Management agenda and outlook

We continue to see strong market growth in the cycling industry. Consumers are choosing bicycles as a sustainable solution for mobility. Especially interest in electric bikes and cargo bikes will continue to grow fast. Consumers will continue to look for more convenient and digital solutions in finding, researching, buying and servicing their bikes. Our strategy ‘Lead Global. Win Local’ is key to position ourselves at the centre of these trends.

Successful innovations and improved availability of our products will continue to drive growth. This through more connected and more digital platforms. The now centralised bicycle parts and accessories business will drive further roll out of the XLC brand expanding into new channels. We expect our ‘fit to compete’ program to continue driving cost savings next to strict cost control on all our discretionary expenditure.

Based on our management agenda and barring unforeseen circumstances we expect continued turnover growth and an increase in EBIT of our core business for the year 2019.

The strategic review for the North American business will be concluded in Q3 2019 latest and subsequently be executed. Any potential consequences of this strategic study are excluded from the above outlook.