Ponsse Oyj

M&A Activity • Nov 5, 2021

Ponsse to invest in operations in Chile

Ponsse to invest in operations in Chile

Ponsse Group will be in the future responsible itself for the sales, spare parts
and service business in Chile through its newly established subsidiary Ponsse
Chile SpA. To this end, Ponsse and its local retailer F.C. Ventas Y Servicios
Limitada (hereinafter “FC Ventas”) have, today on 5 November 2021 signed an
asset purchase agreement related to Ponsse’s forest machine operations,
according to which Ponsse Chile SpA will purchase FC Ventas’ service centre
located in Chillan, including its spare parts stocks and maintenance vehicles,
subject to the fulfilment of certain conditions. The aim is that PONSSE services
in Chile will transfer to Ponsse Group by the end of Q1/2022.

The employees of F.C. Ventas will join Ponsse Group as established employees
after the transaction has been completed. Ponsse has prepared a comprehensive
integration plan that will ensure a positive continuation of the local business
and sufficient orientation for the employees.

The transaction has no impact on the previous guidance, which suggests that
Ponsse Group’s operating result is estimated to be significantly higher than in
2020. Currently, Ponsse’s business in Chile amounts to approximately ten million
euros. The purchase price of the transaction between FC Ventas and Ponsse will
not be made public by mutual agreement. Furthermore, the purchase price has no
impact on the valuation of Ponsse. The purchase price will be paid in cash
subject to the fulfilment of certain conditions set for the completion of the
transaction. Ponsse will fund the acquisition from its cash assets.

PONSSE forest machines have a market share of about 40 per cent of cut-to-length
machines in Chile, and there are 150 PONSSE forest machines in the country.
Further machine deliveries are expected as cut-to-length harvesting grows in
popularity.

Securing service quality and continuity

Juho Nummela, Ponsse Plc president and CEO, says that FC Ventas has built a
strong foundation for continuing the development of the service selection.
“We want to provide our customers in the growing Chilean market with the best
support possible in the form of excellent products and services that ensure the
continuity of their business. We have expanded our subsidiary network with care
and always based on customer needs. Our range of products is a good fit for the
local conditions, and we believe in the growth potential of PONSSE products and
services in Chile,” says Nummela.

This change will not interrupt the local PONSSE services, which include machine
sales, maintenance, spare parts services and training for local customers. The
FC Ventas service centre in question was completed in 2015 and it operates in
Chillan in the middle of Chile’s forested region.

Ponsse first started import operations in Chile in 2014, but the first PONSSE
forest machines were already working in the country in the 1990s. The
sustainable annual harvesting volume has grown steadily thanks to the trees’
quick life cycle and well-managed forest plantations. In 2019, Chile’s wood
harvest for sawmills, pulp mills and veneer industry applications was 47.6
million cubic metres. The country’s forest industry is based on forest
plantations, and 28 per cent of their harvesting is currently based on the cut
-to-length (CTL) method.

Ponsse’s Vieremä factory currently exports 80 per cent of its production, and
PONSSE solutions are sold and serviced by a network of 12 subsidiaries and 44
retailers. In addition to its international subsidiaries, Ponsse Group includes
the technology company Epec Oy in Finland. Ponsse Chile SpA will join Ponsse’s
other South American subsidiaries in Uruguay and Brazil.

Vieremä, Finland, 05 November 2021

PONSSE PLC

Juho Nummela
President and CEO

FURTHER INFORMATION
Juho Nummela, President and CEO, tel. +358 400 495 690

DISTRIBUTION
Nasdaq Helsinki Ltd.
Principal media
www.ponsse.com

Ponsse Plc specialises in the sale, production, maintenance and technology of
cut-to-length method forest machines, and is driven by a genuine interest in its
customers and their business operations. Ponsse develops and manufactures
sustainable and innovative harvesting solutions based on customer needs.

The company was established by forest machine entrepreneur Einari Vidgrén in
1970 and has been a leader in timber harvesting solutions based on the cut-to
-length method ever since. Ponsse is headquartered in Vieremä, Finland. The
company’s shares are quoted on the NASDAQ OMX Nordic List.