DGAP-News: Ekotechnika AG Serie A

DGAP-News: Ekotechnika AG shows more stable business performance in Q1 2015/2016

DGAP-News: Ekotechnika AG / Key word(s): Quarter Results/AGM/EGM Ekotechnika AG shows more stable business performance in Q1 2015/2016

14.04.2016 / 09:37 The issuer is solely responsible for the content of this announcement.

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- Sales revenues climb to EUR 22.9 million (+20 %)

- EBIT improves to EUR -0.1 million (previous year: EUR -7.2 million)

- Positive equity after debt-equity swap (equity ratio: 12.7 %)

- First ordinary Annual General Meeting in Mannheim

Walldorf, 14 April 2016 - The Management Board of Ekotechnika AG (primary market; ISIN: DE000A161234), the German holding company of the EkoNiva-Technika Group, the largest dealer of international agricultural machinery in Russia, will inform the shareholders about the past financial year 2014/15 (30 Sept.), the preliminary figures for the first three months of 2015/16 (1 Oct. to 31 Dec. 2015) and the current operating performance at today's Annual General Meeting in Mannheim.

In the first quarter of the current financial year, Ekotechnika AG generated consolidated sales revenues of EUR 22.9 million, up 20 % on the same period of the previous year (EUR 19 million). The increase in the Group's sales revenues is attributable to a considerable recovery in sales of agricultural machinery and the continued strong replacement parts business. The political and economic situation in Russia remains tight, however. Geopolitical factors such as the unresolved Ukraine crisis and the sanctions as well as economic factors such as the low oil price and the high interest rates in Russia continue to have a strong impact on the entire industry. Although Russian farmers have significant investment requirements, this leads in combination with the greater support of local technology to the spending restraint.

With the cost base having been adapted to the reduced market and revenue expectations and the significant decline of currency losses, Ekotechnika AG's earnings before interest and taxes (EBIT) improved from EUR -7.2 million to EUR -0.1 million in the first quarter of 2015/2016. Preliminary earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to EUR 0.4 million in the reporting period (previous year: EUR -6.5 million). Consolidated net income before taxes increased from EUR -18.1 million to EUR 58.5 million. The improvement is attributable to the debt-to-equity swap completed in December, which resulted in a positive one-time effect of over EUR 60 million. Adjusted for this effect, the company posted a loss of approx. EUR 1.9 million, which is very satisfying for a first quarter due to the extreme seasonality. The capital restructuring also resulted in positive equity of approx. EUR 8.9 million as of 31 December 2015. This is equivalent to an equity ratio of approx. 12.7 %.

Says Stefan Dürr, main shareholder and CEO of Ekotechnika AG: "The framework conditions for the agricultural machinery business in Russia remain challenging, although the developments of the past months give reason for optimism. Now that we have completed the operational and financial restructuring, we have a capital and cost base which will support our business operations in the long term also under adverse market conditions. With the support of our shareholders, we have thus got Ekotechnika AG back on track."

The first ordinary Annual General Meeting of Ekotechnika AG will be held today, 14 April 2016, at Congress Center Rosengarten in Mannheim. For more information, visit http://www.ekotechnika.de/de/investor-relations/hauptversammlung.html.

About Ekotechnika

Walldorf-based Ekotechnika AG is the German holding company of the Ekoniva-Technika Group, the largest distributor of agriculture equipment in Russia. The company's single most important supplier is John Deere & Co., the world's leading manufacturer in this field. In addition, Ekotechnika sells equipment from another 11 market-leading manufacturers. Its main business is in selling new equipment such as tractors but also milking equipment and precision farming technology. In addition, the company sells spare parts and provides service and maintenance. Ekotechnika's founder and board member is Stefan Du¨rr, who has been active in the Russian farming sector since the late eighties and has been instrumental in its modernisation over the past two decades. In 2011 the equipment business was separated from the farming business, which now operates independently under the name Ekosem-Agrar. Operating 12 locations in attractive Russian farming regions, Ekotechnika today employs around 520 people and generates sales of EUR 109 million in 2014/2015. The Ekotechika stock is listed on the Primärmarkt of the Düsseldorf stock market (ISIN: DE000A161234).

Contact

Ekotechnika AG // Johann-Jakob-Astor-Str. 49 // 69190 Walldorf // T: +49 (0) 6227 3 58 59 60 // E: info@ekotechnika.de // www.ekotechnika.de

Media / Investor Relations

Fabian Kirchmann // IR.on AG // T: +49 (0) 221 9140 970 // E: presse@ekotechnika.de

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14.04.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English Company: Ekotechnika AG Johann-Jakob-Astor-Str. 49 69190 Walldorf Germany Phone: +49 (0) 6227 3 58 59 60 E-mail: info@ekotechnika.de Internet: www.ekotechnika.de ISIN: DE000A161234 WKN: A1R1A1 Listed: Regulated Unofficial Market in Dusseldorf Notierung vorgesehen. / Intended to be listed. End of News DGAP News Service ---------------------------------------------------------------------------

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