Ekotechnika AG publishes preliminary 2014/15 figures and announces commencement of acquisition period for new shares

• Sales and earnings above target according to restructuring report
• Preliminary EBIT of EUR -1 million, net loss for year at approximately EUR 25 million
• Publication of acquisition offer for new shares in the Federal Gazette
• Acquisition period to run from 23 November to 9 December
• Shares expected to be admitted to trading on 17 December

Walldorf, 20 November 2015 – Ekotechnika GmbH, the German holding company of the EkoNiva-Technika Group, the largest dealer of international agricultural machinery in Russia, generated consolidated sales in excess of EUR 110 million in the financial year 2014/15 (to 30 September). According to these preliminary figures, sales were down by 34% compared to the prior year but were clearly above the figure budgeted by the company (EUR 82.4 million) which also provided the basis for the restructuring report (“IDW S6 report”) prepared in April 2015 as a framework for the company’s restructuring process.

The decline in sales reflects the continuing challenging situation in the Russian farming equipment market as well as the massive rise in local financing cost. In addition, the substantial decline in the rouble/euro exchange rate continues to a play a role. Earnings before interest and taxes (EBIT) came in at approximately EUR -1 million, which was down on the previous year’s figure of EUR 1.9 million but above the budgeted level of EUR -8.6 million. The preliminary figures show a consolidated net loss at around EUR -25 million compared to EUR -27 million in the previous year (budgeted: EUR -28.7 million). This result includes exchange rate losses of around EUR 16 million as well as restructuring costs of around EUR 2 million. The consolidated equity position, which was negative at the balance sheet date, has improved by some EUR 70 million as a result of the 31 October 2015 debt-to-equity swap for the Ekotechnika bond as well as the completed cash capital increase. The company envisages publishing its full consolidated financial statements for the 2014/15 period in February 2016.

Stefan Dürr, main shareholder and CEO of Ekotechnika AG, said: “The economic situation in Russia means that trading conditions for the distribution of international farming equipment remain challenging. Even so, the company performed ahead of plan in the financial year not least thanks to strong business activity on the spare parts side which, adjusted for the devaluation of the rouble, grew by almost one third. The potential for high-quality international farming equipment in Russia remains high but local farmers obviously need access to financing at sensible terms in order for this potential to be realised.”

Start of acquisition period for new Ekotechnika shares (Series A) on 23 November 2015

Today, Friday, 20 November 2015, Ekotechnika AG is going to publish the acquisition offer for new Series A shares in the Federal Gazette and on the company’s website. From next Monday, 23 November through to Wednesday, 9 December 2015, the holders of the Ekotechnika bond 2013/2018 will be offered a total of 1,539,000 bearer shares Series A (with priority rights) as consideration for investing their claims in the company. The bondholders will be entitled to acquire 25.65 New Shares Series A for each note with a nominal value of EUR 1,000.

Upon commencement of the acquisition period, the bondholders will receive a letter from their custodian bank. On this basis they will be able to exercise their acquisition right and receive Ekotechnika shares. During the acquisition period, they can submit bids for the acquisition of additional shares. Details will be discussed in the letter from the custodian bank as well as in the acquisition offer. Any acquisition of Ekotechnika shares will be exclusively subject to the securities prospectus for the public offering of new Series A shares of Ekotechnika AG as published on the Ekotechnika AG website at www.ekotechnika.de/de/investor-relations.html.

Bondholders who fail to exercise their acquisition right at all or within the deadline will receive a cash settlement. At this point in time the company is unable to specify the amount of the expected cash settlement. The amount will depend on the price at which the unsubscribed shares will eventually be sold.

The new shares are scheduled to be delivered on 16 December 2015. The Ekotechnika shares will then presumably be admitted to trading on the primary market of the Düsseldorf Stock Exchange on 17 December 2015.

Additional information on the restructuring as well as the acquisition offer and the securities prospectus approved by the Federal Financial Supervisory Authority is available on the Ekotechnika website at www.ekotechnika.de/en/investor-relations/.