Atria Oyj — Audit Report / Information 2013

Feb 13, 2014

CEO Juha Gröhn 13 February 2014

Atria Group Review 2013

EUR million	Q4 2013	Q4 2012	Q1-Q4 2013	Q1-Q4 2012
Net sales	360.6	360.6	1,411.0	1.343.6
EBIT	10.6	7.8	19.7	30.2
EBIT %	2.9	2.2	1.4	2.2
Profit before taxes	7.1	6.1	6.9	18.9
Earnings per share, €	0.33	0.18	-0.15	0.35
Extraordinary items*	-2.0	-0.5	-17.3	-0.5

* Non-recurring items which are included in the EBIT.

• Atria Group's net sales grew strongly.
• Atria decided to discontinue primary production in Russia and industrial operations in Moscow, concentrating the latter in St Petersburg. As a result of these arrangements, Atria Russia recognised a total of EUR 25.0 million of non-recurring costs, EUR 17.4 million of which was allocated to EBIT and EUR 7.6 million to deferred tax assets. EBIT without non-recurring costs amounted to EUR -3.6 million (EUR -8.6 million).
• It is estimated that the discontinuation of primary production and the Moscow-based production operations will generate annual cost savings of about EUR 6 million compared to 2013. The cost savings will be fully realised as of the beginning of 2015.

Atria Finland Review 2013

EUR million	Q4 2013	Q4 2012	Q1-Q4 2013	Q1-Q4 2012
Net sales	226.0	221.4	886.8	819.5
EBIT	9.1	11.0	32.9	36.5
EBIT %	4.0	5.0	3.7	4.5
Extraordinary items*	0.0	-0.5	1.1	-0.5

* Non-recurring items which are included in the EBIT.

• Atria Finland's net sales increased in all sales channels, and growth was particularly strong in the retail sector.
• EBIT was weighed down by deteriorating market conditions at the end of the year, the higher price of meat raw material compared to the previous year and persistently low export prices for meat.

13 February 2014

Atria Scandinavia Review 2013

EUR million	Q4 2013	Q4 2012	Q1-Q4 2013	Q1-Q4 2012
Net sales	102.9	103.2	395.0	387.8
EBIT	5.7	1.9	12.2	8.2
EBIT %	5.6	1.8	3.1	2.1
Extraordinary items*	0.0	0.0	-1.0	0.0

* Non-recurring items which are included in the EBIT.

• Net sales in local currencies grew by 1.8 per cent year-on-year. Sales to Food Service and fast food customers were particularly strong.
• EBIT improved due to marketing efforts at the beginning of the year and the improved sales structure towards the end of the year, along with more stable meat raw material prices.

13 February 2014

• Atria Concept launched a new Sibylla Pulled Pork product group, whose sales had a promising start during the review period.

13 February 2014

3

4

Atria Russia Review 2013

EUR million	Q4 2013	Q4 2012	Q1-Q4 2013	Q1-Q4 2012
Net sales	30.6	32.8	121.5	126.3
EBIT	-1.9	-3,9	-21.0	-8.6
EBIT %	-6.0	-11,8	-17.3	-6.8
Extraordinary items*	-2.0	0.0	-17.4	0.0

* Non-recurring items which are included in the EBIT.

• In the local currency, net sales grew by 2.2 per cent year-on-year.
• The results of industrial operations improved, but EBIT without non-recurring costs was negative due to the poor profitability of primary production.
• Atria Russia discontinued its unprofitable primary pork production in Russia. Furthermore, it was decided that the industrial production and logistics unit located in Moscow will be discontinued by the end of 2014. Atria Russia recognised a total of EUR 25.0 million of nonrecurring costs, EUR 17.4 million of which was allocated to EBIT.

• It is estimated that the discontinuations of unprofitable primary production and the Moscow-based production operations will generate annual cost savings of about EUR 6 million compared to 2013. The cost savings will be fully realised as of the beginning of 2015.

• During the period under review, Atria sold its minority share in OOO Dan-Invest, a piggery company operating in Russia. Atria's holding in the company was 26 per cent. The deal had no major impact on Atria's financial position or performance.

13 Feb 2014

Atria Russia

Atria Baltic Review 2013

EUR million	Q4 2013	Q4 2012	Q1-Q4 2013	Q1-Q4 2012
Net sales	7.9	8.8	32.9	34.2
EBIT	0.1	-0.2	0.1	-1.5
EBIT %	1.6	-2.4	0.2	-4.4
Extraordinary items*	0.0	0.0	0.0	0.0

* Non-recurring items which are included in the EBIT.

• The positive performance was due to the improved sales structure and the cost savings resulting from efficiency improvement measures.
• In Estonia, imports of inexpensive meat grew towards the end of the year, reducing the sales of Atria's consumer-packed meat and profitability for the review period.

13 Feb 2014

Atria Group Net Sales cumulative, quarterly

EUR million

Atria Group EBIT cumulative, quarterly

Atria Group Financial indicators

EUR million		31.12.2013 31.12.2012
Shareholders' equity per share, EUR	14.45	15.15
Interest-bearing liabilities	334.7	370.5
Equity ratio, %	42.2	41.5
Gearing, %	81.3	85.9
Net gearing, %	74.3	84.3
Gross investments in fixed assets	41.1	56.2
Gross investments, % of net sales	2.9	4.2
Average number of employees	4.669	4.898

• On 31 December 2013, the amount of the Group's undrawn committed credit facilities stood at EUR 148.2 million (31 December 2012: EUR 153.0 million). The average maturity of loans and committed credit facilities at the end of the period under review was 3 years 4 months (31 December 2012: 2 years 10 months).
• Consolidated free cash flow amounted to EUR 54.1 million (EUR 49.7 million). Interest-bearing net liabilities came to EUR 305.9 million (EUR 363.9 million), down EUR 58.0 million from 2012.

13 February 2014

Atria Group Income Statement

	Q4	Q4	Q1-Q4	Q1-Q4
EUR million	2013	2012	2013	2012
NET SALES	360.6	360.6	1,411,0	1,343.6
Cost of goods sold	-316.0	-315.0	-1,237.1	-1,172.5
GROSS PROFIT	44.6	45.6	173.9	171.1
% of Net sales	12.4	12.6	12.3	12.7
Other income	3.1	2.0	6.1	3.8
Other expenses	-37.1	-39.8	-160.3	-144.7
EBIT	10.6	7.8	19.7	30.2
% of Net sales	2.9	2.2	1.4	2.2
Financial income and expenses	-4.0	-3.9	-15.2	-14.7
Income from joint-ventures and associates	0.4	2.1	2.3	3.4
PROFIT BEFORE TAXES	7.1	6.1	6.9	18.9
Income taxes	1.8	-0.9	-11.2	-8.8
PROFIT FOR THE PERIOD	8.9	5.2	-4.3	10.1
% of Net sales	2.5	1.4	-0.3	0.7
Earnings/share, €	0.33	0.18	-0.15	0.35

Atria Group Cash flow statement

EUR million	2013	2012
Cash flow from operating activities	110.6	119.2
Financial items and taxes	-21.7	-19.6
Net cash flow from operating activities	88.9	99.6
Investing activities, tangible and
intangible assets	-38.7	-50.4
Acquired subsidiary shares	0.0	-1.8
Change in non-current receivables	2.1	0.9
Investments	1.8	1.4
Net cash used in investing activities	-34.8	-50.0
FREE CASH FLOW	54.1	49.7
Proceeds from non-current borrowings	50.0	50.0
Repayments of non-current loans	-62.3	-39.6
Changes in current loans	-13.0	-55.0
Dividends paid	-6.2	-5.6
Net cash used in financing activities	-31.5	-50.2
CHANGE IN LIQUID FUNDS	22.6	-0.6

13 February 2014

Atria Group Gross investments

Atria Group Net debts

13 February

Atria Group Equity ratio & Net gearing

Events occurring after the period

• Atria Plc and Saarioinen Oy signed a preliminary agreement in July under which Atria will purchase Saarioinen's procurement, slaughtering and cutting operations for beef, pork and chicken. In conjunction with the deal, Atria and Saarioinen signed an agreement concerning meat deliveries from Atria to Saarioinen. The operations covered by the deal employ about 400 people on average. As a result of the deal, Atria's net sales are projected to grow by around EUR 70 million per year.

On 21 January 2014, the Finnish Competition and Consumer Authority announced its approval of the acquisition. The operations were consolidated into Atria as of 1 February 2014. The purchase price was approximately EUR 30 million, and it was paid using cash funds and borrowed capital. The acquisition had no material effect on the Group's key figures.

13 February 2014

Outlook for the future

• In 2013, consolidated EBIT without non-recurring costs was EUR 37.0 million. In 2014, it is projected to be higher.
• Net sales are expected to grow in 2014.

Board of Directors' proposal for profit distribution

• The Board of Directors proposes that a dividend of EUR 0.22 be paid for each share for the financial year 2013.