Russian-Owned Buhler Issues Answers Frequently Asked Questions

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Buhler Industries reports:

Who owns Buhler Industries?
Buhler Industries Inc. is publicly traded on the Toronto Stock Exchange (TSX:BUI). The majority of shares are owned by Combine Factory Rostselmash Ltd., which is controlled by a company that is Russian-owned, however the origin of Buhler Industries is Canadian and dates back to 1932. The remaining 3.3% of the shares are publicly traded, owned by investors and employees. Our values and beliefs are rooted in Canada where we have been doing business for more than 90 years.

The Farm King and Versatile brands were born in Canada and our products have been proudly made by Canadians for decades. There are currently 700 Canadians and 50 Americans employed by Buhler Industries; all employees are located in North America. The decisions for the company are made by our senior management team located in Winnipeg, Manitoba without input or influence from Rostselmash.

Who works at Buhler Industries?
Buhler Industries employs approximately 700 people in Canada and 50 in the United States; all staff members are located in North America. The employee base at Buhler Industries is quite diverse and includes both Ukrainians and Russians who are all devastated by the actions taking place. Beyond our own staff, approximately 170 Versatile dealers, thousands of Farm King dealers, and countless farmers across North America rely on the products and service parts we manufacture to support their operations. The company maintains memberships in the Association of Equipment Manufacturers, the Agricultural Manufacturers of Canada and the Equipment Dealers Association.

Who is on the senior management team?
NAME – OFFICE | PRINCIPAL OCCUPATION
Marat Nogerov – Officer | President
Grant Adolph, P.Mgr – Chairman/Director/Officer | Chief Operating Officer
Willy Janzen, CPA, CGA., B.Comm. – Officer | Chief Financial Officer
Maxim Loktionov – Officer | Vice President, Farm King
Adam Reid – Director/Management | Vice President, Sales & Marketing, Versatile
Neil Frechette – Management | Director of Information Technology
Todd Trueman, C.I.M., P.Mgr., C.Mgr. – Management | Director of Human Resources
Louis Lepine – Management | Director of Corporate Quality
Natalia Nikushkina – Management | Director of Purchasing
Olga Shopp – Management | Director of Engineering
Doug White – Management | Operations Manager

The entire team resides in Winnipeg, Manitoba and works at our facility at 1260 Clarence Avenue. Marat, Natalia and Olga, who moved to Winnipeg from Russia, are Permanent Residents of Canada and are working toward Canadian citizenship. Maxim Loktionov moved to Canada in 2007 and became a Canadian citizen in 2018.

Who is on the Board of Directors?
Buhler Industries made several changes to our Board of Directors in March 2022 in order to align the organization with the core values of the Canadian-based senior management team.

Buhler Industries is strongly opposed to the comments made by former board member Konstantin Babkin. His views are in stark contrast to those of the senior management team and do not reflect the position or values of Buhler Industries. His seat on the board is now held by Adam Reid, Vice President of Sales and Marketing.

Grant Adolph, P.Mgr., became Chairman of the Board, replacing Dmitry Udras. Ossama AbouZeid, Ph.D., MBA, was appointed as a Director and Chairman of the Audit Committee.

Four of the seven members of the Board of Directors, including the Chairman of the Board, are Canadians based in Winnipeg. The Board of Directors is as follows:
• Grant Adolph, Chairman of the Board
• Ossama AbouZeid
• Adam Reid
• Allan Stewart
• Oleg Gorbunov
• Yury Ryazanov
• Dmitry Udras

Does Buhler Industries support Ukraine? What is being done to help?
Yes, we stand with Ukraine. The senior management team of Buhler Industries unanimously condemns the actions of the Russian Federation. This attack on Ukraine is an injustice that no person or people should have to endure. The agriculture industry, specifically in Western Canada, has deep ties to Ukraine. Ukrainian farmers are the backbone of Canadian agriculture through the dealership community and multigenerational farms. We would like to express our deepest and continued condolences to our colleagues, friends, dealers and all those affected.

Buhler Industries has partnered with the Red Cross to generate funds that will support Ukraine. The company will match every donation made by staff and dealers up to $100,000 CAD. The money raised will help the Red Cross and Red Crescent Movement respond to humanitarian needs.

If you would like to join the campaign, donations can be made at: www.redcross.ca/ukrainecrisis/buhler

Is Buhler Industries (Farm King and Versatile) still in business?
Yes. Business is ongoing and we do not anticipate any interruptions to our production. Like all farm equipment manufacturers, supply chain issues continue to be a huge challenge for the company, unrelated to the Russian invasion of Ukraine. The sanctions, which restrict trade with Russia, do not impact Buhler Industries. Buhler Industries is continuing business and production as usual at all facilities.

Does owning Versatile or Farm King product support Russia or the attack on Ukraine?
No. The Farm King and Versatile brands were born in Canada and our products have been proudly made by Canadians for decades. All profits made have been reinvested into the Canadian operations. The company operates independently from Rostselmash and no money goes, or has ever gone to Russia.

Does Buhler Industries send profits to Russia?
No. Rostselmash has not taken any profits or dividends from the company, since acquiring a majority share in 2007 instead reinvesting everything back into Buhler Industries.

We don’t do business with Russia. Some service parts are sold to CIS countries to support products that were previously built in Manitoba, accounting for less than 0.5% of annual sales. All service parts orders and shipments to Russia have been cancelled.

Does Buhler Industries send product (including tractors) to Russia?
No. No units have shipped to Russia since 2019 and we no longer do business in the area.

Buhler Industries sells more than $150 million worth of equipment outside Canada, about 60% of total sales. The vast majority of the export business is to the United States, and none of this equipment was produced for, or sold in, Russia. Any service parts to support existing machines in the region account for less than 1% of the export total. All service parts shipments to Russia have been suspended indefinitely.

How will Buhler Industries respond to potential sanctions?
Buhler Industries will comply with all government regulations and sanctions. We hope for an end to the war and welcome all government regulations and sanctions that restrict Russia and individuals supporting the war. We urge the government to take all actions necessary to end the attacks on Ukraine. We are only hopeful that restrictions consider the impact on our Canadian staff, the farm equipment dealers and the farmers that may be affected as a result.