Ekotechnika AG: Annual General Meeting rewards improved business performance

• Executive Board reports on stabilisation of business operations
• Market environment for agricultural machinery in Russia remains challenging
• All items on the agenda approved by a large majority
• Two new members elected to the Supervisory Board

Walldorf, 28 March 2017 – 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 recovery of the company’s business operations.

Executive Board member Stefan Dürr spoke about the positive trend in the past fiscal year 2015/16 (30 September), in which Ekotechnika AG increased its sales revenues by 7.5% to EUR 117.2 million and posted solid earnings before interest and taxes (EBIT) of approx. EUR 5.3 million (previous year: EUR -1.2 million). The positive trend was supported by higher sales of new machines, growing demand for spare parts and higher selling prices as well as further cost optimisation.

Subsequently, Björne Drechsler, who joined the Executive Board on 1 March 2017 and is mainly in charge of sales and marketing, presented a detailed report on the current fiscal year 2016/17. He primarily highlighted the strong growth of the after-sales business, which increased by 28% in the first five months of the year. The current strength of the US dollar against the euro represents a major challenge, as it has an adverse impact on price competition with European suppliers. On balance, however, the company is cautiously optimistic about the full year 2016/17. Financing conditions in Russia remain challenging, even though key interest rates have recently been reduced moderately to 9.75%. Strategically and as previously announced, Ekotechnika will increasingly focus on the exclusive cooperation with John Deere, the world market leader in agricultural machinery.

This year’s Annual General Meeting was attended by close to 79% of the share capital. All items on the agenda were approved by a large majority, including the election of the two new Supervisory Board members, Wolfgang Bläsi and Lars Bjarne Buwitt.