ALTIA — Earnings Release 2019

May 8, 2019

Altia Plc January-March 2019: Stable net sales development, timing of Easter and high raw material costs impacted profitability

Altia Plc January-March 2019: Stable net sales development, timing of Easter and high raw material costs impacted profitability

Altia Plc Stock Exchange Release 8 May at 8:30 am EET

Altia Plc Business Review January-March 2019: Stable net sales development,
timing of Easter and high raw material costs impacted profitability

This release is a summary of Altia Plc's Business Review January-March 2019. The
complete report is attached to this release and is also available on the company
website at www.altiagroup.com/investors.

January–March 2019 compared to January–March 2018

· Reported net sales were EUR 73.8 (73.5) million
· In constant currencies, net sales grew by 1.3% in comparison to previous
year
· Net sales of Finland & Exports segment declined to EUR 25.0 (27.1) million
· Scandinavia segment’s net sales were EUR 21.7 (22.5) million; in constant
currencies net sales were at last year’s level
· Altia Industrial’s net sales grew by 13.1% to EUR 27.1 (24.0) million
· Comparable EBITDA was EUR 4.3 (5.2) million, 5.8% (7.0%) of net sales
· Comparable EBITDA without the impact from IFRS 16 standard was EUR 3.2
million, 4.4% of net sales
· EBITDA was EUR 4.3 (1.1) million, 5.8% (1.5%) of net sales
· Net debt / comparable EBITDA (rolling 12 months) was 2.2 (1.8)

· In January-April, the Group net sales were above last year’s level, beverage
sales were on last year’s level

· Guidance remains unchanged

Key figures

+----------------------------------+-----+-----+-----+
| |Q1/19|Q1/18|2018 |
+----------------------------------+-----+-----+-----+
|Net sales, EUR million |73.8 |73.5 |357.3|
+----------------------------------+-----+-----+-----+
|Comparable EBITDA, EUR million |4.3 |5.2 |40.0 |
+----------------------------------+-----+-----+-----+
|   % of net sales |5.8 |7.0 |11.2 |
+----------------------------------+-----+-----+-----+
|EBITDA, EUR million |4.3 |1.1 |34.0 |
+----------------------------------+-----+-----+-----+
|Comparable operating result, EUR |-0.3 |1.6 |25.6 |
|million | | | |
+----------------------------------+-----+-----+-----+
|   % of net sales |-0.4 |2.2 |7.2 |
+----------------------------------+-----+-----+-----+
|Operating result, EUR million |-0.3 |-2.5 |19.7 |
+----------------------------------+-----+-----+-----+
|Result for the period, EUR million|0.3 |-1.8 |15.1 |
+----------------------------------+-----+-----+-----+
|Earnings per share, EUR |0.01 |-0.05|0.42 |
+----------------------------------+-----+-----+-----+
|Net debt / comparable EBITDA, |2.2 |1.8 |1.2 |
|rolling 12 months | | | |
+----------------------------------+-----+-----+-----+
|Average number of personnel |698 |705 |718 |
+----------------------------------+-----+-----+-----+
|  |  |  |  |
+----------------------------------+-----+-----+-----+
|Comparable EBITDA without IFRS 16 |3.2 | | |
|impact, EUR million | | | |
+----------------------------------+-----+-----+-----+
|Net debt/comparable EBITDA, |2.0 | | |
|rolling 12 months without IFRS 16 | | | |
|impact | | | |
+----------------------------------+-----+-----+-----+

Reconciliation of alternative key ratios to IFRS figures is presented in the
Business Review on page 11.

CEO Pekka Tennilä:

“The late timing of Easter this year has a significant impact on Altia’s net
sales in the first quarter. During Easter, traditionally the consumption of both
spirits and wine is higher. When taking into account the April sales and looking
at the first four months of the year, the Group net sales have developed well
and are above last year’s level, and also beverage sales have reached last
year’s level.

Our profitability was impacted by high raw material costs during the first
quarter, as already stated in our guidance for the on-going year. Furthermore,
the timing of Easter impacted profitability.

In the first quarter, Altia’s reported net sales increased by 0.4% to EUR 73.8
(73.5) million. When the impact of the weak SEK is excluded, net sales growth
was 1.3% compared to the same period last year. Comparable EBITDA declined to
EUR 4.3 (5.2) million, which is 5.8% (7.0%) of net sales. Without the impact of
the IFRS 16 Leasing standard, comparable EBITDA was EUR 3.2 million, 4.4% of net
sales.

During the first quarter, we have carried out price increases in all categories
in the three monopolies as planned. Price increases were implemented in January
in Finland and Norway, and in March in Sweden. Therefore, the full impact of
price increases is not visible in the first quarter. As part of our ongoing
revenue management, we will closely monitor the market and use the upcoming
pricing windows of the monopolies accordingly.

In April, after the review period, we announced a new partnership with Conaxess
Trade Beverages in Denmark. Through this partnership, we are looking for a
stronger route to market locally and to strengthen our presence especially in
the on-trade channel. The partnership will also allow us to support the growth
of our iconic Nordic brands, Koskenkorva Vodka and O.P. Anderson Aquavit, and
the locally strong brands Brøndums aquavit and 1-Enkelt bitter.

Looking forward, we maintain our guidance for this year and, assuming a normal
harvest, we expect comparable EBITDA, excluding IFRS 16 impact, to improve from
the 2018 level. High raw material costs are expected to continue to impact
profitability until the new harvest.

In February, we communicated about the further measures in reaching our long
-term financial targets. The work is progressing and we are focusing strongly on
implementing these measures within sales growth, revenue management, supply
chain efficiencies, procurement savings and overall organisational efficiency.”

Outlook for 2019

Market outlook

The development of the Group’s business operations and profitability are
affected by the competitive environment, the overall economic outlook, imports
by consumers and changes in alcohol taxation. Uncertainty related to changes in
consumer buying behaviour and consumer demand continues.

Seasonality

There are substantial seasonal fluctuations in the consumption of alcoholic
beverages impacting the net sales and cash flow of Altia. The company typically
generates large amounts of its revenue and cash flow during the fourth quarter
of the year, whereas the first quarter of the year is significantly lower. In
addition, excise taxes related to the high season at the end of the year are
paid in January, resulting in large cash outflows at the beginning of the year.

Guidance

Guidance as published on 7 February 2019 remains unchanged: The comparable
EBITDA is expected to improve from the 2018 level.

The positive trend of Altia’s Nordic core brand portfolio is expected to
continue. Market development in Finland is expected to flatten out in comparison
to 2018 and the markets in Sweden and Norway are expected to grow. The negative
impact of the increased barley cost will be reflected in high raw material costs
especially in the first quarters of the year. The guidance assumes a normal
harvest in 2019.

In addition, the impact from the implementation of the new IFRS 16 standard is
expected to improve comparable EBITDA by 3-4 million.

Financial calendar for 2019

Altia will publish financial reports in 2019 as follows:

· 15 August 2019: Half-Year Report for January-June 2019
· 7 November 2019: Business Review for January-September 2019

Altia’s Annual General Meeting will be held on 15 May 2019 in Helsinki and the
last day to give notice of attendance is 10 May 2019. AGM related material and
instructions to give notice of attendance are available on
www.altiagroup.com/agm2019 (https://altiagroup.com/investors/governance/annual
-general-meeting-2019).

Additional information:

Pekka Tennilä, CEO

Niklas Nylander, 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 today at 11 am EET. CEO Pekka Tennilä and CFO Niklas Nylander will
present the Q1 Business. To join the conference call, please dial in and
register 5–10 minutes earlier on the following numbers:

Finland: +358 981 710 310

Sweden: +46 856 642 651

United Kingdom: +44 333 300 08 04

United States: +1 631 913 14 22

Pin: 97133459#

The conference call can also be followed online. To access the audio webcast and
the presentation material please go to: www.altiagroup.com/investors

A recording of the audio webcast will be available later the same day on Altia’s
website.

Distribution:

Nasdaq Helsinki Ltd

Principal media

www.altiagroup.com
Altia is a leading Nordic alcoholic beverage brand company operating in the
wines and spirits markets in the Nordic and Baltic countries. Altia wants
to support a development of a modern, responsible Nordic drinking
culture. Altia’s key exports brands are Koskenkorva, O.P. Anderson and Larsen.
Other iconic Nordic brands are Chill Out, Blossa, Xanté, Jaloviina, Leijona,
Explorer and Grönstedts. Altia’s net sales in 2018 were EUR 357.3 million and
the company employs about 700 professionals. Altia’s shares are listed on Nasdaq
Helsinki.  www.altiagroup.com (https://emea01.safelinks.protection.outlook.com/?u
rl=http://www.altiagroup.com/&data=02|01|tua.stenius
-ornhjelm@altiacorporation.com|2585bdb59e634e3166bb08d68cc5cb74|c32b30ff58714a7da
29e6f63e6b0ebfd|0|1|636851178498173052&sdata=ieSBZyTDawyVcCqpF1RCYIToI+k/EosQeClT
ugAvHBM=&reserved=0).

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