04.04.2018 – 17:46

EEII AG

EQS-Adhoc: EEII AG: EEII AG publishes annual results 2017

EQS Group-Ad-hoc: EEII AG / Key word(s): Final Results/AGM/EGM
EEII AG: EEII AG publishes annual results 2017

04-Apr-2018 / 17:42 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.

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Ad-Hoc Information: EEII Annual Results

Zug, April 4th2018

EEII AG reports the annual results 2017

EEII closes the reporting year with a moderate increase in profit of CHF 78'405
(2016: CHF 14'108) due to the more favorable market conditions and a reduced
cost basis. The net asset value (NAV) as of December 31, 2017 improved to CHF
3,54 per share versus CHF 3,49 at year end 2016. The disciplined cost reduction
initiated in 2016 showed its full year effect for the first time, and gains in
Russian and Ukrainian equities offset the weak currency performance of the USD.

Commodity prices in raw materials, precious metals and crude oil continued to
accelerate across the board in 2017 (copper + 31 %, zinc + 30 %, aluminium + 35
%, gold + 13 %, crude oil + 12 %). The impact of this positive price momentum
was the driving force behind the stellar performance of KAZ Minerals + 138 %,
and the more tempered Russian equities at + 6 %, and in Ukraine + 22 %. The weak
USD performance and a Ukrainian Hryvna which lost another 7,7 % impacted EEII's
investment performance negatively. By contrast the GBP improved + 4,5 % versus
the CHF.

The macro-economic view for Ukraine shows a slow-down in GDP growth from + 4,8 %
in Q4, 2016, to only 2,1 % in Q3, 2017 - clearly too low for a sustainable
economic recovery in the region. Despite the sanctions in the Donbass area and
statements by the political administration claiming to fight corruption, there
is no perceptible progress witnessed on either front. The EBRD has openly
declared that the privatization process in Ukraine has failed. Several of EEII's
Ukrainian investments, which were originally acquired for their highly promising
business potential, have become all but worthless. The bureaucratic burden for
foreign investors has reached dimensions rendering the investment process
cumbersome, even for our Company, which has been engaged in this market for over
10 years.

EEII's management is currently contemplating a complete exit from all its
investments in Ukraine. Despite our belief that the potential for very
substantial price increases should be there, we perceive that this potential is
increasingly outweighed by the political risks. The Company is therefore
reviewing its investment strategy in 2018 - including an association with
another anchor investor or a group of stake-holders, to redefine its investment
focus and long-term strategy. For this purpose, the Board of Directors shall
propose to the shareholders the introduction of an "Opting Out" clause in the
Articles of the Company.

The full annual report for 2017 as well as more detailed information regarding
the introduction of an Opting Out are available for download underwww.eeii.ch; a
printed copy can be sent to the shareholders upon demand.

EEII AG's Annual General Meeting will take place April 30, 2018, at 11.00h at
the Parkhotel in Zug.
For comprehensive information about the AGM, please refer to:www.eeii.ch

For further information, please contact:
Marcus H. Bühler, CEO(Tel: +41-44-552 43 43).
EEII is quoted on the Swiss Exchange (SIX) (Bloomberg: EEII SW Equity).

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End of ad hoc announcement------------------------------------------------------

Language: English

Company:  EEII AG

          Alpenstrasse 15

          6304  Zug

          Switzerland

Phone:    +41 41 729 42 80

Fax:      +41 41 729 42 29

E-mail:    info@eeii.ch

Internet: www.eeii.ch

ISIN:     CH0007162958

Valor:    940179

Listed:   SIX Swiss Exchange



 

End of Announcement EQS Group News Service

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671507  04-Apr-2018 CET/CEST