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Annual report

In 2017 Lely strengthened its basis for a leading role in robotics and farm management for the dairy farm

2017 was again a special year for Lely. Following the sale and transfer in October of the Forage activities to the American AGCO, the company's focus is fully on the future in robotics and farm management. Among other things, the celebration of 25 years of robot milking worldwide created a new élan within the organisation. In 2017, Lely therefore experienced growth of the order portfolio, as well as an increase in the market share in dairy automation. The turnover in 2017 amounted to 506 million euros. Robotics and farm management showed a strong growth of 12%, with a clear acceleration in the second half of the year compared to 2016. A significant contribution to this growth was made by North America and Japan, followed by Western Europe.

March 29, 2018

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The total expenditure for R&D amounted to 6% of turnover in 2017. Product development activities mainly revolved around preparing product launches in 2018 and the years thereafter. In addition to that, a lot of hard work has gone into developing competencies to stimulate far-reaching digitisation within the company and at our customers.

Prospects for 2018

2018 promises to be a great year for Lely. The company will then be celebrating its 70th anniversary. The ‘Lely Future Farm Days’, a large-scale event for employees and Lely Centers in April, will be an opportunity to show that the company is more ready for the future than ever before, thanks to the launching of new solutions for dairy farmers.

In 2018, Lely is going to continue focusing on its target of investing 6% of turnover in R&D and, despite a predicted slight decrease in milk prices, Lely still expects sales to increase in 2018. This will partly be the result of a continued recovery in customers' willingness to invest and the introduction of important new products.

The market and society are demanding an increasingly active attitude and responsibility on the part of the livestock sector with regard to animal welfare and emissions while, at the same time, dairy farmers are aiming for a continuous improvement in operating processes with a view to increasing efficiency and creating pleasant working conditions. These themes will continue to be the focus in 2018 in terms of implementing Lely's mission and vision, for which Lely's expertise in the field of robotics, farm management and data and sensor systems provides a promising basis.

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