Atria Oyj

Quarterly Report • Jul 29, 2010

€ Million	Q2 2010	Q2 2009	H1 2010	H1 2009	2009
Net sales	317.0	337.4	622.9	648.1	1,316.0
EBIT	4.7	7.1	5.7	6.8	27.5
EBIT %	1.5	2.1	0.9	1.0	2.1
Profit before taxes	3.5	4.4	1.7	-1.1	16,5
Earnings per share, €	0.10	0.09	0.03	-0.06	0.25
ROCE, 12 months rolling	3.1 3.0 3.1
Disputes relating to collective bargaining weighed down Atria Finland's Q2 net sales and EBIT At i Atria Scandinavia's Q2 EBIT improved significantly S di i ' Q2 EBIT i despite the sluggish market development of meat products in Russia, Atria Russia's net sales over the first half of the year increased by more than 16		d i ifi	tl		per cent, but the full-year operating loss is predicted to increase from last

Atria Finland Review Q2
€ Million	Q2 2010	Q2 2009	H1 2010	H1 2009	2009
Net sales	178.9	201.6	358.0	383.6	781.9
EBIT	6.0	10.7	10.9	17.8	42.9
EBIT %	3.4	5.3	3.0	4.6	5.5
ROCE, 12 months rolling 10.2 8.9 9.9
Atria Finland's Q2 net sales fell year-on-year by 11.3 per cent In April and May, Atria's production came to a halt for a total of 10 days due to disputes relating to collective bargaining, which was the main reason for the decline in net sales Th The overtime ban in force until the end of the strike also weakened the development of ti b i f	til th d	f th t ik	l k	d th	d l
net sales Q2/2010 EBIT weakened due to low production and sales volumes caused mainly by the strike
Cost-efficiency has remained at a good level throughout the first half of the year due to earlier efficiency improvements

			Review Q2
€ Million	Q2 2010	Q2 2009	H1 2010	H1 2009	2009
Net sales	99.7	103.3	194.7	202.0	405.2
EBIT	3.3	0.6	4.0	1.9	10.0
EBIT %	3.3	0.6	2.1	0.9	2.5
ROCE, 12 months rolling 4.0 4.7 1.8
Atria Scandinavia's Q2/2010 net sales fell year-on-year by 3.5 per cent. This was mainly caused by the discontinuation of the salad and sandwich business in June 2009 and decreased sales of consumer-packed meat. On the other hand, the strengthening of the Swedish krona improved net sales over the previous year The Q2/2010 EBIT showed a clear year-on-year increase. The Q2/2009 EBIT				included EUR 2.9 million of non-recurring costs associated with the

	Atria Russia Review Q2
€ Million	Q2 2010	Q2 2009	H1 2010	H1 2009	2009
Net sales	34.4	27.9	63.3	54.4	113.0
EBIT	-2 7.	-1 9.	-4 9.	-8 9.	-9 8.
EBIT %	-7.8	-6.8	-7.7	-16.4	-8.7
ROCE, 12 months rolling -6.9 -3.8 -9.3
Atria Russia's Q2 net sales grew by 23 per cent in comparison to the previous year. The growth was partly due to the strengthening of the Russian rouble against the euro and partly to the increased sales both in St Petersburg and in Moscow The Q2 EBIT was negative EUR 2.7 million (Q2/2009 EUR -1.9 million). The performance is a result of sluggish market demand, weakened margins and start-up costs relating to the new Gorelovo plant
Atria's market share increased slightly in the St Petersburg area retail trade over the period January-April 2010 and was at the level of about 20 per cent. The market share strengthened also in Moscow and was around 3 per cent
7

Atria Baltic Review Q2
€ Million	Q2 2010	Q2 2009	H1 2010	H1 2009	2009
Net sales	9.8	10.5	17.5	19.3	37.5
EBIT	-0.8	-1.5	-2.1	-2.5	-12.6
EBIT %	-8.2	-14.3	-12.0	-13.0	-33.6
ROCE, 12 months rolling -26.5 -28.6 -8.0
Atria's year-on-year net sales in Estonia fell by 6.7 per cent. Compared to Q1/2010, net sales increased by almost 30 per cent, which is due to the increase in the sales of consumer-packed meat and in the sales volumes of the summer season The year-on-year EBIT has improved but is still at an unsatisfactory level The efficiency improvement programmes launched at the end of last year and beginning of this year have generated cost savings. Closing of the Ahja plant and centralising the production to the Valga and Vastse-Kuuste production plants proceeded according to the plan and the generated savings will have an impact as of June 2010 Atria's market shares in Estonia have remained stable. In cold cuts, the market share is around 18 per cent. The market share of grill sausages has grown during the summer

Atria Group Financial indicators

€ Million	30 June, 2010	30 June, 2009	31 Dec, 2009
Interest-bearing liabilities, M€	444.1	448.8	425.8
Total assets, M€	1,118.8	1,091.1	1,101.3
Equity ratio, %	40.4	38.7	39.7
Shareholders' equity per share, €	15.90	14.89	15.39
Personnel (average)	5,812	6,546	6,214

• St th d R i bl d S di h k i d th • Strengthened Russian rouble and Swedishkrona increased the Group's euro-denominated liabilities and the total assets
• Efficiency programmes and the discontinuation of businesses reduced the amount of the personnel

Q2 Q2 H1 H1 € Million 2010 2009 2010 2009 2009 317.0 337.4 622.9 648.1 1,316.0 NET SALES -279.0 -294.6 -550.8 -573.5 -1,151.0 Cost of goods sold 38 0. 42 8. 72 1. 74 6. 165 0. GROSS PROFIT GROSS 12.0 12.7 11.6 11.5 12.5 % of Net sales 1.4 1.0 2.2 2.0 4.6 Other income -34.7 -36.7 -68.6 -69.8 -142.1 Other expenses 4.7 7.1 5.7 6.8 27.5 EBIT % of Net sales 1.5 2.1 0.9 1.0 2.1 Financial income and expenses -1.6 -3.2 -5.0 -8.5 -12.4 Income from associates 0.4 0.5 1.0 0.6 1.4 3.5 4.4 1.7 -1.1 16.5 PROFIT BEFORE TAXES -0 3 -0.3 -1 8 -1.8 -0 3 -0.3 -0 3 -0.3 -9 1 -9.1 Income taxes 3.2 2.6 1.4 -1.4 7.4 PROFIT FOR THE PERIOD % of Net sales 1.0 0.8 0.2 -0.2 0.6	Atria Group Income Statement
Earnings/share,€ 0.10 0.09 0.03 -0.06 0.25

Atria Group Cash flow statement
H1 H1 € Million 2010 2009 2009
Cash flow from operating activities	20.2	24.9	92.7
Financial items and taxes	-16.6	-15.0	-31.0
CASH FLOW FROM OPERATING ACTIVITIES	3.6	9.9	61.7
I ti nves ng acti iti v es, t ibl ang e and intangible assets	-24.1	-15.7	-32.3
Investments	-4.7	-2.2	-1.8
CASH FLOW FROM INVESTING ACTITIVIES	-28.8	-17.9	-34.1
FREE CASH FLOW	-25.2	-8.0	27.6
Loans drawn down	29.5	28.4	41.8
Loans repaid	-22.5	-26.2	-64.8
Dividends paid	-7.1	-5.7	-5.7
Acquired treasury shares		-0.7	-0.7
CASH FLOW FROM FINANCING, TOTAL	-0.1	-4.2	-29.4
CHANGE IN LIQUID FUNDS	-25.3	-12,2	-1.8

	Outlook for the future
• • • •	The industrial action in the Finnish food sector affected Atria's sales and performance in the second quarter of the year and may still hamper the Q3 sales development. If the sluggishness in the meat product market continues in Russia, it will weaken the increase in Atria Russia's sales volumes. In addition, the company's decision to discontinue decision to production production of consumer of consumer-packed meat in Sweden will cut packed meat in Sweden will Atria Scandinavia's annual net sales in the second half of the year. On the other hand, the strengthening of the Russian rouble and Swedish krona has increased the Group's euro-denominated net sales. The Group's net sales in 2010 are therefore forecast to remain at the 2009 level. As an exception to earlier guidance, the Group's EBIT in 2010 is predicted to remain at the 2009 EBIT level The main reason for the weakening of the predicted EBIT is Atria Russia's weakened result forecast for the remainder of the year. Atria Russia's full-year operating loss is expected to grow from last year Negative market development operating loss is expected to grow from last year. Negative market and tightened competition have made it more difficult to implement price increases in Russia and, therefore, it has not been possible to pass on the increased raw material prices to the sales prices. This year's performance is also burdened by the costs of the new plant and increased investments in marketing. Atria Russia's euro denominated loss is also increased by the strengthened rate of the Russian rouble The industrial actions in the second quarter and their impact on orders during the summer season may still weaken the Q3 result of Atria Finland