Waiblingen, 04.03.2016

STIHL is committed to environmental protection and sustainable forest management

– Response to recent criticism of independent importer KTS in East Malaysia

The STIHL Group is committed to sustainable forestry and is a proponent of legal and controlled logging. The company condemns illegal felling of protected rainforests, and also large-area slash-and-burn clearing or clearing with heavy machinery. The sustainable use and care of nature is of key importance for us as a manufacturer of chainsaws and other power tools for forestry, garden and landscape maintenance. An intact environment creates a basis for people's livelihoods and work. We therefore have a vested interest in healthy and thriving woodlands. STIHL's long-term development is closely linked to the sustainability of agriculture and forestry.

A prudent and minimal utilization of rainforests must be sustainable – with selective felling and appropriate forest management. In this way the forest has an intrinsic value for the local population and is protected at the same time. We therefore support worldwide projects for sustainable forest management and the protection of woodlands.

The "Rettet den Regenwald" organization claims that certain subsidiaries of KTS – STIHL's importer in Malaysia – are supposedly involved in illegal felling. It must be pointed out in this respect that KTS is an independent company and an importer of STIHL products for the market in East Malaysia. STIHL has no knowledge of the specific business activities of the KTS Group's subsidiaries in Malaysia.

STIHL clearly advocates legal, controlled and sustainable logging. All of STIHL's business partners are aware of our position – this also includes KTS. KTS has always assured STIHL that it abides by the applicable laws. In view of the many years of collaboration we believe this statement of legitimate business activities to be true.

Nevertheless, owing to the recent reports we will investigate the allegation of illegal activities involving KTS subsidiaries. STIHL is currently in contact with KTS in order to clarify the situation. Should it become evident that illegal felling has taken place, we will work with KTS toward putting a stop to any such illegal activities.

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