Ekotechnika reports continued growth on the back of John Deere agriculture equipment

• Largest distributor of international agriculture equipment in Russia increases sales by more than 20%
• John Deere, the single biggest supplier, accounts for more than two thirds of sales
• Earnings before interest and taxes at EUR 15.4 million (+380%)
• Russia is one of the industrys most important growth markets

Walldorf, 25 February 2013 Ekotechnika GmbH, the German holding company of the Ekoniva Technika Group, the largest distributor of international agriculture equipment in Russia, reports a substantial sales increase for the financial year 2011/2012 (September 30). Revenues rose by around 21% to EUR 169.6 million. This surge was driven by the ongoing modernisation in Russias farming sector as well as the rising prices of agricultural commodities which offer farm operators a safe basis for investment. The Groups operating result (EBIT) came in at EUR 15.4 million, up 380% on the prior year, translating into an EBIT margin of just under 10%. Cash flow from operations amounted to EUR 18.3 million.

Ekotechnika mainly sells agriculture equipment made by worldwide industry leader John Deere and is one of the top three John Deere dealers in Europe. Products from this world-leading US company accounted for more than two thirds of 2011/2012 sales. Other suppliers apart from John Deere include such German manufacturers as GEA, BvL and Grimme. Ekotechnika is the largest distributor of international farming equipment in Russia where it is active in three sales regions whose combined size is equivalent to Germany, Italy and France.

Agriculture equipment remained one of the fastest growing sectors worldwide also in 2012. According to figures from German engineering industry association VDMA, the global volume rose by 8% year-on-year to EUR 86 billion in 2012. Russia is considered one of the markets offering the greatest potential for international manufacturers, given that the farming sector in the worlds largest territorial state is still in need of substantial modernisation. Only last summer the Russian government renewed its agricultural promotion programme which will be worth the equivalent of EUR 57.5 billion through 2020.

Ekotechnikas growth during the financial year 2011/2012 was mainly generated in the new equipment segment which improved from EUR 104 million to approximately EUR 141 million, with the company selling just under 2,000 machines during the reporting period. Spare parts sales and service revenues already amounted to EUR 25.5 million and EUR 3.3 million, respectively. Over the coming years both after-sales segments are to be expanded significantly in line with the growing number of customers.

The past three years have seen us grow at an average rate of 28% per year and we intend to keep up double-digit growth in the coming years. We are backed by a strong partner, namely world market leader John Deere, a company who continues to lead the industry in terms of quality and innovation, said Wolfgang Bläsi, Managing Director of Ekotechnika GmbH.

Ekotechnika plans to further expand its branch network in its main regions of Central Russia, the Central Black Earth Region and Siberia in the coming years and to continue on its profitable growth course. Its target is to double sales of new machines and to treble after-sales (parts and service) revenues by 2016.