Atria Oyj

Earnings Release • Feb 12, 2015

Atria Finland

1 January – 31 December, 2014

EUR million	Q4 2014	Q4 2013	Q1-Q4 2014	Q1-Q4 2013
Net sales	243.6	226.0	945.5	886.8
EBIT	15 6 15.6	9 1 9.1	33 6 33.6	32 9 32.9
EBIT %	6.4	4.0	3.6	3.7
Extraordinary items*	1.2	0.0	0.9	1.1

*Extraordinary items are included in the reported figures.

• Atria Finland's net sales for the fourth quarter grew by EUR 17.6 million year-on-year.
• Comparable EBIT for the fourth quarter amounted to EUR 14.5 million (EUR 9.1 million).
• Net sales for the year increased by EUR 58.7 million.
• for EUR 58.7• This increase was due to the consolidation of the operations acquired from Saarioinen as of the beginning of February and the launch of poultry feed sales at the beginning of the year.
• The increase in comparable EBIT for the year was due to improved cost management and higher average sales prices.

Atria Scandinavia

1 January – 31 December, 2014

EUR million	Q4 2014	Q4 2013	Q1-Q4 2014	Q1-Q4 2013
Net sales	94.9	102.9	371.9	395.0
EBIT	4.7	5.7	14.9	12.2
EBIT %	5.0	5.6	4.0	3.1
Extraordinary items*	0.0	0.0	0.0	-1.0

*Extraordinary items are included in the reported figures.

• Atria Scandinavia's net sales, at comparable exchange rates, fell slightly compared to the previous quarter as well as to the whole year.
• A decline in meat consumption and the strengthening of the market shares of private labels were the key reasons for the decrease in Atria Scandinavia's net sales in 2014.
• EBIT for the fourth quarter was reduced by lower sales volumes.
• The increase of EBIT for the year was the result of improved cost-efficiency in the supply chain and more stable raw material prices.
• In Sweden, Atria concluded an agreement for the sale of the Falbygdens cheese business to Arla Foods AB, with a view to focusing on its core business. On 15 December 2014, the Swedish Competition Authority announced its decision to carry out a phase two proceeding of the transaction.

Atria Russia 1 January – 31 December, 2014 EUR million Q4 2014 Q4 2013 Q1-Q4 2014 Q1-Q4 2013 Net sales 22.3 30.6 98.8 121.5 *Extraordinary items are included in the reported figures. • Atria Russia's net sales for the fourth quarter, at comparable exchange rates, remained stable year-on-year. • EBIT for the fourth quarter without non-recurring items fell due to a significant increase in raw material prices. • At a comparable exchange rates, net sales for January–December fell by EUR 3.1 million year-on-EBIT -0.9 -1.9 -5.7 -21.0 EBIT % -4.2 -6.0 -5.8 -17.3 Extraordinary items* 0.5 -2.0 0.5 -17.4 At a comparable exchange rates, net sales for January December fell by EUR 3.1 million year on year. This decrease in comparable net sales was due to the discontinuation of primary production in late 2013. • EBIT for the year without non-recurring items amounted to EUR -6.2 million (EUR -3.5 million).

• EBIT was reduced by an increase in raw material prices and the weakening of consumers' purchasing power.
• In late 2013, Atria launched an efficiency improvement programme. As part of the programme, Atria has sold the real estate company in Moscow for EUR 12 million. A positive effect of EUR 0.5 million on earnings was recorded for the sale of the real estate and the reorganisation of operations.

Atria Baltic

1 January – 31 December, 2014

EUR million	Q4 2014	Q4 2013	Q1-Q4 2014	Q1-Q4 2013
Net sales	8.5	7.9	34.5	32.9
EBIT	0 1 0.1	0 1 0.1	-0.0 0 0	0 1 0.1
EBIT %	1.5	1.6	-0.1	0.2
Extraordinary items*	0.0	0.0	-0.4	0.0

*Extraordinary items are included in the reported figures.

• Atria Baltic's EBIT for the year without non-recurring items was EUR 0.3 million (EUR 0.1 million).
• In June, Atria sold a factory located in Vilnius, Lithuania. The deal resulted in a non-recurring sales loss of EUR 0.4 million.
• Oversupply in the European meat market decreased pork prices towards the end of the year, affecting the ability of primary production to make a profit. affecting the ability of primary production to make a
• In the retail sector, Atria brands increased their market share, particularly in consumer-packed meat.
• Particularly towards the end of the year, Atria managed to strengthen the total market share of the product groups it represents by 9 per cent in terms of value, compared to the corresponding period last year (source: AC Nielsen).
• Atria's meat processing volume has grown steadily.
• A project to modernise the cutting department was started at the Valga plant in the fourth quarter.

Atria Group Financial indicators

€ Million		31.12.2014 31.12.2013
Shareholders' equity per share, EUR	14.22	14.45
Interest-bearing liabilities bearing	254 1.	334 7.
Equity ratio, %	44.0	42.2
Gearing, %	62.6	81.3
Net gearing, %	61.8	74.3
Gross investments in fixed assets	62.7	41.1
Gross investments, % of net sales	4.4	2.9
Average number of employees	4,715	4,669

• During the period under review, the Group's free cash flow (operating cash flow - cash flow from investments) was EUR 44.3 million (EUR 54.1 million).

• In September, Atria discontinued a committed credit facility of EUR 40 million due in September 2017.

• On 31 December 2014, the Group had undrawn committed credit facilities worth EUR 110.6 million (31 December 2013: EUR 148.2 million). The average maturity of loans and committed credit facilities at the end of the period under review was 3 years (31 December 2013: 3 years 4 months).

12 Feb, 2015 13

Atria Group Income Statement

	Q4	Q4	Q1-Q4	Q1-Q4
EUR million	2014	2013	2014	2013
NET SALES	363.4	360.6	1,426.1	1,411.0
Cost of goods sold	-313.3	-316.0	-1,249.3	-1,237.1
GROSS PROFIT	50.1	44.6	176.8	173.9
% of Net sales	13.8	12.4	12.4	12.3
Other income	4.1	3.1	6.7	6.1
Other expenses	-35.6	-37.1	-142.9	-160.3
EBIT	18.6	10.6	40.6	19.7
% of Net sales	5.1	2.9	2.8	1.4
Financial income and expenses	-3.1	-4.0	-12.7	-15.2
Income from joint-ventures and associates	0.8	0.4	6.2	2.3
PROFIT BEFORE TAXES	16.3	7.1	34.0	6.9
Income taxes	-2.7	1.8	-7.2	-11.2
PROFIT FOR THE PERIOD	13.6	8.9	26.8	-4.3
% of Net sales	3.8	2.5	1.9	-0.3
Earnings/share, €	0.48	0.33	0.93	-0.15

7

Atria Group
Cash flow	statement
		Q1-Q4	Q1-Q4
	Milj. EUR	2014	2013
	Cash flow from operating activities	113.3	110.6
	Financial items and taxes	-21 1.	-21 7.
	NET CASH FLOW FROM OPERATING ACTIVITIES	92.2	88.9
	Investing activities, tangible and intangible assets	-33.9	-38.7
	Acquired operations	-32.5
	Sold subsidiary shares	11.9
	Non-current receivables	-2.8	2.1
	Dividends received from investments	8.4	1.2
	Change in other investments	1.1	0.6
	NET CASH USED IN INVESTING NET CASH USED IN ACTIVITIES	-47.8	-34.8
	FREE CASH FLOW	44.4	54.1
	Changes in interest-bearing liabilities	-63.5	-25.3
	Dividends paid	-6.2	-6.2
	Net cash used in financing activities	-69.7	-31.5
	CHANGE IN LIQUID FUNDS	-25.2	22.6

12 Feb, 2015 19

Events occurring after the period • At the beginning of January 2015, Atria decided to invest approximately EUR 36 million in expanding and modernising its pig cutting plant in Nurmo, Finland. • New production facilities will be built next to the old plant, and the New production facilities will be built next to the old plant, and the existing production facilities will be renovated and automated using the latest production technology. The new production facilities will measure around 4,500 m2. • The investment will substantially raise the pig cutting plant's productivity and profitability: it is expected to generate annual cost savings of some EUR 8 million in the pig cutting plant's operations. • Statutory employer-employee negotiations concerning the investment project were initiated immediately. The expected duration of the project is about two years, over the course of which the needs for reducing and about two years, over the course of which the needs for reducing and relocating personnel will be specified. It is estimated that personnel will need to be reduced by no more than 80 person-years.