Olvi Oyj — Interim / Quarterly Report 2021

Nov 2, 2021

Olvi Group’s Interim Report, 1 January to 30 September 2021 (9 months)

Olvi Group’s Interim Report, 1 January to 30 September 2021 (9 months)

OLVI PLC                Interim Report 2 November 2021 at 9:00 am

Olvi Group’s Interim Report, 1 January to 30 September 2021 (9 months)

Interim Report in brief

Olvi Group’s business development continued on a strong track in the third
quarter. Sales volume, net sales, operating profit, and net profit increased
clearly on the previous year. The Group’s financial standing is good.

Near-term outlook

Olvi’s operating profit for fiscal year 2021 is expected to remain on the
previous year’s good level or increase slightly. Good business development is
estimated to continue but uncertainties can be seen for the remainder of the
year, associated with the continuing corona pandemic, the availability of raw
materials and packaging supplies, as well as increasing costs.

Consolidated key ratios

             7-9/   7-9/   Change  1-9/   1-9/   Change % /  1-12/ 2020
             2021          % /     2021   2020
                    2020                         pp
                           pp

Sales volume, 247.3 212.6 16.3 661.0 595.5 11.0 765.9
Mltr
Net sales, MEUR 134.3 116.3 15.5 351.6 321.9 9.2 414.9
Gross profit*, 58.2 52.0 11.9 150.2 139.4 7.8 178.0
MEUR
% of net sales 43.3 44.7 42.7 43.3 42.9
Operating 23.6 21.5 9.7 52.3 49.5 5.5 56.4
profit, MEUR
% of net sales 17.6 18.5 14.9 15.4 13.6
Net profit for 20.8 18.1 15.3 42.7 38.0 12.3 40.9
the period,
MEUR
% of net sales 15.5 15.5 12.1 11.8 9.9
Earnings per 0.99 0.87 13.8 2.04 1.82 12.1 1.96
share, EUR
Investments, 6.2 6.2 -0.5 23.4 25.2 -7.3 32.0
MEUR
Equity per 13.94 12.76 9.2 12.81
share, EUR
Equity to total 59.5 65.1 -5.6 63.8
assets, %
Gearing, % -19.6 -11.3 8.3 -15.5

* Due to a change in the presentation of the income statement, gross profit is
presented instead of gross margin.

Business development

Lasse Aho, Managing Director:

Olvi Group’s third-quarter business development was good. Sales volume increased
by 16.3 percent, net sales by 15.5 and operating profit by 9.7 percent. The heat
wave in July brought a substantial increase in sales volume but sales
development was also good in early autumn. Strong demand continued in the retail
sector. Growth was seen in all product groups, with best sales development in
non-alcoholic products, particularly waters. Exports continued to develop well,
increasing by more than 40 percent in the third quarter.

The corona pandemic has still affected business operations in the third quarter.
Among the different sales channels, HoReCa sales improved in comparison with the
first half of the year, but sales are still lower than they were before the
pandemic. Sales restrictions were in force in almost all markets. Furthermore,
the volume of cross-border and harbour sales has remained low. Olvi’s production
has operated almost normally and there has not been any widespread virus
exposure among personnel. There have been occasional difficulties in the
availability of raw materials and packaging supplies, and there is substantial
upward pressure in production costs. These may restrict production volumes,
cause difficulties for deliveries, and have a negative impact on profitability
during the rest of the year. However, the current outlook is that the impacts
would be limited and manageable.

Business development in Finland continued on a strong track. Third-quarter sales
volume increased by 8.5 percent, net sales by 8.6 and operating profit by 18.2
percent. The hot summer caused a high peak in overall demand. It was challenging
to respond to this, and there were some delivery difficulties in waters, for
example. Demand is also boosted by Olvi’s improved market position in several
product groups, thanks to our strong brands and versatile range of packaging.
Market shares have improved particularly in beers and mineral waters.
Profitability was affected by increased production efficiency as the sales
volumes were high.

In Estonia, third-quarter sales volume and net sales were stimulated into growth
by the summer heat wave, and preparations for the season went well. The market
share remained strong.  Among the different sales channels, retail and export
sales increased. Growth in HoReCa was moderate in comparison with the previous
year. Cross-border and harbour sales were still impacted by travel restrictions.
Third-quarter operating profit improved by 6.8 percent and accumulated profit
was almost on a par with the previous year.

In Latvia, third-quarter sales volume increased by 10.1 percent and net sales by
6.5 percent. Domestic market demand improved. Price competition has still been
intense in retail trade, and legislative changes with regard to mixed drinks in
particular have hampered profitability. This has caused a decline in the
company’s operating profit. Operating profit declined by 13.6 percent. Sales of
Piebalgas products have started strongly and the company's integration into the
Latvian operations has proceeded according to plan. The company has acquired the
Everest water brand in the beginning of October to strengthen the offering and
sales of non-alcoholic products in Latvia.

Business in Lithuania developed well. Third-quarter sales volume increased by
12.0 percent and net sales by 11.6 percent. Good net sales development was
supported by the strong summer season, a more diversified product portfolio and
increased market shares. Domestic retail demand was a driver for growth.
Operating profit increased by 13.3 percent, which boosted full-year development
to 22.0 percent.

In Belarus, third-quarter sales volume increased by 23.0 percent and net sales
by 30.2 percent. Sales have improved particularly well in non-alcoholic product
groups, but two-figure growth figures can be seen across all product groups.
Among the sales channels, growth in exports was excellent but domestic retail
sales also developed well. Good development of net sales was partially
attributable to the exchange rate, which has been improving since August. This
evens out the poor foreign exchange development in the first half of the year;
however, the accumulated figures are still impacted. Measured in the local
currency, net sales have increased by 29.0 percent and operating profit by 9.3
percent since the beginning of the year. Operating profit measured in euro
increased by 5.5 percent in the third quarter and the accumulated figure was
–1.2 percent. Operating profit was impacted by an increase in logistics costs in
line with sales volume, as well as marketing efforts to support the multi
-beverage strategy. The company has been able to develop its business in spite
of the situation in the country.

Strategic expansion has continued according to plan as the acquisition of the
Vestfyen brewery in Denmark became effective on 1 September. Vestfyen has been
consolidated with the Group since September, so the company does not yet have
any major impact on the figures for the period under review. Integration has
started according to plan. The objective is to gradually build up and grow the
company in accordance with the focal points of Olvi’s strategy.

Strategically important Group-wide development projects, such as digitalisation
projects and the responsible management operating model have been substantially
pushed forward during the year in order to ensure competitive ability in the
future. Investments have been implemented as planned, supporting future sales
growth, improving production efficiency, and promoting the achievement of
responsibility targets with regard to carbon neutrality, for example.
Investments since the beginning of the year amount to 23.4 million euro.

Seasonal nature of the operations

The Group’s business operations are characterised by seasonal variation. The net
sales and operating profit from the reported geographical segments do not
accumulate evenly but vary according to the time of the year and the
characteristics of each season.

Sales development

Olvi Group’s sales volume increased in January-September by 11.0 percent to
661.0 (595.5) million litres. In July-September the sales volume increased by
16.3 percent to 247.3 (212.6) million litres. Growth was seen in all of the
operating countries.

Sales volume, 7-9/ 2021 7-9/ 2020 Change % 1-9/ 2021 1-9/ Change
million litres 2020 %
Finland 69.1 63.7 8.5 197.0 182.2 8.1
Estonia 34.6 30.8 12.3 92.2 85.8 7.4
Latvia 23.1 21.0 10.1 59.8 57.0 5.0
Lithuania 39.3 35.1 12.0 101.4 95.4 6.2
Belarus 86.7 70.5 23.0 232.2 197.6 17.5
Eliminations -5.5 -8.5 -21.7 -22.5
and other
segments
Total 247.3 212.6 16.3 661.0 595.5 11.0

The Group’s net sales in January-September increased by 9.2 percent and amounted
to 351.6 (321.9) million euro. Third-quarter net sales increased by 15.5
percent.

Net sales, 7-9/ 2021 7-9/ 2020 Change % 1-9/ 2021 1-9/ Change
million euro 2020 %
Finland 52.9 48.7 8.6 145.4 135.4 7.4
Estonia 22.9 20.4 12.2 59.8 55.8 7.2
Latvia 12.0 11.3 6.5 31.0 30.2 2.6
Lithuania 17.9 16.1 11.6 46.5 43.1 7.8
Belarus 30.9 23.7 30.2 77.4 67.5 14.6
Eliminations -2.3 -3.9 -8.6 -10.2
and other
segments
Total 134.3 116.3 15.5 351.6 321.9 9.2

Earnings development

The Group’s operating profit in January-September stood at 52.3 (49.5) million
euro, or 14.9 (15.4) percent of net sales. Operating profit in July-September
stood at 23.6 (21.5) million euro, which was 17.6 (18.5) percent of net sales.
From the beginning of the year, operating profit has improved by 5.5 percent on
the previous year, and in the third quarter there was an improvement of 9.7
percent. Operating profit is boosted by increased gross profit but hampered by
increased costs of logistics, sales, and marketing in comparison with the
previous year.

Operating 7-9/ 2021 7-9/ 2020 Change % 1-9/ 2021 1-9/ Change
profit, million 2020 %
euro
Finland 9.8 8.3 18.2 21.5 18.9 14.0
Estonia 5.0 4.7 6.8 11.3 11.5 -1.8
Latvia 1.3 1.5 -13.6 2.8 3.4 -15.7
Lithuania 2.2 1.9 13.3 4.7 3.9 22.0
Belarus 5.7 5.4 5.5 12.6 12.7 -1.2
Eliminations -0.3 -0.3 -0.8 -0.9
and other
segments
Total 23.6 21.5 9.7 52.3 49.5 5.5

The Group’s January-September profit after taxes amounted to 42.7 (38.0) million
euro. The July-September figure was 20.8 (18.1) million euro. Profit for the
period is affected by decreased financing costs related to foreign exchange
translation differences.

Earnings per share calculated from the profit belonging to parent company
shareholders in January-September stood at 2.04 (1.82) euro, and the July
-September figure was 0.99 (0.87) euro.

Balance sheet, financing, and investments

Olvi Group’s balance sheet total at the end of September 2021 was 491.4 (410.7)
million euro. Equity per share at the end of September 2021 stood at 13.94
(12.76) euro. The equity ratio was 59.5 (65.1) percent and the gearing ratio was
-19.6 (-11.3) percent. The current ratio, which represents the Group’s
liquidity, remained on the previous level at 1.3 (1.3).

The amount of interest-bearing liabilities amounted to 12.9 (3.5) million euro
at the end of September. The increase is due to the consolidation of Denmark
into the Group’s figures. Current liabilities made up 5.2 (0.7) million euro of
all interest-bearing liabilities.

Olvi Group’s investments in extensions and replacements from January to
September amounted to 23.4 (25.2) million euro. The companies in Finland
accounted for 9.1 million euro, the Baltic subsidiaries for 10.1 million euro
and Lidskoe Pivo in Belarus for 4.2 million euro of the total. Olvi Group has
invested in increasing and diversifying its production capacity, the
modernisation of production facilities, as well as environmentally friendly
operations.

Personnel

Olvi Group’s average number of personnel in January-September was 2,094 (1,927).
The Group’s average number of personnel increased by 8.7 percent due to seasonal
variation and the Piebalgas and Vestfyen acquisitions.

Olvi Group’s average number of personnel by country:

             7-9/ 2021  7-9/ 2020  Change %  1-9/ 2021  1-9/   Change
                                                        2020   %

Finland 448 421 6.4 419 395 6.1
Estonia 361 334 8.1 347 327 6.1
Latvia 281 194 44.8 241 197 22.3
Lithuania 239 239 0.0 244 240 1.7
Belarus 859 776 10.7 830 768 8.1
Other segments* 39 0 13 0
Total 2,227 1,964 13.4 2,094 1,927 8.7

* At the end of the review period, the number of personnel was 118.

Board of Directors and management

There have been no changes in Olvi plc’s Board of Directors or management during
the review period.

Other events during the review period

Changes in corporate structure

Olvi’s holdings in subsidiaries include the Bryggeriet Vestfyen brewing company
in Denmark as of 1 September 2021. Because the company was taken over towards
the end of the review period, its effect on the Group’s business in 2021 is
minor, and Denmark has not been observed as a separate entity in segment
reporting. The effects of consolidation are described in more detail in Table 5,
Section 12 of the tables attached to this interim report.

Share-based payments

Olvi Group’s previous share-based incentive plan for key employees, which was
initiated in 2019, expired on 31 January 2021. At its meeting of 1 February
2021, the Board of Directors of Olvi plc decided on three new share-based
incentive plans for the Group’s key personnel: a performance-based share plan
for 2021–2025, a matching share plan for 2021–2022 and a restricted share plan
for 2021–2025. Detailed information on the incentive plans and the associated
share repurchases is provided in Table 5, Sections 4 and 5 of the tables
attached to this interim report.

Business risks and their management

The corona pandemic continues to impose risks on business, even though the
overall economic impact has been minor so far. There are uncertainties
associated with predicting business development as it is not possible to
sufficiently anticipate the various impacts of the corona pandemic. The impacts
are associated with sales channel restrictions imposed in order to contain the
spreading of the corona pandemic, for example, but also changes in overall
demand. Substantial sales channel restrictions can still be projected towards
the end of the year, particularly in the Baltic states.

As the corona pandemic has continued, there have also been challenges in the
availability of raw materials and packaging supplies, as well as upward pressure
in their prices. The most substantial availability problems concern cans, as
global demand for them has increased faster than supply. The situation has not
caused substantial sales volume losses so far. Cost pressures concern the prices
of all raw materials and packaging supplies, as well as other production costs
such as energy. Mitigation measures against such pressures include product
development, cost savings and focused price increases. It will be challenging to
fully respond to the rapidly increasing production costs by the end of 2021.

Olvi has drafted several scenarios and made preparations for responding to
changing situations through a variety of measures, paying particular attention
to the corona pandemic situation. Olvi has made preparations for production
disruptions and drafted contingency plans concerning the availability of
personnel and raw materials, among other things. Uncertainty is also caused by
potentially continuing fluctuation of the Belarusian exchange rate due to the
political and economic situation in the country.

A more detailed description of normal business-related risks is provided in the
Board of Directors’ report and the notes to the financial statements, as well as
in the Investors/Corporate Governance section of the company’s Web site.

Events after the review period

There have been no significant reportable events after the review period.

OLVI PLC
Board of Directors

Further information: Lasse Aho, Managing Director, Olvi plc, phone +358 290 00
1050 or +358 400 203600

TABLES:

• Statement of comprehensive income, Table 1

• Balance sheet, Table 2

• Changes in shareholders’ equity, Table 3

• Cash flow statement, Table 4

• Notes to the interim report bulletin, Table 5

DISTRIBUTION:

NASDAQ OMX Helsinki Ltd

Key media

www.olvi.fi

OLVI GROUP TABLE 1

STATEMENT OF
COMPREHENSIVE INCOME
EUR 1,000
7–9 / 7–9 / 1–9 / 1–9 / 1–12 /
2021 2020 2021 2020 2020

Gross sales 299,115 275,542 813,399 769,078 1,005,101
Excise taxes and other -164,796 -159,254 -461,808 -447,211 -590,217
adjustments
Net sales 134,319 116,288 351,591 321,867 414,884

Cost of sales -76,154 -64,302 -201,380 -182,494 -236,849

Gross profit 58,165 51,986 150,211 139,373 178,035

Logistics, sales and -26,335 -22,208 -73,729 -65,151 -87,300
marketing expenses
Administrative -8,693 -8,319 -25,017 -25,065 -34,650
expenses
Other operating income 466 50 797 387 350
and expenses
Operating profit 23,603 21,509 52,262 49,544 56,435

Financial income and -62 -907 -32 -2,143 -2,626
expenses
Share of profit in 0 0 0 2
associates
Earnings before tax 23,541 20,602 52,230 47,401 53,811

Income taxes -2,697 -2,522 -9,537 -9,400 -12,895
NET PROFIT FOR THE 20,844 18,080 42,693 38,001 40,916
PERIOD

Other comprehensive
income items that may
be
subsequently
reclassified to profit
and loss:

Translation 1,692 -6,732 4,292 -14,338 -15,588
differences related to
foreign
subsidiaries
Income taxes related 1 116 -43 257 263
to these items
TOTAL COMPREHENSIVE 22,537 11,464 46,942 23,920 25,591
INCOME FOR THE PERIOD

Distribution of
profit:
- parent company 20,603 17,913 42,247 37,679 40,559
shareholders
- non-controlling 241 167 446 322 357
interests

Distribution of
comprehensive income:
- parent company 22,238 11,501 46,358 24,027 25,704
shareholders
- non-controlling 299 -37 584 -107 -113
interests

Earnings per share
calculated from the
profit
belonging to parent
company shareholders,
EUR
-   undiluted 0.99 0.87 2.04 1.82 1.96
-   diluted 0.99 0.87 2.04 1.82 1.96
OLVI GROUP TABLE 2

BALANCE SHEET
EUR 1,000 30 30 31
September September December
2021 2020 2020
ASSETS
Non-current assets
Tangible assets 228,199 204,619 204,156
Goodwill 25,913 25,266 25,172
Other intangible 11,931 9,866 9,925
assets
Shares in associates 974 1,016 994
Other investments 888 851 851
Loans receivable and 2,652 2,134 1,786
other non-current
receivables
Deferred tax 1,436 800 1,086
receivables
Total non-current 271,993 244,552 243,970
assets

Current assets
Inventories 55,497 45,679 42,278
Accounts receivable 93,656 86,943 88,234
and other receivables
Income tax receivable 196 288 773
Liquid assets 70,068 33,248 45,096
Total current assets 219,417 166,158 176,381
TOTAL ASSETS 491,410 410,710 420,351

SHAREHOLDERS’ EQUITY
AND LIABILITIES
Shareholders’ equity
held by parent company
shareholders
Share capital 20,759 20,759 20,759
Other reserves 1,387 1,387 1,387
Treasury shares -390 -503 -1,802
Translation -54,731 -57,639 -58,842
differences
Retained earnings 321,786 300,302 303,465
288,811 264,306 264,967
Share belonging to non 3,631 3,172 3,165
-controlling interests
Total shareholders’ 292,442 267,478 268,132
equity

Non-current
liabilities
Financial liabilities 7,649 2,789 2,303
Other liabilities 4,873 4,266 4,473
Deferred tax 13,489 7,930 11,107
liabilities

Current liabilities
Financial liabilities 5,209 703 1,333
Accounts payable and 164,810 125,050 132,522
other liabilities
Income tax liability 2,938 2,494 481
Total liabilities 198,968 143,232 152,219
TOTAL SHAREHOLDERS’ 491,410 410,710 420,351
EQUITY AND LIABILITIES

OLVI GROUP
TABLE 3
CHANGES IN
SHAREHOLDERS’
EQUITY
EUR 1,000 Share Other Treasury Fair Translation Retained
Share of Total
capital reserves shares value differences earnings non
reserve reserve
-controlling

                                                                        inter

ests
Shareholders’ 20,759 1,092 -1,802 295 -58,842 303,465
3,165 268,132
equity
1 Jan 2021
Comprehensive
income:
     Net 42,247 446
42,693
profit
for the
period
     Other
comprehensive
income items:
          4,111 138
4,249
Translation
differences
Total 4,111 42,247 584
46,942
comprehensive
income for
the
period
Transactions
with
shareholders:
     Payment -22,771 -346
-23,117
of
dividends
     Share 549
549
-based
incentives,
value of work
performed
     -874
-874
Acquisition
of treasury
shares
     Issue of 1,687 -1,614
73
treasury
shares
to employees
     Sales of 599
599
treasury
shares
to employees
     -90 -26
-116
Adjustment
to previous
periods
Total 1,412 -23,926 -372
-22,886
transactions
with
shareholders
Changes in
holdings in
subsidiaries:
     Change 254
254
in
share
belonging
to non
-controlling
interests
Total changes 254
254
in
holdings in
subsidiaries
Shareholders’ 20,759 1,092 -390 295 -54,731 321,786
3,631 292,442
equity 30 Sep
2021

EUR 1,000 Share Other Treasury Fair Translation Retained
Share of Total
capital reserves shares value differences earnings non
reserve reserve
-controlling

                                                                        inter

ests
Shareholders’ 20,759 1,092 -503 295 -43,987 282,895
3,318 263,869
equity 1 Jan
2020
Comprehensive
income:
     Net 37,679 322
38,001
profit
for the
period
     Other
comprehensive
income items:
          -13,652 -429
-14,081
Translation
differences
Total -13,652 37,679 -107
23,920
comprehensive
income for
the
period
Transactions
with
shareholders:
     Payment -20,710 -38
-20,748
of
dividends
     Share 440
440
-based
incentives,
value of work
performed
Total -20,270 -38
-20,308
transactions
with
shareholders
Changes in
holdings in
subsidiaries:
      -3
-3
Acquisition
of
shares from
non
-controlling
interests
      Change 1 -1
0
in
share
belonging
to non
-controlling
interests
Total changes -2 -1
-3
in
holdings in
subsidiaries
Shareholders’ 20,759 1,092 -503 295 -57,639 300,302
3,172 267,478
equity 30 Sep
2020

OLVI GROUP TABLE 4

CASH FLOW STATEMENT
EUR 1,000
1–9 / 2021 1–9 / 2020 1–12 / 2020

Net profit for the period 42,693 38,001 40,916
Adjustments:
     Depreciation and impairment 19,870 18,471 24,972
     Other adjustments 9,768 12,338 16,327
Change in net working capital:
     Change in accounts receivable -1,593 -21,457 -22,809
and other receivables
     Change in inventories -5,486 -4,413 -1,274
     Change in accounts payable and 22,261 8,111 17,339
other liabilities
Interest paid -366 -377 -588
Interest received 182 77 260
Dividends received 3 3 4
Taxes paid -6,435 -6,377 -9,351
Cash flow from operations (A) 80,897 44,377 65,796

Investments in tangible and -22,983 -24,309 -31,533
intangible assets
Capital gains on disposal of tangible 1,072 1,409 1,697
and intangible assets
Acquisition of shares from non 0 -3 -6
-controlling interests
Acquired shares in subsidiaries, -11,121 0 0
associates and joint ventures
Expenditure on other investments -30 -15 -15
Dividends received 21 0 24
Cash flow from investments (B) -33,041 -22,918 -29,833

Withdrawals of loans 172 15,475 15,497
Repayments of loans -1,774 -16,706 -16,917
Acquisition of treasury shares -874 0 -1,299
Sales of treasury shares to employees 599 0 0
Dividends paid -21,255 -19,602 -20,754
Increase (-)/decrease (+) in current 0 -6 26
interest-bearing business receivables
Cash flow from financing (C) -23,132 -20,839 -23,447

Increase (+)/decrease (-) in liquid 24,724 620 12,516
assets (A+B+C)

Liquid assets 1 January 45,096 33,832 33,832
Effect of exchange rate changes 248 -1,204 -1,252
Liquid assets 30 Sep/31 Dec 70,068 33,248 45,096

OLVI GROUPTABLE 5

NOTES TO THE INTERIM REPORT

The interim report has been prepared in accordance with IAS 34, applying the
same accounting policies as for the financial statements of 31 December 2020.

The information in the interim report is presented in thousands of euros (EUR
1,000). For the sake of presentation, individual figures and totals have been
rounded to full thousands, which causes rounding differences in additions. The
ratios are calculated from exact amounts in euros. The information disclosed in
the interim report is unaudited.

1.  SEGMENT
INFORMATION
NET SALES
BY
SEGMENT
1–9/2021
EUR 1,000 Finland Estonia Latvia Lithuania Belarus Eliminations Group
and other
segments

INCOME
External 144,599 55,773 27,868 44,296 76,585 2,470 351,591
sales
     143,730 55,773 27,868 44,296 76,585 2,470 350,722
Beverage
sales
     869 0 0 0 0 0 869
Equipment
services
Internal 817 4,050 3,177 2,158 858 -11,060 0
sales
Total net 145,416 59,823 31,045 46,454 77,443 -8,590 351,591
sales

Total net 35,883 8,894 2,728 4,068 10,690 -19,570 42,693
profit for
the
period
NET SALES
BY
SEGMENT
1–9/2020
EUR 1,000 Finland Estonia Latvia Lithuania Belarus Eliminations Group
and other
segments

INCOME
External 134,407 51,042 28,259 40,779 67,380 0 321,867
sales
     133,508 51,042 28,259 40,779 67,380 0 320,968
Beverage
sales
     899 0 0 0 0 0 899
Equipment
services
Internal 996 4,742 1,987 2,320 168 -10,213 0
sales
Total net 135,403 55,784 30,246 43,099 67,548 -10,213 321,867
sales

Total net 30,675 8,706 3,200 3,214 7,027 -14,821 38,001
profit for
the
period

2.  RELATED
PARTY
TRANSACTIONS

Employee
benefits to
management

Salaries and
other short
-term
employee
benefits to
the Board of
Directors and
Managing
Director
EUR 1,000 1–9 / 1–9 / 2020 1–12 / 2020
2021
Managing 852 462 550
Director
Chairman of 54 55 74
the Board
Other members 126 129 172
of the Board
Total 1,032 646 796

1. SHARES AND SHARE CAPITAL
   30 September 2021       %

Number of A shares 16,989,976 82.0
Number of K shares 3,732,256 18.0
Total 20,722,232 100.0

Total votes carried by A shares 16,989,976 18.5
Total votes carried by K shares 74,645,120 81.5
Total number of votes 91,635,096 100.0

Votes per Series A share 1
Votes per Series K share 20

The registered share capital on 30 September 2021 totalled 20,759 thousand euro.

Olvi plc’s shares received a dividend of 1.10 euro per share for 2020 (1.00 euro
per share for 2019), totalling 22.8 (20.7) million euro. The dividends were paid
in two instalments. The first instalment of 0,55 euro per share was paid on 20
April 2021. The second instalment of 0,55 euro per share was paid on 3 September
2021. The Series K and Series A shares entitle to equal dividend. The Articles
of Association include a redemption clause concerning Series K shares.

1. SHARE-BASED PAYMENTS

Olvi Group’s share-based incentive plan for key personnel, the performance
period of which was from 1 February 2019 to 31 January 2021, has expired. The
target group of the plan included approximately 60 people, and in accordance
with the terms and conditions of the plan, rewards were paid in Olvi plc Series
A shares and partially in cash. A total of 36,200 Series A shares were handed
over as share-based rewards.

At its meeting of 1 February 2021, the Board of Directors of Olvi plc decided on
the terms and conditions of three new share-based incentive plans for the
Group’s key personnel: a performance-based share plan for 2021–2025, a matching
share plan for 2021–2022 and a restricted share plan for 2021–2025. Among these
incentive plans, the performance-based share plan for the performance periods
2021–2022 and 2021–2023 started on 15 February 2021. The target groups include
approximately 18 people, including the Managing Director of the Group, the
Managing Directors of the subsidiaries outside Finland, the members of Olvi
plc’s Management Group and the Sales Directors of subsidiaries outside Finland.
The rewards are based on the Group’s accumulated operating profit in euros and
the increase of non-alcoholic sales volume. Net rewards payable for the
performance period 2021–2022 amount to an approximate maximum of 6,100 Olvi plc
Series A shares, and for the performance period 2021–2023, approximately 10,000
Olvi plc Series A shares.

Olvi plc initiated a new matching share plan for key personnel, the performance
period of which is from 15 April 2021 to 14 April 2023. The plan is directed to
approximately 55 people. In accordance with the share-based incentive plan, Olvi
plc has sold a total of 12,495 treasury shares to the target group members by
the end of September for an aggregate price of 598.9 thousand euro.

The objective of long-term rewards is to support the achievement of the
company’s targets, make key personnel committed to the company and offer
incentive plans based on earning the company’s shares. The rewards are payable
partially in Olvi plc’s Series A shares and partially in cash. The cash
proportion is intended to cover taxes and tax-related costs arising from the
rewards to the employees involved. As a rule, no reward will be paid if
employment or service ends before the reward payment. Under the scheme, the
target group is able to earn Olvi plc Series A shares based on performance. The
Board of Directors shall decide on the earning criteria and the targets for each
of these at the beginning of the performance period. Any rewards from the scheme
shall be paid after the end of each performance period.

The Board of Directors has set an upper limit for the gross total rewards
payable to each person in a calendar year. The limit applies to all gross
rewards payable under long-term incentive schemes. Any member of Olvi’s
Management Group has to hold at least one-half of the shares received as net
rewards from the new incentive
plans until the value of the member’s holding in the company equals at least one
-half of their annual salary for the previous year. These Olvi plc Series A
shares have to be held for as long as the person is a member of the Management
Group.

In the period under review, costs associated with the plans were recognised for
a total of 548.6 thousand euro. Olvi Group does not have any other share-based
plans or option plans.

1. TREASURY SHARES

At the beginning of January 2021, Olvi plc held 38,560 of its own shares as
treasury shares. Olvi plc continued its share repurchase plan in January. The
plan started on 5 November 2020 and ended on 15 January 2021. The shares shall
be acquired for the purpose of financing or executing any upcoming corporate
acquisitions or other arrangements, implementing the company’s incentive schemes
or for other purposes decided upon by the Board of Directors.

On 19 February 2021, the Board of Directors of Olvi plc decided to initiate a
scheme of acquiring treasury shares based on the authorisation issued by the
Annual General Meeting on 8 April 2020. On this basis, the Board will repurchase
a maximum of 10,000 Series A shares. The repurchase of treasury shares is based
on the new share-based incentive plan for the Group’s key personnel announced on
2 February 2021. The acquisition of shares started on 25 February 2021 and ended
on 01 March 2021.

In accordance with the share-based incentive plan, Olvi plc has transferred a
total of 11,495 treasury shares to the target group members of the matching
share plan for an aggregate price of 551.5 thousand euro.

At the end of the review period, Olvi plc holds a total of 9,404 of its own
Series A shares. The total purchase price of treasury shares was 438.0 thousand
euro. Treasury shares held by the company itself are ineligible for voting.
Series A shares held by Olvi plc as treasury shares represent 0.05 percent of
all shares and 0.01 percent of the aggregate number of votes. The treasury
shares represent 0.06 percent of all Series A shares and associated votes.

On 31 March 2021, the General Meeting of Shareholders of Olvi plc decided to
revoke any unused authorisations to acquire treasury shares and authorise the
Board of Directors of Olvi plc to decide on the acquisition of the company’s own
shares using distributable funds. The authorisation is valid for one year
starting from the General Meeting and covers a maximum of 500,000 Series A
shares.

The Annual General Meeting also decided to revoke all existing unused
authorisations for the transfer of own shares and authorise the Board of
Directors to decide on the issue of a maximum of 1,000,000 new Series A shares
and the transfer of a maximum of 500,000 Series A shares held as treasury
shares.

1. NUMBER OF SHARES *) 1–9 / 2021 1–9 / 2020
   1–12 / 2020
     - average 20,704,514 20,710,683
   20,708,331
     - at end of period 20,712,828 20,710,683
   20,683,672
   *) Treasury shares deducted.

2. TRADING OF SERIES A SHARES ON THE HELSINKI STOCK EXCHANGE
   1–9 / 2021 1–9 / 2020
   1–12 / 2020
   Trading volume of Olvi A shares 1,537,432 1,251,241
   1,474,892
   Total trading volume, EUR 1,000 75,018 50,160
   60,470
   Traded shares in proportion to
   all Series A shares, % 9.0 7.4
   8.7

Average share price, EUR 48.80 40.12
41.03
Price on the closing date, EUR 50.00 43.30
48.50
Highest quote, EUR 55.50 45.00
50.00
Lowest quote, EUR 43.10 30.25
30.25
8. FOREIGN AND NOMINEE-REGISTERED HOLDINGS ON 30 September 2021

                                Book entries        Votes

Shareholders
qty % qty % qty
%
Finnish total 16,276,006 78.54 87,188,870 95.15
17,254 99.52
Foreign total 64,711 0.31 64,711 0.07 73
0.42
Nominee-registered (foreign) total 337,337 1.63 337,337 0.37 6
0.03
Nominee-registered (Finnish) total 4,044,178 19.52 4,044,178 4.41 6
0.03
Total 20,722,232 100.00 91,635,096 100.00
17,339 100.00

1. LARGEST SHAREHOLDERS ON 30
   September 2021

                                  Series K   Series A    Total       %
   

   Votes %
   1. Olvi Foundation        2,363,904 890,613 3,254,517 15.71
   48,168,693 52.57
   2. The Estate of Hortling Heikki 903,488 103,280 1,006,768 4.86
   18,173,040 19.83
   *)
   3. Hortling Timo Einari 212,600 49,152 261,752 1.26
   4,301,152 4.69
   4. Hortling-Rinne Marit     149,064 14,699 163,763 0.79
   2,995,979 3.27
   5. OP Custody Ltd, nominee register 2,000,187 2,000,187 9.65
   2,000,187 2.18
   6. Skandinaviska Enskilda Banken Ab 1,054,038 1,054,038 5.09
   1,054,038 1.15
   (publ) Helsinki branch, nominee
   register
   7. Nordea Bank Abp, nominee register 952,691 952,691 4.60
   952,691 1.04
   8. Varma Mutual Pension Insurance 828,075 828,075 4.00
   828,075 0.90
   Company
   9. Ilmarinen Mutual Pension Insurance 699,213 699,213 3.37
   699,213 0.76
   Company
   10. Hortling Pia Johanna 23,388 25,366 48,754 0.24
   493,126 0.54
   Others 79,812 10,372,662 10,452,474 50.43
   11,968,902 13.07
   Total 3,732,256 16,989,976 20,722,232 100.00
   91,635,096 100.00
   *) The figures include the
   shareholder’s own holdings and shares
   held by parties in his control.

During January-September 2021, Olvi has not received any flagging notices in
accordance with Chapter 2, Section 10 of the Securities Markets Act.

1. PROPERTY, PLANT AND EQUIPMENT
   EUR 1,000
   1–9 / 2021 1–9 / 2020   1–12 / 2020

Opening balance 204,156 208,701 208,701
Additions 40,788 25,152 31,923
Deductions and transfers -1,643 -1,868 -2,294
Depreciation -18,028 -16,751 -22,625
Exchange rate differences 2,926 -10,615 -11,549
Total 228,199 204,619 204,156

1. CONTINGENT
   LIABILITIES
   EUR 1,000
   30 September 2021 30 September 2020 31 December 2020

Pledges and
contingent
liabilities
   For own 19,226 1,938 1,938
commitments

Leasing and rental
liabilities:
   Due within one 756 764 788
year
   Due within 1 to 636 350 398
5 years
Leasing and rental 1,392 1,114 1,186
liabilities total

Other liabilities 60 60 60

The increase in liabilities is due to the acquisition of Vestfyen and the
consolidation of the company with Olvi Group.

1. BUSINESS COMBINATIONS

SIA Piebalgas Alus

Olvi’s Latvian subsidiary AS Cesu Alus is a leading player in the Latvian
beverage market. Cesu Alus acquired the entire stock of Piebalgas Alus, a widely
known and appreciated microbrewery in the Vidzeme province of Latvia. The
acquisition brings more strength to our product portfolio in premium craft beers
and kvass in the retail and HoReCa markets. The Piebalgas brewery was
established in 1989. It is devoted to traditional manufacturing methods and high
-quality raw materials.

Piebalgas Alus has been consolidated in Olvi Group since the beginning of June
2021. In Olvi Group’s segment reporting, the business operations of Piebalgas
Alus are included in the Latvian figures. The company’s effect on the
consolidated figures is minor.

The following tables present a summary of the acquisition price and the fair
value of the assets acquired and liabilities assumed at the time of acquisition.
The balance sheet has been prepared in its essential parts in accordance with
IFRS and Olvi Group’s accounting policies. The acquisition was recognised as
preliminary in the second quarter.

Acquisition price
EUR 1,000

Paid in cash 2,126
Total acquisition price (100%) 2,126

Amounts recognised for assets acquired and liabilities assumed (100%)
EUR 1,000

Tangible assets 1,540
Intangible assets
  Trademarks 584
  Other intangible assets 1
Inventories 771
Accounts receivable and other receivables 609
Liquid assets 32
Non-current liabilities 631
Current liabilities 1,236
Identifiable net assets total 1,671
Goodwill 455

A/S Bryggeriet Vestfyen

Earlier this year, Olvi announced the acquisition of 96.8% in Bryggeriet
Vestfyen, a Danish brewery. The Bryggeriet Vestfyen company consists of a
brewery producing beer and soft drinks in Assens as well as the Indslev
microbrewery located in Norre Aaby. Bryggeriet Vestfyen was established in 1885.

Bryggeriet Vestfyen has been consolidated in Olvi Group since the beginning of
September 2021. The business operations of Bryggeriet Vestfyen are not reported
as a separate segment in 2021 because the company does not exceed the
quantitative thresholds.

The following tables present a summary of the acquisition price and the fair
value of the assets acquired and liabilities assumed at the time of acquisition.
The balance sheet has been prepared in its essential parts in accordance with
IFRS and Olvi Group’s accounting policies. The acquisition is recognised as
preliminary in the interim report.

Acquisition price
EUR 1,000

Paid in cash (96.8%) 9,220
Share belonging to non-controlling interests (3.2%) 269
Total acquisition price (100%) 9,489

Amounts recognised for assets acquired and liabilities assumed (100%)
EUR 1,000

Tangible assets 16,519
Intangible assets
  Customer relationships 484
  Trademarks 1,789
  Other intangible assets 87
Other investments 5
Deferred tax receivables 551
Inventories 5,813
Accounts receivable and other receivables 2,785
Liquid assets 193
Non-current liabilities 5,536
Deferred tax liabilities 2,434
Current liabilities 10,767
Identifiable net assets total 9,489

1. CALCULATION OF FINANCIAL RATIOS
   In the summary of financial indicators (page 1), the Group presents figures
   directly derived from the consolidated income statement: net sales, operating
   profit and profit for the period, the corresponding percentages in proportion to
   net sales, as well as the earnings per share ratio. (Earnings per share = Profit
   belonging to parent company shareholders / Average number of shares during the
   period, adjusted for share issues.)

In addition to the consolidated financial statements prepared in accordance with
IFRS, Olvi Group presents Alternative Performance Measures that describe the
financial development of its business and provide a commensurate overall view of
the company’s profitability, financial position and liquidity.

The Group has applied the ESMA (European Securities and Markets Authority) new
guidelines on Alternative Performance Measures that entered into force on 3 July
2016 and defined APMs as described below.

As an APM supporting net sales, the Group presents sales volumes in millions of
litres. Sales volume is an important indicator of the extent of operations
generally used in the industry.

Equity per share = Shareholders’ equity held by parent company shareholders /
Number of shares at end of period, adjusted for share issues.
Equity to total assets, % = 100 * (Shareholders’ equity held by parent company
shareholders + non-controlling interests) / (Balance sheet total).

Gearing, % = 100 * (Interest-bearing debt – cash in hand and at bank) /
(Shareholders’ equity held by parent company shareholders + non-controlling
interests)

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