Olvi Oyj — Interim / Quarterly Report 2021

Aug 12, 2021

Olvi Group’s Half-Year Report, 1 January to 30 June 2021 (6 Months)

Olvi Group’s Half-Year Report, 1 January to 30 June 2021 (6 Months)

OLVI PLC                             Half-Year Report 12 August 2021 at 9:00 am

Olvi Group’s Half-Year Report, 1 January to 30 June 2021 (6 Months)

Half-year report in brief

Olvi Group’s business development continued on a strong track. Sales volume, net
sales, operating profit and net profit all showed good growth on the previous
year, and the period under review was the best half-year in Olvi’s history. The
Group’s financial standing remains good.

Near-term outlook (updated)

Olvi’s operating profit for fiscal year 2021 is expected to remain on the
previous year’s good level or increase slightly (outlook has improved,
previously outlook was “remain on the previous year’s good level”). Sales in the
summer season have continued on a strong track. There are uncertainties
associated with the remainder of the year, and these are described in more
detail under Business risks.

Consolidated key ratios

              4-6/  4-6/20  Change   1-6/   1-6/  Change % /pp  1-12/ 2020
              2021      20   % /pp   2021   2020

Sales volume, 249.8 229.7 8.7 413.7 382.9 8.0 765.9
Mltr
Net sales, MEUR 132.0 121.0 9.1 217.3 205.6 5.7 414.9
Gross profit*, 57.4 51.9 10.5 92.0 87.4 5.3 178.0
MEUR
% of net sales 43.5 42.9 42.4 42.5 42.9
Operating 20.6 20.2 2.0 28.7 28.0 2.2 56.4
profit, MEUR
% of net sales 15.6 16.7 13.2 13.6 13.6
Net profit for 15.0 14.5 3.0 21.8 19.9 9.7 40.9
the period,
MEUR
% of net sales 11.4 12.0 10.1 9.7 9.9
Earnings per 0.72 0.69 4.3 1.05 0.95 10.5 1.96
share, EUR
Investments, 9.4 9.8 -4.4 17.2 19.0 -9.5 32.0
MEUR
Equity per 12.86 12.20 5.4 12.81
share, EUR
Equity to total 54.6 57.8 -3.2 63.8
assets, %
Gearing, % -24.7 -8.6 16.1 -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 business in the first half of the year developed well, with net
profit increasing by 9.7 percent. Sales volume increased by 8.0 percent and net
sales by 5.7 percent. In the second quarter, the average price improved as the
HoReCa sales channel opened, among other things, and thanks to this, the net
sales growth of 9.1 percent outperformed the 8.7 percent increase in sales
volume. Warm weather in the beginning of the summer supported the growth in
sales volumes and increased demand for smaller package sizes. Operating profit
improved steadily, as second-quarter earnings development followed the first
-quarter track. The growth in sales volume has caused increased logistics costs,
and clearly more effort has been put into marketing compared to the previous
year.

Strategic reform proceeds according to plan. The sales of non-alcoholic products
have increased substantially in the review period. Geographical expansion goes
ahead as the conditional acquisition of the Vestfyen brewery in Denmark is
expected to be realised by the end of August. New potential markets are surveyed
actively. The Group also makes efforts to develop its business and secure its
competitive ability in the future through the promotion of digitalisation and
responsibility.

Restrictions to contain the corona pandemic have still had an impact on second
-quarter business. The HoReCa sales channel was only partly operative in almost
all of Olvi’s operating countries; however, sales opened from May onwards. Cross
-border and harbour sales have remained at a low level. Within Olvi Group, this
is reflected particularly in the sales volume and profitability of the Estonian
company. However, retail sales continued on a strong track, and this compensated
the other sales channels. Exports increased as well. Production facilities have
operated normally, even though there have been challenges with the availability
of raw materials and packaging supplies at times.

Sales in Finland have developed well during the first half of the year. Sales
volume, net sales and operating profit have increased on the previous year, also
in the second quarter. Olvi has increased its sales volume in every month of the
review period in comparison to the previous year. This is attributable to strong
brands and a versatile range of packaging. Market shares have improved in
several product groups, particularly in beers and mineral waters. Furthermore,
the heat wave in June caused a strong and rapid peak in demand, due to which the
availability of products has varied, and deliveries have been delayed.

In Estonia, second-quarter business developed well. Sales volume increased by
9.3 percent and net sales by 11.2 percent. Local demand improved towards the
summer in retail trade and particularly in the HoReCa channel as it opened up.
Strong development of exports continued as well. On the other hand, travel
restrictions prevented any substantial improvement in cross-border and harbour
sales. Net profit development fell short of the previous year due to
substantially increased marketing effort to support the summer season.

Sales in Latvia have become significantly livelier as sales channel restrictions
have been lifted towards the summer. The HoReCa sales channel opened during May.
Second-quarter sales volume and net sales increased by 7.1 percent. Operating
profit increased by 1.2 percent. The acquisition of the Piebalgas Alus
microbrewery was completed, and the business has been a part of Olvi since 1
June 2021. The acquisition strengthens Olvi Group’s offering particularly in
premium products. The sales of Piebalgas products has started strongly.

Business development in Lithuania has been good in the first half of the year.
Sales volume increased by 2.9 percent and net sales by 5.5 percent. Good net
sales development has been supported by a more diversified product portfolio and
increased market shares. The company has been particularly successful with
strengthening the Volfas Engelman brand. Thanks to good sales development,
operating profit increased by 30.3 percent in the first half of the year.

In Belarus, Olvi Group has been able to develop its business well, taking into
account the political and economic situation in the country. First-half sales
volume increased by 14.5 percent. The weakened exchange rate has impacted the
development of net sales and operating profit measured in euro in relation to
the volume growth. The local currency has deteriorated by an average of 19
percent in 2021 compared to the previous year. Net sales measured in euro
increased by 6.2 percent and operating profit declined by 6.1 percent. However,
measured in the local currency, the company’s net sales increased by 26.2
percent and operating profit improved by 10.2 percent.

Investments have been completed as planned during the review period. The amount
of investments in the period under review came to 17,2 million euro and was
focused on improving production efficiency and capacity. The asset deal
concerning a spring water bottling plant in Finland was realised in April.

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 in January-June increased by 8.0 percent to 413.7
(382.9) million litres. Olvi Group’s sales volume in April-June increased by 8.7
percent to 249.8 (229.7) million litres.

In the first half of the year, sales volume has increased in all operating
countries. The development of sales volume in the second quarter evened out
across the operating countries as corona pandemic restrictions were lifted and
the weather was warm.

Sales volume, 4-6/ 2021 4-6/ 2020 Change % 1-6/ 2021 1-6/ Change
million litres 2020 %
Finland 72.7 70.3 3.3 127.9 118.5 8.0
Estonia 35.1 32.1 9.3 57.6 55.0 4.7
Latvia 23.0 21.5 7.1 36.7 36.0 1.9
Lithuania 37.0 35.1 5.4 62.1 60.4 2.9
Belarus 92.1 79.8 15.5 145.5 127.1 14.5
Eliminations -10.0 -9.0 -16.2 -14.0
Total 249.8 229.7 8.7 413.7 382.9 8.0

The Group’s net sales in January-June increased by 5.7 percent and amounted to
217.3 (205.6) million euro. Net sales growth in the second quarter was affected
by the opening of the HoReCa sales channel, among other things.

Net sales, 4-6/ 2021 4-6/ 2020 Change % 1-6/ 2021 1-6/ Change
million euro 2020 %
Finland 53.7 50.7 5.9 92.5 86.7 6.7
Estonia 22.8 20.5 11.2 36.9 35.4 4.4
Latvia 12.0 11.2 7.1 19.0 19.0 0.4
Lithuania 17.2 15.8 8.9 28.5 27.0 5.5
Belarus 30.2 26.6 13.6 46.5 43.8 6.2
Eliminations -4.1 -3.9 -6.3 -6.3
Total 132.0 121.0 9.1 217.3 205.6 5.7

Earnings development

The Group’s operating profit in January-June stood at 28.7 (28.0) million euro,
or 13.2 (13.6) percent of net sales. Operating profit in April-June stood at
20.6 (20.2) million euro, which was 15.6 (16.7) percent of net sales. Operating
profit improved by 2.2 percent from the beginning of the year, and by 2.0
percent in the second quarter. Operating profit has improved through a better
sales margin resulting from increased sales volume, but on the other hand, the
costs of logistics and marketing have increased on the previous year and
impacted the figure.

Operating 4-6/ 2021 4-6/ 2020 Change % 1-6/ 2021 1-6/ Change
profit, million 2020 %
euro
Finland 8.0 7.7 4.3 11.7 10.6 10.7
Estonia 4.5 4.8 -5.4 6.3 6.8 -7.6
Latvia 1.4 1.4 1.2 1.6 1.9 -17.3
Lithuania 1.9 1.5 28.2 2.6 2.0 30.3
Belarus 5.1 5.2 -1.4 6.8 7.3 -6.1
Eliminations -0.3 -0.3 -0.4 -0.6
Total 20.6 20.2 2.0 28.7 28.0 2.2

The Group’s January-June profit after taxes amounted to 21.8 (19.9) million
euro. Profit for April to June stood at 15.0 (14.5) million euro.

Earnings per share calculated from the profit belonging to parent company
shareholders in January-June was 1.05 (0.95) euro, and the April-June figure was
0.72 (0.69) euro.

Balance sheet, financing and investments

Olvi Group’s balance sheet total at the end of June 2021 was 493.6 (442.6)
million euro. Equity per share at the end of June 2021 stood at 12.86 (12.20)
euro. The equity ratio was 54.6 (57.8) percent and the gearing ratio was -24.7 (
-8.6) percent. The current ratio, which represents the Group’s liquidity, was
1.2 (1.1).

The amount of interest-bearing liabilities amounted to 3.6 (3.4) million euro at
the end of June. Current liabilities made up 1.3 (0.8) million euro of all
interest-bearing liabilities. Interest-bearing liabilities consist mostly of
leasing liabilities.

Olvi Group’s investments in extensions and replacements from January to June
amounted to 17.2 (19.0) million euro. The companies in Finland accounted for 6.9
million euro, the Baltic subsidiaries for 7.3 million euro and Lidskoe Pivo in
Belarus for 3.0 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-June was 2,026 (1,908). The
Group’s average number of personnel increased by 6.2 percent due to seasonal
variation and the Piebalgas acquisition.

Olvi Group’s average number of personnel by country:

       4-6/ 2021  4-6/ 2020  Change %  1-6/ 2021   1-6/  Change
                                                   2020       %

Finland 437 409 6.8 404 382 5.8
Estonia 355 329 7.9 340 324 4.9
Latvia 244 197 23.9 220 198 11.1
Lithuania 249 244 2.0 246 241 2.1
Belarus 845 768 10.0 816 763 6.9
Total 2,130 1,947 9.4 2,026 1,908 6.2

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

The Piebalgas Alus company in Latvia has been included in Olvi’s subsidiaries
since 1 June 2021. The effects of consolidation are described in more detail in
Table 5, Section 12 of the tables attached to this half-year report.

Through a stock exchange release on 12 May 2021, Olvi announced the conditional
acquisition of the Bryggeriet Vestfyen brewery company in Denmark. The
conditions of sale are expected to be fulfilled by 31 August 2021, which means
that the company would become a part of Olvi Group as of 1 September. Because
the company will be taken over only towards the end of the accounting period,
its effect on the Group’s business in 2021 will be minor.

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 half-year report.

Business risks and their management

The corona pandemic continues to impose risks on business, even though the
overall economic impact has been minor. 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. Furthermore,
as the corona pandemic has continued, there have been challenges in the
availability of raw materials and packaging supplies, as well as upward pressure
in their prices. Until now, the Group has been able to manage the availability
problem through measures such as good production planning. Cost pressure
concerns aluminium and plastic in particular, and effort is made to minimise the
earnings impact through product development, cost savings and potential clearly
focused price increases.

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. Production has operated almost normally and
there has not been any widespread virus exposure among personnel. 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 +358 400 203 600

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 half-year report, Table 5

DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Key media
www.olvi.fi

OLVI GROUP TABLE 1
STATEMENT OF
COMPREHENSIVE INCOME
EUR 1,000
4–6 / 4–6 / 1–6 / 1–6 / 1–12 /
2021 2020 2021 2020 2020

Gross sales 303,471 290,735 514,284 493,536 1,005,101
Excise taxes and other -171,517 -169,744 -297,012 -287,957 -590,217
adjustments
Net sales 131,954 120,991 217,272 205,579 414,884

Cost of sales -74,571 -69,067 -125,226 -118,192 -236,849

Gross profit 57,383 51,924 92,046 87,387 178,035

Logistics, sales and -27,734 -22,728 -47,394 -42,943 -87,300
marketing expenses
Administrative -9,120 -9,131 -16,324 -16,746 -34,650
expenses
Other operating income 74 125 331 337 350
and expenses
Operating profit 20,603 20,190 28,659 28,035 56,435

Financial income and 32 291 30 -1,236 -2,626
expenses
Share of profit in 0 0 0 0 2
associates
Earnings before tax 20,635 20,481 28,689 26,799 53,811

Income taxes -5,658 -5,940 -6,840 -6,878 -12,895
NET PROFIT FOR THE 14,977 14,541 21,849 19,921 40,916
PERIOD

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

Translation 1,192 3,019 2,600 -7,606 -15,588
differences related to
foreign
subsidiaries
Income taxes related -19 -73 -44 141 263
to these items
TOTAL COMPREHENSIVE 16,150 17,487 24,405 12,456 25,591
INCOME FOR THE PERIOD

Distribution of
profit:
- parent company 14,808 14,341 21,644 19,766 40,559
shareholders
- non-controlling 169 200 205 155 357
interests

Distribution of
comprehensive income:
 - parent company 15,944 17,201 24,120 12,526 25,704
shareholders
 - non-controlling 206 286 285 -70 -113
interests

Earnings per share
calculated from the
profit
belonging to parent
company shareholders,
EUR
-   undiluted 0.72 0.69 1.05 0.95 1.96
-   diluted 0.72 0.69 1.05 0.95 1.96
OLVI GROUP TABLE 2

BALANCE SHEET
EUR 1,000 30 June 30 June 31
2021 2020 December
2020
ASSETS
Non-current assets
Tangible assets 210,983 209,347 204,156
Goodwill 25,801 25,761 25,172
Other intangible 10,015 10,313 9,925
assets
Shares in associates 974 1,016 994
Other investments 880 836 851
Loans receivable and 2,333 2,313 1,786
other non-current
receivables
Deferred tax 635 664 1,086
receivables
Total non-current 251,621 250,250 243,970
assets

Current assets
Inventories 50,591 46,337 42,278
Accounts receivable 121,113 120,566 88,234
and other receivables
Income tax receivable 215 365 773
Liquid assets 70,017 25,119 45,096
Total current assets 241,936 192,387 176,381
TOTAL ASSETS 493,557 442,637 420,351

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 -400 -503 -1,802
Translation -56,366 -51,227 -58,842
differences
Retained earnings 300,914 282,244 303,465
266,294 252,660 264,967
Share belonging to non 3,079 3,210 3,165
-controlling interests
Total shareholders’ 269,373 255,870 268,132
equity

Non-current
liabilities
Financial liabilities 2,321 2,655 2,303
Other liabilities 4,588 4,264 4,473
Deferred tax 11,102 7,759 11,107
liabilities

Current liabilities
Financial liabilities 1,293 755 1,333
Accounts payable and 200,503 166,672 132,522
other liabilities
Income tax liability 4,377 4,662 481
Total liabilities 224,184 186,767 152,219
TOTAL SHAREHOLDERS’ 493,557 442,637 420,351
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

                                                                           in

terests
Shareholders’ 20,759 1,092 -1,802 295 -58,842 303,465
3,165 268,132
equity
1 Jan 2021
Comprehensive
income:
     Net 21,644
205 21,849
profit for
the period
     Other
comprehensive
income items:
          2,476
80 2,556
Translation
differences
Total 2,476 21,644
285 24,405
comprehensive
income for
the period
Transactions
with
shareholders:
     Payment -22,771
-346 -23,117
of dividends
     Share 296
296
-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 589
589
treasury
shares to
employees
     -105
-26 -131
Adjustment to
previous
periods
Total 1,402 -24,194
-372 -23,164
transactions
with
shareholders
Changes in
holdings in
subsidiaries:
    Change in -1
1 0
share
belonging to
non
-controlling
interests
Total changes -1
1 0
in holdings
in
subsidiaries
Shareholders’ 20,759 1,092 -400 295 -56,366 300,914
3,079 269,373
equity
30 Jun 2021

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

                                                                           in

terests
Shareholders’ 20,759 1,092 -503 295 -43,987 282,895
3,318 263,869
equity
1 Jan 2020
Comprehensive
income:
     Net 19,766
155 19,921
profit for
the period
     Other
comprehensive
income items:
          -7,240
-225 -7,465
Translation
differences
Total -7,240 19,766
-70 12,456
comprehensive
income for
the period
Transactions
with
shareholders:
     Payment -20,710
-38 -20,748
of dividends
     Share 293
293
-based
incentives,
value of work
performed
Total -20,417
-38 -20,455
transactions
with
shareholders
Shareholders’ 20,759 1,092 -503 295 -51,227 282,244
3,210 255,870
equity
30 Jun 2020

Other reserves include the share premium account, legal reserve and other
reserves.

OLVI GROUP TABLE 4

CASH FLOW STATEMENT
EUR 1,000
1–6 / 2021 1–6 / 2020 1–12 / 2020

Net profit for the period 21,849 19,921 40,916
Adjustments:
     Depreciation and impairment 13,058 12,410 24,972
     Other adjustments 7,047 8,794 16,327
Change in net working capital:
     Change in accounts receivable and -32,277 -53,110 -22,809
other receivables
     Change in inventories -6,825 -4,204 -1,274
     Change in accounts payable and 55,330 38,572 17,339
other liabilities
Interest paid -186 -261 -588
Interest received 108 24 260
Dividends received 2 2 4
Taxes paid -1,997 -1,986 -9,351
Cash flow from operations (A) 56,109 20,162 65,796

Investments in tangible and intangible -16,816 -17,906 -31,533
assets
Capital gains on disposal of tangible 881 790 1,697
and intangible assets
Acquisition of shares from non 0 0 -6
-controlling interests
Acquired shares in subsidiaries, -2,094 0 0
associates and joint ventures
Expenditure on other investments -30 0 -15
Dividends received 21 0 24
Cash flow from investments (B) -18,038 -17,116 -29,833

Withdrawals of loans 0 15,475 15,497
Repayments of loans -1,295 -16,194 -16,917
Acquisition of treasury shares -874 0 -1,299
Sales of treasury shares to employees 589 0 0
Dividends paid -11,734 -10,399 -20,754
Increase (-) / decrease (+) in current 0 2 26
interest- bearing business receivables
Cash flow from financing (C) -13,314 -11,116 -23,447

Increase (+)/decrease (-) in liquid 24,757 -8,070 12,516
assets (A+B+C)

Liquid assets 1 January 45,096 33,832 33,832
Effect of exchange rate changes 164 -643 -1,252
Liquid assets 30 June/31 December 70,017 25,119 45,096

OLVI GROUP                                                    TABLE 5

NOTES TO THE HALF-YEAR REPORT

The half-year 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 half-year 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 half-year report is unaudited.

1.  SEGMENT
INFORMATION
NET SALES
BY SEGMENT
1–6/2021
EUR 1,000 Finland Estonia Latvia Lithuania Belarus Elimi Group
-nations

INCOME
External 92,070 34,790 17,181 27,370 45,861 0 217,272
sales
     91,613 34,790 17,181 27,370 45,861 0 216,815
Beverage
sales
     457 0 0 0 0 0 457
Equipment
services
Internal 443 2,157 1,849 1,160 675 -6,284 0
sales
Total net 92,513 36,947 19,030 28,530 46,536 -6,284 217,272
sales
NET SALES
BY SEGMENT
1–6/2020
EUR 1,000 Finland Estonia Latvia Lithuania Belarus Elimi Group
-nations

INCOME
External 86,174 32,211 17,819 25,659 43,716 0 205,579
sales
     85,675 32,211 17,819 25,659 43,716 0 205,080
Beverage
sales
     499 0 0 0 0 0 499
Equipment
services
Internal 504 3,185 1,142 1,384 98 -6,313 0
sales
Total net 86,678 35,396 18,961 27,043 43,814 -6,313 205,579
sales

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  1–6  1–6 / 2020  1–12 / 2020
/ 2021

Managing 758 370 550
Director
Chairman of 36 37 74
the Board
Other members 86 90 172
of the Board
Total 880 497 796

1. SHARES AND SHARE CAPITAL
   30 June 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 June 2021 totalled 20,759 thousand euro.

Olvi plc’s shares will receive 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 dividend will
be 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 will be 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 sold a total of 12,295 treasury shares to the target group members by the
end of June for a price of 589,299.35 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 295.5 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 11,549 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 1 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 a price of 551,456.38 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 438,006.77
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  1–6 / 2021  1–6 / 2020  1–12 / 2020
   SHARES *)

- average 20,700,288 20,710,683 20,708,331
  - at end of 20,712,828 20,710,683 20,683,672
period
*) Treasury
shares
deducted.

1. TRADING OF
   SERIES A SHARES
   ON THE HELSINKI
   STOCK EXCHANGE
    1–6 / 2021  1–6 / 2020  1–12 / 2020
   Trading volume 1,146,330 904,556 1,474,892
   of Olvi A
   shares
   Total trading 54,729 35,390 60,470
   volume, EUR
   1,000
   Traded shares
   in proportion
   to
   all Series A 6.7 5.3 8.7
   shares, %

Average share 47.77 39.15 41.03
price, EUR
Price on the 50.70 42.20 48.50
closing date,
EUR
Highest quote, 55.50 43.00 50.00
EUR
Lowest quote, 43.10 30.25 30.25
EUR

1. FOREIGN AND
   NOMINEE
   -REGISTERED
   HOLDINGS ON 30
   June 2021

               Book entries           Votes          Shareholders
                   qty       %         qty       %     qty       %
   

   Finnish total 16,237,449 78.36 87,150,313 95.11 16,462 99.53
   Foreign total 64,248 0.31 64,248 0.07 66 0.40
   Nominee 324,925 1.57 324,925 0.35 6 0.04
   -registered
   (foreign) total
   Nominee 4,095,610 19.76 4,095,610 4.47 5 0.03
   -registered
   (Finnish) total
   Total 20,722,232 100.00 91,635,096 100.00 16,539 100.00

2. LARGEST SHAREHOLDERS ON 30 June
   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 1,044,347 1,044,347 5.04
   1,044,347 1.14
   (publ) Helsinki branch, nominee
   register
   7. Nordea Bank Abp, nominee register 1,015,387 1,015,387 4.90
   1,015,387 1.11
   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 10,319,657 10,399,469 50.18
   11,915,897 13.01
   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-June 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
    1–6 / 2021  1–6 / 2020   1–12 / 2020

Opening balance 204,156 208,701 208,701
Additions 18,260 18,660 31,923
Deductions and transfers -1,348 -1,074 -2,294
Depreciation -11,862 -11,268 -22,625
Exchange rate differences 1,777 -5,672 -11,549
Total 210,983 209,347 204,156

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

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

Leasing and rental
liabilities:
   Due within one 805 775 788
year
   Due within 1 to 637 326 398
5 years
Leasing and rental 1,442 1,101 1,186
liabilities total

Other liabilities 60 60 60

1. BUSINESS COMBINATIONS

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 is recognised as
preliminary in the half-year report.

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

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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