Atria Oyj

Earnings Release • Oct 29, 2015

Atria Group

1 January – 30 September, 2015

EUR million	Q3 2015	Q3 2014	Q1-Q3 2015	Q1-Q3 2014	2014
Net sales	337.1	364.4	989.2	1,062.7	1,426.0
EBIT	15.1	16.2	24.2	22.0	40.6
EBIT %	4.5 %	4.4 %	2.4 %	2.1%	2.8%
Profit before taxes	13.0	13.6	17.3	17.7	34.0
Earnings per share, €	0.27	0.35	0.38	0.45	0.93
Extraordinary items*	-	0.6	1.9	-0.6	1.0

* Extraordinary items are included in the reported figures.

• Atria Group's January-September comparable EBIT was at the previous years´s level. • The decrease of net sales was partly due to the sale of Falbygdens cheese business and the weakening of rouble. Additionally, net sales were brought down by lower-than-usual sales during the barbeque season and the intense competition.
• Atria Finland launched a project to improve the productivity of chicken production at the Sahalahti plant.
• Atria improves efficiency by reorganizing sales, marketing and logistics in Sweden.
• The construction project of expanding and modernising the pig cutting plant in Nurmo has progressed according to plan. The investment is worth around EUR 36 million.

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Atria Finland

1 January – 30 September, 2015

EUR million	Q3 2015	Q3 2014	Q1-Q3 2015	Q1-Q3 2014	2014
Net sales	235.1	238.5	681.0	701.9	945.5
EBIT	9.5	11.8	16.1	18.0	33.6
EBIT %	4.0 %	5.0%	2.4 %	2.6%	3.6%
Extraordinary items*	-	0.6	-	-0.2	0.9

*Extraordinary items are included in the reported figures.

• Atria Finland's decline of net sales was due to weaker consumer demand and tougher competition. The sales of barbaque products were down from the year before.

• EBIT was brought down by a decrease in sales prices, which was due to the oversupply of meat in the international market and intense price competition.
• At the beginning of September, Atria Finland launched a project to improve the productivity of chicken production at the Sahalahti plant. Atria estimates that removing overlapping functions and improving efficiency will result in annual savings of about EUR 1.5 million, which will be realised as of the second quarter of 2016.
• The construction project of Nurmo pig cutting plant has progressed according to plan.

Atria Scandinavia

1 January – 30 September, 2015

EUR million	Q3 2015	Q3 2014	Q1-Q3 2015	Q1-Q3 2014	2014
Net sales	81.3	93.3	246.7	277.0	371.9
EBIT	5.2	5.9	9.6	10.2	14.9
EBIT %	6.4 %	6.3%	3.9 %	3.7%	4.0%
Extraordinary items*	-	-	-	-	-

*Extraordinary items are included in the reported figures.

• Atria Scandinavia's decrease in net sales and EBIT of January-September was due to the sales of Falbygdens cheese business, completed on 1 April 2015.
• In May, Atria acquired the operations of Aalback Specialiteter, the consolidation of its operations into Atria has progressed well.
• In September, Atria Scandinavia initiated the reorganisation of its operations in Sweden. The reorganisation will affect sales, marketing and logistics. Atria estimates that the reorganisation and improved efficiency will result in annual savings of about EUR 1.8 million, most of which will be realised as of the the beginning of 2016.

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Atria Russia

1 January – 30 September, 2015

EUR million	Q3 2015	Q3 2014	Q1-Q3 2015	Q1-Q3 2014	2014
Net sales	19.1	29.2	56.5	76.5	98.8
EBIT	0.5	-1.5	0.2	-4.8	-5.7
EBIT %	2.8 %	-5.3%	0.4 %	-6.3%	-5.8%
Extraordinary items*	-	-	1.9	-	0.5

*Extraordinary items are included in the reported figures.

• Atria Russia's net sales for July-September in euros fell mainly due to the weakening of the rouble. EBIT improved due to price increases, the elimination of unprofitable products, a successful summer season for the Sibylla business, and improved cost-efficiency in general.
• The net sales of January-September in euros fell due to the weakening of the rouble. Net sales in the local currency grew by 2.3% year-on-year.
• January-September comparable EBIT came to EUR -1.7 million (EUR -4.8 million). The positive performance was due to increases in sales prices and better cost-efficiency. Meanwhile, EBIT was brought down by an increase in raw material prices and lower consumer demand.

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Atria Baltic

1 January – 30 September, 2015

EUR million	Q3 2015	Q3 2014	Q1-Q3 2015	Q1-Q3 2014	2014
Net sales	8.4	9.0	24.9	26.0	34.5
EBIT	0.0	0.1	0.1	-0.2	-0.0
EBIT %	0.3 %	1.3%	0.4 %	-0.6%	-0.1%
Extraordinary items*	-	-	-	-0.4	-0.4

*Extraordinary items are included in the reported figures.

• The development of net sales and profitability of Atria Baltic has been affected by the prolonged oversupply in the international meat market and fierce price competition in the retail market. The sales of barbeque products were lower than last year due to the cold and rainy weather.
• In late summer, authorities imposed regional export and sales bans in order to prevent the spread of African swine fever, which reduces profitability and makes it more difficult to use local meat.

Atria Group Financial indicators

€ Million	30.9.2015	30.9.2014	2014
Shareholders' equity per share, EUR	14.07	14.38	14.22
Interest-bearing liabilities	225.5	314.9	254.1
Equity ratio, %	46.0	42.1	44.0
Gearing, %	56.1	76.8	62.6
Net gearing, %	55.8	75.9	61.8
Gross investments in fixed assets	39.0	55.3	62.7
Gross investments, % of net sales	3.9	5.2	4.4
Average number of employees	4,304	4,773	4,715

• Atria Plc refinanced in June a long term bullet loan of EUR 30 million, which was due in February 2017. The maturity of the new loan is seven years.

• In the period under review, the Group's free cash flow (operating cash flow - cash flow from investments) was EUR 38.2 million (EUR -5.4 million). The Group's investments during the period totalled EUR 39.0 million (EUR 55.3 million).

• Interest-bearing net liabilities amounted to EUR 224.3 million (31 December 2014: EUR 250.7 million). The equity ratio was 46.0% (31 December 2014: 44.0%). In January–September, translation differences recognised in equity decreased equity by EUR 2.9 million (EUR 8.1 million) due to the weakening of the rouble.

• On 30 September 2015, the amount of the Group's undrawn committed credit facilities stood at EUR 110.7 million (31 December 2014: EUR 110.6 million). The average maturity of loans and committed credit facilities at the end of the period under review was 3 years 1 month (31 December 2014: 3 years).

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Atria Group Income Statement

	Q3	Q3	Q1-Q3	Q1-Q3
EUR million	2015	2014	2015	2014	2014
NET SALES	337.1	364.4	989.2	1,062.7	1,426.1
Cost of goods sold	-293.6	-316.6	-873.9	-936.0	-1,249.3
GROSS PROFIT	43.5	47.8	115.3	126.7	176.8
% of Net sales	12.9	13.1	11.7	11.9	12.4
Other income	1.5	1.3	4.8	2.6	6.7
Other expenses	-29.9	-32.9	-95.9	-107.3	-142.9
EBIT	15.1	16.2	24.2	22.0	40.6
% of Net sales	4.5	4.4	2.4	2.1	2.8
Financial income and expenses	-2.6	-2.8	-7.4	-9.6	-12.7
Income from joint-ventures and associates	0.4	0.3	0.5	5.4	6.2
PROFIT BEFORE TAXES	13.0	13.6	17.3	17.7	34.0
Income taxes	-4.9	-3.3	-6.1	-4.6	-7.2
PROFIT FOR THE PERIOD	8.1	10.3	11.2	13.2	26.8
% of Net sales	2.4	2.8	1.1	1.2	1.9
Earnings/share, €	0.27	0.35	0.38	0.45	0.93

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Atria Group Cash flow statement

	Q1-Q3	Q1-Q3
€ Million	2015	2014	2014
Cash flow from operating activities	46.3	63.3	113.3
Financial items and taxes	-3.9	-14.4	-21.1
Net cash flow from operating activities	42.4	48.9	92.2
Investing activities, tangible and intangible assets	-32.0	-23.9	-33.9
Acquired operations	-5.5	-32.5	-32.5
Sold operations	34.1	-	11.9
Change in non-current receivables	0.2	0.1	-2.8
Dividends from investments	0.6	1.0	8.4
Changes in other investments	-1.6	0.9	1.1
Net cash used in investing activities	-4.2	-54.3	-47.8
FREE CASH FLOW	38.2	-5.4	44.3
Changes in interest-bearing loans	-29.0	-13.8	-63.4
Dividends paid	-11.3	-6.2	-6.2
Net cash used in financing activities	-40.3	-20.0	-69.6
CHANGE IN LIQUID FUNDS	-2.1	-25.4	-25.3