Ekotechnika AG: Annual General Meeting welcomes further stabilisation of the business trend

• Solid performance in the first five months of FY 2017/18
• After-sales business continues to improve
• Market environment for agricultural machinery in Russia remains challenging
• All items on the agenda approved by a large majority

Walldorf, 19 April 2018 – At today’s Annual General Meeting, the Executive Board of Ekotechnika AG, the German holding company of the EkoNiva-Technika Group, the largest dealer of international agricultural machinery in Russia, reported on the successful past financial year 2016/17 (30 September) and on the performance in the first five months of the current financial year.

Board member Björne Drechsler explained that sales of agricultural equipment in Russia have picked up noticeably. The 26% increase in sales revenues in FY 2016/17 to EUR 148.1 million is attributable both to the sharp rise in sales of new machinery and to the greatly improved spare parts business. Profitability also improved markedly. Earnings before interest and taxes (EBIT) more than doubled from EUR 5.3 million to EUR 11.6 million.

Executive Board member Stefan Dürr confirmed the company’s forecast for the current financial year 2017/18, according to which sales revenues will amount to between EUR 133 million and EUR 140 million and EBIT will come in at around EUR 7 million. In the first five months (October to February), sales of new machinery showed a stable trend, with the after-sales segment exceeding the prior year level.

The continued difficult financing conditions in Russia and greater risks resulting from more trade barriers are the main challenges.

On balance, however, the company is cautiously optimistic about the full year 2017/18, in which a strategic focus will be placed on expanding the cooperation with John Deere, especially in the smart farming segment.

This year’s Annual General Meeting was attended by shareholders representing 85.4% of the share capital. All items on the agenda were approved by a large majority, with the resolutions on ratifying the acts of the Executive Board and the Supervisory Board and on the appropriation of profits taken unanimously.