THE COMPANY » INVESTOR RELATIONS » CORPORATE GOVERNANCE » GROUP STATUS REPORT » CONSOLIDATED FINANCIAL STATEMENTS » INFORMATION
(30) EVENTS AFTER THE BALANCE SHEET DATE With the sales agreement of December 22, 2011 – effective January 1, 2012 – KTM-Sportmotorcycle AG sold the branch companies for exhaust pipe manufacturing and frame production to WP Radiator GmbH and WP Suspension Austria GmbH. Consequently the KTM staff was reduced by 186 employees. The following assets and liabilities of the consolidated group statement per December 31, 2011 can be attributed to these companies. TEUR
12/31/2011
Long-term assets
1,361
Inventories
4,082
Assets
5,443
Personnel provisions
(1,116)
Liabilities
(1,116)
Neither a decline in sales nor a considerable change of the cost structure in the income statement are expected. The KTM Group intends to run a production for motorcycles with more than 450 cc in Brazil in cooperation with a partner as a joint venture. In business year 2012 the partner filed a suit for cancellation of the joint venture. Provisions for risks recognizable at balance sheet date are included in the consolidated financial statements of December 31, 2011. Further events after December 31, 2011, that are important for the evaluation of assets and liabilities are either considered in the notes or not known.
(31) BUSINESS CONNECTIONS WITH RELATED COMPANIES AND PERSONS CROSS Industries AG, Wels, which is indirectly controlled by Stefan Pierer and Rudolf Knünz, holds an interest of 50.2% of the voting rights in KTM Power Sports AG, Mattighofen, and is because of the factual situation controlling shareholder of KTM Power Sports AG, Mattighofen. Stefan Pierer and Rudolf Knünz (until July 5, 2010) are members of the Executive Board of CROSS Industries AG, Wels. Stefan Pierer holds the following key board positions in the KTM Group: p Chief Executive Officer of KTM Power Sports AG, Mattighofen p Member of the Executive Board of KTM-Sportmotorcycle AG, Mattighofen Rudolf Knünz holds the following key board positions in the KTM Group: p Chairman of the Supervisory Board of KTM Power Sports AG, Mattighofen p Chairman of the Supervisory Board of KTM-Sportmotorcycle AG, Mattighofen Hans-Jörg Hofer, as a member of the Supervisory Board, holds an interest of over 5%, but less than 10% in KTM Power Sports AG. Member of the Supervisory Board, Rajiv Bajaj, is Chief Executive Officer at Bajaj Auto Ltd., Pune, India, holding a share of 40.9% in KTM Power Sports AG as per the balance sheet date. As at December 31, 2011 the liability to Bajaj Auto Ltd. amounts to TEUR 443 (previous year: TEUR 46).
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