2020

28.04.2020 – EEII AG

EEII AG: EEII AG publishes annual results 2019

EEII AG / Key word(s): Annual Results/AGMEGM
EEII AG: EEII AG publishes annual results 2019

28-Apr-2020 / 17:43 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 28, 2020

EEII AG reports on the annual results 2019

In line with most financial markets, EEII looks back to a very positive
reporting year, having generated a net profit of CHF 2'763'927 (2018: loss
CHF 593'829). The principal driver for this significantly better result was
the equity position held in the oil-and gas behemoth Gazprom, with an
absolute performance of 86% for the year. In contrast to Gazprom, all
Ukrainian investments held by EEII stagnated yet again, despite an improved
political environment. However, the local currency, Hryvna, lent some
support to the Ukrainian assets. The net asset value (NAV) as of December
31, 2019, improved to CHF 4.96 per share versus CHF 3.15 at year end 2018.
Total expenses 2019 were CHF 423'000 vs. 2018: CHF 387'500. Dividend income
for 2019 increased 13% to CHF 312'000.-.

Led by the US equity market (S&P 500 + 30%), most stock-exchanges improved
distinctively around the globe. The expectations for a further economic
recovery impacted commodity prices as well i.e. the cost per barrel crude
oil moved from USD 54 to USD 65. Taking advantage of such a fruitful
environment, Gazprom unexpectedly announced a dividend increase, leading to
a revaluation of its stock price. Prices in the shares of our two other key
holdings, Ukrnafta and KAZ Minerals, did not alter.

With regards to currencies the increase in the Ukrainian Hryvna (+15 % vs.
CHF) added a supportive element to the performance of our Ukrainian
investments. The USD and GBP held their ground during 2019, whereas the
British Pound was able to recover from its lows, following initial Brexit
worries in the mid-year.

The election of the new Ukrainian president Wolodymir Zelensky, a former
comedian, came like an unexpected earthquake. The newly appointed president
started with incredible verve and surprised with an ambitious programs of
reforms. Subsequently, culminating in obtaining the suspended IMF stimulus
package in the amount of USD 5,5 Bio. This new optimism in a country
burdened by never ending crises, was cause for a better performing local
currency, improved growth outlooks and last but not least, a capital market
bond new issue of Eur 1,25 Bio in January 2020. This positive sentiment was,
however, not reflected in the performance of Ukraine's stock market which
closed lower at year-end than at the beginning of the year.

Despite all these positive signs in Ukraine, EEII's key market, a
sustainable and prosperous performance of its shares in particular in the
energy sector did not occur and seems difficult to conceive going forward.

The full annual report for 2019 as well as more detailed information are
available for download under www.eeii.ch; a printed copy can be sent to the
shareholders upon demand.

EEII AG's Annual General Meeting will take place June 23, 2020, at 11.00h at
the City Garden Hotel 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

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