighter than theprevious model. It is one of the lightest drive units available on themarket and offers the best power-to-weight ratio in its class.
	With the E-TUBE PROJECT app, the system settings can be adapted
to the conditions of the terrain with three different assistance modes(Trail, Boost and Eco for increased energy efficiency). The assistance modes offer ten different levels with different performanceparameters: for example, the option to define the maximum torque toperfectly match the rider’s individual riding style.

SUSTAINABILITY REPORT 2020

KTM 890 DUKE R

OUTLOOK
M OTORCYCL ES - 2021 M ODEL R A N GE
Due to the introduction of the Euro 5 emissions standard on
January 1, 2020, updating the entire Motorcycle Street productrange to comply with the new regulatory requirements is the focus
of R&D activities and will be completed in 2021.

KTM 390 ADVENTURE

In addition, pioneering new products in the Travel and Naked
Bike segments will introduce innovative features to improve rider
safety through radar-based active cruise control and adaptive
brake lights, among other features. At the same time, overall
performance and efficiency will be further enhanced to meet future
market demands.

(E-)BIK ESGASGAS EC 300

As an emission-free alternative for transportation over short andmedium-length routes, electric bikes are also increasingly coming
into focus across all generations. Alongside the COVID-19 pandemic, in which individual mobility solutions have seen significant
growth, cities around the world are all facing similar challenges:
congested infrastructures, noise and air pollution are just a few
examples. A mobility revolution will undoubtedly largely come frommajor cities and the surrounding catchment areas - and today’se-bike is already a suitable solution for precisely these problems.
For this reason, the focus of both the Husqvarna E-Bicycles and
R Raymon brands in model year ‘21 is on expanding the City and
Urban collections. To allow us to appeal to the broadest possible
target group, we are covering various options with our Gran Urban,
Gran City and Eco City or CityRay E and UrbanRay E so that we canbe part of tomorrow’s mobility revolution today. We will graduallycontinue to expand this responsibility internationally.

H U S Q V A R N A MO U N T A I N C R O S S 7

910O U R VA L U E CH A I N
As a manufacturer of motorcycles for off-road and street use and as a developer of products and designs for(e-)bikes, the PIERER Mobility Group integrates an extensive part of the value chain. This starts with creatingproducts in the area of research and development and extends from purchasing, through production - which insome cases is also done internally - to sales and distribution.

Research & development

Purchasing

Motorcycle production& assembly

Logistics & sales(Product use &recycling)

SUSTAINABILITY REPORT 2020

Racers & factory riders,rider teams

Media

Dealers

Politicians

Neighbours

Employees

Academia &experts

Networks &associations

Supplies

Shareholders &investors

Business
partners

Customers

O U R S TA K E H O L D E R S
Thanks to the growing presence of our products from the various divisions- especially those under the KTM, Husqvarna Motorcycles and GASGAS
brands and under the Husqvarna E-Bicycles, R Raymon and GASGAS
E-Bicycles (e-)bike brands - we engage with various stakeholders on the
global market. Their individual interests and approaches are balanced asfairly as possible. We endeavor to engage in ongoing and intense dialog
with our stakeholders at all times. The views and experiences of others
have a crucial bearing on how we act in addressing and discussing
relevant but also controversial issues. This is the only way we can satisfy
the requirements and expectations of both sides and develop sustainable
solutions.
To this end, we have established defined communication channels andforms of dialog that enable an ongoing exchange with the most important stakeholders. Communicating proactively and integrating relevant
stakeholders are crucial for the PIERER Mobility Group in allowing us tomaintain our leading position in the market and also respond as promptly
as possible to the volatile market environment for our products andservices. Treating each other with respect and the transparent flow of
information help over the long term to build up mutual trust and prevent
misunderstandings - this is the only way to reduce any tension that may
exist and avoid new conflicts.

In addition to personal discussions, our stakeholder dialog also focusesparticularly on joint product development with various specialist groups
and strong regional cooperation between our sites and suppliers. We areaware of our social responsibility and this is why we constantly strive
to provide future-proof jobs and create new jobs in a sustainable way.
Through dialog with neighbors, communities and associations, we develop
concepts for solutions to meet local challenges and promote balanced educational work. Regular engagement with the capital market, for example
at roadshows and on conference calls, is very important for the PIERER
Mobility Group. In addition, our stakeholder management also involves
tech talks, themed workshops, training courses, surveys, web platforms,
media contacts and interviews as well as trade fairs and career days.
The stakeholder groups were first identified in 2018 as part of an internal
analysis of the most important stakeholder groups that regularly makecontact with us or with which there is already an intense exchange of
information. On the basis of our ongoing activities with our stakeholders
during the year, we have since reviewed the forms of dialog at least oncea year to ensure that they are up to date. An overview of our stakeholder
groups and the forms of dialog can be found below.

11

12

	
Employees: Annual employee appraisal, intranet, specialist workshops, industry in promoting sustainable transport in Europe. For this reason, it
training courses, ideas workshop, employee survey, information events makes a significant contribution to driving forward regulatory activities
and staff meetings, guided tours of production areas, welcome days for and lobbying for the introduction of new environmental standards, such as
the implementation of the Euro 5 exhaust gas regulation.
new employees and apprentices, KTM_academy.
	
Shareholders and investors: Bilateral exchange on environmental,
PIERER Mobility CEO Stefan Pierer will be President of ACEM until Aprilsocial and governance (ESG) issues with investors.
2022. His role was confirmed for a further two years at the General Meet	
Academia and experts: Delta Academy of Montanuni Leoben (Stefan
ing in April 2020. During Stefan Pierer’s presidency, activities that have
Pierer as a member of the management board), round table in small
groups on technological topics of the future, joint R&D projects, visits been promoted have included the following:
to educational institutes (universities of applied science, universities),
Type approval
preparation of studies, cooperation with technical universities within
the framework of sponsored projects, cooperation with LIMAK as well	Provision of the Euro 5 package for use from 2020 with a corresponding
as with universities and technical colleges, sponsor of/cooperation with
reduction in the limit values for local pollutants.
Formula Student Teams, member of the automobile cluster.
	Completion of technical details for the implementation of on-board
diagnostics, preparation for the discussion on Euro 5 noise limits. To	Suppliers and dealers: Trade fairs, product presentations and test
this end, the first step, development of a new measurement method
drives, joint events, training courses, lectures, regular dealer meetings“ASEP 2.0”, has been completed. (See further below)
on delivery and quality assurance agreements, daily exchange of
information via Dealer.Net.
Emission factors of the L category	
Business partners: Knowledge sharing at specialist conferences andUpdate COPERT with data of the Euro 4 L category. COPERT is the EU’s
expert workshops.
standard vehicle emission calculator. This covers all major pollutant	
Racers and factory riders, rider teams: Test rides, face-to-facefeedback discussions and exchange of experiences in relation to safety. categories and is used to calculate emissions at national, regional or local
	Media: Interviews, press releases, close contact with business journal- level and to establish annual to daily calculation models. The COPERT
methodology is published and peer-reviewed by experts of the UNECE
ists, test rides, trade fairs, product presentations.
LRTAP Convention.
	
Politicians, networks and associations: Presidency (Stefan Pierer)
at ACEM, the European Association of Motorcycle Manufacturers; theFederation of Upper Austrian Industry (Stefan Pierer as Vice-President); Life cycle I Waste I Risk materials
at the PIERER Mobility Group locations, the management is in regular Increasing focus on the documentation of usage behavior along theentire product life cycle and promotion of further association activities.
contact with relevant local/regional government officials and authorParticular attention will be paid to the issues relating to the recycling ofities (provision of company data, annual report and sustainability
report). Participation in the association z.l.ö. – zukunft.lehre.österreich, lithium-ion powerpacks (“cradle to grave”) and to working to promote thecooperation with Hotspot (Lebensraum) Innviertel and Innovation and safe handling of the chemicals they contain in the form of an inter-assoTechnology Transfer Salzburg; cooperation ciation alliance. In addition, ACEM, together with other European vehicle
with Occupational Health Service, awards: associations, is working to advance the GRMS2 (Global Regulatory Moni“Career Best Recruiter”, “Employer Brand- toring System for Chemical Substances) project on substance monitoring.
ing Award 2020/2021” gold.
Another important topic, which plays a major role in the automotive
industry in particular, is the REACH* regulation on the registration,measurement, authorization and restriction of chemicals in products. The
corresponding EU regulation has been in force since 2017 and applies inprinciple to all chemicals - whether they are used in industrial processes
ACEM ACTIVITIES
or in everyday life. As an ACEM member, KTM AG supports the program
The European Association of Motorcycle Manufactures (ACEM) represents and is strongly committed to protecting human health and the environment. This is why, in 2019, the first joint measures were drawn up to limit
the manufacturers of mopeds, motorcycles, tricycles and quadricycles
the risks that can arise, for example, from using harmful substances in(L-category vehicles) in Europe. ACEM members include 17 manufacturthe production process in the vehicle industry.
ing companies and 17 national industry associations from 14 countries.
Around 387,000 jobs depend on the motorcycle, moped, tricycle andquadricycle industry in Europe. This is why the association works closelywith the EU institutions and with many stakeholders from different policy
areas. The topics range from the European approval of L-category vehicles
in relation to environmental legislation, road safety and transport policy
through to international trade relations. In addition to road safety andmobility, ACEM is also heavily involved with the environmental performance of L-category vehicles and focuses on the role of the motorcycle

SUSTAINABILITY REPORT 2020

Under the presidency of Stefan Pierer, a new, medium-term
project was launched with the aim of developing a “Visionof the PTW Sector”. The first workshops have already takenplace and an interim conclusion has been reached. ACEM’s
positions on the key topics defined were developed in theworking groups:
1. Urban mobility
2. Carbon emissions
3. Noise (noise emissions)RESEARCH AND DEVELOPMENT POLICY	KTM is also involved as a member in the activities of
EGVIA (European Green Vehicles Initiative Association),an association which is involved in the “European Green
Vehicles Initiative PPP”** together with the European
Commission to represent the private sector side of thepartnership. The aim of this initiative is to provide environmentally friendly vehicles and mobility system solutions
for the future to meet the social, ecological and economic
challenges of future mobility.
	With its product developments, the PIERER Mobility Groupmakes an important contribution to the development ofroadmaps in the fields of safety, automation, decarbonization and electric mobility.
	Furthermore, the PIERER Mobility Group participates inand supports various EU research projects.
Connected Motorcycle Consortium
KTM AG is a member of the Connected Motorcycle Consortium(CMC). The strategic research and development platform
promotes cooperation in industrial innovations in the fieldof Cooperative Intelligent Transport Systems (CITS). The
primary mission of the consortium is to bring together theleading companies in the motorcycle industry to promote thetimely and widespread use of CITS, which offer considerable
potential for improving the level of safety for motorcyclists on
the road. Since the beginning of 2021, the CMC has adopted
the new name “CMC Next”, with the same development
topics. The key focus is on developing all functions of CITS for
the L category. The main topic for this year is the testing of
V2V and V2Infrastructure vehicle communication. (For more
information, see the “Product Quality and Safety” chapter
starting on page 49.)

* REACH: Registration, Evaluation, Authorisation and Restriction of Chemicals.
** EGVIA cPPP: European Green Vehicles Initiative with a contractual Public Private
Partnership.

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@KTM

SUSTAINABILITY REPORT 2020

E-CallParticipation in transnational standardization activities to define theminimum requirements for the integration of the automated emergency call system E-Call, which is already established in the automotive
segment.
European quality seal for motorcycle training
The quality seal is a joint initiative of ACEM, the German Transport
Safety Council (DVR), an independent NGO, and the International Motorcycle Federation (FIM - Fédération Internationale de Motocyclisme). The
initiative is supported by the European Transport Safety Council (ETSC)
and the European Commissioner for Transport, Violeta Bulc. As of today,
just 3 years after their introduction, 31 training programs in Austria, Belgium, France, Germany, the Netherlands, Spain and Sweden have alreadybeen certified with the European Quality Seal, including two motorcycle
training courses at the KTM Riders Academy.
Cooperation with IMMAThe IMMA (International Motorcycle Manufacturers Association) is theinternational association of manufacturers of “Powered Two-Wheelers”(PTWs). The main task of IMMA is to develop and support global, international legislation governing the construction and use of motorized two
and three-wheelers. IMMA enables the industry to speak with one voiceat all levels. IMMA’s members include the industry associations of themost important regions of the world.
Environment
Continuation of activities within the United Nations Economic Commission for Europe (UNECE) in the field of Environmental and Propulsion
Performance Requirements for Internal Combustion Engine PTWs (EPPR).
The cooperation involves the international adoption of the Euro 4 andEuro 5 emission standards as well as the further development of legislation on noise emissions from PTWs.
On the subject of “Euro 5 - Noise Emissions”, a new measurement
method was developed in 2020 in the ACEM “Noise” working group under
the leadership of KTM and has already been translated by IMMA into
a UNECE regulation that applies worldwide. In future, the new “ASEP2.0” method will measure the pass-by noise up to a Vmax of 100 km/h
(previously up to Vmax 80 km/h) and will therefore reflect the noise levelin “real world” use. This measurement method will be valid for all newhomologations from September 2023.

Tire Pressure Monitoring Systems (TPMS), electronically adjustablesuspension, electronic cruise control, shift assist, fuel-saving assist,proximity activation systems (i.e. keyless driving systems), in-vehicle
navigation systems, adjustable ride mode, side view assist, automaticstability control, etc. Many advanced rider assistance systems wereoriginally developed for cars. However, they can potentially be dangerous
if they are used on motorcycles without being appropriately adjusted. For
this reason, ACEM members are working on specific technical solutions
for rider assistance technologies.
Systems have already been developed by KTM AG and will be incorporated into production motorcycles from 2021 offering adaptive cruise
control, forward collision warning and even blind spot detection, allof which will help to increase the level of safety for motorcyclists. The
technology on which these systems are based is a combination of radar
sensor, brake system, engine management system and HMI (Human
Machine Interface).
ARGE2RAD ACTIVITIES
Arge2Rad is the association of the Austrian two-wheeler industry. Its
activities focus on convincing people to make motorcycling even more
attractive by making access to powered two-wheelers easier and safer
at the same time. In cooperation with a number of partners - among
them the Austrian mobility clubs, the driving schools, the Chamber ofCommerce, the media, the police and various ministries - Arge2Rad has
already managed to achieve a great deal.
Hubert Trunkenpolz, a member of the Management Board of KTM AG,
acts as president of Arge2Rad which focuses on the following key
priorities:	Stable development of the market for powered 2-wheelers,	Realistic reduction of CO2 and noise emissions,	Traffic regulations and road safety initiatives,
	Organization of test days and trade fairs.

SafetyContinuation of activities within the UNECE* regarding safety regulations in the PTW segment, such as brakes, lighting, etc. In addition, in
the area of safety, manufacturers are focusing in particular on rider
assistance systems:
Rider assistance systems for motorcycles can help to prevent accidents. They help to reduce collisions by supporting the rider in criticalsituations. At the same time, they also make the ride more fun andcomfortable. Relevant examples are: Traction Control Systems (TCS),*UNECE: United Nations Economic Commission for Europe.

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39%

Employees

7%

Racers, Factory
RidersPoliticians, networks
and associations

Academia
and experts

7% Media

Shareholders
and investors

5% Suppliers
Total overview of participants (Percentage of all responses)

2%

Business partners
Customers

12%

7%

10%

10%

M AT E RI A L I T Y A N A LY S I S
A N D K E Y S U S TA I N A BI L I T Y
TOPICS
In order to determine the material contents for this sustainability
report, we first conducted a materiality analysis with the assistance of selected employees from the subsidiaries of the PIERER
Mobility Group in 2017. As part of this, we identified those
topics relating to environmental, social and employee interests,
observance of human rights and tackling of corruption that havean impact on our activities and are of relevance to our long-termbusiness success. On the basis of our ongoing communication
with our stakeholders during the year, we have since reviewed
the key topics at least once a year to ensure that they are up todate and have been able to leave them unchanged.

There have been some recent developments, both in terms ofsociety as a whole and in terms of general policy, which prompted us to revise and conduct the materiality analysis in 2020.
Due to the COVID pandemic, it took the form of an online survey.
This gave us the opportunity to survey a much wider stakeholder
group, including a number of external stakeholders. In addition toassessing the impact of our business activities on the environment and society, the key topics were also assessed to determine
their influence on stakeholder decisions and actions, with thefollowing result:

SUSTAINABILITY REPORT 2020

Environmental interests
	Research and development
	Pollutant emissions from vehicles (emissions) *	Efficiency in the use of materials (waste, recycling management) *	Alternative drive technologies (including electric mobility) *	Energy efficiency *	Local employment: responsible procurement *Social and employee concerns
	Occupational safety and employee health	Training and further education of employees	Local employment: jobs *	Fair pay and labor standards (diversity and equal treatment)	Data protection *	Road safety *	Product quality and safety/ costumer health and safety
	Research and development
Respect for human rights
	Business compliance (combating corruption)	Occupational safety and employee health	Fair pay and labor standards (diversity and equal treatment) *Combating corruption and bribery
	Business compliance (combating corruption, data protection)*New material topic which was included in 2020 as part of the materiality analysis.

In general, all the topics surveyed were rated as more important thanin previous years - except for the topic of “Combating corruption”,
which was rated much higher in 2020. The topics of “Research anddevelopment” and “Product quality and safety for customers” are,as in previous years, the most highly rated, and are at the top of the
topic rankings. Of the new key topics, “Alternative drive technologies”
and “Road safety” received the highest rating. These topics will be
described in the chapters that follow, using the concepts of risks,due diligence processes and measures, and results and performanceindicators.

Significant risks from business activities and our business relationships, which are associated with the impact on the issues in focus, areidentified in the respective divisions and avoided as far as possible bymeans of the measures described. Non-financial risks are systematically recorded and evaluated. Significant risks that are likely to havea negative impact on the interests of the company are included in thereporting in accordance with Section 267a of the Austrian Commercial
Code (UGB).

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O U R VA L U E S & U N D E R­
S TA N D I N G O F B U S I N E S S(BUSINESS COMPLIANCE)CONCEPT AND OBJECTIVE
The PIERER Mobility Group considers lawfulness, honesty, ethics, reliability, respect and trust to be the foundation and universal basis of any
cooperation and good business relations. With these values in mind, the
PIERER Mobility Group respects the applicable national and internationallaws, regulations and guidelines and expects its employees, managers
and board members as well as consultants, business partners and customers to respect and comply with applicable law at all times.

tices in which business transactions are concluded by unfair means. The
Code of Conduct lays down comprehensive conduct guidelines in relation
to awarding of undue advantages, corruption and bribery. The mandatory
principles defined therein in relation to awarding and acceptance of
undue advantages provide a regulatory framework that board members,
managers and employees must regard as a guide for their conduct when
dealing with suppliers and customers. Board members, managers andemployees are encouraged to speak to their managers or the competent
office for general compliance issues in the event of any doubts as to thepermissibility of an award or acceptance of a benefit. When assessing theappropriateness of gifts and invitations of any kind, special attention ispaid to social custom and appropriateness in addition to the underlying
motive.

The Code of Conduct of the PIERER Mobility Group serves as the basis forachieving legal compliance. It sets out the principles and rules on which
the PIERER Mobility Group bases its business activities. The Code of
Conduct addresses relevant compliance risks and in particular defines the
As a general rule, the Compliance Officer of the PIERER Mobility Group
expectations for dealing with the topic areas which are outlined below:
acts as the relevant point of contact. The Executive Board bears ultimate
	Human rights, respect and integrity, diversity, fair working conditions responsibility. The operational handling of inquiries and reports ofpotential compliance cases concerning the PIERER Mobility Group is the	Sustainability
responsibility of the legal department of KTM AG.
	Fair competition, prohibition of cartels	Corruption, money laundering, financing of terrorism, export controls	Conflicts of interest, handling of company property and of business and The Code of Conduct of KTM AG is permanently available on its intranetsite for the majority of the board members, managers and employees
trade secrets, data protection, prohibition of insider trading, political(with internet access) of the PIERER Mobility Group. The Code of Conduct
activities
is also highlighted on the homepage of the intranet of the KTM AG Group
each year. The Code of Conduct is handed out along with the welcome
DUE DILIGENCE PROCESS AND CURRENT MEASURES
pack to new employees.
Anti-Corruption and Fair Competition
Furthermore, training is provided by the PIERER Mobility Group on thecontent of the Code of Conduct and to raise awareness of compliance
In principle, collaboration with partners along the value creation chain
issues. The focus is on the issue of anti-corruption. Ostensibly, managers
involves risks of unfair competition, including (unfair) influencing ofand employees from particularly vulnerable areas such as Human Resuppliers, customers or decision makers. Corruption also involves
sources, Purchasing, Sales, Research & Development, Marketing, Quality
financial risks for companies in connection with the threat of financial
Management as well as board members and general managers are trained
penalties, loss of orders or customers, or damage to reputation. In orderin face-to-face sessions. In light of the COVID-19 pandemic and theto systematically reduce potential corruption risks, the PIERER MobilityGroup takes measures to observe and implement the principles laid down measures which were then required to protect the health of employees, itin the Code of Conduct and to make managers and employees more aware was only possible to conduct face-to-face training sessions to a limited
extent in the 2020 financial year. The time was therefore used to create anof compliance issues.
e-learning tool with the content of the Code of Conduct and thus enabledigital training for employees (with internet access) from all areas of the
The PIERER Mobility Group advocates the respective national anti-corbusiness from the 2021 financial year.
ruption provisions and the international directives or recommendations(e.g. UNCAC, U.S. Foreign Corrupt Practices Act, UK Bribery Act, OECD
Guidelines for Multinational Enterprises). It does not tolerate any prac-

SUSTAINABILITY REPORT 2020

The PIERER Mobility Group also expects its consultants, business partners and customers to respect and follow the basic rules and principles
contained in the Code of Conduct.

environmental laws and regulations. As a listed company, Bajaj Auto Ltd.
is obliged to make reference in its annual financial report to the legal
regulations applicable in its country and compliance with them(https://www.bajajauto.com/investors/codes-policies).

Respect for Human Rights
Data Protection and Cybersecurity
People who work directly or indirectly for the PIERER Mobility Group areentitled to have their human rights within the meaning of the UN Universal Declaration of Human Rights observed, and to be treated with fairness
and respect. The PIERER Mobility Group expects its board members,
managers and employees to respect human rights and to protect them intheir everyday activities. As human rights risks may exist in principle asa result of the cooperation with partners along the value chain, the Groupsimilarly requires its principal business partners to respect the humanrights in the Code of Conduct.

Within the PIERER Mobility Group, an IT security and risk management
system is operated with the aim of making it possible to recognize andmanage company-relevant risks in the area of information security. We
pay particular attention to the data we process in the areas of research& development, vehicle and customer data, and personal data of ouremployees and applicants.

We apply the same high quality standards in the areas of data security
and data protection as we do for our products. The process is guaranteed
by a comprehensive data protection management system that is firmly
The PIERER Mobility Group regards it as particularly important for all
employees to be treated with fairness and respect. The aim is to create a established in the company. The process documents are available toworking environment characterized by mutual trust in which each individ- employees on the intranet. The greatest risk for the Group is a possible
ual is treated with dignity and respect, and in which people from diverse penalty imposed as a result of alleged data privacy breaches. The highest
risk for the data subject is personal data leaking to unauthorized third
cultures and with different personal backgrounds are respected. As an
parties. In order to identify and prevent potential data protection risks,international Group, we value the diversity that is reflected in the origin,
culture, language, and ideas of our employees. The PIERER Mobility Group a data protection management system has been implemented and this
therefore does not accept any discriminatory behavior toward employees, includes various data protection guidelines and regulations. Our legal
customers and business partners, nor does it tolerate any form of sexual department is in regular contact with a data protection lawyer to monitor
all existing or new applications and discuss possible adjustments.
harassment.
The ever-increasing threat of IT and cyber risks is countered within the
Board members, managers and employees are able to contact the
PIERER Mobility Group through the ongoing development of IT security
competent office for general compliance issues at any time if they havequestions regarding observance of human rights, and to report indications measures and the use of state-of-the-art IT security technologies. Cyberattacks are averted using a multi-level technical concept which makesof possible human rights violations within the company to this office.
use of state-of-the-art security features such as an intrusion prevention
These indications are investigated, and measures are taken to resolve
system and additional upstream or internal technical security systems.
possible grievances, if required.
In addition, behavior-based security solutions are used with a view to
identifying security-related abuse. Incidents are identified and handled
No indications were reported and followed up in the reporting period.
by a malware incident response process. In parallel, regular internal and
There were no cases or proceedings relating to human rights abuses
external vulnerability analyses are performed and any vulnerabilities
within the PIERER Mobility Group during the 2020 financial year.
identified are countered by means of an established patch and update
management process. Regular internal and external security audits are
Cooperation Partners
documented, evaluated and prioritized by means of risk management
measures and a solution is then applied.
In the course of collaboration with international business partners, thegeneral risk exists that the countries concerned may not apply statutory
laws that are as stringent as those in Austria. Our long-standing partners, Care is taken to ensure that all users of the PIERER Mobility Group’s IT
system possess the requisite knowledge and awareness of how to use thesuch as Bajaj Auto Ltd. and Zhejiang CFMOTO Power Co., Ltd., set highstandards for themselves for the purpose of meeting our requirements for IT system within the scope of their role through the provision of regular
IT security awareness training. This is carried out in a preventative andrespecting human rights.
transparent way and takes place in all subsidiaries worldwide. For new
Bajaj Auto Ltd. of India, as a strategic partner of KTM, is committed to the employees, the training sessions are held monthly. In the future, it will be
continuous improvement of occupational safety, employee health, environ- mandatory for every employee to attend IT security awareness training
mental impact and the environmental impact associated with its business once a year. However, in 2020 there was significantly less of this due tocoronavirus.
activities, and pledges to comply with the applicable safety, health and

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Extensive training measures were carried out for employees at the Mattighofen and Munderfing sites on the General Data Protection Regulation.
The training courses for employees at the subsidiaries were canceled in
the reporting year due to Covid and will be caught up in 2021. The content
of the e-learning tool with a mandatory test for employees was adapted again in the 2020 financial year and will also be made available in
English in the 2021 financial year. The intranet also contains an overview
of responsibility for data protection: the Executive Board bears ultimate
responsibility, while the data protection coordinator deals with andresponds to specific technical questions on the subject. The informationand security manager is responsible for data security.
In addition, a data protection guideline for the introduction of a dataprotection management system is in place. Compliance with this ensuresthat the company's conduct is in line with data protection regulations,and in particular safeguards the rights of data subjects, prevents dataprotection violations and avoids fines. All employees are required tocomply with this guideline. This is an instruction. The information sheetthat has been part of the service contracts since April 2018 is available
on the intranet. This guideline has been substantiated by several company
agreements for the area of data protection in general and most recently
for video surveillance. Each company has set up its own privacy e-mailaddress to receive requests.
RESULTS, KEY PERFORMANCE INDICATORS AND NEXT STEPSThe Code of Conduct of the PIERER Mobility Group was revised in the2019 financial year and the new version was published at the beginning of
2020. As part of this, awareness as well as the obligation to comply withthe principles set out in it were steadily promoted and expanded during
the 2020 financial year.

Respect for human rights is also very important to the PIERER MobilityGroup when it comes to significant investment contracts. Over the coming
years, the intention is that any new significant investment contracts shalltherefore also gradually be made contingent on the principles of the Codeof Conduct. Significant investment contracts include orders for investments in property, plant and equipment (including buildings and production facilities) that exceed an investment amount of EUR 300,000. In thefinancial year 2020, a total of three orders for production equipment wereplaced that exceeded an investment amount of EUR 300,000, whereby
for two of these relevant orders - and thus for 66.67% of the significant
investment contracts in the area of production equipment in the businessyear 2020 - the Code of Conduct of the KTM AG Group and the principles
contained therein with regard to the observance of human rights are partof the contract.
At the beginning of the 2020 financial year, 35 managers received training- including 19 team leaders and 9 heads of department. The percentage
of leaders trained on the Code of Conduct topics in 2020 was 6%. In lightof the COVID-19 pandemic and the measures which were then required
to protect the health of employees, it was then not possible to conduct
any further face-to-face training sessions in the 2020 financial year. Nevertheless, in order to continuously make employees aware of the issues
covered by the Code of Conduct, a total of 2,669 employees (with internet
access) of the PIERER Mobility Group were informed about the contentsof the Code of Conduct by means of a separate e-mail, which equatesto around 62% of the entire workforce. An overview in table form can befound in the appendix.
In order to train a large number of employees on a regular basis in the
future, an e-learning tool with the content of the Code of Conduct wasalso created in the 2020 financial year. With the help of this digitaltraining, the plan is to train all managers and employees (with internet
access) of the PIERER Mobility Group in Austria in the 2021 financial year.
In addition, the training measures will also be extended to the first andsecond level managers of the companies within the PIERER Mobility Group
that are located outside of Austria.

The Code of Conduct in its current version (January 1, 2020) was brought
to the attention of all series suppliers of KTM AG in the 2020 financial
year. For the 2021 financial year, the plan is also to inform non-series
suppliers about the Code of Conduct. New contractual relationships of the
KTM AG Group in the supplier sector have included the Code of Conduct as As a further option for reporting complaints and violations, a whistleblowstandard since the beginning of 2020, if not earlier. Over the course of the er system will be set up in the 2021 financial year.
2020 and 2021 financial years, the Code of Conduct has been or will also
In the PIERER Mobility Group, there were neither any relevant compliancebe firmly established as a further annex and thus a contractual component of the dealer contracts of the KTM AG Group. All existing importers of cases nor cases that resulted in corresponding compliance investigations
the KTM AG Group were notified about the Code of Conduct in the current or proceedings regarding corruption in the 2020 financial year.
version dated January 1, 2020. The Code of Conduct is always included inany new importer contracts that are concluded.

SUSTAINABILITY REPORT 2020

O U R C O N T RI B U T I O N
TO THE SDGS
In 2015, as part of the 2030 Agenda for Sustainable Development, theUnited Nations set 17 Sustainable Development Goals. Broad cooperation
between politicians, civil society, science and business will be needed toachieve these goals. The PIERER Mobility Group wants to help to achieve
the global Sustainable Development Goals with its operating activities
and ensure that its operating activities do not have any detrimental
effects on the issues and objectives in question.
SDG 3 – GOOD HEALTH AND WELL-BEING
As a manufacturing company, the PIERER Mobility Group
has a particular responsibility to ensure the health andsafety of its employees. We aim to contribute to SDG3 bymaking continuous improvements in the area of occupational safety andintroducing new health promotion measures.
Due to the outbreak of the coronavirus pandemic, special measures weretaken to protect employees from spring onward in the 2020 reporting year.
This prevented extensive spread of the virus in the company. In addition,
the focus in the area of mental health was still on burnout prevention andsupport, particularly in collaboration with the occupational psychologist
and the human resources department (Target 3.4 - Promoting mental
well-being). In occupational safety, for example, ongoing adjustments
were made to the production processes and the technical equipment usedon the production lines to reduce occupational accidents. In addition,
there were training courses on how to handle industrial trucks in internaltraffic. Furthermore, to further improve the training program for testriders, the KTM Riders Academy was launched. This ensures that KTM
employees receive regular rider training in line with their job description.
SDG 4 - QUALITY EDUCATIONWith its initiatives focusing on the training and educationof potential and existing employees, the PIERER MobilityGroup makes a valuable contribution to SDG 4 whichaims to provide quality education and lifelong learning opportunities andenables everyone to enjoy equal access to this.
Apprentice training forms an important aspect of HR strategy, as the employees make a significant contribution to the company’s success. This is
why KTM will be investing around 2.5 million euros in the expansion of its
apprentice workshop in the next few years. Through intensive cooperation
with vocational colleges, universities and UASs, young people in particular
are offered wide-ranging opportunities to obtain high-quality vocational
and technical education and training (Target 4.3). Existing employees
have the opportunity to choose from a comprehensive further training program offered by the KTM_academy (e.g. digital transfer manager course,
sales trainee program, management training, online language training) orfrom academic courses (KTM Young Pioneers College, KTM Digital Intrapreneurship MBA) to increase their individual qualifications (Target 4.4).
SDG 8 – DECENT WORK AND ECONOMIC GROWTH
The PIERER Mobility Group is considered a technology
pioneer in the premium motorcycle segment and is also
one of the largest employers in Upper Austria. The Groupthus contributes to sustainable economic growth and takes it for granted
that it promotes decent work.
To promote decent working conditions, the PIERER Mobility Group builds
on a positive working environment and expects its managers, employees,
and business partners to respect human rights. Internal contact points
have been set up within the company to report possible irregularities.
These are all fundamental measures which support Target 8.7 (contribution to eradicating forced labor, modern slavery and human trafficking).
SDG 9 - INDUSTRY, INNOVATION AND INFRASTRUCTURE
As a leading innovator in the sports motorcycle sector, the
PIERER Mobility Group traditionally pays great attention toits culture of innovation. In recent financial years, for example, considerable investments have been made in the Group’s researchand development locations (such as in the new E-Mobility Competence
and Development Center in Anif near Salzburg).
The pursuit of technological progress and the promotion of innovation
are the cornerstones of the PIERER Mobility Group’s business model. Our
stated goal is to further expand our pioneering role in terms of technology,
sales and sustainability in the powered two-wheeler world through continuous growth. The progressive R&D strategy has produced innovative
products which meet the high expectations of our customers in terms oftechnology, performance and efficiency.

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SDG 13 - CLIMATE ACTION / SDG 12 RESPONSIBLE CONSUMPTION AND PRODUCTION
The PIERER Mobility Group is conscious of thecontribution that its operating activities make toclimate change and supports SDG 13 with measures to combat climate change.
We also support SDG 12 by using natural resources efficiently and by taking
measures to avoid, reduce and recycle waste.
An important aspect in the development of road-registered = homologated vehicles is reducing emissions of exhaust gases and noise, which are caused by the
combustion process itself, for example, and also by any evaporative emissions of
the hydrocarbons (= fuel) contained in the vehicle.
In addition, we are working with project partners on concepts for sustainable mobility in urban living spaces. Energy-efficient, electrically powered
two-wheelers in particular represent an essential part of our solution. We
therefore understand a sustainable approach to mean, above all, the phased
reduction of emissions over the entire product life cycle.
As far as the development and production of its products are concerned, the
PIERER Mobility Group attaches great importance to the efficient use of raw
materials in a manner that conserves resources, and to environmentally sustainable operations. This is why the issue of increasing efficiency and utilizing raw
materials to the fullest possible extent, including recycling them, for example
recycling lithium ion batteries, is so important. This is currently being vigorously
pursued with the introduction of an environmental management system in accordance with ISO 14001:2015 and with the development of waste management.
Thanks to many years of intensive development work in the field of electrictraction systems for PTW, a substantial technology platform has been createdin addition to the first products available on the market. This will enable further
vehicles powered by renewable energy to be launched on the market in the years
ahead. In this segment, we are currently working on electric drive systems in
the power range from 4 to 11 kW and battery platforms in the 48 volt range forplanned series (for example, Husqvarna’s first electric scooter).
Furthermore, with the creation of one of Austria’s largest photovoltaic installation on the roof of the KTM logistics center in Munderfing, we are taking anotherstep toward a future that conserves resources. The electricity is fed into the
public grid and enables a broader use of renewable solar energy in the region.
In addition, we farm around 12 hectares of arable land in Mattigthal and haveplanted 270 trees at our sites in Munderfing since 2016.

@KTM

SUSTAINABILITY REPORT 2020II.

EMPLOYEESA ND SOCIE T Y

OURE M P L OY E E S
CONCEPT AND OBJECTIVE
Recruitment and retention of employees: Finding qualified employees andretaining them in the company over a long period of time poses a significant
challenge, particularly for rural sites. Every employee in the PIERER MobilityGroup forms part of the large team that drives the success of the company
with dedication and enthusiasm. Attractive jobs offering exciting challenges
and opportunities for training and career progression give employees the
chance to demonstrate and expand on their skills. Growing by embracing
challenges is one of the premises in personnel development.
Workplace standard and pay: Around 98% of the employees in the PIERER
Mobility Group are subject to collective bargaining agreements. All job
advertisements are posted with the minimum salary, which can be increased
according to suitability and experience. This ensures that every applicant isaware in advance of the minimum salary for the advertised position.
Local employment: In the region and especially in the immediate vicinity
around the company’s production sites in Austria, KTM AG is a major employer that accounts for a high proportion of local employment. Approximately
1,750 KTM AG employees live directly in Mattighofen and the neighboring
communities within a radius of 10 km as the crow flies.

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MEASURES TO INCREASE THE ATTRACTIVENESS OF THE EMPLOYER

of the company. In order to increase job satisfaction and flexibility at thesame time, KTM employees can spread out their weekly working hours
Internal and external measures to increase the attractiveness of the com- from Monday to Thursday based on a fair-use principle. This means theypany as an employer are an essential element in conveying the prevailing no longer have to commute five days a week. In principle, this type of
spirit of the PIERER Mobility Group to potential new employees. With var- flexible working hours is available to employees who are covered by theious cross-media employee campaigns, KTM AG was able to largely meet scope of the flexitime agreement (applies to the company’s sites in Ausits personnel requirements in the reporting year. A new career homepage tria and around 80% of the employees). These flexitime options were also
was launched. This plays a significant role in helping to ensure that KTM optimized and expanded in other individual PIERER Mobility companies.
AG has an even better profile as an employer and that what is on offer as In order to further reduce travel times, employees can also use the KTM
well as the many benefits are recognized even faster and more clearly. In offices in Wels and Anif near Salzburg in addition to the workplaces in
the area of apprenticeships, attention was not only paid to addressing the Mattighofen and Munderfing.
target group appropriately, but a dedicated section was also created for
A further measure for making working hours more flexible is the option of
the parents of future apprentices in order to provide information about
working from home (“home office”). A new directive has allowed this since
opportunities and possibilities at an early stage and prevent any uncertainties. During the redesign of the career site career.ktm.com, the virtual 2019, provided that operational requirements are not adversely affected.
reality tour around the buildings at the Mattighofen and Munderfing sites In 2020, there was a quick and clear response to the requirements ofthe pandemic. For example, options for working from home were further
was expanded and integrated into the homepage.
expanded (IT processes and equipment), and teams were split and divided
between working from home and in the office. Furthermore, it was ensured
An attempt was made to compensate for the cancellation of trade fairs
due to Covid by participating in virtual trade fairs. The recruiting team of that most of the workforce would be able to work from home if required.
KTM AG reacted quickly to the circumstances in 2020 and was technically
In light of these measures, which are continuously being analyzed andwell equipped to make personal contact in many ways. Of course, anadjusted, motivated and committed employees form the foundation of ouremployee of the HR department of KTM AG also “sits” behind the newly
shared success as a business. Compliance with labor law regulations, a
integrated chatbot on the career site, answering questions quickly andtransparent exchange of information, appropriate remuneration and an
expertly.
attractive working environment are essential cornerstones for fair cooperation and the reason why the company has many loyal and long-standing
Jobs advertised - internal employees are also wanted!
employees.
It is not just external employees that have the opportunity to apply
The PIERER Mobility Group employed 4,586 people worldwide as offor advertised positions. KTM AG consciously promotes the internal
December 31, 2020 (previous year: 4,368), with 3,822 of them in Austria
development of employees. For example, in 2020, about one third of thepositions advertised in Austria were filled internally and two thirds of the (around 83%). 17.6% of the total workforce work in research & develmanagement positions advertised allowed existing employees to make the opment. In 2020, the proportion of female employees was around 22%.
With its Mattighofen, Munderfing, Thalheim and Schalchen sites, KTM AG
next step in their career.
is one of the largest employers in the Upper Austria region. In the 2020
As special recognition, KTM was once again presented on a virtual podium reporting year, 3,557 people were employed here.
this year with the golden Sigl of the Best Recruiter Awards for the automoIn 2020, the staff turnover rate1) at the Austrian companies in the PIERER
tive sector. Ranked 15th among the TOP 100 employers in Austria, thecompany achieved its best position to date in 2020.
Mobility Group was below 10% (previous year: <10%). This figure includes
all non-retirement departures in proportion to the overall number of emFocus on making working hours and work locations more flexible
ployees excluding temporary staff. An extended list of the most important
employee indicators can be found in the appendix.
For the purpose of creating a modern and flexible working environment,
1)
Calculation of staff turnover rate as %: Relevant departures (1-12 of the year) / average headcountand at times because of the Covid-19 pandemic, the PIERER Mobility(1-12 of the year) * 100. Premises for relevant departures are blue-collar + white-collar employees
Group, as an attractive employer, enables employees to better adapt their (excl. external workers, excl. fixed-term service contracts, excl. freelancers, excl. natural turnover due
to retirement or death).
working hours and place of work to their personal needs and the needs

SUSTAINABILITY REPORT 2020

O C CU PAT I O N A L S A F E T Y
A N D E M P L OY E E H E A LT H
CONCEPT AND OBJECTIVE

prototype and production motorcycles. Our employees who are responsible
for functional testing and test rides have so far received training in a
The health and safety of our employees is a top priority for us. That’s why multi-stage program as part of ÖAMTC rider safety training. To further
improve this training program, the KTM Riders Academy was launched
we want to strengthen not only the professional skills of our employees,
in 2020: With the introduction of this rider training, which has been
but also their health. This is the prerequisite for achieving professional
performance and being able to deal with physical and mental stress. As a completely redesigned, we want to ensure that KTM employees regularlycompany producing and assembling street and off-road motorcycles, there complete rider training that is appropriate to their job description. The
are significant health and safety risks for our employees in the workshops new training courses on offer replace the training courses which wereand during test rides. We pursue a strategic approach to minimizing haz- previously conducted in cooperation with the ÖAMTC. The trainers areards based on the “STOP principle”, precautionary measures and special provided by the KTM Riders Academy. The training courses themselves
training, particularly in work areas with a high hazard potential, such as have been developed together with R&D and are structured in stages with
3 qualification levels, depending on the professional need:test drives, work environments with machinery, and in workshops. Great
attention is paid to following the safety measures that are necessary andhave been put in place, and to ensuring that every employee follows the	Qualification level 1 is for employees who have to carry out motorcycle
instructions given to them. In particular, everyone is required to wear the
rides for work purposes. The core content of this training includes, forpersonal protective equipment that has been specified and provided freeexample, the controlled response to everyday situations and improvingof charge. Health and safety instruction is given to each employee before
individual riding skills.
he or she starts work. Statistics are collected by the human resources	Qualification level 2 is for employees who have to ride motorcycles indepartment on accidents in relation to the cause, type, quantity, place/a dynamic way as part of their job - this involves acquiring specificdepartment and days on which the employee concerned was absent forskills such as confidence in the rider assistance systems and gaining a
the purpose of taking appropriate improvement measures. The safety
better understanding of systems and vehicle design. This qualification
specialist is responsible for the entire area of occupational safety andlevel focuses, for example, on developers of electronic control systems
health protection and is supported by specialist occupational health and(ABS, EMS, ERS).
safety service providers. During the reporting year, proactive and preven- 	Qualification level 3 is aimed at employees who have to ride motortive measures were taken in particular to prevent the spread of possible
cycles in the highly dynamic limit range as part of their operational
COVID-19 disease in the companies of the PIERER Mobility Group.
work. This primarily involves full-time test riders from the Test Street
division. The aim of this qualification level is to enable riders to achieve
greater safety in demanding driving maneuvers and be able also to give
DUE DILIGENCE PROCESS AND CURRENT MEASURES
better test feedback.
In order to achieve continuous improvement in the area of health andsafety, preventive measures are taken to safeguard general safety in theworkplace and employee health. These include fire safety briefings, machine safety, promotion of health in the workplace, general occupational
health services (acute first aid, vaccination advice and vaccination, maternity leave, eyesight tests), integration of employees with a disability, as
well as precautions to ensure suitable and ergonomic workplaces, conflict
management in the workplace and resolution of psychological stress.
Rider training for test riders
A special focus of our efforts is also on the best possible way to prevent
accidents during the course of operationally required test rides with

Employees are required to attend refresher courses on a regular basis tomaintain the particular qualification levels. The period between refresher
courses is currently two years, with the level automatically becoming
invalid after a maximum of three years without any refresher. In 2020, a
total of 186 employees attended the motorcycle training courses offeredby the KTM Riders Academy. Courses ranged from basic beginner courses
to special street training and advanced courses. There were 1,525 hoursof training in total.

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In order to continuously prevent occupational accidents and minimize
COVID-19
hazards, the following measures are taken on an annual cycle accordExtraordinary times call for special concepts. Due to the outbreak of thecoronavirus pandemic, special measures were taken to protect employees ing to the “STOP principle”:
from spring onward:
	
Substitution: Substitution of hazardous working materials with lesshazardous ones. Vehicle tests on roller dynamometers using robot	Establishment of a dedicated KTM COVID team with its own COVID
handling. Most welding processes take place on robotic equipment.
hotline	In-house contact tracing with rapid isolation, usually before any con	Technical protective measures: Safeguarding of equipment with protectact from the authorities
tive guards, protective enclosures, light curtains. Extraction systems
at grinding and welding stations, as well as at facilities with cooling	Hygiene guidelines, mandatory masks in the workplace, capability tolubricants. Ergonomic auxiliary devices when lifting and holding tools
measure people’s temperature
and workpieces.
	Working from home / office splitting	Establishment of the first dedicated test station for assessing PCR and 	
Organizational measures: Design of footpaths and traffic routes.
rapid tests in May; expansion to a larger dedicated rapid test station
Labeling of areas and access restrictions. Restriction on working(throat swab) in October
hours where there is increased force, noise or exposure to hazardous
substances.
	PCR mass testing of over 2,000 employees in August	Between October and December 2020, over 3,000 rapid tests assessed 	
Personal protective equipment for accident-prone workplaces: Continat KTM’s own test station
uous improvement and adaptation of safety equipment. For example,
protective gloves to prevent cuts or safety boots to prevent footinjuries, wrist bandages. Customized hearing protection in noisy areas
The COVID team set up by KTM E-Technologies GmbH developed measures
such as test benches and processing machines. Expansion of operating
in a very short space of time in close coordination with KTM to protect the
instructions and briefings.
health of the employees and to avoid a possible risk of infection in thecompany (e.g. wearing a face covering when leaving the workplace andin public areas, restriction on the number of people in meeting rooms,
Each employee receives a fire safety briefing as well as a general safety
reduction of business trips, testing, home working, etc.). The various
briefing, which is made more specific for the respective workplace (formeasures were continuously adapted to the circumstances at the time
example, briefings on how to operate forklifts and pallet trucks, robot(government measures, recommendations, traffic light system in thesystems, test bench systems, computer workstations, etc.). To prevent acregion, etc.). An internal traffic light system was created to ensure timely cidents and injuries caused by tools and materials, material improvement
action and adaptation of measures in the interest of everyone concerned. specifications are continuously passed on to suppliers and implemented
In addition, a preventive medical check-up including COVID antibody(avoiding sharp burrs on components to prevent cut injuries).
tests for employees was organized and supported. This offer was very wellreceived by the employees.
In addition, the focus for production is on measures from the ongoing KTM
Operations System (KOS): Efficiency is being increased through key perThanks to this forward-looking approach and constant engagement with formance indicators and methods as well as an improved understanding
the authorities, it was possible to implement these measures as wellof roles and increased levels of qualification for employees. Furthermore,as government regulations comprehensively and quickly. This was often
process optimization in terms of cleanliness, order and waste, as well as
done before there was a legal requirement to do so. This prevented any
a focus on standardized working and improved workplace design, reduces
extensive spread within the company and the risk of contracting COVID-19 the probability of accidents at work and therefore helps to increase thewithin the company is considered to be minimal.
level of safety. There is close cooperation in this area with Gemba-Austria(e.g. implementing lean management projects).

SUSTAINABILITY REPORT 2020

KTM E-Technologies GmbH also attaches great importance to the highest
safety standards, regularly trains its employees and ensures that all legal
requirements set out in the Austrian Employee Protection Act are met.
Special safety briefings are conducted for employees who work in areas
with a higher risk potential. The safety briefing is refreshed annuallyfor each employee working with the company INTERGEO. In addition,
employees are given the opportunity to ask questions in a personal safety
briefing. Due to this high safety standard, KTM E-Technologies GmbH
recorded no accidents at work in 2020 which required reporting to theAustrian Workers’ Compensation Board (AUVA).
The company moved to a new building at the beginning of 2021. Here, the* Number of hours worked in 2020: 4,368,239. The method of calculation was adjusted in 2019.
focus is also on safety at the workplaces, especially in the new research
Values for 2018 include reportable work-related accidents, while values from 2019 include all
documented work-related accidents. From 2020 onward, work-related injuries to temporary workers are and development workshops, which in the future will specialize moreevaluated separately. 2020, 2019 and 2018 are therefore not comparable. See table in the appendix.
heavily in the key topic of e-mobility. The safety concept was implemented
in accordance with the latest standards. In the area of battery development, the company has worked with experts to develop completely new
In 2020, the following measures were implemented specifically toconcepts which have not yet been subject to any standards.
improve occupational safety and employee health:
In 2020, 62 work-related accidents occurred at the PIERER Mobility Group(of which 56 involved employees and 6 temporary workers) and, to ourregret, there was also one work-related traffic accident resulting in death
during a motorcycle test ride on the road. All work-related accidents(mainly contusions, cuts and bruises) happened at the KTM sites in Mattighofen, Munderfing and Schalchen. The main causes of accidents canbe attributed to the handling of work equipment and tools, vehicles andother means of transport, as well as a lack of attention, stumbling andtwisting. The injury rate among employees is 12.8 work-related accidents
per million hours worked

	Ergonomic development of workstations in all production areas andselected office workstations.
	Adaptation of the production processes and the technical equipmenton the production lines to reduce accidents at work. (Preassembled
assembly groups are installed on the line.)	Training courses on how to handle industrial trucks in internal traffic.
	Installation of additional extraction systems on machines with dust or
aerosol formation (lathe, vibratory grinding system).
	Improvements to the traffic routes surrounding the company premises,
for example: new road markings made, widening of sidewalks.
	Optimization of work processes and organizational changes in the entire warehouse area and therefore a significant reduction in accidents
at work.
	Ongoing improvements for the continuous implementation of safety
briefings and fire safety briefings with newly recruited employees aswell as catching up on missing or inadequate safety briefings in areas
with an increased incidence of accidents at work or near misses.

Health promotion
In the 2020 reporting year, KTM continued to focus on burnout prevention
and support in the area of health promotion, especially in cooperation
with the occupational psychologist (315 hours of work p.a.) and thehuman resources department. Due to the COVID-19 pandemic, thisincreasingly took place in individual meetings. Specifically, individual
cases were intensively supported by the human resources department
and appropriate measures were taken in the working environment or aninternal change of activity was implemented. In this context, there wasalso the possibility of conflict counseling at the workplace to resolve
difficult work situations. A reduction in psychologically stressful working
conditions was achieved. In addition, great importance was attached
to reintegration into part-time work or integration of employees with adisability. KTM E-Technologies GmbH also continuously supports various
aspects of health promotion. For example, in 2020 the office workplaces
were evaluated together with an ergonomics consultant and the replacement of appropriate office furniture was organized (height-adjustable
desks, office chairs for tall people). The fact that the health of employees
is also constantly promoted at Avocodo GmbH is confirmed by the seal of
approval for workplace health promotion (BGF) from the Austrian Health
Insurance Fund (ÖGK) and this has been the case since the year of thefirst award in 2013. Various sports programs, a regular health day andtalks are always on offer.

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@KTM

E D U C AT I O N A N D T R A I N I N GCONCEPT AND OBJECTIVE

DUE DILIGENCE PROCESSES AND MEASURESIn 2020, due to COVID, the PIERER Mobility Group conducted significantly Structured personnel management as well as the constant pursuit offewer training and development courses in the Austrian companies than personnel development programs are designed to prevent the unwanted
originally planned. The number of hours of training and development for departure of employees from the company. A shortage of skilled staff at
KTM is also being addressed with a comprehensive apprentice training
employees in Austria was around 27,000 hours (previous year: around46,000). The average number of hours per employee was 7 (previous year: program in our own apprentice workshop. In production, a qualification
around 12 hours). See also the table on “Education and Training” in the matrix is used to map the employees’ ability to work. In addition, thismatrix is used to continuously determine the employees’ qualification
appendix.
requirements and to plan further training accordingly.
Due to the high technical requirements, highly trained employees are
In particular, the PIERER Mobility Group will in future increasingly rely on
especially important. In particular in terms of the growth course, risks
online training to deliver training and education of its employees which
may arise if key staff leave the company. In terms of education andis flexible in terms of time and location. Furthermore, we will focus on
training, 2020 was also dominated by the coronavirus pandemic. By
exchanging knowledge internally through experts. This is also the reason
complying with the strictest safety measures and switching to online
why PIERER Mobility has defined its employees as the fourth pillar of its
training, the PIERER Mobility Group was able to continue its training.
Following the positive experiences of adopting e-learning, webinars and success alongside globalization, innovation and brands in the company,
other online training, the focus will continue to be on this type of training and constantly strives to reinforce this pillar by expanding the educationin the future. (This topic will not be discussed separately in the following and training it offers:
paragraphs.)

SUSTAINABILITY REPORT 2020

“KTM_academy training portal” learning management system
Since personal development is now characterized by massive change
in an age of digitalization, a web-based learning management
system (“KTM_academy training portal”) was launched in 2019. This
makes the training and education of KTM AG employees even more
attractive, efficient and transparent. In 2020, the system was further
optimized and improved. In this context, “mini-administrators” weretrained in individual areas in order to work even more efficiently. The
plan for 2021 is also to connect KTM E-Technologies GmbH to thelearning management system.
Onboarding of new employees and managers
The onboarding process has been continuously optimized in order toenable a swift start and effective integration of new employees in
the company. Managers conduct feedback meetings with employees
both at the end of the probationary period and at the end of the
fixed term to ensure sustainable and qualified onboarding. Welcome
days are regularly offered for new employees and, in addition toa presentation about the company, they also include guided toursof all production areas and a shared lunch to allow people to get
to know each other. Each fall, apprentice welcome days geared tocatering for the needs of apprentices are organized. 2020 saw the
introduction of a new pre-onboarding e-learning course (“Welcome @KTM”) which new employees complete before their first day of workin order to be best prepared for their start at KTM AG. This e-learning
course contains important information about the company, such as
the company history, company brands and information about thecompany management. Furthermore, new employees can find general
information about internal conventions such as working hours,
catering, further education and training. In addition, before they start
work, new employees receive a pair of VR glasses by post which they
can use to take a virtual tour of the entire company. What is more,
the VR glasses enable new employees to be introduced to their future
workplace, colleagues, premises, benefits etc. before they first startwork. After the first day of work, additional e-learning courses on
the Code of Conduct, DSGVO and IT security are available for further
induction. This offering is constantly being expanded. The quality ofthe onboarding process for apprentices who have completed theirtraining and their transfer to the respective departments was also
improved in 2020.
Employee appraisal
Structured and standardized employee appraisals are conducted
as part of a “performance management” system. Formal employee
appraisal interviews are mandatory for all white-collar employees
across the company. The concept and the associated guideline - theso-called “KTM Performance Talk” - was further improved andoptimized and is only implemented in this form in parts of the PIERER
Mobility Group. This is where the company attaches great importanceto preparing for the appraisals in great detail. For this reason, all new
managers receive mandatory training on the “KTM Performance Talk”
in a special training session. “Refresher training” is offered to existing managers. An e-learning course is available to all employees to

@KTM

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help them prepare. This e-learning course was completely redesigned and industry-specific content can be learned here. The new language is taught
intuitively using what is known as the “Dynamic Immersion Method”. This
revised in 2020, offering new content and an improved learning experimethod is based on pictures, videos, stories and interactive exercises.
ence for existing and new employees.
Employees allocate the time flexibly themselves.
Training priorities
In the operating companies of the PIERER Mobility Group, training and ed- Digital Transfer Manager course
ucation is delivered by attending external and in-house training sessions The trend towards digitalization requires changes to work processes andthat are specifically tailored to the needs of KTM and KTM E-Technologies in qualifications. The course helps to improve creative capabilities, tocommunicate strategic methods and to apply the skills learned to generGmbH. In 2020, we were also largely able to safeguard the training andeducation of our employees by switching the training courses to an online ate new and innovative digital solutions. Special topics such as “Digitalformat. For example, in-house training courses such as “Leadership” and Strategy” or “Opportunities of Digitalization” are addressed in great
training courses in the area of project management were partly conducted depth in this course. The 9-day course culminates in a transfer paper,
which is presented to a jury and company representatives.
in person (compliance with the strictest safety regulations and testingof the participants) or switched to interactive online formats. Feedback
Training support
from participants and trainers is collected after each training course toIf employees demonstrate special performance and a high level ofsafeguard quality.
self-motivation, KTM helps them to complete a degree or training as aforeman alongside their job. The prerequisite for this is that the chosenManagement training
subject is related to their current position or possible positions at KTM.
Effective management is an important factor for success in achieving
KTM provides financial support by paying costs, but also by granting spethe corporate objectives. Experienced managers have the opportunity
cial leave, free time to prepare for examinations, or traditional part-time
to refine or expand their skill set and develop additional skills during
education. In 2020, the system of providing support for training costs wasmanager training. New managers are provided with support to help
revised and standardized across the company.
them assume their role successfully. 2019 began with a management
course designed specifically for KTM. All hierarchical levels are trainedwith the same methods and content on the subject of leadership, so that COOPERATION WITH UNIVERSITIES AND UNIVERSITIES OF APPLIEDSCIENCES
there is a shared understanding of leadership within KTM. In addition,
attendees networking with each other makes a significant contribution tostrengthening everyday teamwork. This training course was optimized and Academic courses
KTM promotes joint activities with universities and universities of applied
successfully continued in 2020.
sciences. New career opportunities for employees were launched in 2019
together with the LIMAK Austrian Business School. The offer includes a
Project management
KTM Young Pioneers College and an exclusive KTM Digital IntrapreneurIn the area of project management, KTM has many different standards,
ship MBA. The programs focus on general management, leadership andprinciples, wordings and methods. The aim of the KTM Academy is todigital intrapreneurship. The KTM Young Pioneers College is aimed atoffer a consistent and comprehensive range of training courses thatmanagers and employees who do not yet hold a management position but
cover different levels of experience, approaches and methods in order
who show great development potential. The KTM Digital Intrapreneurshipto provide helpful inputs for a wide range of target groups which can be
MBA is aimed at managers and specialists. Participants were selected via
used in everyday working life. Together with Primas Consulting as theprovider and with representatives of all the departments in which project both a written and a video application as well as an analysis of potential.
management is operated, we have developed a training concept that sup- The first group at the KTM Young Pioneers College celebrated their graduports all areas in the company with future projects, as well as facilitates ation in 2020. The very positive feedback from the participants related incross-departmental cooperation in the project. The training includes pro- particular to the interdisciplinary exchange throughout the college.
vision for beginners and experts as well as the possibility of certification.
Training participants are selected on an interdisciplinary basis to promote KTM E-Technologies GmbH cooperates with various colleges and universities in research projects and student research projects. It has provenexchange between different divisions of the company.
to be a successful model for getting young and committed students
involved in the company at an early stage in the form of an internship or
Online language training
student placement. These students can then also write their final theses
In 2020, online language training was introduced in collaboration with
(Bachelor, Master or Diploma) here and then have the prospect of beinga multi-award-winning provider. Here we offer our employees language
training in the form of e-learning and 1:1 live tutoring sessions with highly taken on as permanent employees. For the past three years, a business/science cooperation has existed with the Johannes Kepler University
qualified trainers, individually tailored to the respective language level.
Linz (JKU) within the framework of the Christian Doppler Laboratory for
Both the basics of the respective language as well as job-specific andSUSTAINABILITY REPORT 2020

Structural Strength Control of Lightweight Structures. On this basis, twodissertations are being supported in the field of additive manufacturing,
one of which has already been completed with an excellent mark.
Focus on sustainability, also in cooperations
The intention is to embark on joint projects to give more focus to theissue of sustainability and promote an ongoing working relationship with
universities and universities of applied sciences, essentially in order tocombat the lack of skilled staff. The aim is to establish an open network
to exchange experiences and get to know potential future employees.
At the same time, this makes it possible to establish the areas in which
action needs to be taken and how the measures can be drawn up by
working together. Specific projects in this context include cooperations
with universities and technical colleges for participating in jobs fairs
and also orders for technical assignments and of course the awarding ofinternships and degree theses. Furthermore, KTM also maintains various
cooperations with Formula Student teams in the form of technical support
and/or sponsorship in order to recruit the skilled workers of the future. A
good example is our rookies event with Formula Student at which students
had to solve technical tasks.

program”. The internal training of a new employee takes at least 6-12
months. The long-term solution to prevent a shortage of qualified junior(management) staff is a regular sales trainee program to meet future
demand. Trainees receive comprehensive training in the most important
areas. In the 18-month trainee program, college and university graduateswith a specialism in sales and a passion for motorcycles can optimallycombine theory and practice. Furthermore, these participants of the Young
Pioneers College are involved to ensure networking within the company
and to acquire new knowledge together with colleagues. At the same time,practical experience is gained directly in sales management and closely
related areas. International experience is a top priority, and this is why thetrainees also spend some time in our offices in France, the UK or the USA.
After this 18-month period, there is then the opportunity to immediately
take up a permanent position at KTM in sales management.
APPRENTICE TRAINING
In 2019, KTM started its participation in the association z.l.ö. - zukunft.
lehre.österreich. The association has set itself the goal of making apprenticeships the most attractive form of training in Austria once again. As amember, KTM can on the one hand provide its experience and expertise.
On the other hand, apprenticeship training benefits from this network withmutual interaction and support. A significant contribution to improved
teaching conditions can be made here.

The primary focus for the regional support of sustainability is on working
with the (surrounding) communities of Mattighofen, Munderfing, andSchalchen, for example in the form of utilizing regional facilities fortraining courses and sessions or also our company’s own toddler groups
in Mattighofen and Munderfing. Close cooperation is also maintained with Apprentice training forms an important aspect of HR strategy, as theemployees make a significant contribution to the company’s success. This
compulsory schools, for example as a project partner and sponsor of theis why KTM will be investing around 2.5 million euros in the expansion“Lego League”.
of its apprentice workshop in the next few years. This will create thefoundations for significantly increasing the number of apprentices to 200
The dual master’s
As a combination of theory and practice, we offer a dual master’s program within the next two years.
in Automotive Mechatronics & Management in cooperation with the UniWith the KTM_academy, further emphasis is placed on the quality of theversity of Applied Sciences Upper Austria in Wels (FH Wels). The participants in this program work for us on a part-time basis during their degree. training as an apprentice. The aim is to enable the apprentices to obtain aqualification in their specialist area at high-school diploma level throughThe features of this dual training are lecturers with technical know-how
specific additional courses offered by KTM. The KTM_academy offersfrom the automotive industry, top laboratory equipment at the UAS andemployees the opportunity to pursue an apprenticeship with a high-school
the fixed study period of 4 semesters as well as the master’s thesis in
diploma, university entrance qualification courses, foreman training and,cooperation with us. Each year, 2-3 students complete this training.
subsequently, an academic career through dual study. There is still aguarantee of a job for apprentices who have successfully completed their
Sales trainee program
The general shortage of qualified junior (management) staff in the area of apprenticeship, and a motorcycle if they achieve ‘good’ or ‘distinction’ onsales and the desire to establish an attractive program in the labor mar- their apprenticeship certificate.
ket for graduates has prompted the company to develop a “Sales trainee

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As of the reporting date of December 31, 2020, we employed around 170
apprentices (previous year: around 160), who were training in 15 vocational training programs:
	Operational logistics administrator
	Office clerk
	CAD construction (mechanical engineering)	E-commerce administrator
	Events management assistant	Industrial purchaser
	Information technology (systems engineering or operating technology)
	Automotive engineering (motorcycle engineering)	Mechatronics (production engineering)	Mechatronics (automation technology)
	Media specialist – in combination with professional photographer
	Metal technology (mechanical engineering)	Metal technology (welding technology)
	Process engineering	Forwarding manager

International Skilled Workers Exchange
Since 2017, KTM AG has enabled apprentices to spend time abroad in
England and Ireland through the organization IFA (International Skilled
Workers Exchange). Commercial and technical apprentices support small
local businesses with their expertise and are able to improve their own
language skills. In addition to language skills, the exchange essentiallystrengthens their awareness of other cultures but in particular theirself-confidence. In 2019, six apprentices took part in the international
skilled workers exchange and spent four weeks abroad. 20 apprentices
expressed an interest in applying to participate in 2020. The exchange
program could not take place due to the pandemic and will be partly
continued in 2021.

Digital training management - “Apprentio”
In 2020, the digital training management system “Apprentio” was introduced in apprentice training. The software makes it possible to implementa uniform approach and thus supports the quality of training in companies, “Apprentio” is used by the main trainers in the KTM apprentice
workshop, the trainers in the specialist departments and the apprentices
It is a central aim of the company to continue to employ apprentices when themselves. First and foremost, the software provides an overview ofthey have completed their training. This satisfies the company’s require- which apprentice is assigned to which area and also enables the main
trainers, via this app, to plan and administer the rotation, internal andment for well-trained specialist staff and at the same time helps young
external training as well as when the 170 apprentices are at vocational
people to make a good start to their professional lives. The cornerstonecollege. In addition to the improved overview, the process for creating theof apprentice training is our own apprentice workshop. This is where thebasic training in all technical apprenticeship trades and special training learning objective checks is facilitated and fully digitalized. In addition,
programs is delivered, and it enables our future technicians to familiarize Apprentio enables us at the end of each rotation to store feedback forms
which can be completed directly in the system by the trainers and thethemselves with the company as much as possible. Apprentices rotate
apprentice.
through the various specialist departments in which they are trained.
Great store is placed by the technical and teaching qualifications of thosetraining the apprentices along with their social skills. Social and methodological skills are also promoted at KTM AG, in addition to specialist
skills. Each year, all apprentices participate in a team building exercise
together. Apprentices work on projects together, present the results, andtheir teamwork and mutual trust are strengthened in a trip to the Pullman
City Western Town in Bavaria. In the reporting year, 33 employees who hadcompleted training were integrated into various specialized areas in KTM
AG. Of these, more than 28 successfully passed their final exams with
distinction and were able to receive a brand-new motorcycle as a reward
at a celebratory event in the KTM Motohall, to which their parents werealso invited.

SUSTAINABILITY REPORT 2020

DIVERSIT Y AND
EQ U A L T RE AT M E N T
The PIERER Mobility Group regards it as particularly important for all employees to be treated with fairness and respect. In order to counteract therisk of unequal treatment, we create a working environment characterizedby mutual trust, in which each individual is treated with dignity andrespect, and in which people from diverse cultures and with different personal backgrounds are valued equally. As an international Group, we value
the diversity that is reflected in the origin, culture, language, and ideasof our employees: In the reporting year, employees from 48 nationalities*
were employed in our Group.
* Based on the number of nationalities at the company location in Austria (KTM AG incl. subsidiaries
in Austria).

DUE DILIGENCE PROCESS AND MEASURES

Creating more flexible working arrangements
Increasingly flexible ways of working (part-time positions, home office
and flexible working hours) should also make it possible in the future toachieve a good work/life balance and therefore return to work and staywith the company over the long term. In the reporting period, a total of
84 employees returned to work in the PIERER Mobility Group after theirparental leave (of which around 30% were women). The rate of return
was approximately 94% in the last year. As a result of the new flexitime
agreement since 2019, a major step has been taken in the area of flexible
working hours in order to make it possible to reconcile work with family
requirements based on a person’s current personal circumstances.
Childcare
To support working parents, 23 childcare places are available in thecompany crèches in Munderfing and Mattighofen for children of KTM
employees aged between 1 and 3 years. Employees are therefore given theopportunity to have their young children cared for by a qualified team ofeducators during working hours from Monday to Friday in exchange for avery small contribution to costs. This offer helps fathers and mothers toorganize childcare. In addition, KTM pays part of the childcare costs.

Integration of foreign employees and people with disabilities
To promote and support the integration of foreign employees, KTM works
with “Hotspot Innviertel” and KTM E-Technologies GmbH works withITG (Innovations- und Technologietransfer Salzburg GmbH). As part ofthe cooperation with Hotspot Innviertel, around five events per year areorganized explicitly for foreign employees to help them to integrate in theregion or Austria. In Salzburg there is also a regular expat gathering where Support for women in STEM professions
To support women in STEM professions, KTM AG has already implemented
new expats can network. Furthermore, all employees are provided withseveral measures (Girl’s Day, technical apprenticeship) that are constantly
a pocket guide which gives them legal guidance and useful information
about integration in Austria. The activities are managed and implemented being expanded. Every year, KTM invites interested girls to gain an insight
into the company’s technical training. In addition to receiving a guided
by the HR department of the respective company.
tour of production, on Girl’s Day they can also get involved themselves bymachining key chains, working on engines, carrying out measurements
In addition, measures are actively being taken to promote integration at
on electric panels or removing entire wheels at various stations. The
all levels. To this end, a defined number of jobs are given to individuals
stations are expertly supervised by KTM’s trainers. The number of girls on
with physical and/or mental disabilities. A structured process is also
technical apprenticeships is rising steadily.
being introduced to better integrate employees with disabilities into
company departments. As of December 31, 2020, a total of 48 people withdisabilities (measured by the degree of disability reported) were employed Employee rights are safeguarded within the company by the works
council. The works council with 13 members in Mattighofen represents thein the PIERER Mobility Group.
interests of the workforce. The works council, a member of the Supervisory Board, is actively informed about ongoing developments in the company
and involved in decisions.

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OUR COMMITMENTS@KTM

Spinal cord research

KTM youth support programFor many years now, KTM AG has been supporting the organization “Wings The past four YOUNG FIGHTERZ seasons have already demonstrated that
KTM is committed to promoting young talent. The promotion of young
for Life”, a non-profit, state-recognized foundation for spinal cord research, which has set itself the goal of finding a cure for paraplegia. With motorsport talent remains an important topic. Austria’s young riders in
the help of donations, promising research projects and clinical studies to the 85cc class are referred to as YOUNG FIGHTERZ. All riders, regardlessheal the injured spinal cord are supported around the world (in 2020 with of which make, or whether a license holder or amateur rider, are eligible
a contribution of EUR 110,961.06). The organization is also a matter close to participate. Following the great success of the 85cc training camps into the hearts of many employees, and so many respond to the annual call previous years, the YOUNG FIGHTERZ training series was extended last
to participate in the Wings for Life Run. In 2020, 400 employees took part year to include two camps for riders in the 65cc class, the MINI FIGHTERZ.
in the “Wings for Life” Run, in a different way owing to COVID-19: employ- These training camps have been very popular for many years and were
ees had one week to run as far as they wanted and collected money with also a fixture of the KTM youth support program in 2020. The YOUNG
every kilometer. A total of 14,287 kilometers were run. Every single kilome- FIGHTERZ and MINI FIGHTERZ camps take place at various carefully selected venues that offer the best training and development opportunities.
ter represents one euro (EUR 14,287), which will be donated by KTM.
Local Enduro greats help the youngsters to develop their cross-country
skills. This gives young talented riders the opportunity to share their experiences with heroes and role models from the national motorsport scene
and get tips from the pros. The main emphasis at all camps is on having
fun and enjoying the sport of motocross.

SUSTAINABILITY REPORT 2020

Innovation Lab - workshops for children andyoungsters
At KTM, technology and innovation areparamount. It is important to KTM to makethe younger target group more aware oftechnical subjects that are also applied in the
KTM world. Learning the basics of electricalengineering, programming and digital designin a playful way are the focus of the workshopsthat children and youngsters can attend in theso-called Innovation Lab in the KTM Motohall.
Together with the Linz-based art, science andtechnology center ARS Electronica Solutions,
the KTM Motohall was able to further develop
and optimize the content of the workshop andcreate an educational concept as a basis andguide for the workshop supervisors. The younger target group learns to develop a curiosity fortechnical subjects, become more involved withthem and acquire expertise.
“Learning by doing” is the motto: all children
and youngsters need to bring along is theircreativity, the rest they learn in a very playful
way, for example in the form of soldering, doodling (using 3-D pens, children and youngsters
are allowed to paint with melted plastic andthus create a three-dimensional motorcycle, forexample). In design workshops, they learn how
3-D scanners and 3-D printers work, they design their own motorcycles on the design board
and then cut them out on the laser cutter.
“Motorcycle of the Future”
With its in-house Innovation Lab, KTM Motohall
presents itself as an industry partner of theeEducation Austria initiative, a project of theFederal Ministry of Education, Science andResearch. The Innovation Lab is an educational
facility for students which was developed
together with the Linz-based art, science andtechnology center ARS Electronica Solutions.
The focus of the unique project concept called“Motorcycle of the Future” is the didacticallymeaningful use of digital media as well as
boosting digital and IT skills (digi.komp) in
Austrian classrooms. Our common goal: Digital
education for all!

@KTM

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@KTM

In the Innovation Lab workshops, children and youngsters aged 6-15 can Ladies Camp – “Girls only!”
playfully learn how to use the latest design and production processes
One of our main media partners, Austria’s Motorrad Magazine, organizes
and the associated tools. Didactically prepared documents serve as a
the Ladies Camp at the Wachauring once a year. What’s special about thisbasis and guide for the workshop supervisors. The younger target grouplearns to develop a curiosity for technical subjects, become more involved event is that only “ladies” are allowed to attend the weekend, with about
with them and acquire expertise. The compulsory exercise “Basic Digital 100 places for each day of riding. In addition to know-how workshops
Education” aims to develop pupils’ basic digital skills. This measure sup- on various topics, experienced instructors from ÖAMTC Fahrtechnik also
ports eEducation with teaching materials for teachers and learners. KTM demonstrate exercises in motorcycle control in designated areas. This iswhere the ladies receive training in the basics of riding such as how toMotohall also contributes didactically prepared teaching content for all
new secondary school (NMS) and academic secondary schools (AHS) lower brake, evasive maneuvers, leaning position, where to look as well as how
to handle dangerous gritted passageways. In addition to the workshops,
levels (digi.komp) as preparation and follow-up work for the bookable
workshops. This content is worked through in three teaching units in the which the ladies attend on their own bikes, all the major manufacturers
classroom as part of preliminary project work, includes a visit to the KTM are present on site. The attendees can test their way through the product
Motohall including a rookie tour and a workshop in the Innovation Lab and ranges of KTM, Husqvarna, GASGAS but also through rival models.
is concluded with project follow-up work in school. The whole “Motorcycle
Employee recognition - 50 years at KTMof the Future” project focuses on designing your own motorcycle of the
future using 3-D printers and design software. It will be possible to bookthese workshops from the start of 2021. KTM Motohall is officially starting A 66-year-old employee was honored for his 50 years of employment at
KTM AG. He started his career at KTM in frame construction at the age
the project together with the TNMS Mattighofen.
of 16 and, in order to complete a full 50 years, he worked two months
beyond retirement age. The Executive Board recognized this great level ofenthusiasm and dedication by the employee. To mark his anniversary, CEO
Stefan Pierer and his colleagues on the Executive Board Hubert Trunkenpolz, Viktor Sigl and Thorsten Hartmann presented him with a restored“KTM Comet” built in 1968, as a retirement gift.

SUSTAINABILITY REPORT 2020

III.

ENVIRONMENT AND RESOURCES,INNOVAT ION A ND PRODUC T ION

RE S E A RCH & D E V E L O P M E N T
CONCEPT AND OBJECTIVE

strategy. Our globally active development organization has an interdisciplinary network of developers from various specialist areas, such as
design, calculation and simulation, in order to drive product development
For KTM AG, as the leading motorcycle manufacturer in Europe, it is ourdeclared goal to continue to grow to further expand our leading role when forward as efficiently as possible. In addition, at the various development
locations in Europe (Austria, Spain), in the USA or India, the company has
it comes to technology, sales and sustainability in the world of motorits own extensive range of plant and machinery, which is responsible forcycling. Research and development has therefore been the focus of ouractivities for many years. The strong commitment to the development divi- the production, assembly and validation of newly developed prototypes
sion of KTM AG and the close cooperation with KTM E-Technologies GmbH and supports our product development in an optimum way. In addition to
our primary goal of driving forward product and technology development
therefore represents a key pillar of the success of the PIERER Mobility
in the area of sustainable mobility concepts (such as electrified vehicles,Group. The progressive R&D strategy has produced innovative products
reduction of noise and exhaust emissions), in the past financial year
which meet the expectations of our customers in terms of technology,
performance and efficiency. At the same time, it makes it possible for us we continued to focus on increasing product development efficiency by
evaluating and further developing our process landscape in the area of reto develop ongoing and lasting new markets.
search and development as well as in production. Due to limited personnel
resources (short-time working), development projects were reprioritized,
One of the cornerstones of our product strategy is developing solutions
and concepts for sustainable mobility in urban environments. In particu- which meant that there were no significant delays to production launches.
lar, energy-efficient, electrically powered two-wheelers that share the
The research and development department of KTM AG is organized globalroad with cars, bicycles and public transport make up an essential partof the solution. We therefore understand a sustainable approach to mean, ly with decentralized locations in Europe (Austria, Germany, Spain), America and Colombia so that it can respond optimally to the requirements ofabove all, the phased reduction of emissions over the entire product life
our customers. The development programs are centrally managed at thecycle.
R&D headquarters in Mattighofen, where the majority of highly qualified
employees from the research and development department are based. The
DUE DILIGENCE PROCESS AND CURRENT MEASURES
research and development center at the headquarters in Mattighofen is
an innovation hub extending over more than 20,000 m². At our developWe give particularly high priority to early recognition of trends in thePowered Two-Wheeler (PTW) segment and the further development of our ment sites, performance-oriented products for the Powersport segment
products in terms of their functional and technical aspects. This includes, are designed, developed and tested using state-of-the-art testing
methods. The central aim of our efforts is to set new standards in thefor example, constantly improving the efficiency of our products andreducing emissions along the entire product life cycle. At the same time, motorcycle segment - especially in the areas of riding safety, performance
we make great efforts to track and implement customer requirements in and technology, so that we can offer our end customers the best possible
product experience.
our products and services in order to further build upon our pioneering
position and in order to guarantee a market-oriented product development

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E-MOBILITY COMPETENCE AND DEVELOPMENT CENTER
KTM E-Technologies GmbH is one of the leading specialists in the designand development of vehicles with electric drives. The company, which
is based in Anif near Salzburg, has a state-of-the-art infrastructure forvehicle development, which is used for the development of mechanicalas well as electrical/electronic components, but also enables complex
simulation tasks such as topology optimizations and crash analyses. In
2020, KTM Technologies was renamed KTM E-Technologies GmbH. Thiswas done on the one hand to highlight the new function as the Group’s
e-mobility competence and development center. On the other hand, thisis intended to create a clear corporate profile in the area of e-mobility
within the Group and on the market, so that KTM E-Technologies GmbHcan also be flexibly deployed as a strategic development service provider
of Pierer Mobility AG with a focus on e-mobility. The wide range ofexpertise, which was also restructured internally in 2020, extends frommaterials engineering, design, simulation, electrics/electronics and software to prototype construction and testing. The focus here is on concept
and series development for new e-vehicles and new electric drivetrains,
supported by the already established engineering services (design, simulation, CFD, crash, ...) and in-house technology development (lightweight
construction, composites, additive manufacturing, ...).

One of the key factors for the design of our electric powertrains is
maximizing system efficiency, which is achieved by adopting modern
simulation methods in combination with special test benches for electric
drive systems. Suitable simulation methods are used to evaluate different concepts, and also for the mechanical, thermal and electromagnetic
requirements that are identified. Last but not least, the functional safetyof the E/E system plays a major role, and this is a central element of thedevelopment expertise of KTM E-Technologies GmbH.

For validation and testing, investments were made in the last 2020
financial year in particular in new test benches for the engine, battery
and complete vehicle. New software for risk management, requirements
engineering and testing was also introduced and expanded. This allows
the various technical and legal requirements, FMEAs and tests to be
defined, tracked and documented. Alongside the development of newvehicles and drives, the end of 2019 also saw the start of the site infrastructure expansion for the further development of e-mobility activities.
The conversion work was completed on schedule at the end of 2020, sothat the new E-Mobility Center could be opened at the beginning of 2021.
Activities or overarching goals for 2021 of KTM E-Technologies GmbH are:	Expansion of the focus on e-mobility and the associated expertise
New mobility solutions for the L category	Service and cooperation with strategically relevant third-party cusThe research and development projects that are currently being adtomers and partners, with the aim as far as possible of also retaining
vanced are working on improving mobility solutions. For example, electricthese over the long term
drives and battery electric energy storage systems are being developed	All projects are to be carried out with a view to series production
and optimized for specific applications. One example is the researchcapability
project “EMotion”, which was launched in 2020 and will run for 3 years.
	Economic success in conjunction with “added value” for the GroupIn this project, eleven partners from industry and academia are jointly
developing L-category electric two-wheelers specifically for the young
EMPLOYEES & INVESTMENTS
generation (16-18 years) and older generation (50+). These cost-effective, energy-efficient and comfortable electric two-wheelers are designed The development, testing and transition to series production of new
to provide users of conventional vehicles with a viable and environmen- concepts in the particularly technology-driven motorcycle premiumtally friendly alternative with a reduced footprint for their daily commute. segment require a steadily growing, inter-disciplinary team of specialists
This project is supported by funding from the Climate and Energy Fundfrom a range of disciplines. This is reflected in the renewed increase in
and is carried out as part of the “Zero Emission Mobility” program.
the number of employees in the Research and Development department.
As of December 31, 2020, the PIERER Mobility Group had 808 employees
Goals and technological solutions of EMotion*(previous year: 789), representing 17.6% of the total workforce in the
Research and Development department. In operational terms, excluding	Innovative lightweight construction and component arrangement
the ancillary effect of capitalizing and amortizing development expenses,(AREA I)
9.0% of total revenue was spent on research and development.
	Highly efficient electric drive and charging components (AREA II)	User-oriented human-machine interface together with a novel onboard information system (AREA III)
*Further information on the EMotion project can be found at https://www.ait.ac.at/themen/
propulsion-technologies/projects/emotion/

SUSTAINABILITY REPORT 2020

AREA I
expected mass reduction of structural
frame 15%

AREA III
increase of user experience andusability through novel HMI concept

vehicle demonstrators
D1: L1e-B with 4 kW
D2: L3e-A1 with 8 kW
AREA I
expected size reduction of vehicle
packaging 10%

AREA III
increase of driving range by on-board
information system 10%©KISKA GmbHECODESIGNAREA II
expected efficiency increase ofelectric motor 3%© AIT, KTM

AREA II
expected energy density increaseof battery 10%

AREA II
expected power density of on-board
charger 1000 W/l

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RE S P O N S I B L E
P RO CU RE M E N T
CONCEPT AND OBJECTIVE

In order to grow as a company together with our supply partners
and to achieve continuous improvement in all areas, we rely on
open and transparent communication. For new developments of
The issue of procurement has become increasingly important
SE* and principal components, we work together with our supply
in recent years. A mature supply chain from the supplierthrough to the production sites in Mattighofen and Munderfing partners at a very early stage of development in order to jointly
is primarily intended to ensure the availability of parts at
design components that support our goals from a technical,
economically competitive costs, but also to create a basis forcommercial and logistical point of view. Here, as is customary
the parties involved, for suppliers and for customers to allow
in the industry, we are working with our R&D department on
long-term business relationships to be established or expanded. approaches such as design to cost, cost engineering andcomponent standardization.
In order to be able to implement these goals, various employees from the areas of purchasing, quality management andresearch & development contribute their expertise before a new The selection of the right supply partners takes place in thepurchased part is awarded to a supplier selected in a tender.
Purchasing, R&D and Quality team, taking into account our
Fair payment and fair working conditions, both in the company’s commodity group strategies. This ensures that all criteria areown operations and in the supply chain, form the basis for ataken into account in their entirety in the decision and that thelong-term working relationship based on trust. The immediate next steps are planned together. These key criteria include ISO
effects of the coronavirus pandemic, for example with suppliers 9001 certification, technical possibilities, security of supply,
affected by illness, as well as the upheaval in the global
quality, competitiveness and communication. Together witheconomy as a result of the coronavirus crisis place even greater our supply partners, we work to ensure quality and supply
demands on safeguarding the availability of parts. In order tobefore series production begins. In cooperation with the Quality
be able to specifically identify and resolve risks emerging from department, we carry out product and process audits andthe coronavirus pandemic at an early stage, the supplier risk
coordinate capacities and production quantities at an early
assessment has been revised and the corresponding risks have stage based on existing demand figures. The common goal isbeen reassessed for each country. A program has also been im- to deliver an efficient start to series production and a stable
plemented to provide advance warning of any global events that series supply following the delivery schedule in order to ensure
have a direct or indirect impact on the supply chain. In addition, that our production receives an optimum supply of parts. An
we continuously assess at an early stage whether there is a risk optimum supply also involves agreeing sensible production
to the supply of materials from suppliers.
and delivery batch sizes with our supply partners in order tokeep inventories in the supply chain and in our component
DUE DILIGENCE PROCESS AND CURRENT MEASURES
and vehicle assembly line as low as possible (working capitalmanagement).
Taking into account and complying with the regulations of*BMÖ: Federal Association for Materials Management, Purchasing and Logistics in
our Code of Conduct, the working relationship with our supply
Austria; BME: Federal Association for Materials Management, Purchasing and Logistics
partners benefits from long-term, consistent points of contact in Germany. SE: Simultaneous Engineering.
in purchasing, which we can ensure thanks to a low turnover ofstaff. Our expertise in the area of purchasing is continuously
increased through further education and on-the-job training.
Based on their personal learning concept, our employees continue their education through purchasing courses in cooperation
with the BMÖ/BME*, technical training or KTM’s own MBA in
cooperation with LIMAK in Linz.

@KTM

SUSTAINABILITY REPORT 2020

The basic prerequisite for a functioning supply chain is constantcommunication
The basis for cooperation with a supplier for our series production is thatthe supplier has introduced a quality management system (at least inaccordance with ISO 9001). We satisfy ourselves of the quality of the
products and the production standard by making regular visits to our
suppliers’ sites. For the largest suppliers, we aim to make an on-site visit
at least once a year. However, the pandemic meant that these visits had
to be greatly reduced during the last financial year. Working conditions,safety aspects in production, environmental protection and the responsible use of resources also have an impact on the overall impression madeduring the inspections of production sites. There are plans to formally
document these criteria in 2021.

Suppliers with above-average performance are presented with a quality
award once a year (KTM Supplier Excellence). The quality award is given
to those suppliers that have not been the cause of any complaints for 12months and have supplied products at least in the last 12 months. In
addition, criteria regarding the level of turnover and the signing of thequality assurance agreement must be fulfilled. Furthermore, there must
be no justified objection from the quality and purchasing management.
In addition, we regularly evaluate the financial situation of our supply
partners and request that they take out product liability insurance. Abovea certain purchasing volume, we can offer our supply partners the option
to participate in our specially developed supply chain finance program.
This program offers our supply partners a financing program on KTM
terms and enables KTM to extend the terms of payment for the purpose ofworking capital management.

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Purchasing volume per continent(series purchasing):
Europe86%Asia
13% (incl. Turkey)
America 1%

Procurement strategy and purchasing volume
By implementing local procurement strategies for our production sites
in Munderfing and Mattighofen, among other things, we try to boost
the economy of our own region and generate lower transport costs
and more environmentally friendly supply chains by having shortertransport distances. The regional supply industry contributes to alarge extent to KTM AG’s success as a company.
When awarding new projects, emphasis is placed on supporting social
enterprises, taking into account local procurement strategies. Thismeans that suitable projects are preferably awarded to inclusive
businesses in the region.
	The purchasing volume of components for the series production of
motorcycles was approx. 560 million euros. Geographical breakdown: 2% from the district of Braunau, 17% from Upper Austria,
34% from Austria, 69% from Austria/Germany/Italy and 86% from
Europe.
	The bicycles are purchased fully assembled from a partner inEurope (approx. 65%) and a partner in Asia (approx. 35%).
	The purchasing volume for indirect materials and services for theplants in Austria was approx. 175 million euros. The majority wasprocured within Austria: 13% from the district of Braunau, 31%
within Upper Austria, 70% within Austria, 90% within Austria/
Germany/Italy and 98% within Europe.

50%

The general conditions for cooperation with our supply partners
are set out in standardized documents such as a non-disclosureagreement, purchasing conditions and manufacturing conditions.
The document for the purchasing conditions is available to download
on our website (https://ktmgroup.com/en/procurement/). These
include sociological as well as environmental criteria on items suchas compliance, quality, manufacturing, product liability and shipping,among others.
Procurement of parts for prototype construction
The procurement of parts for prototype construction at KTM E-Technologies GmbH and KTM AG is arranged according to the time schedule and demands on quality and costs. As a rule, proven suppliers
from the local region (Salzburg, Bavaria region, Upper Austria, etc.)
are commissioned for this purpose. Short transport routes, reliability and flexibility are our top priorities here. Compliance with legal
standards and a value-based, entrepreneurial approach are also basic
requirements here.
Suppliers must therefore comply with PIERER Mobility’s complianceguidelines and pledge to sign the Code of Conduct and comply withthe rules and principles of conduct contained therein.
NEXT STEPSAt the turn of the year 2020-2021, a project for inbound supply waslaunched and is intended to combine the needs and demands of all
departments in the future and accordingly optimize the variants ofinbound deliveries. In this project, for example, picking hubs or similar
will be examined for their feasibility in order to be able to utilize thecapacities in the supply flows more optimally in the future.

Purchasing volume in Europe (series purchasing):

40%
30%
20%

UngarnDänemark

Rumänien

Vereinigtes
Königreich

Luxemburg

Schweden

Schweiz

Portugal

Polen

TschechienFrankreich

Slowakei

Slowenien

Niederlande

SpanienDeutschland

ItalienÖsterreich

10%

SUSTAINABILITY REPORT 2020

ENVIRONMENTAL ASPECTS ALONG
THE PRODUCT LIFE CYCLE
CONCEPT AND OBJECTIVE

accordance with ISO 14001:2015. In the course of the implementation, oursustainability goals will also be defined. Certification of this environmental management system (EMS) is planned for mid-2021 and will include
The PIERER Mobility Group is aware of the environmental impacts assoKTM Components GmbH as well as KTM AG. Every employee will be trained
ciated with the production and in particular the use of its products, andon the environmental management system and will therefore be required
therefore strives in particular to use natural resources responsibly. The
products developed, produced and sold by PIERER Mobility AG are various to act in an ecologically responsible manner.
vehicle concepts adapted to the various usage profiles of our customers.
The portfolio ranges from vehicles for active leisure activities (Motocross, Important steps in the implementation of ISO 14001:
Enduro, etc.) to uses in the field of urban mobility. Thanks to its broad	Definition of environmental targets
product range, the company has various levers at its disposal that enable 	Integration of the environmental management system into the existinga sustainable reduction in emissions in all mobility areas and along themanagement system with the associated processes
entire life cycle - from product development and product manufacturing to 	Identification of relevant environmental aspects and their effects
product use. Activities for the purpose of safeguarding the environmental 	Expansion of the waste management system
goals are coordinated in large parts of the PIERER Mobility Group in the	Presentation of energy and material flows and derivation of potential
respective departments of the company. In addition, work is currentareas for improvement
ly underway to implement an environmental management system in

E N V I RO N M E N TA L
A S P EC T S I N D E V E L O P M E N T
A N D P RO D U C T I O N
As far as the development and production of its products are concerned,
the PIERER Mobility Group always attaches great importance to theefficient use of raw materials in a manner that conserves resources,
and sustainable handling of the resources used for the development andproduction process. This is why increases in efficiency in many areas, inaddition to the maximum possible utilization of raw materials - including
their return to the material cycle - represent a particularly important
aspect for PIERER Mobility AG.
The operating and administrative buildings of KTM AG are built according
to the specifications of OIB Guideline 6 (energy performance certificate
for non-residential buildings, or energy performance certificate for otherbuildings). An energy certificate is only available for newer buildings asof 2013. The manufacture of preliminary products and finished products

generates various waste materials that are recycled according to type.
The materials to be recycled are aluminum, stainless steel and steel
waste, which are handed over to a certified specialist waste managementcompany in various quality grades. Efficient use of materials and thefullest possible utilization of raw materials, including their return to thematerials cycle, prevent unnecessary waste of materials and also ensurethat any waste produced is disposed of properly. For the transport ofpreliminary products and finished products within the Group structure, we
use a very large proportion of circulating or reusable containers which wehave manufactured specifically for our needs. The preparation of oil canalso contribute toward protecting the environment. Following an engine
test bench run, the oil is filtered in a reprocessing plant and then returnedto the oil tank. This means that it is no longer necessary to change theoil, and the environmental impact of disposing of it after just one use is

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reduced. The aluminum chips produced during the mechanical millingof cylinder heads and engine cases are conveyed via a central extraction
system by means of a vacuum through a pipe system directly from the
CNC milling machine into a collection container. The aluminum chips areprocessed at a recycling company and can be turned back into a valuable
raw material. All aluminum castings machined in-house are cleaned
in a solvent-based (alcohol) parts washing machine. In comparison towater-based systems, this method of cleaning parts does not produce any
waste water, which has to be disposed of at great cost.
POLLUTANT EMISSIONS FROM VEHICLES (EMISSIONS)
Within the organizational structure of KTM AG, in addition to the actual
vehicle assembly, there are also manufacturing upstream operations,such as frame construction and exhaust production, which form part ofthe energy-intensive industry due to the high proportion of joining andmachining process steps. At the sites of the PIERER Mobility Group,
greenhouse gas emissions are generated directly through the combustionof fossil fuels (Scope 1 emissions) and indirectly through district heatingand electricity consumption (Scope 2 emissions). This means that thepercentage of greenhouse gas emissions (in CO2 equivalents) associated with the production or assembly of our products is around 1%. The
majority of greenhouse gas emissions, around 99%, are generated during
the use phase of the vehicles sold (Scope 3 emissions). Furthermore,
greenhouse gas emissions per vehicle sold in the production phase (Scope1-2) were 0.05 t CO2-e (previous year: 0.06 t CO2-e) and in the use phase(Scope 1-3) were 3.68 t CO2-e (previous year: 3.82 t CO2-e). For the firsttime, motorcycles sold directly by Bajaj in the financial year were also
included in the calculation. There was thus an adjustment or clarificationof the calculation with the KTM models also including India retrospectively
for 2019 and 2018. The detailed table can be found in the appendix.

This equates to a total energy saving of 741.04 gigajoules in the 2020
reporting year.3
Reduction in energy demand for products
The calculations for CO2 emissions and fuel consumption of our soldvehicle fleet are based on the specifications and assumptions of theWorld-Harmonized Motorcycle Test Cycle (WMTC). This method waschosen because it provides a globally harmonized approach. Previously,
the calculations were based on the specifications and assumptions of
the New European Driving Cycle (NEDC) or the voluntary commitment of
the ACEM (European Association of Motorcycle Manufacturers). With theintroduction of the WMTC test cycle and the EURO 4 emissions standard
on January 1, 2016, the reporting year 2016 was chosen as the base year.
To allow better understanding, we do not state the vehicle consumption injoules, but in l / 100 km as usual.
ENERGY- AND WATER CONSUMPTION
In 2020, electricity consumption at the PIERER Mobility Group* was
18,927,287 kWh (previous year: 20,831,528 kWh) and gas consumption
was 17,924,474 kWh (previous year: 20,063,068 kWh). At KTM AG, around
317,000 liters of fuel were consumed for the test benches in the past financial year (previous year: around 480,000 liters) and water consumption
from production was around 3,364 m³ (previous year: 3.618 m³).
*exclusive of KTM Innovation GmbH, PIERER E-Bikes GmbH, Avocodo GmbHIn the 2020 reporting year, the legally required energy audit was carriedout for the energy consumption areas of buildings, processes andtransport in accordance with Section 9 of the German Energy Efficiency Act (the energy consumptions were determined in accordance withthe energy audit methodology EN 16247-1). In the course of the energy
audit, all energy consumers of PIERER Mobility AG were recorded andReduction in emissions advanced
evaluated. The sites at Mattighofen, Munderfing and Anif near Salzburg
The average CO2 emissions of our reported vehicle fleet in 2020 were
78.44 g/km (internal calculation of Pierer Mobility AG). This means that were selected as reference sites. Due to the energy used to provide spaceheating, consumption is primarily concentrated in the area of buildings.
we reduced CO2 fleet emissions by 0.65 g/km in the reporting year, also
thanks to the growth in sales of electrified and ICE models with small and The area of transport is the third-largest individual area of consumption
after production machinery. The survey and analysis of the current energy
medium displacements (< 900cc) (2019: 79.09 g/km).
situation shows that energy efficiency is receiving attention in the PIERER
Mobility Group: The company has already implemented various energyBetween 2016 and 2020, Pierer Mobility AG thus reduced the CO2
saving measures (for example, use of timers for parking lot lighting,emissions of its newly sold vehicles by 3.43% (2019: 2.64%). The
partial conversion to LED). Existing facilities are also regularly examined
introduction of new models with drive technologies featuring lower fuelfor their potential to be optimized. In order to achieve further energy
consumption and emissions continues to have a positive impact on our
average fleet values. Average fuel consumption in the 2020 reporting year savings, future projects will focus on the vehicle fleet, the compressed
was 3.4 l/100km. Fleet fuel consumption was reduced by 2.75% compared air system, lighting and energy control (see the example in the “Building
services” section). The measures and reviews in this context also serve toto the 2016 base year (2016: 3.5 l/100km).
comply with the state of the art and thus counteract the risks of increased
energy costs and negative environmental impacts due to increased CO2
1 Since 01/2016, all L-category vehicles in the EU must be registered according to the new type test
emissions.
cycle WMTC. This concerns all two-, three-, or four-wheeled vehicles according to Article 4 andAppendix I (Enduro motorcycles (L3e-AxE (x = 1, 2 or 3)), trial motorcycles (L3e-AxT (x = 1, 2 or 3))
and heavy off-road quads (L7e-B)) of EU Regulation 2013/168/EU which are intended to be driven
on public roads. The fleet value is based on the homologated test values according to WMTC.
2 The consumption is based on the homologated test values according to WMTC.

3 Calculation in gigajoules (GJ) based on Net CV according to DEFRA for “Petrol (averagebiofuel blend)”.

SUSTAINABILITY REPORT 2020

DUE DILIGENCE PROCESS AND MEASURES TO REDUCE CONSUMPTION

For comparison: An average Austrian household consumes 4,415 kWh ofelectricity per year, according to the Association of Austrian Electricity
The introduction of an environmental management system in accordance Companies - with an increasing trend. In the final stage, the plant willthus supply approx. 2,000 households. The photovoltaic system as anwith ISO 14001:2015 is being prepared at the Mattighofen and Munderenvironmentally friendly technology on the roof of KTM AG will also deliver
fing sites. A pre-audit by TÜV Süd was carried out at the end of Januarya CO2 saving of 1,400 tons per year in the very first construction phase.
2021. The first environmental audit is expected to be completed by theend of March 2021. The certification audit is scheduled for summer 2021. The second construction phase with an output of four megawatts will also
The environmental management system will be integrated into the exist- be realized in 2021, and construction phase three - with a further three
ing management system and the effective implementation of the defined megawatts - will follow in 2022.
management processes will be safeguarded via the existing internal audit
processes. In the course of implementing the environmental management Use of materials and efficient use of infrastructure
system, relevant environmental aspects will be identified. The issue of
The key objective for KTM AG in developing new engines and vehicles in
reducing consumption will play a key role in this. Based on the findings
the high-performance motorcycle segment is, in particular, to use maof the 2020 energy audit report, corresponding targets are defined andterials that meet the requirements - for example by using high-strength
monitored by the existing management system.
steels and composite materials for its chassis and engines. By usingstate-of-the-art construction and simulation software, it has also been
To make it possible to continue to increase efficiency and permanently
possible to establish a reliable strength design, minimize the number
reduce the use of resources in the research and development department, of prototype parts required, as well as significantly reduce the specificongoing stock analyses and a targeted purchasing strategy for consuma- component weight. For example, the component weight of the frame of ables have been introduced. The number of prototype components required road model which entered series production in 2020 was reduced byfor the development of new engines and vehicles is to be reduced further 1.9 kg - this is equivalent to approx. 20% of the component weight. At
in the future by means of anticipatory test planning and simultaneous
the same time, the performance of the component in terms of its strength
multiple use. Furthermore, activities relating to raw materials developand flexibility parameters has been significantly improved. Another examment and the resulting weight optimization of new components continue ple is the further development of the 450cc off-road engine which, withto be promoted.
a total weight of approx. 27 kg, is around 1.6 kg less than comparable
competitors.
Sustainable energy source on the roof of KTM
As part of the construction of the new “House of Brands” office building
In KTM AG, the test bench infrastructure and also other installations
at the Munderfing site, a photovoltaic system covering a total area of
within the research and development departments are subject to a de679.8 m² was also commissioned in July 2019. This system is designed to tailed capacity utilization plan which ensures efficient use of infrastruccover the office building's own consumption.
ture, and enables any maintenance and repair work that may be necessary
to be scheduled at specific times and reduced. Furthermore, a precise
separation of recyclable materials generated in the development process
During the period from July 2019 to February 2021, 220,080 kWh ofelectricity was produced by this photovoltaic system. Due to the lack of a is carried out at all KTM AG sites - more details on this can be found in
the “Waste management” section below.
smart meter, it is not possible to make a valid statement about how thereciprocal amount of energy was bought or sold. This additional module
is to be retrofitted by the end of the second quarter of 2021. After that,
more precise information can be provided about the amount of energy
generated.
The roof area of the KTM logistics center in Munderfing was rented out
for the construction of another photovoltaic system covering 40,000 m².
This system is designed to feed electricity into the public grid and will be
realized in a total of three construction phases by 2022 - it will serve as
an energy source with a total output of eleven megawatts. The operator of
the photovoltaic system is Ökosolar PV GmbH (Austria). Over an area of
24,000 square meters, a total of 12,000 modules as well as 60 inverters
with an output of four megawatts will be put into operation in the first
construction phase in 2021. In total, this will produce a sustainableamount of 3.5 million kilowatt hours (kWh) of energy per year.

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Vehicle assembly: One line – three brands
The assembly lines of the vehicle assembly department (FAS) in
Mattighofen are designed to be sufficiently flexible that both road andoff-road motorcycles of all brands (KTM, HUSQVARNA, GASGAS) can beassembled on them. Following assembly, the functional check is carriedout on specially designed test benches. The test process can be carriedout with very little set-up effort on any of the existing test stands,
regardless of the type and size of the motorcycle.

Building services
In order to reduce energy costs and keep the indoor temperature as
constant as possible even during the winter months, in 2020 the final lockgates were installed in the incoming goods area. Furthermore, lighting
consumption will be continuously optimized both at the factory site andwithin the assembly halls by using timers. In addition, a new hall lighting
system for production will be commissioned in summer 2021.

Infrastructure expansion in Anif near Salzburg
The workforce at KTM E-Technologies GmbH moved into a newly
renovated building at the beginning of 2021. The hall area covering
approx. 5,000 m² contains the workshop and test benches as well as asmall office area. In addition, it is equipped with the very latest safety
technology. In the course of the renovation work, the existing cooling/heating technology was replaced for the entire building and substituted
with air source heat pumps. Heating is provided by a low-temperature
heating system. The office building was modernized (in respect of room
Recycling of production material
conditioning) by installing interior insulation and replacing all windows.
A further focus is on gradually switching over to sustainable andWith the move to the new building, more parking spaces are available
reusable packaging units. This includes both internal suppliers (engine
for employees, and above all there are more bicycle and (e-)two-wheeler
construction and component production) and external suppliers.
Packaging from external suppliers was switched over from disposable to parking spaces. Furthermore, e-charging stations for e-vehicles arerecyclable containers - five suppliers did this in the reporting year - a total being installed.
of 45 suppliers have already switched to recyclable packaging. In 2021,
there are plans for a further three to five suppliers to make the switch. Our Breakdown of materials in motorcycles
goal is to standardize the use of reusable packaging for all new projects, The graphs reflect the breakdown of the materials used in KTM AG motorcycles. The basis for the calculation is data on representative vehicles
such as with our current supplier for the new 1290 Super Adventure.
from all production areas. The weighting results from the materials used
for each model listed.
In order to optimize the consumption of resources, the required quantityof auxiliary and operating materials is controlled and, if necessary, optimized during the assembly process as well as during the testing process.
For example, the amount of grease applied for lubricating the steering
head tube on assembly line 1 was considerably reduced by developing adosing unit. A changeover on assembly lines 2, 3 and 4 is being planned.

Steel & iron: 83.85 kg

Steel & iron: 41.827 kg
Other materials: 8.374 kg

Other materials: 23.865 kg

Thermoplastics: 18 kg

Textiles: 0.4 kg

Elastomere (e.g. tires,gaskets): 9.96 kg
Non-ferrous metals(including aluminium): 33.12 kg

Thermoplastics: 15 kg

Motorcycle construction:
KTM 790 Duke MY20
Total weight ofapprox. 169 kg

Motorcycle construction:
Enduro 350 EXC-F MY21
Total weight ofapprox. 99 kg

Textiles: 0.4 kg

Elastomere (e.g. tires,gaskets): 8.61 kg
Non-ferrous metals(including aluminium): 25.151 kg

SUSTAINABILITY REPORT 2020

Packaging material used
For disposable packaging, we use the following quantities per vehicle forthe models listed above:	
Enduro 350 EXC-F
Depending on the destination, disposable packaging is used for somevehicles. This packaging consists of a wood / cardboard mixture. The
weight of this packaging is 34 kg.
	K TM 790 Duke
Depending on the destination, disposable packaging is used for somevehicles. This packaging consists of a wood / cardboard mixture. The
weight of this packaging is 46 kg.
WASTE MANAGEMENT
In 2020, a waste management officer was appointed in this area. After
reviewing the existing documents (ongoing process), the new division
managers made various adjustments in the area of implementation,
recording and delivery of waste management. The desire to achieve
ISO:14001/2015 certification meant that the implementation of themeasures was accelerated and is expected to be completed by mid-2021.
Special attention has been paid here to reintroducing separate plastic
collection and improving waste paper separation in offices. Refinementsin the area of raw material separation are also important and planned,
as is the improved labeling and assignment of hazardous waste. In orderto achieve an even higher rate in the separation of the various waste
fractions, an improved training structure for employees is to be integrated
for the future. On the recommendation of KTM AG, the waste managementcompany will be certified as a specialist waste management company in
02/2021.
During the course of motorcycle production, we have to deal with considerable amounts of waste. A large part of the waste that is produced
comes from certain product-specific steps during production. This starts
with the processing of engine cases (aluminum chips, drilling emulsion)and continues with the manufacture of exhaust systems (steel, oil-water
mixtures, stainless steel) and vehicle frames (steel, coolant) and also
extends to the manufacture of products in general (packaging materials
such as wood, cardboard and plastic). With our measures, we take thenecessary steps to avoid or reduce waste and to recycle secondary raw
materials. An example of waste reduction is our reusable racks, which
are used as packaging for transporting motorcycles in Europe (disposable

packaging is currently used for overseas shipments). Thus, in the reporting year, KTM AG and KTM Components GmbH were able to recycle
661.0 tons (previous year: 735 tons) of metal waste (separated into
various scrap fractions, excl. aluminum waste); 267.5 tons (previous year:
265.8) of aluminum waste; 3,126 tons (previous year: 3,324.8) ofrecyclable waste. Furthermore, 267.8 tons (previous year: 255.3) ofhazardous waste and 500.3 tons (previous year: 611.4 tons) of otherwaste that could not be recycled was produce. This list focuses on theoperating companies of the PIERER Mobility Group. The detailed table canbe found in the appendix.
In 2020, the amount of waste per vehicle produced was around 34 kg(in 2019 around 32 kg). The reason for the increased amount could not be
conclusively determined at the time of reporting. We expect the result of
the analysis at the end of the second quarter. Depending on the
production volume, the waste produced (both steel and aluminum) is fed
into the recycling cycle at a rate of up to 90 - 95%.
ACTIVITIES AND MEASURES IN THE (E-)BIKE DEVELOPMENT PROCESS
Sustainability already plays a central role in the area of research &development at PIERER E-Bikes GmbH. The aim is to make every phaseof the product life cycle environmentally friendly - from the choice of raw
material suppliers to disposal and recycling. Effective measures can betaken into account throughout the product development process in orderto manufacture products that are as environmentally friendly as possible.
For example, new processes and procedures can reduce energy consumption, save material or replace existing materials with more sustainable
alternatives. A concrete example of this is the use of thermoplastics.
Plastic polymers soften when heated and can be molded; they solidify
when cooled. Owing to their unique chemical properties, thermoplastics
can be reshaped and recycled without negatively affecting the physicalproperties of the material. This is why they are increasingly being used for
all types of injection molding, for example in frame construction.
If you look at the product range strategy itself, further positive effects
can be achieved by extending the product life cycles themselves. This
strategy has been successfully practiced for a season in the bike ande-bike segment of the R RAYMON and Husqvarna E-Bicycles brands with
so-called takeover or Allstars models.

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LOGISTICS AND SALESCONCEPT AND OBJECTIVE

An innovative example is the motorcycle logistics system used by KTM on
reusable steel racks, which have a service life of 10+ years. Using thesteel rack avoids using wood and cardboard. Each rack, 28,000 units ofwhich are in pan-European circulation, is used an average of 11.5 times ayear. Even though the products we source from overseas are currently still
shipped in wood/cardboard packaging, we are working out and reviewing
with our partner Bajaj the feasibility of a round trip with reusable racks
between India and Europe. In general, products from India are transported
mainly by truck, train and ship. Air freight is avoided whenever possible.

As an international company that exports a great deal and at the sametime places high quality demands on the speed and reliability of thetransport service provided to our customers and a globally diverse supply
chain, we are conscious of the environmental impacts. Working together
and in partnership with the entire logistics industry, we must accept theincreasing challenge to use resource-conserving technologies (forexample by fulfilling Euro 6) and processes to develop efficient concepts
for ever more complex operations. Our goal is to further minimize transportroutes and to continuously reduce packaging material. In addition, in the We work predominantly with global logistics service providers thatmedium term we want to award all paid shipments exclusively to transport are pursuing appropriate initiatives to create traceable and effective
measures to reduce the impact on the environment. The traceability
companies that also focus on sustainable initiatives (for example
is checked, among other things, in the annual quality audits with the
reducing emissions). We pursue different approaches here.
forwarding service providers and also via their sustainability reports
or integrated annual reports.
DUE DILIGENCE PROCESS AND CURRENT MEASURESIn coordination with our production planning systems, we have installed
milk run systems or shipment consolidation at collection points in the
supplier countries of Austria, Germany and Italy, which ensure that freightspace can be utilized in the most efficient way, thus preventing empty
runs wherever possible. KTM also applies this logic globally wherever
optimization makes sense and can be implemented, in particular insupply chains from Japan, China, and India. The import of accessories
and apparel from Asia is also being optimized, with consignments being
consolidated if geographically close at the same port of departure andwhere time allows at defined collection points and transported in fullcontainers. Air freight is only used in absolutely exceptional cases and to
avoid production downtimes.

NEXT STEPSWe also attach great importance to optimizing our supply chain and delivery logistics. For us the following project is particularly worth mentioning:
In the USA, motorcycles are currently only delivered via a distribution
center in Virginia. By the second half of the year, we are planning to set up
a second center west of the Mississippi, probably in Nevada. As a result,
we will reduce the distance traveled in individual deliveries to our dealers
from the current 1,544 miles to 720 miles.

SUSTAINABILITY REPORT 2020

IV.

PRODUCTS AND
CUSTOMERSP RO D U C T Q U A L I T Y A N D
P RO D U C T S A F E T Y
CONCEPT AND OBJECTIVE
PIERER Mobility AG has set itself the goal of manufacturing particularly
safe and high-quality products. Our mission is to reduce the number of
avoidable motorcycle accidents to a technically feasible minimum byusing rider assistance systems, among other things. In particular, we
also involve our relevant stakeholder groups in the testing and validation
process in order to ensure the best possible overall result.
DUE DILIGENCE PROCESSThe entire process of producing a product – from the market analysis, theproduct idea, design studies, design and development, cooperation with
suppliers, procurement of components for series production, parts production, assembly of engine and vehicle, through to packing and dispatch– is mapped by a process-oriented quality management system according
to ISO 9001:2015 and controlled using the KTM process management
system.

prototype phases up to the series product ensures that the highest quality
and safety standards are maintained.
Customer health and safety always have top priority across all productareas of PIERER Mobility AG. The low recall rate - in the reporting period
there was a recall for one KTM model and a recall for one Husqvarna
motorcycle model - is proof of the strict requirements along our value
chain and demonstrates the high product quality of all brands. Further
information on the recalls can be found athttps://www.ktm.com/en/service/safety/ andhttps://www.husqvarna-motorcycles.com/en/service/safety-information/

At Pierer E-Bikes GmbH, the entire product development process is carriedout using tried and tested processes that are constantly being refined inline with the continuous improvement process. Suppliers of safety-relevant and functionally relevant components are integrated into the process
in a timely manner. The finished products are assembled at experienced
assembly plants that are renowned for their excellent quality. Since theproducts produced must meet safety-relevant requirements, we attach
extremely high importance to complying with the legal requirements of the
In order to counter the risk as much as possible of a faulty product andrespective end markets. Appropriate quality planning during the actualof associated potential adverse effects for our customers, we perform
intensive audits on engines and vehicles while production is underway. As product development process ensures that we continue to improve theexisting high standard. In order to further develop the process of correcmost of the vehicles produced are designed and homologated for use on
public roads, we attach a great deal of importance to complying with the tive and improvement measures based on market findings, Pierer E-Bikes
GmbH is planning both an increase in personnel resources and a systemstatutory requirements of the relevant end markets. In order to examine
the effect of products on health and safety in greater detail, and prevent atic database-based evaluation of quality-relevant market information.
them, we set up our own laboratory within the research and development This measure is intended to ensure that any corrective measures can bequickly and efficiently incorporated into both the product development
department for the purpose of analyzing the chemical properties of theprocess and ongoing production.
raw materials used and their interactions for people and environmentalorganisms. Since then, we have successively expanded our capacities forcarrying out material analysis tests, which is why we were again able toimprove development quality in this respect.
In accordance with our product development process, the development
results are already put to the test in early prototype phases by speciallyinstalled test teams in the research and development department as well
as by our factory teams on specially designed test infrastructure and race
tracks. In addition, a testing and endurance testing program spanning all

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The supplier of tailor-made components
In addition, KTM AG develops and produces tailor-made components inclose collaboration with its customers and in accordance with agreed
quality, cost and deadline targets. In addition to the intensive development work on our products, ongoing further development of our processes
throughout the business division also represents a key aspect of ouractivities. Ongoing expansion of the employees’ know-how and thesystematic expansion of the zero-error principle aim to secure and expand
our product and customer portfolio, while profitable growth forms thefoundation of the long-term security of the concern. The PIERER MobilityGroup works closely with its suppliers in long-term partnerships to jointly
develop and manufacture innovative and high-quality products.
Measures for process optimization
	In the KTM Group, the optimization of processes and the reduction ofmaterial inventories continued in 2020. A significant improvement wasachieved, for example, by implementing a new manufacturing system
for the production of the frames of our off-road models. By switchingfrom cell production to a synchronous flow production system, cycle
times were reduced by 70%.
	To ensure and further improve consistent high product quality at theoverall vehicle and component level despite ever-increasing complexity, the internal measuring and testing processes have been further
optimized. In the areas of pipe part production, sheet metal part production and final frame inspection, 3D measuring robots were installed
for measuring the components and semi-finished products.
New test facility for Euro 5
The introduction of the Euro 5 emissions standard in the motorcycle
segment brings with it significantly higher requirements for the exhaustsystem of our vehicles. In order to meet these requirements, new testing
equipment was developed and installed in the production process. The
new process ensures 100 percent tightness of all components that arelocated before the exhaust aftertreatment.
Product safety and quality measures for aftermarket components
In the Suspension division, new EC screwing systems and new fillingmachines were put into operation. These investments guarantee productsafety and quality through complete electronic monitoring of all
safety-relevant processes.

Assembly
KTM AG in Mattighofen assembles an average of 708 motorcycles perday (annual production volume in 2020: around 140,000 vehicles). Eachvehicle component is inspected according to a test plan by experienced
employees trained in the relevant test criteria. At the conclusion of vehicle
assembly, 100% of all motorcycles are subjected to an end-of-line test
(test bench run). This process step is secured by systems engineering, sothat no vehicle can leave production without passing the test. If an error
is detected in the assembly process, it is recorded in the ERP system by
the post-assembly personnel. Each error that is entered is transferred to
the ERP system and created there as a quality notification. The evaluationof the data in the form of reporting is carried out in monthly cycles. In
addition, a vehicle is taken from each production order and subjected toa detailed product audit. Furthermore, in the course of delivery to the end
customer, a pre-delivery inspection is carried out for each motorcycle by
the trained KTM/Husqvarna/GASGAS dealer. A clearly defined inspection
list with all safety-relevant components and systems is worked throughand electronically stored in the vehicle history for each motorcycle in the
KTM/Husqvarna/GASGAS Dealer.Net.
We achieve high product quality in particular through production-oriented
design, the use of analytical and statistical methods of calculation, comprehensive checking and testing, compliance with relevant homologation
rules, a focus on process quality and by using targeted communications,as well as by implementing training measures at all companies in the
PIERER Mobility Group and at the suppliers.
The global assembly sites are professionally supported by a team of highly
skilled QM employees. They make sure that the manufacturing knowhow is passed on to these sites and ensure the quality of the vehicles
produced there by implementing a KTM-compliant quality management
system. Our electric motors and combustion engines are key componentsof our motorcycles and are developed and produced by the PIERER Mobility Group. They guarantee the identity of the products of the brands KTM,
HUSQVARNA Motorcycles and from 2020 also GASGAS. The motto READY
TO RACE is at the heart of KTM's philosophy, character and passion. Since
the company was founded, it has won more than 300 FIM World Championship titles. These are the best proof of the high technical competence ofour products, which go hand in hand with performance and reliability.

SUSTAINABILITY REPORT 2020©CMC

INNOVATIONS AND DEVELOPMENTS IN THE AREA OF MOTORCYCLE
AND RIDING SAFETY

in this new technology was demonstrated in the summer of 2020 at theVolkswagen AG test site (Ehra-Lessien). Application tests were carriedout here on a Volkswagen production vehicle. The goal was/is to perform
The products of KTM AG give it a reputation in many fields as a technology successful tests with Car2X* production vehicles from Volkswagen tovalidate the compatibility of Car2X safety functions.
leader in the motorcycles segment. When it comes to safety, particularemphasis should be made of the world’s first leaning-angle-dependent(or V2X) in relation to wireless communication technology stands for 'Vehicle-to-Everything'ABS “motorcycle stability control” system and the semi-active chassis * Car2X
and is composed of 'Vehicle-to-Vehicle' plus 'Vehicle-to-Infrastructure' communication.
which was fully developed within the KTM Group. The demonstrator prototype of a radar-based, adaptive cruise control system, which can also be
used as a distance radar and emergency brake assistant, was first pre- In addition, a PTW bend warning system was developed in cooperation
sented in 2018 as part of a press roadshow and made the final transition with Volkswagen and a patent application for it was filed. The process is
to series production in the past research year of 2020. The market launch still being examined. This warning system is intended to reduce the risk ofof the first vehicle equipped with this highly innovative safety system, the collision with a motor vehicle that cannot be seen.
KTM 1290 Superadventure, is scheduled for the first quarter of 2021. The
adaptive cruise control system is representative of the Group's innovative At the end of 2020, the Connected Motorcycle Consortium (CMC), ofstrength in the field of safety systems.
which KTM is an active member, recorded videos of motorcycles in various
traffic situations, including a roadworks warning with a KTM model. The
The research and development department of KTM AG is heavily commit- videos demonstrate other typical traffic situations in which only throughted to ensuring the safety of its customers and works on future-oriented the use of using V2V communication is the motorcycle made virtuallysolutions. For example, the “vehicle-to-vehicle (V2V) communication”
visible to a passenger car (all videos can be found atoffers great potential for avoiding accidents. The analysis of accident
https://www.cmc-info.net/safety.html). In addition, technical solutions
scenarios shows that one frequent cause can be found at inner-city
are also being developed further through collaboration with Car2Car.
intersections. In many cases, the narrower silhouette of a motorcycle
means that motorcycles are simply not seen by car or truck drivers. Radiotechnology in the 5.9 GHz band constantly transmits the current position
to other road users, thus forming the basis for warning of an impending
collision. Initial tests with our prototypes were positive. The potential

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CMC ‚Next‘
In order to further increase motorcycle safety and ensure that motorcycles
can retain their mobility role in the future, the motorcycle manufacturers*
have agreed to continue cooperation in the CMC in 2021 as well. The joint
activities will be pursued under the name “CMC Next” and will focus on
topics such as traffic scenarios at intersections and the combination of
sensor technology with V2V. The goal is to examine ADAS systems in cars
as well as motorcycles to create synergies between in-vehicle sensor
systems and connectivity. An important step for “CMC Next” in thisregard is closer collaboration with the automotive and vehicle industry,
as the intention is for motorcycles to communicate in a standardized
manner. Modern vehicles are increasingly equipped with on-board sensor
technology (radar, camera, etc.) and rider assistance systems. Thesevehicle systems need to incorporate the requirements of motorcycles tomake them safer when there is a mixture of traffic including motorcycles.
“CMC Next” advocates the need to develop and standardize customized
motorcycle/car scenarios and tests. The new organization commenced
work in January 2021 to continue to champion the deployment of new
solutions for motorcycle safety.
* Founding members: BMW Group, Honda Motor Co Ltd, KTM AG, Yamaha Motor Co Ltd.

KTM MY RIDE INFRASTRUCTURE

A similar app was also developed for the e-bike segment to display datasuch as the battery level, speed, remaining range etc. on a cellphone,which can then be used as a dashboard on the e-bike. Data science
methods are also used to carry out product improvements. The aim here
is to develop models that are designed to help the rider before dangerous
situations arise on the bike or to support the rider during and after a ride.
Initial successes in the B2B2C environment were achieved in the area of
e-commerce. A new type of reservation platform was developed so thatretailers could allow special editions to be reserved by interested customers, thus optimizing margins in addition to process cost savings.
VR & ARIn order to support the ever-increasing complexity of the vehicles inthe trade, the dealers have been equipped with a pioneering diagnostic
system that also supports 3D applications such as virtual reality (VR) andaugmented reality (AR).
Safety standards
The increasing integration of complex electronic control systems may posesignificant safety risks in the event of malfunctions, which is why they
are subject to stringent development and quality assurance processes.
Functional development in the electrics/electronics area of a motorcycle
is mainly carried out according to the ISO 26262 standard for functionalsafety. Special attention is paid to the complete and correct networking ofsafety-relevant components (e.g. the behavior of the electrically assisted
brake system and the motor control). This ensures that safe operation of
the vehicle can be guaranteed at all times, both in normal operation andin the event of a defect.

In recent years, the development of the KTM MY RIDE infrastructure has
also been advanced. In addition to a system that is able to automaticallymake an emergency call in the event of an accident, this also includes
networking between vehicles of all manufacturers and the corresponding
infrastructure to further reduce the risk of accidents. The PIERER Mobility
A further focus is on the systematic further development of our suppliers,
Group is also involved in various interdisciplinary research projects
so that compliance with safety standards and the smooth integration ofconcerned with similar questions.
the supplied components into the overall system is also ensured there.
For the purpose of a specific strength design, newly developed compoLighthouse projects
nents are subjected to extensive calculations and simulations, structural
Digital innovation ranges from new solutions for the motorcycle to thestrength tests and prolonged load tests according to our own operationaluser experience when gathering information, purchasing products, andstrength process. Future focal points will be the further intensification
before, during and after a motorcycle ride. In 2020, a completely new
digital end-user ecosystem was developed for the PIERER Mobility Group of testing processes and the securing of personal data collected during
brands. This includes a mobile app that serves as a central focal point for the course of networked mobility (GDPR). Similar to the expansion of the
all digital services and functions. One of the first services to be launched testing and measuring capacities in the area of strength design andensuring operational strength, a further area of priority is the expansion
was a user-setting tool for optimal engine and suspension settings forof test bench capacities in the area of emissions development.
off-road motorcycles to enhance and improve the riding experience of
motocrossers! This project was delivered in an agile way as an interdisciplinary project in several areas and successfully placed on the market.

SUSTAINABILITY REPORT 2020

P RO D U C T U S E A N D
RECYCL I N GCONCEPT AND OBJECTIVE

DUE DILIGENCE PROCESS AND CURRENT MEASURES

Activities in the field of vehicles with combustion engines
KTM AG endeavors to further develop its role as a technological leader inthe motorcycles segment in these respects too. Vehicles, that have been
designed and homologated for use on public roads fulfill or fall short ofthe statutory homologation requirements of the respective distribution
markets. Pollutant emissions (including NOx and CO2) are determined andrecorded by KTM AG in the course of the homologation process using inThe regulation on the type approval of vehicles in category “L” (Regulation house exhaust-gas test benches under strict supervision and regulation(EU) 168/2013) stipulates that vehicle types approved for the first timeby the competent authorities. Detailed information on the emissions
after January 1, 2020 must comply with the “Euro 5” requirements. Since values of individual vehicles is recorded in the respective model approval
January 1, 2021, all vehicle types must comply with these requirements.
documents, and is available upon request. Reducing exhaust emissions
Over the course of the 2020 calendar year, all models intended for the
makes a substantial contribution toward protecting the world’s climate,
EU area and for operation on public roads were newly type-approved
and therefore forms a key area of priority in current and future developin accordance with the “Euro 5” regulations or their type approval wasment projects.
raised from “Euro 4” to “Euro 5” by means of an amendment. Series
production of the first “Euro 5” model took place in July 2020 (sample
In the 2020 financial year, development activities on our range of internal
series of KTM 890 Adventure models). The last “Euro 4” model for the
combustion engines were intensively advanced. Particular focus was
EU area was produced in December 2020. Since January 1, 2021, only
placed on improving performance while reducing fuel consumption and“Euro 5” vehicles have been produced for the EU area and for operation
pollutant emissions. For example, some models that comply with theon public roads. In addition to the “Euro 5”-compliant vehicle types, types new Euro 5 emissions standard were already successfully transferred towith other specifications are also produced. These vehicle types are notseries production in 2020. The development team is already working on
intended for operation on public roads in the EU area. These are vehicle
technologies that provide for a further reduction in pollutant emissions fortypes for sale outside the EU or vehicle types that are not intended for
future generations of engines. Another focus of the reporting year was tooperation on public roads. These are, for example, vehicle types that are
further increase the efficiency of our engines through mass centralization
operated exclusively on closed tracks (or at any rate not on public roads) and optimization of the entire engine package. The effects of COVID-19
for training purposes or in the context of motor sport events.
were primarily felt in the form of a severe reduction in the travel activitiesof our developers (the R&D area is associated with very high-frequency
Our goal is to bring products to market that meet the latest environtravel due to the heavy consultation with development partners andmental standards or are environmentally friendly and at the same time
the necessary testing of new development stages) and various delays
also offer a high level of additional benefit to the customer (individualin deadlines with our supply partners or in the delivery of prototype
mobility). Especially during a pandemic, many people want to be able tocomponents.
be independently mobile. We want to combine these two topics in the best
possible way and heavily promote the development of low-emission andlow-noise vehicles (solutions for sustainable mobility in urban environments, such as the Husqvarna e-scooter). To ensure that electric mobility
is adopted by a broader group of the population, we aim to raise awareness among our dealers and customers through regular interaction tofacilitate the switch to electric two-wheelers. We also offer products withlow-voltage technology which deliver many benefits for all parties: storage
and transportation are easier, a significant reduction in the training
needed for dealers, use of existing charging infrastructure (for example,
all electric motorcycles can be charged using standard household powersockets), environmentally friendly battery disposal.
As a mainly assembling company, KTM AG is not part of the energy-intensive industry. However, we are aware that the production of the individualcomponents, the assembly and also the use of our products along theentire life cycle is associated with considerable environmental impacts,
including the exhaust and noise emissions associated with combustion
engines.

53

54

lithium-ion cells and thus a correspondingly large quantity of valuable raw
The OBD (onboard diagnostics) systems used in our motorcycle models
materials whose recovery for further use is extremely important in relation
monitor emission-relevant components during riding, and notify theto increasing electric mobility in the future of individual transport. In ordercustomer (rider) of any malfunctions. This avoids a situation in which
vehicles with possibly increased levels of pollutant emissions are ridden to promote the careful use of these valuable resources, a function was implemented on the dealer communication platforms of the sales companies
for a longer period of time without this being noticed. In principle, allthrough which the authorized KTM dealer network is obliged to register
motorcycles homologated at the factory for use on public roads in the
EU are equipped with an electronic onboard diagnostic system (OBD-1). In every powerpack that is put onto the market. This is done in the form
particular, the vehicles homologated in the EU in accordance with the Euro of a delivery certificate which is to be registered in the system both for
powerpacks in the motorcycle and for spare powerpacks. If the powerpack
5 exhaust emission standard are also equipped with a software-based
weakens or becomes defective during the product life cycle, it can also be
OBD system (OBD-2), which offers an extended range of functions. The
equipment with the respective OBD system is based on the European and repaired directly by the manufacturer and reused in the motorcycle.
internationally applicable homologation requirements for vehicles. The
intensive series development and testing of these models have represent- Battery disposal
ed a significant part of our research and development programs in recent Another approach is the disposal of batteries in accordance with theyears. Even models intended for markets in which the OBD system is not current EU regulation. For this purpose, KTM works together with a wellknown recycling company. In December 2019, a cooperation agreement
mandatory are voluntarily equipped with the OBD system. Our researchand development department is working on the development and further was concluded with the ERP (European Recycling Platform) on the basisof which the requirements of DIRECTIVE 2006/66/EC will be implemented
development of the engine control units and the OBD system so thatlevels of exhaust emissions and fuel consumption can be reduced further more specifically for KTM/Husqvarna/GasGas. This means that the ERP
in a sustainable way. An important aspect in the development of vehicles will centrally report all batteries “placed on the market” to the respective
homologated for use in road traffic is to reduce emissions such as exhaust state authorities (24 countries) for KTM/Husqvarna/GasGas. Likewise, theemissions from the combustion process and evaporative emissions from disposal of all types of starter or powerpacks at the end of their life cycle
can be handled by the ERP partners in the countries, or the collection ofhydrocarbons (= fuel).
used batteries can be handled directly by the ERP organizations. Since
the subsidiaries have so far complied with the obligations of the directive
Activities in the field of vehicles with electric powertrains
A further priority lies in the development of CO2 emission neutral electric on individual agreements, this measure, which is managed from company
vehicles for various areas of application. KTM AG has had such a product headquarters in Mattighofen, will make it possible to meet the complianceobligations more efficiently in every respect.
in its portfolio for many years in the form of the purely electrically powered “KTM FREERIDE E” models. With the FREERIDE E (electric motocrossPackaging and recycling of (e-)bikes
motorcycle in series production), KTM is a pioneer in the light e-mobility
When it comes to the packaging and recycling of (e-)bikes, we havesegment. Thanks to developments in the battery sector, it has beena long-standing cooperation with the renowned full-service partner
possible to increase the range here by 50% in recent years. With the
Go4Recycling in Cologne, Germany. The company has set itself the goal
KTM E-SX 5 and HUSQVARNA EE-5 models, an electric motorcycle forchildren has been successfully taken into series production and marketed. of making a significant contribution to a sustainable increase in global
KTM E-Technologies GmbH offers in-house e-mobility expertise, including recycling and recovery rates. To achieve this, Go4Recycling ensures all
international environmental obligations in the areas of WEEE/waste
the development of its own components. Work is being done on electric
electrical equipment, packaging and batteries are met centrally - with adrive systems in the power range from 4 to 11 kW and battery platforms
worldwide, central registration and licensing body. An enormous contriin the 48 volt range for planned series. In a series development project
bution to sustainability can be made through the right type of disposal,
with our partner Bajaj Auto Ltd. in India, a joint platform for electricselecting operational disposal partners/concepts, classifying and avoiding
two-wheelers was developed and will be used for the brands of bothwaste materials/packaging and end-of-life products. As a service providpartners for various product variants. The market launch of the firster, Go4Recycling takes care of all international registrations, notifications
Husqvarna electric scooter is planned for 2022. Through our continuousof disposal quantities for all countries in which PIERER E-Bikes GmbHdevelopment of alternative drive technologies, we are thus making a
operates.
significant contribution to climate protection.
Recovery and recycling of batteries
KTM pays special attention to the recovery and recycling of lithium-ion
batteries. This applies in particular to the powerpacks which are installedin the electric vehicles. This refers to the powerpacks of the KTM FREERIDE E, as well as KTM SX-E and HUSQVARNA Motorcycles EE models,
which were introduced to the end customer market from 2014. These
batteries come under what is known as high-voltage technology due totheir high energy content of up to 3.9 kWh and an operating voltage of up
to 302.4 volts, depending on the design. They contain up to 360 individual

SUSTAINABILITY REPORT 2020

CU S T O M E R S E R V I CE
KTM AG has a global service network of approx. 3,000 (with India
approx. 3,500) specialist motorcycle workshops to meet the highdemands placed on the quality of our products. These meet definedquality standards with regard to infrastructure, equipment with special
tools and training. The workshop specialists are trained using the“train-the-trainer” principle from headquarters by means of face-to-facetraining units lasting several weeks, a self-study e-academy, mobile
learning modules and live webinars.

WP Suspension has also been included in the centralized Learning
Management System (LMS), which means much easier access to training
for all WP dealers.

Support is also guaranteed for HUSQVARNA motorcycle models developed
before HUSQVARNA Motorcycles was added to KTM AG in 2013.

Offering high product quality for our customers and ensuring that theirmotorcycles are always right up to date
Recognizing process reliability, analyzing product quality
Commercial orientation and managing successCustomer satisfaction and loyalty

The full integration of the bike division also relied on the proven processes
and structures of the motorcycle model. With Dealer.net a virtual communication platform for parts procurement and warranty processing was
created. All dealer inquiries are handled via the Support Center, and end
customers have the option of submitting their support requests via theB2B: In order to offer dealers and importers optimum technical support, website.
a so-called “Global Support Center” was rolled out in 2019: a ticket
system with an underlying support workflow and connected knowledge In addition, as of June 2020 for KTM and Husqvarna, and as of September
database. In this way, not only can “help for self-help” be offered, but 2020 also for GASGAS, a switch was made to paperless operating instructions. This environmentally friendly measure has also massively reduced
knowledge growth can also be generated directly from all markets. In
our monthly printing and provisioning costs (around EUR 90,000). There isaddition, the service level is made measurable.
now a new option for ordering operating and repair manuals in paper formor as a .PDF by submitting an online request (print on demand: a separate
B2C: End customers also have the opportunity to submit support
requests via the website, which are also handled promptly by the Global website has been set up for this in cooperation with our print shop).
Support Center via the global service network.
Measuring dealer performance
In the form of a KPI dashboard, we have defined six different KPIs fromStreet motorcycles are delivered in Europe's main sales markets withwhich dealer performance can be assessed. Two KPIs will be a prerequi12 months of mobility assistance, which is extended by one year free ofsite for a dealer bonus in the future. This is an important management
charge for the customer with every service in an authorized specialist
workshop. In addition, street motorcycle customers in 15 European coun- tool for us for identifying trends at an early stage and also for being able
to measure and manage any project successes. The KPIs cover these key
tries have the option of taking out an extended warranty. Both services
areas for us:
are handled in cooperation with partners operating throughout Europe.

CURRENT MEASURES
When it came to the training for importers/dealers, the focus in 2020
was on digitalization. For new importers, for example, a “live webinar”
lasting several hours is offered as an introduction and for initial technicalguidance. In the reporting year, there was +121% online training. With theestablishment of a dashboard, a quick overview showing which importers/
dealers worldwide have received training on which topic can be called up
at any time.
Another focus of activities was the integration of GASGAS into our service
network. In order to offer the usual service standards, all subsidiaries
were trained and our platforms such as Dealer.net and the Support Center
were also rolled out for the third motorcycle brand. Service and warranty
coverage as well as spare parts are also guaranteed for GASGAS Trialmodels built before 2020.

In order to be able to integrate all incoming questions from the worldwide
dealer, importer and sales subsidiary network, the Support Center isequipped with a qualitative and quantitative control system. Quantitatively, among other things a service level agreement is used to guarantee theuser response times that reflect how critical the situation is (a distinction
is made between 4 levels).

55

56

NEXT STEPS
Well-prepared support is the key to having satisfied and above all loyal
customers. Customer expectations have changed dramatically in recent
years due to digitalization. To meet these expectations, customer service
activities for all brands will continue to be expanded in 2021.
The Customer Dashboard application, as the most important information hub for the customer, was a key project in 2020 and will be rolled
out after the test runs in 2021. With this application, customers haveall vehicle-related information at their fingertips in one place. Whether

it is information from the owner's manual, information about the next
service, the warranty or the mobility service. The issue of the safety ofour products is also considered here with the direct connection to ourdata systems. This gives us another possible way to inform customers
quickly and securely about our product improvement measures. A contact
form for customer inquiries is also available on the Customer Dashboard(multi-way communication).

Wels, March 2021
The Executive Board

Stefan Pierer, CEOFriedrich Roithner, CFO

APPENDIX
Key figures
GRI Content Index
Independent Assurance Report
Imprint
Contact

Hubert Trunkenpolz

Viktor Sigl

SUSTAINABILITY REPORT 2020

© HUSQVARNA Grand Urban 4 MY20

57

58

K E Y F I G U RE S
I . C O M PA N Y
GRI 205-2
Anti-corruption training
Total number of employees 1)of which manual workers (incl. apprentices)of which white-collar workers (incl. apprentices)of which managers
Executive Board and Supervisory Board

Unit

2020

2019

2018

Headcount
Headcount
Headcount
Headcount
Headcount

4,293
1,822
1,896
575
8

4,190
1,757
1,989
444
8

-

Headcountin per cent

2,669
62%

0
0%

-

Headcountin per centHeadcountin per centHeadcountin per centHeadcountin per cent

741
41%
1,499
79%
421
73%
8
100%

0
0%
0
0%
0
0%
0
0%

-

Headcountin per cent

49
1%

104
2%

-

Headcountin per centHeadcountin per centHeadcountin per centHeadcountin per cent

0
0%
9
0.5%
35
6%
5
63%

0
0%
0
0%
104
23%
0
0%

-

Informing employees about anti-corruption (e.g. Code of Conduct)
Persons informed about anti-corruption
Percentage of people informed about anti-corruption
By employee category
Number of manual workers (incl. apprentices)
Proportion of manual workers
Number of white-collar workers (incl. apprentices)
Proportion of white-collar workers
Number of managers
Proportion of managers
Executive Board and Supervisory Board
Proportion of Executive Board and Supervisory Board
Anti-corruption training (e.g. e-learning or face-to-face training sessions)
Total number of persons with anti-corruption training
Proportion of persons with anti-corruption training (rounded)
By employee category
Number of manual workers (incl. apprentices)
Proportion of manual workers (rounded)
Number of white-collar workers (incl. apprentices)
Proportion of white-collar workers (rounded)
Number of managers
Proportion of managers (rounded)
Executive Board and Supervisory Board 2)
Proportion of Executive Board and Supervisory Board (rounded)

Representation excluding temporary workers and external employees. Managers include members of the Executive Board (excl. members of the Executive Board of PIERER Mobility AG),
managing directors, division managers, subdivision managers, department managers and team managers. Anti-corruption information and anti-corruption training activities for employees
will only be systematically recorded and continuously expanded at Group level from 2020 onwards. In 2019, training courses were only held at KTM AG. Therefore, the information is notcomparable with the previous year. The Code of Conduct is made available to suppliers and subcontractors upon request. 2) In the reporting year, training for the members of the Executive
Board and Supervisory Board also took place as part of the Supervisory Board meeting of KTM AG. Accordingly, all members of the Executive Board and one member of the Supervisory
Board of PIERER Mobility AG were trained.

1) GRI 205-3, 416-2, 418-1
Compliance I Safety riks with products I Data Protection
205-3: Compliance cases
416-2: Incidents with fine or penalty after recalls
418-1: Data protection complaints

Unit

2020

2019

2018

NumberNumberNumber

0
0
0

0
0
0

0
0
0

SUSTAINABILITY REPORT 2020

I I . E M P L OY E E S A N D S O C I E T Y
GRI 102-8
Employees
Total
Full timeof which maleof which female
Part timeof which maleof which female

Unit

2020

2019

2018

Headcount
Headcount
Headcount
Headcount
Headcount
Headcount
Headcount

4,586
4,248
3,450
798
338
110
228

4,368
4,044
3,262
782
324
119
205

4,303
4,042
3,234
808
261
81
180

All data excl. members of the Executive Board of PIERER Mobility AG, incl. temporary workers. In 2019 including Avocodo GmbH and PEXCO GmbH. As of 2020, the employees of PEXCO GmbHare included in the key figures of PIERER E-Bikes GmbH.
Only about 1% of the employees have a fixed-term contract, so no separate subdivision into permanent / fixed-term employment relationships is made in this list. Excluded from this areinterns, diploma/master's students etc. as well as employees in their probationary period (first 6 months of service). Number of temporary workers (incl. Foundation Apprentices) as of
31.12.2020: 294, which is 6.4% of the total workforce. Number of employees: in Austria 3,822 (approx. 83%), in Germany 116 (approx. 3%), in Europe 284 (approx. 6%; excl. AT/DE), othercontinents 364 (approx. 8%).

GRI 405-1
Diversity

Unit

2020

2019

2018

Total employees

Headcount

4,586

4,368

4,303

Managers 1)of which maleof which femaleof which < 30 yearsof which 30-50 yearsof which > 50 years

in per centin per centin per centin per centin per centin per cent

13%
85%
15%
6%
75%
19%

10%
86%
14%
8%
75%
17%

1%
89%
11%
0%
78%
22%

White-collar workersof which maleof which femaleof which < 30 yearsof which 30-50 yearsof which > 50 years

in per centin per centin per centin per centin per centin per cent

41%
70%
30%
36%
55%
9%

46%
72%
28%
36%
55%
9%

54%
73%
27%
32%
57%
12%

Manual workersof which maleof which femaleof which < 30 yearsof which 30-50 yearsof which > 50 years

in per centin per centin per centin per centin per centin per cent

40%
82%
18%
28%
53%
19%

40%
81%
19%
29%
54%
18%

39%
81%
19%
30%
53%
17%

Temporary workersof which maleof which femaleof which < 30 yearsof which 30-50 yearsof which > 50 years

in per centin per centin per centin per centin per centin per cent

6%
85%
15%
46%
50%
4%

4%
87%
13%
49%
46%
4%

6%
90%
10%
66%
31%
3%

All figures rounded. Representation excl. members of the Executive Board of PIERER Mobility AG, incl. temporary workers. In 2019 including employees of Avocodo GmbH and PEXCO GmbH.
As of 2020, the employees of PEXCO GmbH are included in the key figures of PIERER E-Bikes GmbH.
1)
Changed definition of managers, therefore 2020, 2019 and 2018 not comparable. Managers include Board members (excl. members of the Executive Board of PIERER Mobility AG), generalmanagers, division managers, subdivision managers, heads of department and team leaders. 2018: managers in Austria only, 2019: Managers in Europe, 2020: Managers globally.

59

60

GRI 405-1
Executive Board and Supervisory Board

Unit

2020

2019

2018

Executive Boardof which maleof which 30-50 yearsof which > 50 years

Headcountin per centin per centin per cent

4
100%
25%
75%

4
100%
25%
75%

4
100%
0%
100%

Supervisory Boardof which maleof which > 50 years

Headcountin per centin per cent

4
100%
100%

4
100%
100%

4
100%
100%

Unit

2020

2019

2018

Employees
Accidents at work
Injury rate
Serious accidents at work (over 6 months of recovery)
Injury rate of serious accidents
Number of work-related deaths

Numberin Hours
NumberNumberNumber

56
12.8
3
0.7
0.2

101
19.4
14
2.7
0

46
9.1
0

Temporary workers
Arbeitsunfälle
Verletzungsrate
Schwere Arbeitsunfälle (über 6 Monate Genesungsdauer)
Verletzungsrate schwerer Unfälle
Rate arbeitsbedingter Todesfälle

Unit
Numberin Hours
NumberNumberNumber

2020
6
22.6
0
0
0

2019
-

2018
-

There were no changes to the Executive Board and Supervisory Board in the reporting year.

GRI 403-9
Health and Safety

In 2019 the method of calculation was adjusted. Values for 2018 include notifiable occupational accidents (including commuting accidents), while values from 2019 onwards include all
documented occupational accidents (excluding commuting accidents). Accident figures for employees of external companies are available. Injury rate based on injuries per 1 million working
hours. In accordance with GRI standards, the injury rate is calculated on the basis of productive working hours: Number of hours worked in 2020: by employees 4,368,239, by temporary
workers 265,463. Productive hours in 2018 (5,074,350) and 2019 (5,209,176) including temporary and leased workers. Starting in 2020, work-related injuries to temporary workers are shown
separately. For 2020, no productive hours of KTM E-Technologies GmbH as well as Pierer E-Bikes GmbH could be evaluated from the time recording, the evaluation of these hours is underconstruction. In the 2020 financial year, there was one work-related death among employees. There were no work-related deaths in 2019 and 2018.

61

SUSTAINABILITY REPORT 2020

GRI 404-1
Training and Further Training
Total number of employees 1)of which maleof which femaleof which manual workers (incl. apprentices)of which white-collar workers (incl. apprentices)of which managers 2)
Number of apprenticesof which commercial apprenticesof which industrial apprentices
Total number of hours of (further) training of employees in Austria
Average number of hours of (further) training
By gender
Total for male employees
Average number per employee/male
Total for female employees
Average number per employee/female
By employee category
Total for manual workers (incl. apprentices)
Average number for manual workers
Total for white-collar workers (incl. apprentices)
Average number for white-collar workers
Total for managers
		 Average number for managers

Unit

2020

2019 1)

2018

Headcount
Headcount
Headcount
Headcount
Headcount
Headcount
Headcount
Headcount
Headcount

4,293
3,310
983
1,815
1,806
553
171
61
110

3,981
3,062
919
1,757
1,815
414
158
54
104

-

in Hoursin Hours

27,225
6

45,86912

43,13914

in Hoursin Hoursin Hoursin Hours

23,007
76,269
636,698
12
9,171
10

14
12

in Hoursin Hoursin Hoursin Hoursin Hoursin Hours

3,856
2
14,034
8
11,38621

12,6197
23,051
13
10,19925

523
8 	 Representation excluding temporary workers and external employees as well as excl. subsidiaries of Pierer E-Bikes GmbH. Number of apprentices incl. foundation apprentices.
Definition of managers changed in 2019, therefore not comparable with previous year. Managers include managing directors, division heads and subdivision heads; since 2019 also 		
department heads and team leaders are included. The members of the Executive Board of KTM AG were not included in this representation.

1)

2)

62

III. ENVIRONMENT AND RESOURCES,
			 I N N O VAT I O N A N D P R O D U C T I O N
Own indicator
Research and Development (R&D)
Employees in R&D
Employees in R&D as % of total employees
Investments
R&D expenses from revenue

Unit

2020

2019

2018

Headcountin per centin m€in per cent

808
17.6%
111
9.0%

789
18.1%
121
9.1%

678
15.8%
106
8.7%

GRI 305-1, 305-2, 305-3
PIERER Mobility Group CO2 footprint
Greenhouse gas emissions according to greenhouse gas protocol (Scope 1-3):

in t CO2 -e

2020
in per centin t CO2 -e

2019
in per centin t CO2 -e

2018
in per centScope 1: Direct greenhouse gas emissions
Emissions from natural gas procurement at PIERER Mobility Group sites 1)
Emissions from vehicle fleet
Emissions from test benches

5,678.49
3,295.77
1,565.46
817.260.67%
58.04%
27.57%
14.39%

6,565.99
3,688.60
1,619.37
1,258.02

0.83%
56.18%
24.66%
19.16%

6,084.24
3,339.65
1,762.38
982.210.88%
54.89%
28.97%
16.14%

Scope 2: Indirect greenhouse gas emissions "location based" 2)
Emissions from district heat procurement 2)
Emissions from electricity procurement at PIERER Mobility Group sites 1)
Scope 2: Indirect greenhouse gas emissions "market based" 2)
Emissions from district heat procurement and electricity procurement

4,927.95
44.71
4,883.24
2,011.46
2,011.46

0.58%
0.91%
99.09%-

5,495.59
121.06
5,374.53
-

0.70%
2.20%
97.80%-

5,279.79
127.505,152.29
-

0.76%
2.41%
97.59%-

Scope 3: Indirect greenhouse gas emissions
Emissions from commuter traffic with aircraft
Emissions from commuter traffic with private vehicles
Emissions from commuter traffic with rental cars
Emissions from commuter traffic with train 3)
Emissions from commuter traffic with cab 3)
Emissions paper 3)
Pollutant emissions from vehicles (Emissions) 4)

834,556.37
738.05
33.01
61.03
1.74
16.26
1,617.20
832,089.09

98.75%
0.09%
0.00%
0.01%
0.00%
0.00%
0.19%
99.70%

776,723.49
6,790.99
46.75
125.35
0.00
0.00
0.00
769,760.40

98.47%
0.87%
0.01%
0.02%
0.00%
0.00%
0.00%
99.10%

681,914.83
7,881.07
49.13
417.85
0.00
0.00
0.00
673,566.78

98.36%
1.16%
0.01%
0.06%
0.00%
0.00%
0.00%
98.78%

Total footprint "location based"
Total footprint "market based"

845,162.82
842,246.33

100.00%-788,785.07-

100.00%-693,278.86-

100.00%-Emissions per vehicle sold "location based" 2)
specific greenhouse gas emissions:t CO2 -e per vehicle sold (Scope 1-2)
t CO2 -e per vehicle sold (Scope 1-3)

2020

2019

2018

0.05
3.68

0.06
3.82

0.06
3.84

The conversion factors of the Austrian Federal Environment Agency and the UK Department for Environment, Food & Regulatory Affairs (DEFRA) 2016, 2018, 2019 & 2020 were used to
calculate the CO2 equivalents.
1)
Evaluation excluding KTM Innovation GmbH, Avocodo GmbH and PIERER E-Bikes GmbH.
2)
In 2018 and 2019, calculation with "location-based" emissions. Emissions from district heat procurement at the KTM Sportcar GmbH site. From 2020, emissions will also be calculated
according to "market based". For a better traceability, the calculation of the emission shares in % in the reporting year was waived here and "location based" was used for the CO2
emissions per vehicle sold (the difference between "market and location based" is very small and therefore negligible).
3)
New in the evaluation as of 2020.
4)
Emissions are calculated on EU homologation data on fuel consumption according to WMTC and taking into account the average annual mileage and average service life. The Enduro
Competition models are homologated in a mechanically and electronically throttled condition. Often, however, the motorcycles are used, on their own responsibility of the customer, in
unthrottled condition at amateur and professional racing events. This results in significantly higher consumption and greenhouse emissions. For the first time, KTM models sold directly
by Bajaj Auto in the reporting year were also considered and the values for the base year 2016, 2018 and 2019 were adjusted.
Motorcycles sold in the B2C (retail) business were used for the calculation of the useful life, as well as X-Bow (excl. e-bikes): number of vehicles used for the calculation 229,536 (previous
year: 206,544). Motorcycle models that are not eligible for registration (e.g. motocross, cross country, sport minicycles) were not considered due to an insufficient database (missing consumption and mileage data). In 2020, a total of 270,407 motorcycles were sold (previous year: 280,099).
According to the Kyoto Protocol, there are seven main greenhouse gases that contribute to climate change: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons(HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6), and nitrogen trifluoride (NF3). CO2-e is the universal unit of measurement used to indicate the global warming potential (GWP) of
each of the seven greenhouse gases, expressed as the GWP of one unit of carbon dioxide. It is used to assess the release (or avoidance of release) of various greenhouse gases on a common
basis.

SUSTAINABILITY REPORT 2020

GRI 302-1
Energy and Water Consumption
Gas consumption 1)
Electricity consumption 1)
Water consumption from production 2)
Fuel test benches
1)
2)

Unit

2020

2019

2018

kWh
kWh
m³
in liters

17,924,474
18,927,287
3,364
317,246

20,063,068
20,831,528
3,618
480,474

18,154,198
20,775,364
3,993
458,133

For reasons of materiality, the table only contains values from the corporate and production sites of KTM AG, KTM E-Technologies GmbH and PIERER Mobility AG.
Values rounded. Water consumption refers to the sites in Mattighofen and Munderfing.

GRI 302-5
Reduction in energy demand for products
Fleet emissions
Fleet consumption*

Unit

2020

2019

2018

Ø Emission in g/km
Ø Consumption inl/100 km

78.44
3.40

79.09
3.41

81.82
3.52

Unit

2020

2019

2018

Ø vehicles / dayvehicles / year

708
140.252700
160.098776
171.297* To allow better understanding, we do not state the vehicle consumption in joules, but in l/100 km as usual.

Own indicator
Vehicle assembly
Motorcycles 1)
Annual production volume in Mattighofen 2)
1)
2)

In 2020, there were 40 fewer production days due to the covid-related production stop.
Production units at the headquarter in Austria.

Own indicator
Certification
Environmental management system
Quality management system
Functional safety
IT & information security

ISO 14001
ISO 9001
ISO 26262
Tisax Certification Security Level3

in implementation

Oriented on ISO 27001/ 27002

GRI 306-3
Waste quantity

Unit

2020

2019

2018

Total waste
KTM Components GmbH
Metal waste (excluding aluminium waste)
Aluminium waste
Waste for recycling
Hazardous waste
Other waste

kg
kg
kg
kg
kg
kg
kg

4,822,664
929,665
490,873
46,538287,580
46,69457,9805,192,327
1,189,675
567,278
56,192434,01366,66265,530-

KTM AG
Metal waste (excluding aluminium waste)
Aluminium waste
Waste for recycling
Hazardous waste
Other waste

kg
kg
kg
kg
kg
kg

3,892,999
170,119
221,017
2,838,400
221,133
442,330

4,002,652
167,651
209,620
2,890,810
188,681545,890-

For reasons of materiality, the table only contains values from the KTM Group's manufacturing sites in Mattighofen and Munderfing.
Description of waste types // metals: including various metal scrap, cable scrap, mixed chips, prototypes. Aluminum: including castings, smelting, chips; Waste for recycling: including waste
wood (untreated, material), waste wood pallets, waste paper, various cardboard boxes; Hazardous waste: Waste oil, drilling emulsion, various solvents, cleaners, railroad sleepers; Other
waste: including plasterboard, used tires, industrial waste.

63

64

G RI C O N T E N T I N D E X
The Sustainability Report has been prepared for the first time in the past financial year in accordance with the internationally recognized frameworkfor sustainability reporting "GRI Standards": "Core" option. An extension will continue to be sought and the reporting will be further optimized in 2021.
This applies in particular to the following standards: 301-1, 306-3, 308, 412-3, 414.
General information
GRI-Standard
101

Description
Foundation 2016

Comments I Omissions

102

General Disclosures 2016

102-1

Name of the organisation

Overview of Pierer Mobility

6

102-2

Activities, brands, products, and services

Overview of Pierer Mobility

6

102-3

Location of headquarters

Overview of Pierer Mobility

102-4

Location of operations

102-5

Ownership and legal form

102-6

Market served

Worldwide, in 28 countries

Reference I Chapter

Non-financial report/ Overview of Pierer
Mobility, Annual Report 2020/ schedule ofequity holdings)
Overview of Pierer Mobility, Group structureManagement ReportPage(s)66, 181-183
6, 7

Annual Report 2020

88-110

102-7

Scale of the organization

Management Report

Annual Report 2020

88-110102-8

Information on employees and ohter
workers

Only 1% of employees have a temporary contract, therefore
no separate subdivision into permanent / temporary employment has been conducted. Employees by country (AT, DE)and by continent.

Our employees, Appendix

23, 59102-9Supply chain

Responsible Procurement102-10Significant changes to the organizationand its supply chain

Non-financial report/Group structure,
Responsible Procurement; Annual Report
2020/ Management Report40, 88-110

102-11

Precautionary Principle or approach

Company, Employees and society, Products
and customers

6,23,49

102-12External initiatives

Business Compliance, Respect for Human
Rights18,19102-13

Membership of associations

Our Stakeholders

102-14

Statement from senior decision-maker

Introduction by the executive board

102-16

Values, principles, standards, and normsof behavior

Anti-Corruption and Fair Competition,
Respect for Human Rights

102-18Governance structure102-40

List of stakeholder groups

102-41

Collective bargaining agreements

102-42

Identifying and selecting stakeholders

Our Stakeholders

102-43

Approach to stakeholder engagement

Our Stakeholders

102-44

Key topics and concerns raised

Materiality Analysis and Key Sustainability
Topics, Business Compliance102-45

Entities included in the consolidated
financial statements

102-46

Defining report content and topic
Boundaries

Materiality Analysis and Key Sustainability
Topics16

102-47

List of material topics

Materiality Analysis and Key Sustainability
Topics16

102-48

Restatements of information

102-49Changes in reporting

Key Sustainability Topics

16

102-50

Reporting period

01/01/2020 - 12/31/2020

102-51

Date of most recent report

Report about FY 2019102-52

Reporting cycle

yearly102-53

Contact point for questions regarding
the report

Imprint

71

102-54Claims of reporting in accordance with the
GRI Standards

About this report2102-55

GRI content index

102-56External assurance

Corporate Governance Report

Consolidated financial statements

11
4
18,19

Annual Report 2020
Our Stakeholders

Around 98% of PIERER Mobility employees are subject tocollective agreements. The Austrian requirements do not
apply to subsidiaries in other countries.

40

Our Employees, Appendix

Annual Report 2020

11
23,59
11
11
16,18
from 111

No restatements have been necessary.

Reporting in accordance with GRI standards: "Core“ option.
First achieved in 2020.
Independent Assurance Report

Appendix

56,64

About this report, Appendix

2,69

SUSTAINABILITY REPORT 2020

GRI-Standard

Description

Comments I Omissions

Reference I Chapter

Page(s)I. COMPANY
Business Compliance (Anti-corruption)
103

Management approach 2016

103-1

Explanation of the material topic and its
boundary

Our Values & Understanding of Business

18

103-2

The management approach and its
components

Our Values & Understanding of Business

18

103-3

Evaluation of the management approach

Our Values & Understanding of Business

18

205

Anti-corruption 2016

Business Compliance, Anti-Corruption andFair Competition

18

205-2

Communication and training aboutanti-corruption policies and procedures

Anti-Corruption and Fair Competition,
Appendix

18,58

205-3

Confirmed incidents of corruption andactions taken

103

Management approach 2016

103-1

Explanation of the material topic and its
boundary

Our Values & Understanding of Business

18

103-2

The management approach and its
components

Our Values & Understanding of Business

18

There were no known cases or proceedings relating tocorruption in the reporting period.

103-3

Evaluation of the management approach

Our Values & Understanding of Business

18

412

Human rights assessment 2016

Anti-Corruption and Fair Competition,
Respect for Human Rights

18

412-3

Significant investment agreements andcontracts that include human rights
clauses or that underwent human rights
screening

Business Compliance/ Results,
Key performance indicators

20

In 2020, the data collection will be limited to production facilities. From 2021, the data collection will also be extended
to building facilities.

Data Protection
103

Management approach 2016

103-1

Explanation of the material topic and its
boundary

Our Values & Understanding of Business/
Data Protection and Cybersecurity

18,19

103-2

The management approach and its
components

Our Values & Understanding of Business/
Data Protection and Cybersecurity

18,19

103-3

Evaluation of the management approach

Our Values & Understanding of Business/
Data Protection and Cybersecurity

18,19

418

Customer privacy

418-1

We are not aware of any substantiated complaints in the
Substantiated complaints concerning
breaches of customer privacy and losses of reporting year.
customer data

II. EMPLOYEES AND SOCIETY
Local employment: jobs
103

Management approach 2016

103-1

Explanation of the material topic and its
boundary

Our Employees

23

103-2

The management approach and its
components

Our Employees

23

103-3

Evaluation of the management approach

102-8

Information on employees and otherworkers

Only 1% of employees have a temporary contract, therefore
no separate subdivision into permanent / temporary employment has been conducted. Employees by country (AT, DE)and by continent.

Our Employees

EigenerIndikator

Employed within 10km

Approximately 1,750 KTM AG employees live directly in
Mattighofen and the neighboring communities within aradius of 10 km as the crow flies.

Our Employees, Appendix

23
23,59

23

Fair pay and labor standards (diversity and equal treatment)
103

Management approach 2016

103-1

Explanation of the material topic and its
boundary

Our Employees, Diversity and Equal
Treatment

103-2

The management approach and its
components

Diversity and Equal Treatment

33

103-3

Evaluation of the management approach

Diversity and Equal Treatment

33

405

Diversity and equal opportunity 2016405-1

Diversity of governance bodies andemployees

Diversity and Equal Treatment

33

23,33

65

66

GRI-Standard Description
Occupational Safety and Employee HealthComments I Omissions

Reference I Chapter

Page(s)103

Management approach 2016

103-1

Explanation of the material topic and its
boundary

Our Employees, Occupational Safety and
Employee Health

23,25

103-2

The management approach and its
components

Our Employees, Occupational Safety and
Employee Health

23,25

103-3

Evaluation of the management approach

Our Employees, Occupational Safety and
Employee Health

23,25

403

Occupational health and safety 2018403-1

Occupational health and safety
management system 2018403-2

Occupational Safety and Employee Health
Hazard identification, risk assessment and The risk assessment of work areas and the documentation
incident investigation
are carried out on the basis of regular evaluations by theexternal safety expert (“ASZ Linz“, “Intergeo“) in cooperation
with the in-house safety officers.

25

403-3

Occupational health services

403-4

Worker participation, consultation andcommunication on occupational healthandsafetyOccupational Safety and Employee Health

25

403-5

Worker training on occupational healthand safety

Occupational Safety and Employee Health

25

403-6

Promotion of worker healthOccupational Safety and Employee Health

25

403-7

Prevention and mitigation of occupational
health and safety impacts directly linked
by business relationships

Occupational Safety and Employee Health

25

403-9

Work-related injuries

Occupational Safety and Employee Health,
Appendix25, 60All legal requirements regarding occupational safety andhealth protection are implemented in accordance with theprovisions of the Employee Protection Act and the Work
Equipment Ordinance. In addition, compliance with machineguidelines, dust/noise and screen exposure guidelines is
ensured, especially in work areas with an increased risk ofdanger/accident and injury.

Cooperation with occupational health service providers „ASZ
Linz“, „Intergeo“ (company physicians, qualified health andnursing staff, occupational psychologist, ergonomists).

No work-related fatalities in the reporting periods 2018 and2019, and one work-related fatality in 2020. Accident figures
for employees of external companies are available.

Stakeholder, Occupational Safety and
Employee Health

11,25

Education and Training
103

Management approach 2016

103-1

Explanation of the material topic and its
boundary

Education and Training

28

103-2

The management approach and its
components

Education and Training

28

103-3

Evaluation of the management approach

Education and Training

28

404

Training and Education 2016

Education and Training

28

404-1

Average hours of training per year per
employee

Education and Training, Appendix

28,61

III. ENVIRONMENT AND RESOURCES, INNOVATION AND PRODUCTION
Research & Development
103

Management approach 2016

103-1

Explanation of the material topic and its
boundary

Research & Development

37

103-2

The management approach and its
components

Research & Development

37

103-3

Evaluation of the management approach

Research & Development

Own indicator

R&D-employees in the reporting period(average)

R&D/ Employees & investments, Appendix

38,62

37

Own indicator

R&D-quota in percent from revenues

R&D/ Employees & investments, Appendix

38,62

Local employment: responsible procurement
103

Management approach 2016

103-1

Explanation of the material topic and its
boundary

Responsible Procurement

40

103-2

The management approach and its
components

Responsible Procurement40

Responsible Procurement40

Procurement strategy and purchasing volume

42

103-3

Evaluation of the management approach204

Procurement practices 2016

204-1

Proportion of spending on local suppliers

Purchasing volume in EUR and in %

SUSTAINABILITY REPORT 2020

GRI-Standard Description
Energy efficiency

Comments I Omissions

Reference I Chapter

Page(s)

Implementation of an environmental management system
according to ISO 14001:2015

Environmental Aspects Along the Product
Life Cycle/ in Development and Production

43

103

Management approach 2016

103-1

Explanation of the material topic and its
boundary

103-2

The management approach and its
components

Environmental Aspects Along the Product
Life Cycle/ in Development and Production

43

103-3

Evaluation of the management approach

Environmental Aspects Along the Product
Life Cycle/ in Development and Production

43

302

Energy 2016

302-1

Energy consumption within theorganisation

Environmental Aspects in Development andProduction

43

302-5

Reductions in energy requirements ofproducts and services

Reduction in fleet emissions and fleet consumption.
To allow better understanding, we do not state the vehicle
consumption in joules, but in l/100 km as usual.

Environmental Aspects in Development andProduction, Appendix

43,63

305

Emissions 2016

305-1

Direct (Scope 1) GHG emissions

emissions natural gas procurement/ vehicle fleet/ test
benches

Environmental Aspects in Development andProduction, Appendix/ CO2 footprint

44,62

305-2

Energy indirect (Scope 2) GHG emissions

Emissions district heat and electricity procurement (calculation 2018+2019 according to "location based", from 2020
according to "market based").

Environmental Aspects in Development andProduction, Appendix/ CO2 footprint

44,62

Pollutant emissions from vehicles (emissions)
103

MManagement approach 2016

103-1

Explanation of the material topic and its
boundary

R&D, Environmental Aspects in Development
and Production, Product Use and Recycling

37,43,53

103-2

The management approach and its
components

R&D, Environmental Aspects in Development
and Production, Product Use and Recycling

37,43,53103-3

Evaluation of the management approach

R&D, Environmental Aspects in Development
and Production, Product Use and Recycling

37,43,53

305

Emissions 2016

305-3

Other indirect (Scope 3) GHG emissions

Environmental Aspects in Development andEmissions commuter traffic by airplanes/ private vehicles/
Production, Appendix/ CO2 footprint
rental cars, from 2020 extended to emissions by train/ cab,emissions paper, emissions usage phase of vehicles: calculation extended to KTM motorcycle models distributed by Bajaj,
values adjusted for base year 2016 and for reporting years
2018 and 2019.

44,62

Efficiency in the use of materials (waste, recycling management)
103

Management approach 2016

103-1

Explanation of the material topic and its
boundary

Environmental Aspects in Development andProduction

43

103-2

The management approach and its
components

Environmental Aspects in Development andProduction

43

103-3

Evaluation of the management approach

Environmental Aspects in Development andProduction

43

301

Materials 2016

301-1

Materials used by weight or volume

Distribution of materials used in motorcycles and packaging Environmental Aspects in Development andProduction
material used "disposable packaging" (in kg): For thispurpose, two representative motorcycle models were selectedthat are sold most on average (KTM 790 Duke, Enduro 350
EXC-F). The reporting process currently gets established.

43

306

Waste 2020

306-3

Waste generated

Waste management is currently under construction. For this Environmental Aspects in Development andreport, waste types, total waste volume (in tons) / per vehicle Production/ Wase Management, Appendix
produced (in kg) were collected.

43,47,63

Environmental and social standards in the supply chain
103

Management approach 2016

103-1

Explanation of the material topic and its
boundary

Responsible Procurement, Logistic and Sales

40,48

103-2

The management approach and its
components

Responsible Procurement, Logistic and Sales

40,48

103-3

Evaluation of the management approach

Responsible Procurement, Logistic and Sales

40,48

308

Supplier environmental assessment 2016308-1

New suppliers that were screened using
environmental criteria

Responsible Procurement, Logistic and Sales

40,48

Qualitative description; reporting process currently gets
established. (Currently, it is not possible to specify thepercentage of suppliers evaluated).

67

68

GRI-Standard
308-2

Description
Negative environmental impacts in the
supply chain and actions taken

Comments I Omissions
No business relationships were terminated in the reporting
year due to identified negative environmental impacts.

Reference I Chapter
Responsible Procurement, Logistic and Sales

414

Supplier social assessment 2016

414-1
414-2

Page(s)
40,48

New suppliers that were screened usingsocial criteria

Qualitative description; reporting process currently gets
established. (Currently, it is not possible to specify thepercentage of suppliers evaluated).

Responsible Procurement

40

Negative social impacts in the supply
chain and actions taken

Regular checks of suppliers prior to project approval also
ensure that social aspects are taken into account. We were
not aware of any negative effects in the reporting year.

Responsible Procurement

40

IV. PRODUCTS AND CUSTOMERSAlternative drive technologies
103Management approach 2016

103-1

Explanation of the material topic and its
boundary

R&D, Product Use and Recycling/Activities in
the field of vehicles with electric powertrains

37,54

103-2

The management approach and its
components

R&D, Product Use and Recycling/Activities in
the field of vehicles with electric powertrains

37,54

103-3

Evaluation of the management approach

R&D, Product Use and Recycling/Activities in
the field of vehicles with electric powertrains

37,54

Road safety
103Management approach 2016

103-1

Explanation of the material topic and its
boundary

Product Quality and Product Safety/
Due diligence process

49

103-2

The management approach and its
components

Product Quality and Product Safety/
Due diligence process

49

103-3

Evaluation of the management approach

Product Quality and Product Safety/
Due diligence process

49

103

Management approach 2016

103-1

Explanation of the material topic and its
boundary

Product Quality and Product Safety

49

103-2

The management approach and its
components

Product Quality and Product Safety

49

103-3

Evaluation of the management approach

Product Quality and Product Safety

49

416

Customer health and safety 2016

416-1

Assessment of the health and safety
impacts of product and service categories

Each and every vehicle component is checked according
to an inspection plan. Every vehicle or engine undergoes
a complete functional check on the test bench. No vehicle
can leave production without passing the test. The check iscarried out on 100% of the vehicles.

Product Quality and Product Safety/
Assembly

50

416-2

Incidents of non-compliance concerning
the health and safety impacts of products
and services

In the reporting period, there was a recall in connection with Product Quality and Product Safety/ Duesafety risks for a KTM and for a Husqvarna motorcycle model. diligence process
In the reporting year, we are not aware of any incidents
involving fines or penalties, and no warnings were issued.

49

SUSTAINABILITY REPORT 2020

INDEPENDENT ASSURANCE REPORTTo
the Board of Executive Directors of
PIERER Mobility AG, Wels
INDEPENDENT ASSURANCE REPORT ON THE NON-FINANCIALREPORTING ACCORDING TO § 267A UGB
We have performed an independent limited assurance engagement on the
consolidated non-financial report according to § 267a UGB ("NFI report")
for the financial year 2020, which has been published as Sustainability
Report 2020 (Consolidated non-financial Report) of
PIERER Mobility AG, Wels
(referred to as "the Company").
Management's Responsibility

Our engagement was conducted in conformity with the International
Standard on Assurance Engagements (ISAE 3000) applicable to suchengagements. These standards require us to comply with our professional
requirements including independence requirements, and to plan andperform the engagement to enable us to express a conclusion with limited
assurance, taking into account materiality.
An independent assurance engagement with the purpose of expressing aconclusion with limited assurance ("limited assurance engagement") is
substantially less in scope than an independent assurance engagementwith the purpose of expressing a conclusion with reasonable assurance("reasonable assurance enagement"), thus providing reduced assurance.
Despite diligent engagement planning and execution, it cannot be ruledout that material misstatements, illegal acts or irregularities within the
non-financial report will remain undetected.

The procedures selected depend on the auditor's judgment and included
The Company's management is responsible for the proper preparation
the following procedures in particular:of the NFI report in accordance with the reporting criteria. The Company
applies the legal requirements of the Austrian Sustainability and Diversity
Improvement Act (§ 267a UGB) and the sustainability reporting guidelines
Inquiries of personnel at the group level, who are responsible for theof the Global Reporting Initiative (GRI Standards) Option "Core" asmateriality analysis, in order to gain an understanding of the processes
reporting criteria.
for determining material sustainability topics and respective reporting
threshholds of the Company;
The Company's management is responsibile for the selection andA risk assessment, including a media analysis, on relevant information
application of appropriate methods for non-financial reporting (especiallyon the Company's sustainability performance in the reporting period;
the selection of significant matters) as well as the use of appropriate
Evaluation of the design and implementation of the systems andassumptions and estimates for individual non-financial disclosures, given
processes for the collection, processing and monitoring of disclosuresthe circumstances. Furthermore, their responsibilities include the design,on environmental, social and employees matters, respect for human
implementation and maintenance of systems, processes and internal
rights, anti-corruption as well as bribery and also includes the consolcontrols that are relevant for the preparation of the sustainability reportidation of data;
in a way that is free of material misstatements – whether due to fraud
Inquiries of personnel at the group level, who are responsible foror error.
providing, consolidating and implementing internal control procedures
relating to the disclosure of concepts, risks, due diligence processes,
Auditor's Responsibility
results and performance indicators;
Inspection of selected internal and external documents, in order to
Our responsibility is to state whether, based on our procedures performed
determine whether qualitative and quantitative information is supportand the evidence we have obtained, anything has come to our attened by sufficient evidence and presented in an accurate and balanced
tion that causes us to believe that the Company's NFI report is not inmanner;accordance with the legal requirements of the Austrian Sustainability andAssessment of the local data collection, validation and reporting proDiversity Improvement Act (§ 267a UGB) and the sustainability reporting
cesses as well as the reliability of the reported data through a (remote)guidelines of the Global Reporting Initiative (GRI Standards) Option "Core"
sample survey of KTM AG in Mattighofen;
in all material respects.
Analytical evaluation of the data and trend of quantitative disclosures
regarding the GRI Standards listed in the GRI-Index, submitted by all
locations for consolidation at the group level;

69

70

Evaluation of the consistency of the Austrian Sustainability andDiversity Improvement Act (§ 267a UGB) and the GRI Standards, Option"Core" to disclosures and indicators of the NFI report, which apply to
the Company;
Evaluation of the overall presentation of the disclosures by criticallyreading the NFI report.

Conclusion
Based on the procedures performed and the evidence we have obtained,
nothing has come to our attention that causes us to believe that the NFIreport of the Company is not in accordance with the legal requirementsof the Austrian Sustainability and Diversity Improvement Act (§ 267a
UGB) and the sustainability reporting guidelines of the Global Reporting
Initiative (GRI Standards) Option "Core" in all material respects.

The procedures that we performed do not constitute an audit or a review.
Our engagement did not focus on revealing and clarifying of illegal acts
Restriction on use(such as fraud), nor did it focus on assessing the efficiency of manageBecause our report will be prepared solely on behalf of and for the benefit
ment. Furthermore, it is not part of our engagement to audit future-reof the principal, its contents may not be relied upon by any third party,
lated disclosures, prior year figures, statements from external sources
and consequently, we shall not be liable for any third party claims. Weof information, expert opinions or references to more extensive externalreporting formats of the Company. Disclosures audited within the scope of agree to the publication of our audit certificate together with the NFI
the annual financial statement were assessed for correct presentation (no report.
content examination).
General Conditions of Contract
Our responsibility and liability towards the Company and any third party
is subject to paragraph 7 of the General Conditions of Contract for the
Public Accounting Professions.
Linz, 12 March 2021
KPMG Austria GmbH
Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
Dr. Helge Löffler
Wirtschaftsprüfer(Austrian Chartered Accountant)

This English language independent assurance report is a translation provided for information purposes only. The original German text shall prevail in the event of any discrepancies between the English
translation and the German original. We do not accept any liability for the use of, or reliance on, the English translation nor for any errors or misunderstandings that may derive from the translation.

SUSTAINABILITY REPORT 2020

IMPRINT
Owner and publisher
PIERER Mobility AG
Edisonstrasse 14600 Wels, Austria
FN 78112 x / Wels Provincial and Commercial Court

CONTACT
Michaela Friepess
Investor Relations
Telefon: +43 7242 69 402
E-Mail: ir@pierermobility.com
Website: www.pierermobility.com
Concept and design: Grafik-Buero Elena Gratzer, 4600 Wels, www.grafik-buero.at
Photos: KTM archive, Husqvarna archive, WP archive, Husqvarna E-Bicycles / PEXCO archive, GASGAS archive
The present sustainability report (consolidated non-financial report) has been prepared with the utmost care and the correctness of the data was checked. Nevertheless, slight differences in the calculations
may arise as result of the summation of rounded amounts and percentages, and typographical and printing errors cannot be ruled out.
References to persons such as “employees” or “staff members” are intended to be gender-neutral and insofar as the contrary appears this is solely for purposes of legibility.
This report and the forward-looking statements it contains were prepared on the basis of all the data and information available at the time of going to press. However, we are must point out that various
factors may cause the actual results to deviate from the forward-looking statements given in the report.
This annual report is published in German and English. In the event of ambiguity, the German version shall take precedence.

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PIERER Mobility AG
Edisonstraße 14600 Wels, Austria

www.pierermobility.com