Atria Oyj

Quarterly Report • Oct 27, 2010

€ Million	Q3 2010	Q3 2009	Q1-Q3 2010	Q1-Q3 2009	2009
Net sales	331.3	327.5	954.2	975.6	1,316.0
EBIT	-0.4	16.9	5.3	23.6	27.5
EBIT %	-0.1	5.2	0.6	2.4	2.1
Profit before taxes	-3.0	14.4	-1.3	13.3	16,5
Earnings per share, €	-0.22	0.35	-0.19	0.29	0.25
ROCE, 12 months rolling			1.0	5.8	3.1
Disputes in the spring relating to collective bargaining weighed down Atria Finland's net sales and EBIT during the first half of the year. In Q3/2010, Atria Finland's result development was positive was The rising prices of meat raw materials weakened Atria Russia's operative EBIT In Q3/2010, Atria recorded impairment loss of EUR 10.4 million for goodwill in Russia Atria Scandinavia's profitability in the first half of the year improved from the previous year The full-year EBIT and net sales of the Group in 2010 are expected to be below the

	Atria Russia Review Q3
€ Million	Q3 2010	Q3 2009	Q1-Q3 2010	Q1-Q3 2009	2009
Net sales	33.7	28.7	97.0	83.1	113.0
EBIT	-15 4.	-0 5.	-20 3.	-9 4.	-9 8.
EBIT %	-45.7	-1.7	-20.9	-11.3	-8.7
ROCE, 12 months rolling			-12.8	-10.0	-6.9
Atria Russia's net sales increased in Q3/2010 by 17.4 per cent year-on-year. This was due to additional investments directed at sales both in St Petersburg and Moscow The Q3/2010 EBIT showed a loss of EUR 15.4 million (Q3/2009 EUR -0.5 million) During the review period, Atria Russia recorded impairments totalling EUR 10.4 million allocated to goodwill as a non-recurring item allocated to goodwill as a non recurring
The weak performance was compounded by the sluggish market demand, weakened margins, increased marketing costs and, in particular, the sharp rise in the prices of meat raw materials

Atria Group Financial indicators

€ Million	30 September 2010	30 September 2009	31 December 2009
Interest-bearing liabilities, M€	449.2	441.1	425.8
Total assets, M€	1,095.2	1,095.2	1,101.3
Equity ratio, %	40.1	39.9	39.7
Shareholders' equity per share, €	15.41	15.38	15.39
Personnel (average)	5,811	6,313	6,214

• I d l l f ki it l i t t t th d • Increased level of working capital, investments, strengthenedRussian rouble and Swedish krona increased the Group's liabilities
• Efficiency programmes and the discontinuation of businesses reduced the amount of the personnel

	Atria Group Income Statement
€ Million	Q3 2010	Q3 2009	2010	Q1-Q3 Q1-Q3 2009	2009
NET SALES Cost of goods sold	331.3 -290.0	327.5 -280.4	954.2 -840.8		975.6 1,316.0 -854.0 -1,151.0
GROSS PROFIT GROSS % of Net sales	41 3. 12.5	47 1. 14.4	113 4. 11.9	121 6. 12.5	165 0. 12.5
Other income Other expenses	4.1 -45.8	1.0 -31.2	6.3 -114.4	3.0 -101.0	4.6 -142.1
EBIT % of Net sales	-0.4	16.9	5.3	23.6	27.5
Financial income and expenses	-0.1 -2.9	5.2 -2.8	0.6 -7.9	2.4 -11.2	2.1 -12.4
Income from associates	0.3	0.3	1.3	0.9	1.4
PROFIT BEFORE TAXES Income taxes	-3.0 -2.8 2 8	14.4 -4.3 4 3	-1.3 -3.1 3 1	13.3 -4.5 4 5	16.5 -9.1 9 1
PROFIT FOR THE PERIOD	-5.8	10.1	-4.4	8.8	7.4
% of Net sales Earnings/share,€	-1.8 -0.22	3.1 0.35	-0.5 -0.19	0.9 0.29	0.6 0.25
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	Atria Group Cash flow statement
	€ Million	Q1-Q3 2010	Q1-Q3 2009	2009
	Cash flow from operating activities	31.4	50.3	92.7
	Financial items and taxes	-26.9	-27.4	-31.0
	CASH FLOW FROM OPERATING ACTIVITIES	4.5	22.9	61.7
I	ti nves ng acti iti v es, t ibl ang e and intangible assets	-29.7	-20.2	-32.3
	Investments	-5.1	-1.6	-1.8
	CASH FLOW FROM INVESTING ACTITIVIES	-34.8	-21.8	-34.1
	FREE CASH FLOW	-30.3	1.1	27.6
	Loans drawn down	40.8	30.4	41.8
	Loans repaid	-32.2	-37.8	-64.8
	Dividends paid	-7.1	-5.7	-5.7
	Acquired treasury shares		-0.7	-0.7
	CASH FLOW FROM FINANCING, TOTAL	1.5	-13.8	-29.4
	CHANGE IN LIQUID FUNDS	-28.8	-12.7	-1.8

Events occurring after the review period

• Kirsi Matero, M.Sc. (Econ.), was appointed as the Group Vice President of Human Resources in Atria Plc, effective from 15 November 2010. Previously, Ms Matero has worked as the HR Director of Pfizer Ltd. She will be a member of the Atria Management Group and will report to the President and CEO, Matti Tikkakoski

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Outlook for the future • As a deviation from earlier guidance, the Group's EBIT in 2010 is predicted to remain below the 2009 EBIT level. In addition, as a deviation from earlier guidance, the Group's net sales in 2010 are predicted to fall somewhat below the 2009 level • If the sluggishness in the meat product market continues in Russia, it will weaken the increase in Atria Russia's sales volumes. The prices of meat raw materials have increased significantly in Russia during the period August-September and the prices are expected to continue rising sharply for the remainder of the year. The aim is to transfer the rise of raw material prices to the prices of end products, which may have a negative impact on the Q4/2010 net sales. In addition, the company's decision to discontinue production of consumer-packed meat in Sweden will cut the Q4/2010 net sales • The main reasons for the weakening of the predicted EBIT are Atria Russia's goodwill impairment loss and weakened prospects of results for the remainder of the year. Atria Russia's full-year operating loss is expected to grow significantly from last year. In addition to the difficult market situation, this year's performance is burdened by the costs of the new plant and increased investments in marketing