Ekosem-Agrar ends successful harvesting season 2012

• Some new records in spite of dry spring
• Farmland diversification paying off
• Fodder harvest of around 385,000 t secures supply for 2013
• Milk price rises sharply and currently stands at EUR 0.44 per litre

Walldorf, 20 November 2012 – Ekosem-Agrar GmbH, the German holding company of Russian milk producer Ekoniva Group, has ended the 2012 harvesting season with positive crop yields at very high selling prices. The grain, sunflower and soybean harvests exceeded the high levels of the previous year. Sugar beets were slightly below the prior year level, while the maize harvest was on a par with the previous year. New record levels were reported for the fodder harvest, which is important for dairy production and reached 385,000 tons, up from 343,000 tons in the previous year. Ekosem-Agrar is thus not affected by the problem faced by many milk producers who are suffering from rising fodder prices due to high harvest losses. Thanks to the integrated business model, under which the company grows its own fodder, the supply for Ekosem-Agrar’s cattle stock is guaranteed for the full year 2013.

Says Stefan Dürr, Managing Director and main shareholder of Ekosem-Agrar GmbH: “This year we have an unusual combination of high crop yields in the Black soil region and high selling prices. This once again proves the benefits of the climatic diversification of our farmland at various locations throughout Russia. We have been able, for instance, to more than offset the lower harvest in Siberia, which suffered from a severe drought, with higher crop yields in the important Black soil region.”

The increase in harvests is not only attributable to the expansion of the company’s farmland but partly also to record yields. In the Black soil region, for instance, almost 4 tons of winter wheat per hectare were harvested on average, compared to just below 3 tons last year. This is not least due to the constant improvement of the soil over the past year; the damages that usually exist when the company acquires new land are reduced steadily and the quality of the soil is improved. At the same time, the company benefits from rising grain prices, which are up by 80% on the previous year on average across all locations. Higher sales proceeds have been achieved also for other crop types such as maize (+55%) and sunflowers (+100%).

Says Wolfgang Bläsi, Managing Director and CFO of Ekosem-Agrar GmbH: “The high fodder supply security, the fact that our farmland expansion is proceeding to plan and the increase in our dairy cow stock make us optimistic about the next financial year. In addition, there is a significant increase in the Russian milk price to currently EUR 0.44 per litre which is expected to endure in 2013.”

To optimise its funding structure and finance its growth, Ekosem-Agrar GmbH will issue a EUR 60 million corporate bond. Subscription starts on 26 November 2012. The agricultural bond II (WKN: A1R0RZ / ISIN: DE000A1R0RZ5) offers a fixed annual coupon of 8.5% and has a term of six years. It will be targeted at private and institutional investors in Germany and abroad. equinet Bank AG, Frankfurt am Main, acts as Lead Manager and Bookrunner.

Disclaimer

This information does not constitute an offer to buy securities of Ekosem-Agrar GmbH and should not be regarded as a substitute for a securities prospectus. Any investment decision regarding the bond issued by Ekosem-Agrar GmbH must be based exclusively on the securities prospectus approved by the Federal Financial Supervisory Authority, which can be found at www.ekosem-agrar.de.