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DGAP-News: Ekotechnika GmbH publishes figures for the first half of fiscal year 2013/14

June 30, 2014

DGAP-News: Ekotechnika GmbH / Key word(s): Half Year Results/Bond Ekotechnika GmbH publishes figures for the first half of fiscal year 2013/14 30.06.2014 / 18:14 --------------------------------------------------------------------- Ekotechnika GmbH publishes figures for the first half of fiscal year 2013/14 - Sales and earnings adversely affected by exchange rate effects in the seasonally weaker first half - EBITDA of EUR 0.5 million, EBIT of EUR -1.1 million - Successful reduction in receivables leads to positive operating cash flow Walldorf, 30 June 2014 - Ekotechnika GmbH, the German holding company of the Ekoniva Technika Group, the largest dealer of international agricultural machinery in Russia, generated sales of EUR 65.1 million (previous year: EUR 71.2 million) in the first half of the financial year 2013/14 (30 September). The reduction in consolidated sales in what is traditionally the weaker half-year due to seasonal factors is exclusively attributable to exchange rate effects. The company's sales in roubles were about 5% higher in the period from October 2013 to March 2014. Compared to the prior year period, the rouble depreciated against the euro from 40.25 to 46.09. Sine the interim reporting date on 31 March 2014, the Russian currency has recovered markedly from 49.05 to 46.02 (as at 27 June). For the first half of fiscal year, the exchange rate effects on the operational activities of Ekotechnika were negative, as the value of the rouble has continued to decline. This results from the fact that the valuation of stocks as of 31 March 2014 was made at a lower exchange rate than at the time of purchase. Conversely, when selling machines based on EUR or USD prices respectively, the prices will be converted in roubles at the current rate, so that falling prices lead to higher sales. Revenues from the sale of agricultural machinery are the biggest revenue item in the first half-year, which accounted for EUR 48.2 million or 74%. John Deere, the world's largest agricultural equipment manufacturer, is the Group's main supplier and accounted for about two thirds of its sales. Other important suppliers include JCB, VÄderstad and GEA. Revenues from spare parts sales showed a clearly positive trend and picked up by 56% to EUR 13.4 million (21% of total sales). The Service segment and Other Revenues increased from EUR 2.1 million to EUR 2.6 million (5% of total sales). The gross profit rose by 6% to approx. EUR 14 million due to the increase in the high-margin spare parts business. The above-mentioned exchange losses totalling approx. EUR 6.2 million had an adverse impact on earnings. EBITDA amounted to EUR 0.5 million, compared to EUR 1.9 million in the previous year. First-half EBIT stood at EUR -1.1 million (previous year: EUR 0.8 million), while the net loss for the period amounted to EUR -10.6 million (previous year: EUR -5.3 million). As described above, the company expects positive exchange rate effects in the second half of the year, which will lead, from today's perspective, to improved results. Successful reduction in receivables leads to positive operating cash flow As announced in March, the company achieved considerable progress in reducing its trade receivables. This had a positive cash effect of EUR 9.2 million. Cash flow from operations totalled EUR 25.3 million and amounted to EUR 20.2 million after interest and taxes. Overall, the preconditions for continued growth in Russia's agricultural sector remain intact. Says Wolfgang BlÄsi, Managing Director of Ekotechnika GmbH: "It is the medium-term objective of the Russian government that roughly 85% of all key agricultural commodities consumed in Russia are produced locally. To achieve this goal, farmers must continue to invest in highly efficient agricultural machinery. While the situation in 2014 is clearly dominated by the weakness of the rouble and the more difficult financing conditions for farmers resulting from the Ukraine crisis, the medium-term outlook of Russia's agricultural machinery market remains positive." In light of the current difficult business environment and a weakening market as a whole, the management is satisfied with the stable development of the business operations. Capital base strengthened by EUR 6 million With a view to strengthening its equity capitalisation, Ekotechnika allocated EUR 6 million to its capital reserve after the balance sheet date on 31 March. Together with the anticipated reduction in seasonal influences and exchange rate effects in the second half of the year, this will clearly improve the company's currently negative equity base. The full unaudited report for the first six months of 2013/14 is available on the company's website at www.ekotechnika.de/en/investor-relations/documents. End of Corporate News --------------------------------------------------------------------- 30.06.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Ekotechnika GmbH 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: DE000A1R1A18 WKN: A1R1A1 Listed: Freiverkehr in Berlin, DÜsseldorf, Hamburg, Hannover, MÜnchen, Stuttgart (bondm); Frankfurt in Open Market End of News DGAP News-Service --------------------------------------------------------------------- 275972 30.06.2014


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Source: DGAP Corporate News


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