ALTIA — Earnings Release 2018

May 4, 2018

Altia Plc’s Business Review January–March 2018: Start of the year in line with expectations, comparable EBITDA improving

Altia Plc’s Business Review January–March 2018: Start of the year in line with expectations, comparable EBITDA improving

Altia Plc’s Business Review January–March 2018: Start of the year in line with
expectations, comparable EBITDA improving

January–March 2018 compared to January–March 2017

· Growth in constant currencies was 2.0%, reported net sales of EUR 73.5
(73.4) million were impacted by unfavourable currency fluctuations
· The timing of Easter in the first quarter contributed positively to net
sales and profitability
· Comparable EBITDA was EUR 5.2 (4.3) million, which is 7.0% (5.8%) of net
sales
· Items affecting comparability were EUR -4.1 (-0.5) million, driven by IPO
costs
· Net debt / comparable EBITDA (rolling 12 months) was 1.8 (0.7)

· The new Alcohol Act in Finland opened the retail channel outside monopolies
for Altia’s strong brands such as Koskenkorva, Jaloviina and Leijona
· Guidance remains unchanged

Key figures

+-------------------------------------------------+------+-----+------+
| |Q1/18 |Q1/17|2017 |
+-------------------------------------------------+------+-----+------+
|Net sales, EUR million |73.5  |73.4 |359.0 |
+-------------------------------------------------+------+-----+------+
|Comparable EBITDA, EUR million |5.2  |4.3  |42.4  |
+-------------------------------------------------+------+-----+------+
|   % of net sales |7.0  |5.8  |11.8  |
+-------------------------------------------------+------+-----+------+
|EBITDA, EUR million |1.1  |3.8  |40.3  |
+-------------------------------------------------+------+-----+------+
|Comparable operating result,   EUR million |1.6  |0.7  |28.2  |
+-------------------------------------------------+------+-----+------+
|   % of net sales |2.2  |1.0  |7.8  |
+-------------------------------------------------+------+-----+------+
|Operating result, EUR million |-2.5  |0.3  |26.1  |
+-------------------------------------------------+------+-----+------+
|Result for the period, EUR   million |-1.8  |0.7  |18.3  |
+-------------------------------------------------+------+-----+------+
|Earnings per share, EUR |-0.05 |0.02 |0.51  |
+-------------------------------------------------+------+-----+------+
|Net debt / comparable EBITDA,   rolling 12 months|1.8  |0.7  |1.1  |
+-------------------------------------------------+------+-----+------+
|Average number of personnel |705  |785  |762  |
+-------------------------------------------------+------+-----+------+

Reconciliation of alternative key ratios to IFRS figures is presented in the
Business Review on page 9

CEO Pekka Tennilä:

“The first three months of 2018 developed in line with our expectations. Net
sales grew by 2.0% in constant currencies but the impact of the weak Swedish
krona and Norwegian krone was EUR -1.3 million bringing the reported net sales
to previous year’s level. This year, the timing of Easter has contributed
positively to the first quarter’s net sales and profitability. The comparable
EBITDA margin continued to improve in the first quarter and was 7.0% (5.8%). The
IPO of Altia was completed as planned, and the costs related to it are impacting
the reported profitability and result for the period.

The new Alcohol Act in Finland, which came into force at the beginning of the
year, has opened the retail channel for Altia’s own and partner brands. In the
first quarter, the focus has been to start building distribution and launching
new products. In March, Altia launched Koskenkorva RTD’s (ready-to-drink),
Jaloviina Long Drink and the new Leijona Long Drink in retail, and new launches
are prepared from both our own and partner brands during the second quarter.
Altia’s retail business has had a good early start. The retail offering will
continue to develop in the coming months as retail chains are expected to expand
their offering, especially in ready-to-drink products.

In exports, the focus continues to be on developing the key exports markets with
the strong Nordic core brands Koskenkorva, O.P. Anderson and Larsen. Exports are
showing good progress and are developing according to our expectations.

The first quarter was active with new launches in the key markets. For instance,
in Finland, an innovation in the cognac category involving a unique process and
new taste was launched with Renault Avec. In Sweden, Altia launched new
sparkling wines in Systembolaget – Amies amies and Say Blush – and in Denmark, a
new schnapps was launched: Brøndums Fadlagret. Easter is one of the annual peak
seasons for both aquavit and schnapps, and the Altia brands performed well in
the first quarter across the region.

The IPO of Altia, which was completed at the end of March, attracted a lot of
interest and was significantly oversubscribed. We look very much forward to the
journey together with our new shareholders. We will continue to further improve
our ability to develop and compete successfully in the alcoholic beverage
markets in the Nordics and globally. Going forward, we will continue to focus on
our strategic streams: to grow the Nordic core brands, to execute a step change
in wines, and to strengthen strategic partnerships and channel expansion while
continuing to improve overall efficiencies.”

Outlook for 2018

Market outlook

The development of the Group’s business operations and profitability are
affected by factors such as the market situation and competitive environment,
economic outlook, imports by consumers and changes in alcohol taxation. The
uncertainty in the eurozone and changes in customers’ buying behaviour are
continuing. There is still significant uncertainty related to the development of
consumer demand. Raw material prices and currencies are expected to remain
volatile.

Seasonality

Sales in the sector are seasonal, with net sales and operating profit generally
being significantly higher in the fourth quarter of the year compared to other
quarters.

Guidance

The positive trend in Altia’s core brand portfolio is expected to continue. Cost
increases in key raw materials and expansion in exports will impact
profitability development. Unfavourable currency impact of the weak Swedish
krona and Norwegian krone are expected to continue.

Guidance as published on 23 February 2018 remains unchanged: The Group’s
comparable EBITDA is expected to improve or be at the 2017 level.

Additional information:

Pekka Tennilä, CEO
Matti Piri, CFO

Contacts:

Analysts and investors: Tua Stenius-Örnhjelm, Investor Relations, tel. +358 40
7488864

Media: Petra Gräsbeck, Corporate Communications, tel. +358 40 767 0867

Conference call and audio webcast:

Altia will host a conference call and audio webcast for analysts and investors
in English on Friday 4 May 2018 at 11 am EET.

CEO Pekka Tennilä and CFO Matti Piri will present the Q1 Business Review, after
which conference call participants will have the opportunity to ask questions.
Presentation material will be made available before the call begins on Altia’s
website at: https://altiagroup.com/investors.

Conference call participants are requested to dial in and register a few minutes
earlier on the following numbers:

Finland: +358 (0)9 7479 0360

Sweden: +46 (0)8 5033 6573

United Kingdom: +44 (0)330 336 9104

Participant passcode: 310062

The conference call can also be followed online. To join the audio webcast,
please go to: https://altia.videosync.fi/2018-05-04-q1-teleconference

A recording of the audio webcast will be available later at Altia’s website:
https://altiagroup.com/investors

Note:

This is a summary of Altia Plc's Business Review for January–March 2018. The
complete review is attached to this release and is also available on the company
website at https://altiagroup.com/investors.

Distribution:

Nasdaq Helsinki Ltd
Principal media
www.altiagroup.com
Tua Stenius-Örnhjelm
Investor Relations Manager
+358 40 748 8864
tua.stenius-ornhjelm@altiagroup.com
Altia is a leading Nordic alcoholic beverage company operating in the wines and
spirits markets in the Nordic countries, Estonia and Latvia. Altia produces,
imports, markets, sells and distributes both own and partner brand beverages.
The Company also has production in Cognac, France. Further, Altia exports
alcoholic beverages to approximately 30 countries, most of which are in Europe,
Asia and North America. Altia’s own core brands are Koskenkorva, Chill Out,
Blossa, Larsen, O.P. Anderson, Renault, Xanté and Valhalla. Altia’s net sales in
2017 were EUR 359.0 million and the Company employs about 700 professionals.
Altia wants to enhance a modern, responsible Nordic drinking culture.
www.altiagroup.com.

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