Atria Oyj

Earnings Release • Jul 24, 2014

EUR million	Q2 2014	Q2 2013	H1 2014	H1 2013	2013
Net sales	371.4	363.6	698.4	692.0	1,411.0
EBIT	8 4 8.4	7.7	5 8 5.8	10.9	19 7 19.7
EBIT %	2.3	2.1	0.8	1.6	1.4
Profit before taxes	9.9	4.1	4.1	4.8	6.9
Earnings per share, €	0.28	0.10	0.09	0.06	-0,15
Extraordinary items*	-0.4	0.0	-1.2	1.1	-17,3
Atria Group's net sales and EBIT grew in the second quarter. p This increase was made by Atria Finland. It was due to the consolidation of the operations acquired from Saarioinen and the launch poultry feed sales at the beginning of the year.	g		q Atria lowered its EBIT forecast in April. The 2014 EBIT is expected to be clearly

Atria Finland

January 1 – June 30, 2014

EUR million	Q2 2014	Q2 2013	H1 2014	H1 2013	2013
Net sales	246.5	230.9	463.4	436.0	886.8
EBIT	5 9 5.9	7 4 7.4	6 2 6.2	14 1 14.1	32 9 32.9
EBIT %	2.4	3.2	1.3	3.2	3.7
Extraordinary items*	0.0	0.0	-0.8	1.1	1.1

*Extraordinary items are included in the reported figures.

• The increase in net sales of Atria Finland was due to the consolidation of the operations acquired from Saarioinen and the launch poultry feed sales at the beginning of the year. Sales to the retail sector and Food Service customers have remained stable have remained stable.
• EBIT for the beginning of the year was weakened by tight price competition. EBIT includes EUR 0.8 million of non-recurring costs related to the takeover of the operations acquired from Saarioinen. EBIT for the comparative period contains EUR 1.1 million of non-recurring profit.

24 July, 2014 3

• The price of meat raw material has decreased compared to the previous year.

	Atria Finland
• • • • • •	The total market in Finland has decreased by about 3 per cent in terms of both value and volume. Atria's total market share in the retail market was about 27 per cent in terms of value. Atria acquired Saarioinen's procurement, slaughtering and cutting operations for beef, pork and chicken. The operations were consolidated into Atria as of 1 February 2014. The purchase price was EUR 29.2 million. Atria launched a project in Jyväskylä to improve the profitability with annual savings of about the profitability with annual savings of EUR 5 million from the beginning of 2015. Saarioinen Oy terminated an agreement concerning meat packing at the Jyväskylä production plant as of 1 February 2015. Adoption of the "Laatuvastuu" label for pork on product packages starting in April. 24 July, 2014	4

Atria Scandinavia

January 1 – June 30, 2014

Q2	Q2	H1	H1
2014	2013	2014	2013	2013
95.4	98.1	183.8	192.3	395.0
3.4	1.8	4.4	1.8	12.2
3.6	1.8	2.4	0.9	3.1
0.0	0.0	0.0	0.0	-1.0

• Atria Scandinavia's net sales development was slowed down by the increased market share of private labels in the Swedish retail sector in the product groups represented by Atria, especially in cooking sausages and cold cuts.

• Better cost efficiency and more stable meat raw material prices strengthened EBIT.
• At comparable exchange rates, net sales fell by 0.6 per cent year-onyear.

Atria Russia

January 1 – June 30, 2014

EUR million	Q2 2014	Q2 2013	H1 2014	H1 2013	2013
Net sales	25.9	31.5	47.3	58.9	121.5
EBIT	-1.1	0.4	-3.2	-2.8	-21.0
EBIT %	-4.1	1.2	-6.9	-4.7	-17.3
Extraordinary items*	0.0	0.0	0.0	0.0	-17.4

*Extraordinary items are included in the reported figures.

• Atria Russia's net sales for April–June sales fell by 7.9 per cent year-on-year. The decrease in comparable net sales was due to the discontinuation of primary production at the end of last year and the continous weakening of the consumers' purchasing power.
• For April–June EBIT was EUR -1.1 million (EUR 0.4 million). The weakening of EBIT was due to an increase of over 30 per cent in meat raw material prices throughout the first part of the year.
• Atria estimates that sales of meat products have begun to decrease. Customers choose cheaper products to buy.

Atria Baltic January 1 – June 30, 2014 EUR million Q2 2014 Q2 2013 H1 2014 H1 2013 2013 Net sales 9.6 9.3 17.0 16.6 34.9 EBIT 0 1 0 0 0 3 0 4 0 1 *Extraordinary items are included in the reported figures. • Atria Baltic's sales volumes rose slightly in April-June. The sales of private labels strengthened, but meat wholesale volumes decreased somewhat. Comparable EBIT improved slightly due to the better sales structure and the -0.10.0-0.3-0.40.1EBIT % -0.9 -0.2 -1.7 -2.2 0.2 Extraordinary items* -0.4 0.0 -0.4 0.0 0.0 • Comparable EBIT improved slightly due to the better sales structure and improved cost efficiency of production.

• In the period of April-June, Atria sold a factory located in Vilnius, Lithuania. The deal resulted in a non-recurring sales loss of EUR 0.4 million.

Atria Group Financial indicators

€ Million	30.6.2014	30.6.2013	2013
Shareholders' equity per share, EUR	14.19	14.78	14.45
Interest-bearing liabilities	324.0	382.6	334.7
Equity ratio, %	40.9	40.6	42.2
Gearing, %	80.1	90.8	81.3
Net gearing, %	79.0	86.5	74.3
Gross investments in fixed assets	48.9	20.7	41.1
Gross investments, % of net sales	7.0	3.0	2.9
Average number of employees	4,845	4,749	4,669

• On 30 June 2014, the Group had undrawn committed credit facilities worth EUR 149.7 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).

• The Group's operating cash flow was EUR 32.7 million (EUR 16.9 million) and cash flow from investments was EUR -45.5 million (EUR -17.9 million). A decrease in working capital improved the operating cash flow.

• The Group's free cash flow for the period (operating cash flow - cash flow from investments) was EUR -12.8 million (EUR -1.0 million) and net liabilities were EUR 319.5 million (31 December 2013: EUR 305.9 million).

24 July, 2014 13

Atria Group Income Statement

	Q2	Q2	H1	H1
EUR million	2014	2013	2014	2013	2013
NET SALES	371.4	363.6	698.4	629.0	1,411.0
Cost of goods sold	-325.8	-318.0	-619.4	-609.8	-1,237.1
GROSS PROFIT GROSS	45 6.	45 6.	79 0.	82 1.	173 9.
% of Net sales	12.3	12.5	11.3	11.9	12.3
Other income	0.7	0.6	1.3	2.2	6.1
Other expenses	-37.9	-38.5	-74.4	-73.4	-160.3
EBIT	8.4	7.7	5.8	10.9	19.7
% of Net sales	2.3	2.1	0.8	1.6	1.4
Financial income and expenses	-3.2	-4.1	-6.8	-7.6	-15.2
Income from joint-ventures and associates	4.7	0.5	5.1	1.5	2.3
PROFIT BEFORE TAXES	9.9	4.1	4.1	4.8	6.9
I Income taxes t	-1.7 1 7	-1.3 1 3	-1.2 1 2	-2.9 2 9	-11.2 11 2
PROFIT FOR THE PERIOD	8.2	2.8	2.9	1.9	4.3
% of Net sales	2.2	0.8	0.4	0.3	-0.3
Earnings/share, €	0.28	0.10	0.09	0.06	-0.15

Atria's joint venture, the Finnish Meat Research Institute LTK Co-operative, sold its subsidiary Maustepalvelu Oy. For the deal, LTK recognised a sales profit that increased Atria's share in LTK's net assets.

Atria Group Cash flow statement

2013 2013 29.3 110.6 -12.4 -21.7 16.9 88.9 -19.7 -38.7 0.0 0.0 -0,2 2.1
1.9 1.8
-17.9 -34.8
-1.0 54.1
50.0 50.0 -11.1 -62.3
-19.8 -13.0
-6,2 -6.2
12.9 -31.5
11.9 22.6