Raisio Oyj — Interim / Quarterly Report 2012

Nov 6, 2012

Q3/2012

RAISIO PLC

Interim Report 1 January – 30 September 2012

6 Financial Statements 2011

RAISIO'S EARNINGS PER SHARE IMPROVED

July-September 2012, continuing operations excluding one-off items

• Group's net sales increased almost 14%. Net sales totalled EUR 161.0 million (Q3/2011: EUR 141.7 million).
• Group's EBIT was EUR 10.7 million (Q3/2011: EUR 10.7 million) accounting for 6.6% (7.5%) of net sales.
• Brands Division's profitability was in line with objectives, EBIT 11.3% (12.8%) of net sales.
• Net sales for feeds and farming supplies rose by almost 40%.
• Loss of feed protein business halved. Raisio took steps to increase flexibility, which will improve future profitability.

Raisio Group's key figures excluding one-off items

		Q3/	Q3/	Q1-Q3/	Q1-Q3/
		2012	2011	2012	2011	2011
Results from continuing
operations
Net sales	M€	161.0	141.7	446.6	413.9	552.6
Change in net sales	%	13.6	27.6	7.9	33.6	30.5
EBIT	M€	10.7	10.7	28.0	26.9	31.8
EBIT	%	6.6	7.5	6.3	6.5	5.8
Depreciation and impairment	M€	4.2	4.5	12.4	12.5	17.0
EBITDA	M€	14.8	15.2	40.4	39.4	48.8
Net financial expenses	M€	-1.2	-0.2	-2.1	-1.2	-1.5
Earnings per share (EPS)	€	0.06	0.05	0.14	0.13	0.16
Balance sheet
Equity ratio	%	-	-	62.0	60.5	60.2
Gearing	%	-	-	2.4	-0.2	-7.5
Net interest-bearing debt	M€	-	-	7.7	-0.7	-24.8
Equity per share	€	-	-	2.10	2.08	2.13
Gross investments	M€	1.7	1.9	7.7*	68.6*	71.2*
Share
Market capitalisation**	M€	-	-	440.4	374.4	372.3
Enterprise value (EV)	M€	-	-	448.1	373.7	347.5
EV/EBITDA		-	-	9.0	8.1	7.1

* Including acquisitions

** Excluding the company shares held by the Group

Chief Executive's review

"Raisio's EBIT for the three first quarters is clearly stronger compared to last year's figure despite the difficult consumer market conditions in Europe and poor performance of Finnish agribusiness. Brands Division's EBIT for January-September was over 20 per cent higher than in the comparison period. The main reasons for this are good growth and profitability in our UK food operations and Benecol's ability to steadily make good results. Profitability of the acquired companies is now better than at the time of acquisition. The general situation in European consumer markets continues challenging, but Raisio is moving on according to plan.

Successful acquisitions and the integration of operations as part of the Brands Division have wide-ranging impacts. This autumn, we started with a Consumer brands unit, under which we collected different market areas for tight control and joint resourcing. Effective and profitable operations in the UK are also reflected in the Northern European food operations, where we have taken actions to improve profitability and competitiveness by allocating resources within the entire Consumer brands unit to meet the size of markets.

Raisio has started measures aimed at improved profitability and increased production flexibility in the feed protein business. In the third quarter of 2012, we managed to cut losses in half, but our target level remains higher.

For Raisioagro, we have clarified our views of measures needed in the improvement of weaker product segments. As a real Finnish alternative, Raisioagro is attracting growing interest among customers in changing market conditions."

GROUP'S CONTINUOUS OPERATIONS

Financial reporting

Raisio Group reports on its performance in line with continuing operations. All figures mentioned in this review are comparable. The Divisions that are reported in line with continuing operations include Brands and Raisioagro.

The Brands Division includes Consumer brands and Licensed brands units. Consumer brands unit is examined by key market areas in the text. Big Bear Group is included in the Western Europe's comparison figures starting from 4 February 2011. Sulma operations became part of the Eastern European operations on 20 March 2012. Licensed brands unit includes Benecol.

Raisioagro Division includes feeds, grain trade, protein meals and vegetable oils, farming supplies and bioenergy.

Comparison figures in brackets refer to the corresponding date or period one year earlier unless otherwise stated.

Operating environment

The economic situation in Europe except for Russia remains weak and the ability to maintain margins is increasingly challenging. Weak growth and rising costs have forced all companies in different industries to intensify their operations. Even though the strongest pressure is not on the grocery trade, it is not possible for Raisio to continue without reacting to the situation. Profitability of Raisio's brands remained good especially in the UK and Eastern Europe despite weak market conditions.

In the review period, there was a sharp increase in grain and protein raw material prices globally. This increased cost pressures particularly in livestock and fish farms, since producer prices in Finland have not followed the rise in input prices. Profitability of the farms in difficulty declined even further. Exceptionally poor conditions in Finnish grain and grass harvesting are estimated to increase the demand for industrial feeds in Finland.

In Raisioagro's key market Finland, milk and beef production remained at the comparison period's level. Pork production declined, whereas poultry meat production increased. Production of industrial feeds in Finland remained at the last year's level.

The planned sale of the share majority in Hankkija Agriculture Ltd to the Danish DLA will probably negatively affect the Finnish agricultural trade. DLA and S Group's intended joint ownership in Hankkija Agriculture Ltd can be seen as a particular threat; it could bring more unhealthy features to the agritrade. On the other hand, it is possible that a real Finnish alternative, such as Raisioagro, will interest customers more in the future.

Net sales

Raisio Group's net sales in July-September 2012 totalled EUR 161.0 (141.7) million. Net sales for the Brands Division were EUR 86.2 (81.5) million and for the Raisioagro Division EUR 75.0 (60.5) million. Net sales for other operations totalled EUR 0.5 (0.5) million.

The Group's January-September net sales were EUR 446.6 (413.9) million, almost 8 per cent more than in the comparison period. The Brands Division accounted for some 56 per cent and Raisioagro 44 per cent of the Group's net sales. January-September net sales from outside Finland represented 49.8 (43.4) per cent of the Group's total, amounting to EUR 222.3 (179.8) million.

Result

Raisio Group's July-September EBIT was EUR 9.9 and, excluding one-off items, 10.7 (10.7) million, which is 6.2 and, excluding one-off items, 6.6 (7.5) per cent of net sales. The Group's third-quarter EBIT included a one-off item of EUR 0.7 million, which includes expenses resulting from acquisition and streamlining projects. EBIT of the Brands Division totalled EUR 9.2 and, excluding one-off items, 9.7 (10.4) million and that of Raisioagro EUR 1.2 (0.4) million. EBIT for other operations was EUR -0.4 and, excluding one-off items, -0.3 (-0.4) million.

The Group's EBIT in January-September was EUR 27.2 and, excluding one-off items, 28.0 (25.8 and, excluding one-off items, 26.9) million. EBIT is 6.1 and, excluding one-off items, 6.3 (6.2 and, excluding one-off items, 6.5) per cent of the Group's net sales. In the comparison period, the Brands Division's EBIT included a one-off item of EUR 1.1 million resulting from the Big Bear Group acquisition costs following the due diligence process. The Brands Division's EBIT in January-September was EUR 29.1 and, excluding one-off items, 29.7 (23.5 and, excluding one-off items, 24.6) million. EBIT for the Raisioagro Division was EUR -0.2 (3.4) million and for other operations EUR -1.7 and, excluding one-off items, -1.6 (-1.2) million.

Depreciation and impairment, allocated to operations in the income statement, amounted to EUR 4.2 (4.5) million in July-September and to EUR 12.4 (12.5) million in January-September.

The Group's net financial expenses in July-September totalled EUR -2.3 and, excluding one-off items, -1.2 (-0.2) million. The Group's net financial expenses in January-September totalled EUR -13.3 and, excluding one-off items, -2.1 (-3.4 and, excluding one-off items, -1.2) million. Financial items include one-off items of EUR 11.2 million resulting from the difference between the confirmed purchase price of Raisio UK Ltd's non-controlling interest and the estimated purchase price previously recorded in the balance sheet and the implementation of the redemption of that non-controlling interest. Additional purchase price debt to Raisio UK's non-controlling interest of a total of EUR 2.2 million, resulting from the acquisition of Big Bear Group, has been recorded as a one-off item in the comparison period's financial items.

The pre-tax result for the third quarter was EUR 7.5 and, excluding one-off items, 9.4 (10.5) million and in January-September EUR 13.8 and, excluding one-off items, 25.7 (22.4 and, excluding one-off items, 25.7) million.

The Group's post-tax result in July-September totalled EUR 7.6 and, excluding one-off items, 9.3 (7.9) million January-September post-tax result was EUR 9.8 and, excluding one-off items, 21.6 (16.3 and, excluding one of items, 19.6) million. The Group's earnings per share for continuing operations in July-September were EUR 0.05 and, excluding one-off items, 0.06 (0.05). Earnings per share in January-September were EUR 0.06 and, excluding one-off items, 0.14 (0.11 and, excluding one-off items, 0.13).

Balance sheet, cash flow and financing

At the end of September, the Raisio Group's balance sheet totalled EUR 531.9 (31 December 2011: 561.8) million. Shareholders' equity was EUR 327.1 (31 December 2011: 332.9) million, while equity per share was EUR 2.10 (31 December 2011: 2.13).

At the end of September 2012, the Group's interest-bearing financial liabilities were EUR 91.8 (31 December 2011: 115.7) million. Net interest-bearing debt was EUR 7.7 (31 December 2011: -24.8) million.

On 30 September 2012, the Group's equity ratio totalled 62.0 (31 December 2011: 60.2) per cent and net gearing was 2.4 (31 December 2011: -7.5) per cent. Return on investment was 5.1 and, excluding one-off items, 8.7 (31 December 2011: 7.3 and, excluding one-off items, 8.1) per cent. Cash flow from business operations in January-September was EUR 7.9 (20.9) million.

At the end of September 2012, working capital amounted to EUR 84.2 million. A year earlier, the amount tied up in working capital was EUR 80.2 million.

Investments

The Group's gross investments in July-September totalled EUR 1.7 (1.9) million. Gross investments of the Brands Division were EUR 1.2 (1.2) million, those of Raisioagro EUR 0.3 (0.5) million and those of other operations EUR 0.2 (0.2) million.

The Group's gross investments for January-September amounted to EUR 7.7 (68.6 and, excluding acquisitions, 5.3) million. The largest investment in 2012 has been the acquisition of Sulma pasta factory's fixed assets in Poland.

In addition, the largest investment shown in the cash flow statement is the payment of EUR 32.6 million for the remaining part of the acquisition completed in 2010; the payment was carried out as the acquisition of shares in the subsidiaries.

Research and development

The Group's research and development expenses in July-September were EUR 1.6 (1.4) million and EUR 5.0 (4.9) million in January-September.

Our new Maituri 12000 E Benemilk feed has been well received by customers. Raisio continues its strong investment in the R&D of new generation feeds.

The study of MTT Agrifood Research Finland conducted in a research barn in Maaninka confirmed the excellent results from earlier practical experiments on the farms. Our Maituri 12000 E Benemilk feed significantly increased both the fat content of milk and milk yield. Furthermore, the protein content increased, even though usually it tends to decrease as the fat content of milk increases.

The results showed that with Maituri 12000 E Benemilk, it is possible to considerably enhance the energy and protein utilisation of the feed. In practice, this means that good milk yields can be obtained with lower amounts of concentrated feed than before. A significant reduction in greenhouse gas emissions is a positive effect of improved milk production efficiency. Higher milk yields and contents provide the producers with higher income.

SEGMENT INFORMATION

BRANDS DIVISION

		Q3/	Q3/	Q1-Q3/	Q1-Q3/	2011
		2012	2011	2012	2011
Net sales	M€	86.2	81.5	253.0	235.5	314.6
Consumer brands	M€	74.0	70.2	216.8	200.6	269.2
Licensed brands	M€	12.5	11.4	36.5	35.2	45.7
EBIT	M€	9.2	10.4	29.1	23.5	30.1
One-off items	M€	-0.6	0.0	-0.6	-1.1	-1.1
EBIT, excluding
one-off items	M€	9.7	10.4	29.7	24.6	31.2
EBIT, excluding
one-off items	%	11.3	12.8	11.8	10.5	9.9
Investments	M€	1.2	1.2	5.8	66.4*	67.8*
Net assets	M€	-	-	260.9	245.8	245.8

* Including acquisitions

Net sales

In July-September, the Brands Division's net sales increased almost 6 per cent on the comparison period amounting to EUR 86.2 (81.5) million. Net sales for Consumer brands totalled EUR 74.0 (70.2) million. Net sales for Licensed brands, or Benecol, totalled EUR 12.5 (11.4) million.

Net sales for the Western European food operations already account for almost 50 per cent of the Brands Division's net sales. Raisio has systematically strengthened its position in the UK market of breakfast products, snacks and confectionery by widening its product range to match consumer needs and by stepping up its activities. Net sales increased slightly in the third quarter of 2012. Net sales growth was slowed down due to the momentary decline in consumer demand mainly resulting from the ending of Olympics-related campaigns of seasonal products.

The situation in the Northern European food markets remained tight. Particularly in Finland, Raisio's industrial and HoReCa sales volume was significantly lower than in the comparison period, but sales in consumer products were stable. Good sales development in Benecol products increased net sales. Raisio has taken steps to improve competitiveness and cost-effectiveness and to renew the product portfolio in Finland. Finland, Sweden and Estonia account for nearly 35 per cent of the Brands Division's net sales.

In Raisio's Eastern European food operations, organic growth and the acquisition of Sulma's pasta factory resulted in net sales growth of over 50 per cent on the comparison period. Particularly strong growth was seen in Russia in the sales of premium grain products sold under the Nordic brand, since Russian consumers value high-quality Finnish foods.

In January-September, net sales for the Brands Division totalled EUR 253.0 (235.5) million. Net sales increased by over 7 per cent on the comparison period. Net sales for Consumer brands totalled EUR 216.8 (200.6) million. Net sales for Licensed brands were EUR 36.5 (35.2) million.

Result

Third-quarter EBIT for the Brands Division amounted to EUR 9.2 and, excluding one-off items, 9.7 (10.4) million, which is 10.6 and, excluding one-off items, 11.3 (12.8) per cent of net sales. EBIT for the comparison period was one the best in Raisio's history.

In Raisio's Western European operations in the UK, EBIT for the third quarter was good, although it did not quite reach the level of an exceptionally strong comparison period. Profitability in the Northern European food operations was not satisfactory against the target. EBIT for the Eastern European operations remained profitable also in the third quarter. Benecol's EBIT was at its ordinary good level.

EBIT in January-September totalled EUR 29.1 and, excluding one-off items, 29.7 (23.5 and, excluding one-off items, 24.6) million, which is, excluding one-off items, 21 per cent higher than in the comparison period. EBIT was 11.5 and, excluding one-off items, 11.8 (10.0 and, excluding one-off items, 10.5) per cent of net sales.

Consumer brands

Western Europe

As a whole, the third quarter of 2012 in the UK was good for Raisio, although market conditions, particularly in retail, continued tight. Efficiency and cost-effectiveness in Raisio's operations make it easier to do well in a tough market. Furthermore, snack bars produced under our partners' brands are doing fine.

UK consumers increasingly prefer affordable foods. Raisio has increased sales the most with so called pound shops, where everything costs one pound. The level of promotional sales in the UK has remained high.

The product range renewal in Raisio's branded confectionery boosted sales in Poppets confectionery, among others.In the review period, sales in retailers' own confectionery brands grew well and Raisio got new customers. Industrial sales to international ice-cream factories rose in spite of the rainy summer.

Northern Europe

In Finland, Raisio's retail product sales were stable and Benecol products continued to deliver strong growth. Price competition in industrial and catering products was unhealthy and Raisio did not seek to maintain poorly performing market share.

In the Northern European food operations, Raisio has launched an efficiency programme aimed at improving competitiveness and cost-effectiveness and at the renewal of product portfolio.

Eastern Europe

The third quarter of 2012 went well in all three market areas in Russia, Ukraine and Poland. Sales volume increased especially in Russia. Sales in Elovena products were up by a third in Poland. In Russia and Ukraine, Nordic is a highly valued premium brand of grain products. In Russia, sales growth was supported by a TV campaign and the launch of gluten free Provena products was activated by an internet campaign.

Licensed brands

In the review period, sales in Benecol products were up the most in Finland. Finnish consumers have confidence in the cholesterol-lowering efficacy of Benecol products and Finnish innovation. Outside Europe, marketing activities boosted sales in Benecol products especially in Thailand, Chile and Indonesia. The economic uncertainty in Europe has led to the situation that in some countries the markets of cholesterol-lowering functional foods are currently not growing.

There are significant differences between the countries in the sales development of Benecol products. Benecol products further strengthened the market leadership position in the UK, the largest market of cholesterol-lowering functional foods.

The cholesterol-lowering ingredient of Benecol products, plant stanol ester, was developed by Raisio and the company owns the Benecol brand. Benecol's business model is based on partnerships. Licence partners are major local food companies that purchase plant stanol ester from Raisio. They produce, sell and market Benecol products in their own markets. Approximately 95 per cent of Benecol's net sales come from Europe. The key markets of Benecol products are the UK, Poland and Spain.

RAISIOAGRO DIVISION

Raisioagro Division includes feeds, grain trade, protein meals and vegetable oils, farming supplies and bioenergy.

		Q3/	Q3/	Q1-Q3/	Q1-Q3/	2011
		2012	2011	2012	2011
Net sales	M€	75.0	60.5	194.4	181.0	241.1
EBIT	M€	1.2	0.4	-0.2	3.4	2.9
One-off items	M€	0.0	0.0	0.0	0.0	0.0
EBIT, excluding one-off items	M€	1.2	0.4	-0.2	3.4	2.9
EBIT, excluding one-off items	%	1.6	0.7	-0.1	1.9	1.2
Investments	M€	0.3	0.5	1.0	1.8	2.5
Net assets	M€	-	-	75.4	78.1	63.1

Net sales

In July-September, Raisioagro's net sales increased by almost 24 per cent amounting to EUR 75.0 (60.5) million. Net sales for feeds and farming supplies rose by almost 40 per cent on the comparison period. Particularly good sales growth was seen in fish feeds. Net sales were also boosted by the pricing of products to meet increased raw material costs. Furthermore, rapeseed oil was sold less and grain imports were lower than in the comparison period.

In January-September, Raisoagro's net sales totalled EUR 194.4 (181.0) million. Feeds and farming supplies accounted for almost 80 per cent of net sales, while protein meals, vegetable oils and grains represented more than 20 per cent.

Result

In July-September, EBIT for the Raisioagro Division amounted to EUR 1.2 (0.4) million. Profitability of feed and farming supply trade improved also in the third quarter of 2012. Loss from feed protein business halved from the comparison period. Raisio took steps to enhance the feed protein business and to improve its profitability and flexibility.

In January-September, EBIT for Raisioagro totalled EUR -0.2 (3.4) million. The impact of the feed protein business on the Division's EBIT was approximately EUR -2.5 million in January-September.

Business

Feeds and farming supplies

Raisio maintained its position in the Finnish feed market. Raisioagro provides its customers with effective feeds and strong feeding expertise. Most significant growth was seen in sales of poultry, cattle and fish feeds.

In Finland, there are already around 300 milk farms using Raisio's latest feed innovation, Maituri 12000 E Benemilk. Farmers' experience of Maituri's efficacy is convincing; both milk quantity and the fat and protein contents of milk increase. Raisioagro is currently carrying out a Maituri 12000 E Benemilk Roadshow covering Finnish milk production regions. At the show events, the new feed is introduced and farmers' invariably positive experiences are presented.

Exports of farm and fish feeds to Russia increased. Now ending sales season of fish feeds has been good. Raisioagro is the clear market leader in fish feeds in Northwest Russia.

Since Raisioagro entered the farming supply trade, producers have had more options and competition has increased, especially in fertilisers and fuels. Sales in Raisioagro's farming supplies have increased in line with objectives. Yara and Neste Oil, among others, are Raisio's partners in farming supplies.

Protein meals and oils

Production of the feed protein factory has been adjusted to the market situation, since there has not been adequately Finnish rapeseed available and, furthermore, rapeseed oil processed from imported seeds cannot withstand costs resulting from export. On an annual basis, the total quantity of Finnish rapeseed is going to be exceptionally low, around 70,000 tonnes, due to poor growing season. There are no quick solutions in sight for the poor availability of Finnish raw material, even though the plant breeding work of Raisio, Neste Oil and Boreal is progressing well.

Grains

Severe draught in major agricultural regions of the Northern hemisphere, US Midwest and black-soil regions of Russia and Ukraine has increased prices in grains and in protein and oil plants. In the global grain markets, supply is declining, while demand continues its steady growth. The success with Brazilian and Argentinian soya and corn crops and Australian wheat crop will have a significant impact on the price development and adequacy of grains.

Finnish grain harvest will be around five per cent lower than anticipated due to the rains at harvest period, though sufficient for the needs of Finnish industry. Last spring, the areas sown with rapeseed in Finland were significantly smaller than in previous years and an estimated one-fifth of the crop will not be harvested due to the rainy autumn. Finnish rapeseed crop accounts for only a quarter of the Finnish oil plant industry's needs.

Group personnel

Raisio Group's continuing operations employed 1,529 people at the end of September (31 December 2011: 1,432 people). 71 (31 December 2011: 69) per cent of the personnel were working outside Finland. At the end of the review period, the Brands Division had 1,274, Raisioagro Division 195 and the Group's service functions 60 employees.

Starting from 22 August 2012, the Brands Division's operations were divided into two units: Consumer brands and Licensed brands. Paul Simmonds was appointed as Vice President of Consumer brands and he continues at Raisio in his new position. Vincent Poujardieu was appointed as Vice President of Licensed brands and he also continues as Vice President of the Group's business development.

At the beginning of October 2012, Tomi Järvenpää started in the Consumer brands unit as Chief Operational Officer in the Northern European operations.

Shares and shareholders

The number of Raisio plc's free shares traded on NASDAQ OMX Helsinki Ltd in January-September totalled 23.1 (25.2) million. The value of trading was EUR 58.9 (62.2) million and the average price EUR 2.55 (2.47). The closing price on 30 September 2012 was EUR 2.83.

A total of 0.7 (0.6) million restricted shares were traded in January-September. The value of trading was EUR 1.8 (1.5) million and the average price EUR 2.54 (2.54). The closing price on 30 September 2012 was EUR 2.85.

On 30 September 2012, the company had a total of 35,731 (31 December 2011: 36,366) registered shareholders. Foreign ownership of the entire share capital was 8.4 (31 December 2011: 9.8) per cent.

Raisio plc's market capitalisation at the end of September amounted to EUR 468.1 (31 December 2011: 394.7) million and, excluding own shares held by the Company, to EUR 453.1 (31 December 2011: 383.1) million.

During the review period, a total of 114,188 restricted shares were converted into free shares.

At the end of the review period, the number of issued free shares was 131,008,161 while the number of restricted shares was 34,140,869. The share capital entitled to 813,825,541 votes.

At the end of the review period, Raisio plc held 5,065,099 free shares and 212,696 restricted shares acquired in 2005-2012 based on the authorisations given by the Annual General Meetings. The management-owned Reso Management Oy of which, on the basis of the agreements, Raisio plc is seen to have the control, and which is thus regarded as a subsidiary, owns 4,482,740 free shares. The number of free shares held by Raisio plc and Reso Management Oy accounts for 7.3 per cent of all free shares and the votes they represent, while the corresponding figure for restricted shares is 0.6 per cent. In all, the company shares held by these companies represent 5.9 per cent of the entire share capital and 1.7 per cent of overall votes. Other Group companies hold no Raisio plc shares. A share in Raisio plc held by the company itself or by its subsidiary does not entitle the holder to participate in the AGM.

During the review period, a total of 407,900 free shares and 4,185 restricted shares were purchased and the purchases were made, on the one hand, in the process that started in July 2011 and ended on 27 March 2012 and, on the other, in the process that started on 11 June 2012.

The purchases started in June are based on the decision made by the Board on 31 May 2012, on the basis of the authorisation given by the AGM, to acquire a maximum of 5,000,000 free shares and a maximum of 1,250,000 restricted shares. The purchase of the shares is carried out in the public trading organised by NASDAQ OMX Helsinki Ltd and it continues until the amounts mentioned above are acquired or until further notice.

In the review period, a total of 7,830 free shares were assigned to the Chairman and members of the Board as part of the compensation for managing their duties, in line with the decision taken by the AGM in 2012.

Raisio plc and its subsidiaries do not have any shares as collateral and did not have any in the review period.

The Raisio Group Research Foundation holds 150,510 restricted shares, which is 0.44 per cent of the restricted shares and the votes they represent and, correspondingly, 0.09 per cent of the entire share capital and 0.37 per cent of the votes it represents.

Authorisations to repurchase own shares and to share issues

The AGM authorised the Board of Directors to decide on the repurchase and/or on the acceptance as collateral of a maximum of 5,000,000 free shares and 1,250,000 restricted shares. The authorisation will be valid until 29 September 2013.

Furthermore, the AGM authorised the Board of Directors to decide on the share issues (1) by disposing of all of the company shares and any potentially repurchased own shares, a maximum total of 15,386,123 shares, 2,451,295 of which can be restricted shares, and (2) by issuing a maximum of 20,000,000 new free shares against payment. The share issue authorisations will expire on 29 March 2017 at the latest.

The details of the authorisations are available in the stock exchange release published on 14 February 2012.

The Board has not used its share issue authorisation in the review period. The Board has exercised the authorisation to repurchase own shares, as described above.

Decisions made at the Annual General Meeting

Raisio plc's Annual General Meeting (AGM) held on 29 March 2012 approved the financial statements for the financial year 1 January – 31 December 2011 and granted the members of the Board of Directors and the Supervisory Board as well as the Chief Executive Officer discharge from liability. The AGM approved the Board of Directors' proposal to pay a dividend of EUR 0.11 per share, which was paid to the shareholders on 12 April 2012.

A Stock Exchange Release was published on 29 March 2012 concerning the decisions made by the Meeting, in addition to which the decisions were described in the Interim Report of January-March.

Events after the review period

On 8 October 2012, Raisio Group started statutory cooperation negotiations aimed at enhancing the Finnish operations and improving the weakened competitiveness and profitability. The negotiations concern mainly the Finnish food operations, Raisioagro's feed protein business and the Group's support functions. The negotiations cover around 230 employees and the maximum personnel reduction need is estimated to be 60 people. The negotiations started on Monday 15 October 2012 and they concern all personnel groups. The negotiations are expected to be completed at the beginning of December.

Apart from Benecol minidrinks and yoghurts, Raisio itself is now responsible for the sales and marketing of Benecol margarines in Finland, Poland and Estonia starting from 17 October 2012. The distribution agreement on margarines manufactured by Bunge as well as Bunge's Benecol license partnership came to end. This will not have a negative impact on the Brands Division's profitability. Raisio is able to comprehensively develop the Benecol brand in the company's own market areas. Raisio has 17 years of experience in the sales and marketing of effectively cholesterol-lowering Benecol products.

In mid-October 2012, Raisioagro launched organic feed deliveries throughout Finland. Organic feeds are manufactured under Raisioagro's brand name in the Mill of Liperi of ItäMaito, a dairy cooperative, part of Valio. Raisioagro is the market leader in cattle feeds in Finland and the company is aiming at the same level of market share in organic feeds.

Short-term risks and uncertainties

Uncertainty in the global and European economic development will continue. It seems that economic growth in European and home markets continue to slow down. Finding sustainable solutions to the states' debt problems may also continue to be slow and the situation maintains uncertainty. Despite the general situation, we believe that the grocery trade will remain relatively stable compared to many other industries.

Volatility in raw material prices is estimated to remain at the usual high level. Slowing economic growth and possibly good harvests may calm down the price development but, on the other hand, extreme weather events resulting from climate warming may cause sudden changes in harvest expectations and price levels of different agricultural commodities. Importance of risk management, both for value and volume, will remain significant in terms of profitability also in future.

Raisio's growth phase is a period of changes, during which several of the company's activities are developed and business management is considerably more challenging than in ordinary circumstances. The growth projects may still cause substantial costs in relation to the company size.

Targets and outlook

In the Brands Division, Raisio continues its efforts to ensure profitable growth, both organic and through acquisitions. Raisio's target is to be the leading European player in snacks.

Growth in the UK market for branded products is expected to continue. Raisio will continue as planned to enhance its operations and to extend its range of branded products with innovative new products into new product segments and new sales channels. In the UK, promotion-driven sales are expected to continue at current high levels.

In Northern and Eastern European food markets, our target is to deliver profitable organic growth with our innovative branded products meeting the needs of consumers and customers. Raisio focuses on improving the product availability and attractiveness, particularly for Finnish retail and industrial customers.

Raisio continues to work actively to strengthen the Benecol brand's expert role, to establish new partnerships and to enter new markets with our partners mainly in Asia and South America. In Raisio's home markets, Finland, Poland and Estonia, the company itself is comprehensively responsible for the Benecol brand. Our product range will be extended with new products and flavours to suit different markets in co-operation with our partners.

Raisioagro's key target is to improve profitability. We aim to maintain Raisioagro's strong market position in feed and grain trade in Finland and to improve its comprehensive services for grain and feed customers. The range of farming supplies will be expanded and diversified. Furthermore, we will continue the development of our online store so that it will provide our customers with the most cost-effective and easiest way to acquire the main inputs used in the farms. In new product segments, Raisioagro aims to strengthen its market position. Raisioagro's strong feeding expertise is at our customers' disposal in order to ensure the best results in livestock production.

Maituri 12000 E Benemilk is a feed innovation that has proven effective as a commercial product in the Finnish milk farms. Raisio believes that Maituri is able to bring a significant additional margin to the Finnish milk chain by offering higher efficiency and higher quality milk compared to ordinary feed. At the beginning of 2012, Raisio filed an international patent application on Maituri 12000 E Benemilk. If the patent is granted, international commercialisation of the feed innovation will be seen in a significant way in the Group's operations.

Guidance unchanged

Raisio continues the implementation of its growth strategy both organically and through acquisitions. We expect EBIT to further improve annually.

In Raisio, 6 November 2012

RAISIO PLC

Board of Directors

Further information:

Matti Rihko, CEO, tel. +358 400 830 727 Jyrki Paappa, CFO, tel. +358 50 5566 512 Heidi Hirvonen, Communications and IR Manager, tel. +358 50 567 3060

Events:

A press and analyst event in Finnish will be arranged in Helsinki on Tuesday 6 November 2012 starting at 1.00 p.m. Finnish time. It will be held at Hotel Scandic Simonkenttä, in the Pavilion meeting room. The address is Simonkatu 9, Helsinki.

Chief Executive's review in English will be published on Raisio's web site at www.raisio.com.

The interim report has not been audited.

CONDENSED FINANCIAL STATEMENTS AND NOTES

INCOME STATEMENT (M€)

	7-9/2012	7-9/2011	1-9/2012	1-9/2011	2011
CONTINUING OPERATIONS:
Net sales	161.0	141.7	446.6	413.9	552.6
Expenses corresponding to products sold	-136.1	-118.2	-373.1	-343.4	-461.6
Gross profit	24.9	23.5	73.5	70.5	91.0
Other operating income and expenses, net	-14.9	-12.8	-46.2	-44.7	-60.3
EBIT	9.9	10.7	27.2	25.8	30.7
Financial income	0.4	0.9	1.7	2.1	3.0
Financial expenses	-2.7	-1.1	-15.1	-5.5	-6.7
Share of result of associates and joint ventures	-0.1	0.0	-0.1	0.1	0.0
Result before taxes	7.5	10.5	13.8	22.4	27.0
Income taxes	0.1	-2.6	-4.0	-6.1	-5.7
Result for the period for continuing
operations	7.6	7.9	9.8	16.3	21.3
DISCONTINUED OPERATIONS:
Result for the period for discontinued
operations	0.0	-0.1	0.0	4.2	4.2
RESULT FOR THE PERIOD	7.6	7.8	9.8	20.5	25.5
Attributable to:
Equity holders of the parent company	7.6	7.9	10.1	20.8	25.8
Non-controlling interests	-0.1	-0.1	-0.3	-0.3	-0.3
Earnings per share from the profit
attributable to equity holders of the parent
company (€)
CONTINUING OPERATIONS:
Undiluted earnings per share	0.05	0.05	0.06	0.11	0.14
Diluted earnings per share	0.05	0.05	0.06	0.11	0.14
DISCONTINUED OPERATIONS:
Undiluted earnings per share	0.00	0.00	0.00	0.03	0.03
Diluted earnings per share	0.00	0.00	0.00	0.03	0.03

COMPREHENSIVE INCOME STATEMENT (M€)

	7-9/2012	7-9/2011	1-9/2012	1-9/2011	2011
Result for the period	7.6	7.8	9.8	20.5	25.5
Other comprehensive income items
Hedging of net investments	-0.3	-0.4	-0.5	0.1	-0.3
Available-for-sale financial assets	0.0	0.0	0.0	0.0	-0.1
Cash flow hedge	0.0	-0.4	0.0	-1.1	-1.1
Translation differences recognised in profit and loss on disposal of foreign operations	0.0	0.0	0.0	0.0	0.0
Gains and losses arising from translating the financial statements of foreign operations	0.7	2.8	3.1	-0.8	2.0
Comprehensive income for the period	8.0	9.8	12.4	18.7	25.9
Components of comprehensive income:
Equity holders of the parent company	8.1	9.9	12.7	19.0	26.2
Non-controlling interests	-0.1	-0.1	-0.3	-0.3	-0.3

BALANCE SHEET (M€)

	30.9.2012	30.9.2011	31.12.2011
ASSETS
Non-current assets
Intangible assets	39.4	37.4	38.4
Goodwill	108.1	99.5	103.3
Property, plant and equipment	114.2	118.3	117.1
Shares in associates and joint ventures	0.7	0.9	0.8
Available-for-sale financial assets	2.3	2.5	2.4
Receivables	2.5	2.5	3.0
Deferred tax assets	1.8	5.6	4.0
Total non-current assets	269.0	266.7	268.9
Current assets
Inventories	78.5	75.2	80.2
Accounts receivables and other receivables	100.0	83.7	71.7
Financial assets at fair value through profit or loss	78.2	106.2	121.6
Cash in hand and at banks	6.3	10.6	19.4
Total current assets	262.9	275.7	292.9
Total assets	531.9	542.4	561.8
SHAREHOLDER'S EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent company
Share capital	27.8	27.8	27.8
Company shares	-20.5	-18.6	-19.5
Other equity attributable to equity holders of the parent
company	318.6	316.0	323.4
Equity attributable to equity holders of the parent company	325.9	325.2	331.7
Non-controlling interests	1.2	1.2	1.1
Total shareholder's equity	327.1	326.4	332.9
Non-current liabilities
Deferred tax liabilities	14.0	16.7	16.4
Pension contributions	0.2	0.2	0.2
Provisions	0.3	0.5	0.5
Non-current financial liabilities	59.7	75.0	76.3
Derivative contracts	1.6	1.6	1.8
Other non-current liabilities	0.1	0.1	0.1
Total non-current liabilities	75.9	94.1	95.2
Current liabilities
Accounts payable and other liabilities	96.3	79.2	90.7
Provisions	0.1	1.4	0.9
Derivative contracts	0.5	0.5	2.7
Current financial liabilities	32.1	40.8	39.5
Total current liabilities	128.9	121.9	133.8
Total liabilities	204.8	216.0	228.9
Total shareholder's equity and liabilities	531.9	542.4	561.8

CHANGES IN GROUP EQUITY (M€)

	Share capital	Share premium reserve	Re serve fund	Com pany shares	Trans lation diffe	Other re serves	Re tained ear	Total	Non con trolling	Total equity
					rences		nings		interests
Equity on 31.12.2010	27.8	2.9	88.6	-17.8	-2.4	1.4	222.5	323.0	1.0	324.0
Comprehensive income for
the period Result for the period	-	-	-	-	-	-	20.8	20.8	-0.3	20.5
Other comprehensive
income items (adusted
for tax effects)
Hedging of net investment	-	-	-	-	0.1	-	-	0.1	-	0.1
Financial assets
available for sale						0.0		0.0		0.0
Cash flow hedge	-	-	-	-	-	-1.1	-	-1.1	-	-1.1
Gains and losses arising from translating
the financial statements
of foreign operations	-	-	-	-	-0.8	-	-	-0.8	-	-0.8
Total comprehensive
income for the period Business activities	0.0	0.0	0.0	0.0	-0.7	-1.2	20.8	19.0	-0.3	18.7
involving shareholders
Dividends	-	-	-	-	-	-	-16.1	-16.1	0.4	-15.7
Repurchase of
company shares Share-based payment	- -	- -	- -	-0.9 0.0	- -	- -	- 0.2	-0.9 0.2	- -	-0.9 0.2
Total business activities
involving shareholders	0.0	0.0	0.0	-0.9	0.0	0.0	-15.9	-16.8	0.4	-16.3
Equity on 30.9.2011	27.8	2.9	88.6	-18.6	-3.1	0.2	227.4	325.2	1.2	326.4
Equity on 31.12.2011	27.8	2.9	88.6	-19.5	-0.7	0.2	232.5	331.7	1.1	332.9
Comprehensive income for
the period
Result for the period	-	-	-	-	-	-	10.1	10.1	-0.3	9.8
Other comprehensive income items (adusted
for tax effects)
Hedging of net
investments	-	-	-	-	-0.5	-		-0.5	-	-0.5
Available-for-sale financial assets	-	-	-	-	-	0.0	-	0.0	-	0.0
Cash flow hedge	-	-	-	-	-	0.0	-	0.0	-	0.0
Translation differences
arising from disposals
of foreign operations Gains and losses arising	-	-	-	-	0.0	-	-	0.0	-	0.0
from translating
the financial statements
of foreign operations Total comprehensive	-	-	-	-	3.1	-	-	3.1	-	3.1
income for the period	0.0	0.0	0.0	0.0	2.7	0.0	10.1	12.7	-0.3	12.4
Business activities
involving shareholders
Dividends	-	-	-	-	-	-	-17.6	-17.6	0.5	-17.1
Repurchase of company shares	-	-	-	-1.0	-	-	-	-1.0	-	-1.0
The share acquired
from the non-
controlling interest	-	-	-	-	-	-	-	0.0	-0.1	-0.1
Share-based payment Total business activities	-	-	-	0.0	-	-	0.1	0.1	-	0.1
involving shareholders	0.0	0.0	0.0	-1.0	0.0	0.0	-17.6	-18.6	0.4	-18.2
Equity on 30.9.2012	27.8	2.9	88.6	-20.5	1.9	0.1	225.0	325.9	1.2	327.1

RAISIO INTERIM REPORT Q3/2012, page 16

CASH FLOW STATEMENT (M€)

	1-9/2012	1-9/2011	2011
Result before taxes, continuing operations	13.8	22.4	27.0
Result before taxes, discontinued operations	0.0	4.2	4.2
Adjustments	26.1	12.0	16.6
Cash flow before change in working capital	40.0	38.7	47.8
Change in accounts receivables and other receivables	-26.2	-11.1	1.4
Change in inventories	2.5	11.9	8.3
Change in current non-interest-bearing liabilities	0.3	-18.5	-6.5
Total change in working capital	-23.4	-17.7	3.1
Financial items and taxes	-8.7	-0.1	-0.9
Cash flow from business operations	7.9	20.9	50.0
Investments in fixed assets	-7.8	-6.0	-8.3
Divestment of subsidiaries	0.0	11.1	11.1
Acquisition of subsidiaries	-32.7	-63.1	-63.1
Proceeds from sale of fixed assets	0.1	2.4	2.5
Investments on marketable securities	-0.1	0.0	0.0
Sales of securities	0.2	10.1	10.1
Loans granted	-0.8	-0.9	-1.1
Repayment of loan receivables	0.2	3.5	3.3
Cash flow from investments	-41.0	-43.0	-45.5
Change in non-current loans	-11.5	16.7	12.5
Change in current loans	6.1	-2.0	0.3
Repurchase of company shares	-1.0	-0.9	-1.7
Dividend paid to equity holders of the parent company	-17.0	-15.6	-15.6
Cash flow from financial operations	-23.4	-1.7	-4.5
Change in liquid funds	-56.5	-23.8	0.0
Liquid funds at the beginning of the period	140.5	140.1	140.1
Effects of changes in foreign exchange rates	0.5	0.2	0.2
Impact of change in market value on liquid funds	-0.3	-0.1	0.3
Liquid funds at end of period	84.1	116.4	140.5

NOTES TO THE INTERIM REPORT

This interim report has been prepared in compliance with IAS 34 Interim Financial Reporting according to the same principles and calculation methods as used in financial statements 2011 with the exception of the EU approved amendments to existing IFRS standards introduced on 1 January 2012. These standard amendments have not affected the consolidated financial statements.

The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. Actual figures may differ from these estimates.

Interim report is shown in EUR millions.

SEGMENT INFORMATION

The reported segments are Brands and Raisioagro. The Brands segment includes Licensed brands unit, under which Benecol operations are reported, as well as Consumer brands unit comprised of Northern, Western and Eastern European operations. Big Bear Group acquired in the beginning of 2011 was combined in the figures of Western European food operations as of 4 February 2011. Raisioagro includes feeds, grain trade, protein meals and vegetable oils, farming supplies and bioenergy.

NET SALES BY SEGMENT (M€)

	7-9/2012	7-9/2011	1-9/2012	1-9/2011	2011
Brands	86.2	81.5	253.0	235.5	314.6
Raisioagro	75.0	60.5	194.4	181.0	241.1
Other operations	0.5	0.5	1.5	0.9	1.4
Interdivisional net sales	-0.7	-0.9	-2.3	-3.6	-4.6
Total net sales	161.0	141.7	446.6	413.9	552.6

EBIT BY SEGMENT (M€)

	7-9/2012	7-9/2011	1-9/2012	1-9/2011	2011
Brands	9.2	10.4	29.1	23.5	30.1
Raisioagro	1.2	0.4	-0.2	3.4	2.9
Other operations	-0.4	-0.4	-1.7	-1.2	-2.4
Eliminations	0.0	0.3	0.0	0.0	0.0
Total EBIT	9.9	10.7	27.2	25.8	30.7

NET ASSETS BY SEGMENT (M€)

	30.9.2012	30.9.2011	31.12.2011
Brands	260.9	245.8	245.8
Raisioagro	75.4	78.1	63.1
Other operations, discontinued operations
and unallocated items	-9.1	2.5	24.0
Total net assets	327.1	326.4	332.9

INVESTMENTS BY SEGMENT (M€)

	7-9/2012	7-9/2011	1-9/2012	1-9/2011	2011
Brands	1.2	1.2	5.8	66.4	67.8
Raisioagro	0.3	0.5	1.0	1.8	2.5
Other operations	0.2	0.2	0.9	0.5	0.8
Eliminations	0.0	0.0	0.0	0.0	0.0
Total investments	1.7	1.9	7.7	68.6	71.2

NET SALES BY MARKET AREA (M€)

	7-9/2012	7-9/2011	1-9/2012	1-9/2011	2011
Finland	83.7	79.1	224.2	234.1	313.5
Great Britain	38.4	37.1	114.6	102.4	135.0
Rest of Europe	36.2	23.4	97.8	71.3	95.5
ROW	2.7	2.1	9.9	6.1	8.5
Total	161.0	141.7	446.6	413.9	552.6

ACQUIRED BUSINESS OPERATIONS

In 2012

On 20 March 2012, Raisio announced the acquisition of Polish Sulma Sp. z o.o's pasta and grit operations. The operations were acquired by Raisio's Group company in Poland, Raisio sp. z o.o. The value of the deal was EUR 2.4 million (PLN 9.8 million). In connection with the deal, pasta and grits operations including intellectual property rights as well as fixed and current assets were transferred to Raisio. Raisio did not assume liabilities as part of the acquisition.

Assets acquired:

	Preliminary fair values recorded in the business combination
Property, plant and equipment	1.9
Intangible assets	0.1
Inventories	0.4
Total	2.4

The acquisition did not generate any goodwill.

In 2011

On 4 February 2011, Raisio plc announced its acquisition of British Big Bear Group plc with two subsidiaries. Big Bear Group was founded in 2003 and it has acquired traditional, well-known brands in Britain. In breakfast category, the company has the brands Honey Monster, Honey Waffles and Sugar Puffs as well as Harvest Cheweee in snack bars and Fox's in confectionery. The product range includes breakfast cereal products mainly for children's category as well as healthy snack bars and cereal products with no artificial flavours or colours.

The acquisition supports Raisio´s target to become the leading provider of healthy snacks in Europe. Raisio will gain a stronger foothold in the branded snack and breakfast markets in the UK and Western Europe and strengthen its position in the confectionery market.

The purchase price paid totalled 63.3 M€ (53.7 M£). The fees of lawyers, advisors and outside valuators related to the deal amounted to a total of 1.7 M€. Of this amount, a total of 1.1 M€ has been recognised as administration costs of the Brands Division in the income statement of 2011. Cost of 0.6 M€ was recognised in 2010.

Goodwill resulting from the acquisition was 49.0 M€ (41.6 M£). Goodwill is resulted from the income expectations of the local operations, based on the business entity's historical earning power and view of maintaining and improving the level of earnings.

Raisio Group's net sales for January-December 2011 would have been 556.8 M€ and pre-tax result from continuing operations excluding one-off items 30.8 M€ if the acquisition of business operations completed during the financial year had been combined with the consolidated financial statement from the beginning of the financial year 2011. Post-acquisition net sales of subgroup Big Bear Group was 51.0 M€ and pre-tax result 5.8 M€.

The values of acquired assets and assumed liabilities on the date of acquisition were as follows:

	Fair valuea entered in the business	Carrying values before business combination
	combination
Property, plant and equipment	21.7	21.7
Trade marks	28.3	0.0
Deferred tax assets	0.1	0.1
Inventories	6.5	6.4
Accounts receivables and other receivables	9.3	9.3
Cash in hand and at banks	0.2	0.2
Total assets	66.1	37.7
Deferred tax liabilities	9.5	1.8
Non-current financial liabilities	30.1	30.1
Other non-current liabilities	0.4	0.4
Current interest-bearing liabilities	2.0	2.0
Other liabilities	9.9	9.9
Total liabilities	51.9	44.2
Net assets	14.3	-6.5
Acquisition cost	63.3
Goodwill	49.0
Purchase price paid in cash	63.3
Financial assets of the acquired subsidiary	0.2
Cash flow generation	63.1

Changes in goodwill

	1-9/2012	1-9/2011	2011
Carrying amount of goodwill at the beginning of the review period	103.3	51.9	51.9
Translation differences	4.8	-1.4	2.4
Business combinations	0.0	49.0	49.0
Carrying amount of goodwill at the end of the review period	108.1	99.5	103.3

DISCONTINUED OPERATIONS AND NON-CURRENT ASSETS HELD FOR SALE

Discontinued operations

Raisio sold its malt business included in the Raisioagro Division to Viking Malt Ltd at the end of June 2011. Income of the malt business and income resulting of the divestment are both presented in the Group's discontinued operations in 2011.

	1-9/2012	1-9/2011	2011
Result for the discontinued operations (M€)
Income from ordinary activities		11.8	11.8
Expenses		-12.1	-12.1
Result before taxes		-0.3	-0.3
Taxes		0.0	0.0
Result after taxes		-0.3	-0.3
Earnings due to discontinuation		4.5	4.5
Taxes		0.0	0.0
Result after taxes		4.5	4.5
Result for discontinued operations		4.2	4.2
Cash flow for the discontinued operations (M€)
Cash flow from business operations		-2.2	-2.2
Cash flow from investments		16.0	16.0
Cash flow from financial operations		3.0	3.0
Total cash flow		16.8	16.8
Impact of divested operations on the Group's financial
position (M€)
Divested net assets		12.3	12.3
Transaction price		17.0	17.0
Transaction expenses		0.2	0.2
Impact on earnings		4.5	4.5
Impact on cash flow		13.2	13.2

TANGIBLE ASSETS (M€)

	30.9.2012	30.9.2011	31.12.2011
Acquisition cost at the beginning of the period	386.9	373.9	373.9
Conversion differences	3.2	-0.7	1.5
Increase	6.6	34.1	37.4
Decrease	-0.6	-23.2	-25.9
Acquisition cost at end of period	396.1	384.1	386.9
Accumulated depreciation and impairment
at the beginning of the period	269.8	267.5	267.5
Conversion difference	1.6	-0.5	1.2
Increase	0.0	8.1	8.4
Decrease and transfers	-0.4	-20.7	-22.3
Depreciation for the period	10.9	11.3	15.0
Accumulated depreciation and impairment at end of period	281.9	265.8	269.8
Book value at end of period	114.2	118.3	117.1

PROVISIONS (M€)

	30.9.2012	30.9.2011	31.12.2011
At the beginning of the period	1.4	2.8	2.8
Increase in provisions	0.0	0.0	0.0
Provisions used	-1.1	-0.9	-1.5
At end of period	0.3	1.9	1.4

BUSINESS ACTIVITIES INVOLVING INSIDERS (M€)

	30.9.2012	30.9.2011	31.12.2011
Sales to associates and joint ventures	8.2	8.1	10.7
Purchases from associates and joint ventures	0.1	0.1	0.1
Sales to key employees in management	0.1	0.0	0.2
Purchases from key employees in management	0.7	0.6	0.8
Receivables from associates and joint ventures	1.6	1.6	1.1
Liabilities to associates and joint ventures	0.0	0.0	0.1
Receivables from the key persons in the management	10.5	11.4	11.6

CONTINGENT LIABILITIES (M€)

	30.9.2012	30.9.2011	31.12.2011
Contingent off-balance sheet liabilities
Non-cancelable other leases
Minimum lease payments	8.0	8.9	9.3
Contingent liabilities for the company		0.2
Contingent liabilities for others
Guarantees	0.0	0.0	0.0
Other liabilities	2.6	4.0	13.8
Commitment to investment payments	0.8	0.6	0.4

DERIVATIVE CONTRACTS (M€)

	30.9.2012	30.9.2011	31.12.2011
Nominal values of derivative contracts
Currency forward contracts	62.9	63.1	65.8
Interest rate swaps	46.2	80.2	56.2

QUARTERLY PERFORMANCE (M€)

	7-9/	4-6/	1-3/	10-12/	7-9/	4-6/	1-3/
Net sales by segment	2012	2012	2012	2011	2011	2011	2011
Brands	86.2	85.6	81.1	79.1	81.5	81.1	72.9
Raisioagro	75.0	65.3	54.1	60.1	60.5	71.0	49.5
Other operations	0.5	0.5	0.5	0.5	0.5	0.2	0.2
Interdivisional net sales	-0.7	-0.8	-0.7	-1.0	-0.9	-1.9	-0.8
Total net sales	161.0	150.6	135.0	138.7	141.7	150.5	121.7
EBIT by segment
Brands	9.2	11.0	9.0	6.6	10.4	8.4	4.7
Raisioagro	1.2	0.4	-1.8	-0.5	0.4	2.3	0.7
Other operations	-0.4	-0.7	-0.6	-1.2	-0.4	-0.2	-0.5
Eliminations	0.0	0.0	0.0	0.0	0.3	-0.3	0.0
Total EBIT	9.9	10.6	6.6	4.9	10.7	10.2	4.9
Financial income and expenses,
net	-2.3	-10.7	-0.3	-0.3	-0.2	-0.9	-2.3
Share of result of associates	-0.1	0.0	0.0	0.0	0.0	0.0	0.0
Result before taxes	7.5	0.0	6.3	4.6	10.5	9.3	2.6
Income tax	0.1	-2.5	-1.6	0.4	-2.6	-2.2	-1.3
Result for the period from
continuing operations	7.6	-2.5	4.7	5.0	7.9	7.1	1.3

RAISIO INTERIM REPORT Q3/2012, page 24

INTERIM REPORT 1 JANUARY- 30 SEPTEMBER 2012

KEY INDICATORS

	30.9.2012	30.9.2011	31.12.2011
Net sales, M€	446.6	413.9	552.6
Change of net sales, %	7.9	33.6	30.5
Operating margin, M€	39.7	38.3	47.7
Depreciation and impairment, M€	12.4	12.5	17.0
EBIT, M€	27.2	25.8	30.7
% of net sales	6.1	6.2	5.6
Result before taxes, M€	13.8	22.4	27.0
% of net sales	3.1	5.4	4.9
Return on equity, ROE, %	4.0	6.7	6.5
Return on investment, ROI, %	5.1	8.1	7.3
Interest-bearing financial liabilities at end of period, M€	91.8	115.7	115.7
Net interest-bearing financial liabilities at end of period, M€	7.7	-0.7	-24.8
Equity ratio, %	62.0	60.5	60.2
Net gearing, %	2.4	-0.2	-7.5
Gross investments, M€	7.7	68.6	71.2
% of net sales	1.7	16.6	12.9
R & D expenses, M€	5.0	4.9	6.8
% of net sales	1.1	1.2	1.2
Average personnel	1,525	1,460	1,454
Earnings/share from continuing operations, €	0.06	0.11	0.14
Cash flow from operations/share, €	0.05	0.13	0.32
Equity/share, €	2.10	2.08	2.13
Average number of shares during the period, in 1,000s*)
Free shares	121,593	122,409	122,283
Restricted shares	33,990	34,053	34,052
Total	155,583	156,462	156,334
Average number of shares at end of period, in 1,000s*)
Free shares	121,460	122,082	121,746
Restricted shares	33,928	34,050	34,047
Total	155,388	156,132	155,793
Market capitalisation of shares at end of period, M€*)
Free shares	343.7	293.0	291.0
Restricted shares	96.7	81.4	81.4
Total	440.4	374.4	372.3
Share price at end of period
Free shares	2.83	2.40	2.39
Restricted shares	2.85	2.39	2.39

*) Number of shares, excluding the shares held by the company and shares held by Reso Management Oy

CALCULATION OF INDICATORS

	Result before taxes – income taxes*)
Return on equity (ROE), %	-------------------------------------------------------------- x 100 Shareholders' equity (average over the period)
	Result before taxes + financial expenses*)
Return on investment (ROI), %	---------------------------------------------------------------------------- x 100 Shareholders' equity + interest-bearing financial liabilities
	(average over the period)
	Shareholders' equity
Equity ratio, %	--------------------------------------------------------------- x 100
	Balance sheet total – advances received
Net interest-bearing financial	Interest-bearing financial liabilities - liquid funds and liquid financial
liabilities	assets at fair value through profit or loss
	Net interest-bearing financial liabilities
Net gearing, %	------------------------------------------------------------- x 100
	Shareholders' equity
	Result for the year of parent company shareholders
Earnings per share*)	----------------------------------------------------------------------------------------
	Average number of shares for the year, adjusted for share issue**)
Cash flow from business operations	Cash flow from business operations --------------------------------------------------------------------------------------
per share	Average number of shares for the year, adjusted for share issue
	Equity of parent company shareholders
Shareholders' equity per share	----------------------------------------------------------------------------------
	Number of shares at end of period adjusted for share issue***)
Market capitalisation	Closing price, adjusted for issue x number of shares without
	company shares at the end of the period

*)The calculation of key indicators uses continuing operations result

**)Excluding shares with a potential return obligation and shares held by Reso Management Oy

***)Shares held by Reso Management Oy have been subtracted from the total number of shares