Accell N : Group sales up 38% in last 4 months; EBIT guidance revised upwards

PRESS RELEASE

ACCELL GROUP SALES UP 38% IN LAST 4 MONTHS; EBIT GUIDANCE REVISED UPWARDS

HEERENVEEN (THE NETHERLANDS), 11 NOVEMBER 2020. Accell Group N.V. (Accell) announces that net sales continued to be very strong from July till October coming in at +38% versus the same period last year and bringing YTD net sales growth to 16%. Consequently, Accell revises its guidance upwards and now expects EBIT for 2020 to exceed prior-year EBIT.

Demand across Europe for bikes and for parts & accessories has remained strong. As the pandemic- related lockdowns in March and April forced many bike shops across Europe to close for business, sales volumes have also partly shifted from H1 into H2 2020. Moreover, the pandemic and EU commission's Green Deal have pushed interest in cycling and the use of bicycles as a solution to many societal and urban problems like obesity, pollution and congestion. Favorable secular trends and bike market drivers as electrification, bicycle infrastructure investments, government fiscal stimulation and subsidies provide a bright outlook for the entire bicycle market in the coming years.

Ton Anbeek, CEO Accell Group: "The continued strong growth in the past months is a very positive development which demonstrates more than ever that cycling is moving the world forward. In both bikes and parts & accessories we are also capturing more of the on-line opportunity and are making great digital progress through brand platform renewals and a group CRM roll out. In addition, we continue to take actions in order to mitigate the ongoing effects of the supply chain distortions. Following a recent strategy progress review and as things stand today, we remain confident that we are on track to reach our 2022 targets."

It remains difficult to predict the further course and consequences of the pandemic. Despite the new lockdowns across Europe, bike shops for now remain open and cycling is allowed in most countries. Due to the increased (consumer and dealer) demand, lead times at component suppliers are longer which will cause continued supply chain disturbances. Accell has further tightened measures at its production and office locations to safeguard the health and safety of employees as well as to secure factory and warehouse output.

Based on the YTD sales growth and the context as provided above, FY 2020 EBIT is now expected to come in higher than FY 2019. This guidance excludes any potential Covid-19 related major disruptions such as mandatory bike shop closure or factory and warehouse shutdowns.

In addition, Accell is currently investigating with its advisors the valuation of the deferred tax asset (driven amongst others by the proposed new legislation on Dutch corporate income taxes). This could potentially lead to a one-off tax gain of € 10-20 million in 2020.

Numbers in this press release have not been audited by an external auditor.

ABOUT ACCELL GROUP

We believe cycling moves the world forward. We design simple and smart solutions in order to create a fantastic cycling experience for everyone who uses our bikes. Accell Group makes bicycles, bicycle parts and accessories. We are the European market leader in e-bikes and second largest in bicycle parts and accessories. With numerous leading European bicycle brands under one roof. These brands were built by pioneers for whom the best was not good enough. We still embody the entrepreneurial spirit of those family businesses to this day. We keep pushing ourselves to create high-quality, high performance, cutting-edge products driven by the continuous exchange of know-how and craftsmanship. Well-known bicycle brands in our portfolio include Haibike, Winora, Ghost, Batavus, Koga, Lapierre, Raleigh, Sparta, Babboe and Carqon. XLC is our brand for bicycle parts and accessories. Accell Group employs approximately 3,400 people across 18 countries. Our bikes and related products are sold to dealers and consumers in more than 80 countries. In 2019, we sold around 943 thousand bicycles and recorded a turnover of over € 1.1 billion. www.accell-group.com.

Note to the editor, not for publication

For additional information: Ton Anbeek - CEO / Ruben Baldew - CFO, tel: (+31) (0)513-638702

AGENDA
5 March 2021	Publication annual results 2020

This is a public announcement by Accell Group N.V. pursuant to section 17 paragraph 1 of the EU Market Abuse Regulation (596/2014/EU).

FORWARD-LOOKING STATEMENTS

This document may contain forward-looking statements regarding Accell Group's results, capital and liquidity positions. In addition, forward-looking statements may include, but are not limited to, phrases such as "intends", "expects", "is taking into account", "targets", "plans", "estimates" and words with a similar meaning. These statements pertain to or may have an effect on future events, such as Accell Group's future financial results, company plans and strategies. Forward-looking statements are subject to certain risks and uncertainties that are difficult to predict and which may lead to material differences between the actual results, position and performances, and the expected future results, position or performances implicitly or explicitly contained in said forward-looking statements. Factors that may cause actual results to differ from current expectations include but are not limited to macroeconomic, market and business trends and conditions, changes and developments in legislation, technology, taxes, jurisprudence and regulations, stock exchange fluctuations, legal claims, investigations by regulatory bodies, competition and general economic and/or political changes and other developments in countries and markets in which Accell Group operates. These and other factors, risks and uncertainties, which may have an effect on any forward-looking statement that could cause results to differ materially from those described in the forward looking statements, are described in Accell Group's annual report. The forward-looking statements contained in this document refer exclusively to statement from the date of this document and Accell Group does not accept any liability for or obligation to amend the forward-looking statements contained in this document, regardless of whether these pertain to new information, future events or otherwise, unless Accell Group is under a legal obligation to do so.

Numbers in this press release have not been audited by an external auditor.