The Netherlands – Accell Group N.V. recorded a 10% increase in turnover to € 629.7 million in the six months to 30 June 2016 (2015: € 573.8 million). The rise in turnover was entirely organic. Net profit in the same period rose by 7% to € 34.0 million (2015: € 31.9 million).

Turnover from traditional bikes fell by 15%, while turnover from sports bikes was stable,Turnover from electric bikes, however, was up by 39%, largely driven by the strong growth in the sales of Accell’s German brands.

Turnover of bicycles came in 13% higher at € 490.3 million in the first half of 2016 (first half of 2015: € 432.7 million). Accell Group sold a total of 908,000 bikes in the first half of 2016 (first half of 2015: 985,000 bikes). The average sales price came in 23% higher at € 541 (first half of 2015: € 439) per bike due to the fact that electric bikes and more expensive sports bikes accounted for a greater proportion of turnover. The operating result from the bicycle segment rose by 7% to € 49.6 million (first half of 2015: € 46.3 million).

Turnover from Accell Group brands in the Netherlands also came in at the same level as the year-earlier period, due to higher sales of e-bikes. The number of city and touring bikes sold was lower than in the year-earlier period.

Bicycle turnover in Germany was up 26% compared with the first half of 2015, largely due to the healthy sales of Haibike and Ghost performance e-bikes. In its press release, Accell noted that the demand for this relatively new and special category of electric bikes has grown stronger this year, and Accell Group's growth in sales of these more expensive sports bikes also continued, while sales of non-electric bikes and simpler mountain bikes were down in the first half of this year.

In the rest of Europe Accell are seeing a growing interest in electric bikes, noting that the Haibike, Ghost and Lapierre brands in particular are responding effectively to this trend and are increasing sales, especially in sports electric bikes.

Turnover in North America fell by 3%. The Diamondback brand was confronted by two major bankruptcies of multi-sports chains, which led to US$ 2 million in direct costs. On top of this, the company also faced indirect costs as a result of the loss of sales to those two chains and the price pressure in the market resulting from the liquidation sales of the inventories. The Ghost brand, which was launched in North America last year, recorded an increase in bike sales. Turnover from Raleigh bikes sold to the specialist retail trade was down, due in part to competitive pressures and difficult conditions in the North American specialist retail sector. Accell Group has taken the first steps

towards omni-channel sales at the Raleigh brand, which has traditionally only delivered to bike

dealers. This will enable consumers to order bikes directly from the Raleigh website. The bikes will be delivered via bike dealers, who will receive a fee for the service. Sales in the electric bikes launched this year have increased, but the North American market is still small, in terms of both volumes and turnover.

The turnover in Other countries outside Europe rose by 8% and accounted for 4% of total turnover.

“We are benefiting specifically from our leading position in the field of electric bikes, which currently account for some 43% of our total turnover. Turnover from E-performance bikes has doubled in the last six months,” stated Rene Takens, Chairman of the Board of Directors of Accell Group. “Turnover from bicycle parts and accessories was also higher in Europe, but we did see a slight drop in total turnover in this segment due to the sale of our North American operations. In the first half of the year, we managed to sharply reduce working capital compared with year-end 2015. This was reflected in the considerable increase in free cash flow, which came in about €40 million higher than in the same period of last year. For the second half of 2016, we expect to record higher turnover and profit, barring unforeseen circumstances.”