Ekosem-Agrar strengthens equity by EUR 10 million

• Capital increased by 5 %
• Fresh funds to expand market leadership
• Russian agricultural market offers attractive opportunities for expansion

Walldorf, 27 September 2013 – Ekosem-Agrar GmbH, the German holding company of the Ekoniva Group operating in the Russian dairy market, has substantially strengthened its equity base through the advent of another investor. Under an agreement signed today, the new investor will own a 5 percent stake in Ekosem-Agrar GmbH following the official entry in the companies’ registry. This capital increase strengthens the Group’s equity base by EUR 10 million (30 June 2013: EUR 94.7 million), allowing it to continue its consistent expansion strategy.

“The additional funds strengthen our capitalisation and expand our opportunities to acquire more dairy operations and farmland,” says Stefan Dürr, the Group’s Managing Director and main shareholder. The Russian agricultural market continues to offer attractive conditions. While the Ekosem-Agrar Group is the largest dairy producer in Russia, its market share is only 1 percent. This highlights the Group’s potential for growth in the Russian dairy market. Attractive opportunities for investment also result from the prices of farmland which are low by international comparison, particularly considering the high soil quality.

The first half of 2013 saw a significant strengthening of Ekosem-Agrar’s profitability. The Group reported six-month sales of EUR 74.8 million, adjusted EBITDA of EUR 23.6 million and net profit for the period (adjusted) of EUR 3.1 million.