Atria Oyj — Earnings Release 2015

Feb 11, 2016

	Q4	Q4	Q1-Q4	Q1-Q4
EUR million Net sales	2015 351.0	2014 363.4	2015 1,340.2	2014 1,426.1
EBIT	4.8	18.6	28.9	40.6
EBIT %	1.4 %	5.1 %	2.2 %	2.8 %
Profit before taxes	2.8	16.3	20.1	34.0
Earnings per share, €	0.11	0.48	0.49	0.93
Extraordinary items Extraordinary items are included in the reported figures.	-9.1	1.6	-7.2	1.0
The decrease of Atria Group's net sales was partly due to the sale of the Falbygdens cheese business and the weakening of the rouble. In addition, tough competition in the retail sector weighed down net sales.
The challenging market environment in Estonia has weakened profit expectations for Atria Baltic's business. As a result of this, a goodwill impairment loss of EUR 9.1 million was recorded for Atria Baltic. The write-down affected EBIT but it had no effect on cash flow.
Consolidated EBIT for the fourth quarter excluding non-recurring items was EUR 13.8 million (EUR 17.0 million).
Full-year EBIT without non-recurring items was EUR 36.1 million (EUR 39.6 million).

Atria Finland

1 January – 31 December, 2015

EUR million	Q4 2015	Q4 2014	Q1-Q4 2015	Q1-Q4 2014
Net sales	248.0	243.6	929.0	945.5
EBIT	13.7	15.6	29.8	33.6
EBIT %	5.5 %	6.4 %	3.2 %	3.6 %
Extraordinary items*	-	1.2	-	0.9

*Extraordinary items are included in the reported figures.

• Atria Finland's net sales for the fourth quarter grew by EUR 4.4 million year-on-year.
• The increase in net sales is due to successful sales during the Christmas season.
• Tough price competition in the retail sector and difficult conditions on the international meat market weighed down EBIT for the fourth quarter.
• Full-year net sales decreased by EUR 16.5 million in comparison with 2014. This decline was due to weaker consumer demand and decreased sales prices.
• EBIT trends have been weighed down by oversupply on the international meat market.
• Atria Finland has been able to adapt its own operations to the challenging market environment. Thanks to this, cost-efficiency is good and inventories of meat raw material are under control.
• In 2015, difficult conditions on the meat market depressed the prices that producers can charge for meat.

11 Feb, 2016 3

EUR million 83.8 94.9 330.5 371.9 Net sales 3.2 4.7 12.8 14.9 EBIT 3.8 % 5.0 % 3.9 % 4.0 % EBIT % Extraordinary items - - - - Extraordinary items are included in the reported figures. The decrease in Atria Scandinavia's net sales and EBIT was due to the sale of the Falbygdens cheese business, completed on 1 April 2015. The sale will reduce Atria's annual net sales by EUR 52 million and EBIT by approximately EUR 3 million. In May, Atria acquired the operations of Aalbaek Specialiteter A/S, a Danish manufacturer of	2015	Q4 2014	Q1-Q4 2015	Q1-Q4 2014
organic cold cuts, for EUR 5.5 million. Aalbaek's annual net sales amount to around EUR 10 million. The operations were consolidated into Atria from 11 May 2015. The consolidation of Aalbaek's operations into Atria proceeded as planned. In September, Atria Scandinavia initiated the reorganisation of its operations in Sweden.

EUR million	Q4 2015	Q4 2014	Q1-Q4 2015	Q1-Q4 2014
Net sales	18.6	22.3	75.1	98.8
EBIT	-0.4	-0.9	-0.2	-5.7
EBIT %	-2.3 %	-4.2 %	-0.3 %	-5.8 %
Extraordinary items*	-	0.5	1.9	0.5
*Extraordinary items are included in the reported figures. Atria Russia's net sales in euro terms fell mainly due to the weakening of the rouble. Net sales in the local currency were at the same level as in the previous year. Sales growth was weighed down by a further decrease in consumer purchasing power and consequent negative trends in retail. Comparable EBIT for the fourth quarter came to EUR -0.4 million (EUR -1.4 million). Full year comparable EBIT came to EUR -2.1 million (EUR -6.2 million). EBIT improved thanks to increased productivity and an optimised product selection. Day-to-day efficiency improvements at the Gorelovo plant and the use of local meat raw		material also served to improve EBIT.

Atria Russia

• In 2015, the Sibylla business continued to grow.

• Sales volumes in the retail business decreased and Atria lost some of its market share.
• Atria sold OOO Campoferma, a Russian subsidiary, on 24 June 2015 for EUR 4.5 million. The company owned a farm property near Moscow. Costs of EUR 0.6 million were recorded for the sale as non-recurring items. Additionally, translation differences accrued in equity improved earnings by EUR 2.5 million.

11 Feb, 2016 9

EUR million	Q4 2015	Q4 2014	Q1-Q4 2015	Q1-Q4 2014
Net sales	8.0	8.5	32.9	34.5
EBIT	-9.1	0.1	-9.0	-0.0
EBIT %	-113.6 %	1.5 %	-27.3 %	-0.1 %
Extraordinary items*	-9.1	-	-9.1	-0.4
Baltic. The write-down affected EBIT but it had no effect on cash flow. Comparable EBIT for the fourth quarter came to EUR -0.0 million (EUR 0.1 million). Comparable EBIT for the year 2015 was EUR 0.1 million (EUR 0.3 million).		prevent the spread of African swine fever.			Profitability was weakened by slow sales in the summer season and measures taken to

	Atria Group Financial indicators
	€ Million	31.12.2015 31.12.2014
	Shareholders' equity per share, EUR	14.16	14.22
	Interest-bearing liabilities	199.6	254.1
	Equity ratio, %	47.4	44.0
	Gearing, %	49.3	62.6
	Net gearing, %	48.3	61.8
	Gross investments in fixed assets	56.9	62.7
	Gross investments, % of net sales	4.2	4.4
	Average number of employees	4,271	4,715
seven years.	• During the period under review, the Group's free cash flow (operating cash flow - cash flow from investments) was EUR 68.4 million (EUR 44.3 million). The Group's investments during the period totalled EUR 56.9 million (EUR 62.7 million).			• In June, Atria Plc refinanced a long-term bullet loan of EUR 30 million, which was due in February 2017. The maturity of the new loan is
	million) due to the weakening of the rouble.			• Interest-bearing net liabilities amounted to EUR 195.5 million (31 December 2014: EUR 250.7 million). The equity ratio was 47.4 per cent (31 December 2014: 44.0%). Translation differences recognised in equity for the full year decreased equity by EUR 4.6 million (EUR 25.0
	• On 31 December 2015, the Group had undrawn committed credit facilities worth EUR 125.0 million (31 December 2014: month (31 December 2014: 3 years).			EUR 110.6 million). The average maturity of loans and committed credit facilities at the end of the period under review was 3 years 1 11 Feb, 2016 14

Atria Group Income Statement

	Q4	Q4	Q1-Q4	Q1-Q4
EUR million	2015	2014	2015	2014
NET SALES	351.0	363.4	1,340.2	1,426.1
Cost of goods sold	-303.0	-313.3	-1,176.9	-1,249.3
GROSS PROFIT	48.0	50.1	163.3	176.8
% of Net sales	13.7	13.8	12.2	12.4
Other income	0.7	4.1	5.5	6.7
Other expenses	-44.0	-35.6	-139.9	-142.9
EBIT	4.8	18.6	28.9	40.6
% of Net sales	1.4	5.1	2.2	2.8
Financial income and expenses	-1.9	-3.1	-9.2	-12.7
Income from joint-ventures and associates	-0.1	0.8	0.4	6.2
PROFIT BEFORE TAXES	2.8	16.3	20.1	34.0
Income taxes	0.6	-2.7	-5.5	-7.2
PROFIT FOR THE PERIOD	3.5	13.6	14.6	26.8
% of Net sales	1.0	3.8	1.1	1.9
Earnings/share, €	0.11	0.48	0.49	0.93

Atria Group
Cash flow statement
	Q1-Q4	Q1-Q4
Milj. EUR	2015	2014
Cash flow from operating activities	96.3	113.3
Financial items and taxes	-6.0	-21.1
NET CASH FLOW FROM OPERATING ACTIVITIES	90.3	92.2
Investing activities, tangible and intangible assets	-50.2	-33.9
Acquired operations	-5.5	-32.5
Sold operations	34.1	11.9
Change in non-current receivables	0.2	-2.8
Dividends received from investments	0.6	8.4
Change in other investments	-1.1	1.1
NET CASH USED IN INVESTING ACTIVITIES	-21.9	-47.8
FREE CASH FLOW	68.4	44.3
Changes in interest-bearing liabilities	-56.3	-63.4
Dividends paid	-11.3	-6.2
NET CASH USED IN FINANCING ACTIVITIES	-67.6	-69.6
	0.8	-25.3