Agrokultura completes spring planting Agrokultura AB

Agrokultura AB (“the Group”), the owner and operator of farmland and agricultural operations in Russia and Ukraine, reports the completion of the spring seeding campaign and the total cropped area for harvest in 2014. The Group has now completed the spring seeding campaign under good conditions. The total cropped area for harvest in 2014 covers 119,200 hectares, compared to 134,000 hectares harvested in 2013. Of the 119,200 ha, 44,900 ha are to be harvested in Ukraine and 74,300 in Russia CBS (Central Black Soil region). In both Ukraine and Russia, spring arrived relatively early this year which permitted a prompt start to field operations. The weather conditions during the early part of the spring field works were normal across the Group’s operations in Russia and Western Ukraine permitting good progress, although unusually heavy rains in Western Ukraine in the first half of May delayed operations by approximately 10 days leading to a small reduction in planting. The Russia CBS operations planted more spring crop than in previous years (54,300 ha) with seeding operations hitting a peak of over 18,000 ha in a week. This increase was planned in order to make up for the reduction in winter planting due to previously announced wet weather in the autumn of 2013 together with the sale of the Group’s Kaliningrad operation which in previous years had approximately 8,100 ha under cultivation. The increase in planting was achieved mostly through improved organisation although wet conditions at the end of 2013 limited the amount of soil preparation possible in the autumn. Approximately 20,000 ha of Russia CBS land is now cultivated on a no-til basis with associated cost savings and improved soil structure. The Ukrainian operation planted approximately 20,400 ha to give a total of 44,900 ha which will lead to a reduction in 2014 harvested hectares of approximately 5,300 ha compared to 2013. The reason for this reduction was a combination our requirement to cultivate only the most efficient land plots, reducing corn planting due to the imminent sale of certain non-core land plots which had been prepared in 2013 and the wet weather at the end of the seeding campaign. The Group anticipates making up for the shortfall through an increased 2014 planting programme of rapeseed, barley and wheat in August and September which will be harvested in 2015. All spring crops have been GPS sown into an excellent seedbed and have had good weather conditions to emerge strongly. A breakdown between crops and regions is found in the table below. +-------------------------+----------------------------------+-------+-------+ |Crop |Russia - Central Black Soil Region|Ukraine|Total | +-------------------------+----------------------------------+-------+-------+ |Winter planted crops | | | | +-------------------------+----------------------------------+-------+-------+ |Winter wheat |16,200 |8,200 |24,400 | +-------------------------+----------------------------------+-------+-------+ |Winter rape |- |12,200 |12,200 | +-------------------------+----------------------------------+-------+-------+ |Winter barley |- |4,100 |4,100 | +-------------------------+----------------------------------+-------+-------+ |Spring planted crops | | | | +-------------------------+----------------------------------+-------+-------+ |Sunflower |16,800 |12,500 |29,300 | +-------------------------+----------------------------------+-------+-------+ |Corn / Maize |4,600 |7,900 |12,500 | +-------------------------+----------------------------------+-------+-------+ |Spring Barley |11,100 |- |11,100 | +-------------------------+----------------------------------+-------+-------+ |Soya |5,100 |- |5,100 | +-------------------------+----------------------------------+-------+-------+ |Buckwheat |1,800 |- |1,800 | +-------------------------+----------------------------------+-------+-------+ |Spring rape |7,400 |- |7,400 | +-------------------------+----------------------------------+-------+-------+ |Sugar beets |1,300 |- |1,300 | +-------------------------+----------------------------------+-------+-------+ |Spring wheat |4,100 |- |4,100 | +-------------------------+----------------------------------+-------+-------+ |Oats |1,900 |- |1,900 | +-------------------------+----------------------------------+-------+-------+ |Other |200 |- |200 | +-------------------------+----------------------------------+-------+-------+ |Total crops for sale (ha)|70,500 |44,900 |115,400| +-------------------------+----------------------------------+-------+-------+ |Forage crops |3,800 |- |3,800 | +-------------------------+----------------------------------+-------+-------+ |Total cropped area |74,300 |44,900 |119,200| +-------------------------+----------------------------------+-------+-------+ The harvest is scheduled to begin during the last week of June in Russia and Ukraine. Stephen Pickup, Group Managing Director, commented; “We are pleased with the progress of the spring works and in particular the planting campaign. In Ukraine, we were more prepared than in previous years with excellent preparation work delivering good seed beds for the spring crops. In addition the early spring and favourable weather conditions put less pressure on seeding windows compared to 2013. We are focussed on maximising profit with the assets currently available to us and cultivating the most efficient lands. This has meant that there has been a small reduction in planted hectares mostly due to the sale of certain “non-core” land areas which were previously planted. We believe this reduction improves our chances at delivering the promised turnaround in financial results. The decrease in winter wheat planting together with the increase in sunflower hectares across the Group renders sunflower the most significant Group crop in terms of hectarage. Over recent years it has been among the most profitable crops with relatively low costs and good pricing driven by the general oilseed market.” Stockholm, 2 June 2014 For additional information, please contact: Stephen Pickup, Group Managing Director, tel: +44 782 529 4352 Kristian Shaw, Group CFO, tel: +44 782 529 4356 About Agrokultura AB (publ) Agrokultura invests in farmland and produces agricultural commodities in Russia and Ukraine. The Group aims to generate an attractive return on invested capital by optimally utilizing its agricultural land bank through crop production, livestock and related operations. Shares in Agrokultura are listed in Sweden on the Nasdaq OMX First North exchange under the ticker AGRA and the Group’s Certified Adviser is Remium Nordic AB.