Ponsse Oyj

Management Reports • Feb 4, 2022

Ponsse to strengthen its operations in the Czech Republic

Ponsse to strengthen its operations in the Czech Republic

Ponsse Group will be independently responsible for its sales, spare parts and
maintenance services in the Czech Republic. Today on 4 February 2022, Ponsse
signed a deed of sale, in which it agrees to purchase all shares in KŘENEK
FOREST SERVICE s.r.o (hereinafter “Krenek”), its PONSSE forest machine and
service dealer in the Czech Republic. The aim is that PONSSE services in the
Czech Republic will transfer to Ponsse Group by 1 April 2022. The company will
operate as a subsidiary wholly owned by Ponsse.

Krenek’s employees will continue in the service of the purchased limited
liability company under their current employment contracts and benefits. Ponsse
has prepared a comprehensive integration plan that will ensure a positive
continuation of the local business and sufficient induction for the employees.

The business arrangement has no impact on the previous guidance. The price of
the transaction between Krenek and Ponsse will not be made public by mutual
agreement, because the purchase price has no impact on the measurement of
Ponsse’s value. The purchase price will be paid in cash on the condition that
certain requirements set for the transaction are fulfilled. Ponsse will finance
the acquisition from its cash assets.

PONSSE forest machines have a market share of about 20 per cent in cut-to-length
(CTL) harvesting in the Czech Republic, and there are 290 PONSSE forest machines
in the country.

Brought together by the values of traditional family-owned companies

“We’re proud to continue Krenek’s work in the Czech Republic. It’s been an
honour for Krenek’s family-owned business to take care of customer relationships
with relentless honesty and commitment, which also lays the foundation of our
operations. We promise to provide our local customers with continuously
developing high-quality PONSSE solutions and services, also in the future, and
we see a lot of potential in this market. Our local employees will play a
crucial part in this,” says Juho Nummela, President and CEO of Ponsse Plc.
This change will not interrupt the local PONSSE services, which include machine
sales, maintenance, spare parts services, and training. Ponsse will continue to
operate in Hostinné in the same facilities in which Krenek’s services are
currently located.

Krenek has been Ponsse’s official dealer since 2013, having operated for ten
years through Wahlers Forsttechnik GmbH, Ponsse’s dealer in Germany. In 2020, a
total of 34.5 million m3 of wood was harvested in the Czech Republic, with
nearly all harvesting operations centred in areas damaged by bark beetles. The
normal annual harvesting volume in the Czech Republic is approximately 13–17
million m3. A sustainable level of harvesting is 22 million m3 per year in the
country, allowing forests to regenerate more quickly than they are harvested.

Earlier in November 2021, Ponsse announced its intention to establish a
subsidiary in Chile as well. Following the establishment of these new
subsidiaries, Ponsse Group consists of 14 subsidiaries and 44 dealers. In
addition to its international subsidiaries, Ponsse Group includes the technology
company Epec Oy in Finland. Exports account for 80 per cent of Ponsse’s
production at its factory in Vieremä, Finland. In addition to the company to be
acquired in the Czech Republic, Ponsse has European subsidiaries in Sweden,
Norway, France, the UK, and Ireland.

Vieremä, Finland, 4 February 2022

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.