Raisio’s Interim Report January-June 2015

CEO Matti Rihko

Raisio plc

11 August 2015 Q2/2015

Highlights Q2/2015

• Raisio’s EBIT of 14.0 M€ is the fourth consecutive quarterly result better than in the comparison period and also Raisio's best quarterly result

• Raisio raising the guidance for the financial period

Raisio estimates its 2015 net sales to increase from last year and EBIT margin, excluding one-off items, to be clearly higher than the 7.0 per cent of 2014.

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• EBIT 14.0 (8.5) M€, +65%

• 9.9% (6.4%) of net sales

• Brands Division’s EBIT 14.3 (8.2) M€, +74%

• EBIT 14.6% (11.1%) of net sales

• Group profitability primarily improved due to the Benecol business acquired in November 2014

• EBIT for UK’s Cereal and Snack business positive

• Raisioagro’s EBIT of 1.4 M€ at the comparison period level

• Strong cash flow from business operations, 18.6 (5.8) M€

• One of the world's strongest patent portfolios in cattle feeds developed for Benemilk during 2015

Raisio Group Q2/2015

-5

0

5

10

15

20

25

30

35

40

45

50

4

Group EBIT 2007 – Q2/2015

Rolling 12 months EBIT

(Continuing operations, excluding one-off items)

M€

2007 2008 2009 2010 2011 2012 2013 2014 Q2/2015

31.8 34.6

39.3

34.8

13.8

23.7

0

2

4

6

8

10

0

10

20

30

40

50

2011 2012 2013 2014 1-6/2014 1-6/2015

EBIT EBIT %

Group EBIT

M€ % Excluding one-off items

5

6.1 6.6

8.0

5.4

9.6 10.2

10.6 11.0

8.5

14.0

10.7 10.7

12.0 12.1

4.9

6.6

8.4 8.9

0

5

10

15

Excluding one-off items

Group EBIT by quarters

M€

6

Q1 Q2 Q3 Q4

2011 2012 2013 2014 2015

0.03 0.04

0.07

0.09 0.10

0.11 0.12

0.13

0.14

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

2006 2007 2008 2009 2010 2011 2012 2013 2014

€

7

Great dividend history

0

100

200

300

400

500

600

700

2011 2012 2013 2014 1-6/2014 1-6/2015

Group net sales

8

M€

553 584 558

249 264

Brands Raisioagro

494

122 135 128

117 123

151 151 149

133

142 142 161

150

127 139 138 131

118

0

50

100

150

200

Group net sales by quarters

M€

9

Q1 Q2 Q3 Q4

2011 2012 2013 2014 2015

Key figures, result

4-6/ 2015

4-6/ 2014

1-6/ 2015

1-6/ 2014

2014

Net sales M€ 141.5 132.5 264.0 249.1 493.9

Change in net sales % 6.8 -10.9 6.0 -10.0 -11.4

EBIT M€ 14.0 8.5 23.7 13.8 34.8

EBIT % 9.9 6.4 9.0 5.6 7.0

Depreciation and impairment

M€ 5.9 3.6 9.5 7.5 14.6

EBITDA M€ 20.0 12.1 33.2 21.4 49.5

Net financial expenses M€ -0.4 0.0 -0.8 -0.3 -1.5

Earnings per share (EPS) € 0.07 0.04 0.12 0.07 0.18

10 Figures excluding one-off items

Key figures, balance sheet

1-6/ 2015

1-6/ 2014

2014

Equity ratio % 57.5 68.1 60.2

Gearing % 22.4 2.0 22.2

Net-interest bearing debt M€ 75.6 6.4 72.2

Equity per share € 2.15 2.03 2.07

Investments* M€ 5.1 10.8 104.9

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* Including acquisitions

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Brands

Brands Division

• Brands Division and key markets:

• Snack & Cereal: UK, Northern Europe, Russia

• Home markets for Benecol consumer products: UK, Ireland, Belgium, Poland, Finland, Portugal and Hong Kong as well as ingredient sales to licensing partners

• Confectionery: UK, Czech Republic and export

• Benemilk Ltd

• Net sales 97.8 (73.7) M€

• EBIT 14.3 (8.2) M€*

• One-off items of 2.9 M€ include a write-down from the divestment of Sulma pasta factory in Poland and streamlining efforts at UK’s Southall factory

13 * Excluding one-off items

Benecol

• Net sales 36.0 (13.9) M€

• Net sales increased by almost 20 million euros due to the Benecol business acquired from Johnson & Johnson

• Benecol accounts for clearly over 50% of the Brands Division’s EBIT

• Sale of plant stanol ester to licensing partners at the comparison period level

• Benecol is the market leader in the UK and Poland that are also the largest markets for Benecol consumer products

• Benecol products launched in China in June 2015; South Korea and Brazil other new market launches

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• Net sales 36.3 (35.6) M€

• UK improved

• EBIT for snack bars positive and up from the comparison period

• Production efficiency further improved at the Newport factory

• EBIT for Cereal business at the comparison period level, but negative

• Production of savoury snacks terminated at the Southall factory, which decreases costs and increases flexibility

• North Europe improved

• EBIT clearly better than in the comparison period

• Elovena product range expanded, instant porridges increased in popularity

• Gluten-free is a consumer trend also in Finland, Provena product range expanded

• Positive EBIT for Russia

Snack & Cereal

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Benemilk

• Active development work to expand and strengthen IPR

• Almost 30 patent applications in the portfolio

• Good activity with partner candidates continued

• New feeding trials under preparation with partner candidates for the end of 2015

• In addition to the licensing model, an ingredient business model has been developed

• Sale of Primafat ingredient will cover the feeding models of all essential highly developed milk chains

• We aim at close cooperation with globally operating producers and processors of palmitic acid

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Confectionery

• Net sales increased, EBIT slightly down due to increased marketing campaigns

• Sales growth in Raisio’s own branded products in the UK and Czech Republic

• Despite the UK’s steady consumer demand, sales grew significantly in Poppets, XXX and Just brands

• Intense industrial competition for retailers’ private label orders continued and Big Bear’s production volumes were down from the comparison period

• Real fruit juice containing Fox’s Candy Bear products launched in the UK

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31.2

37.4

41.4

35.9

14.6

25.6

0

2

4

6

8

10

12

14

16

0

10

20

30

40

50

2011 2012 2013 2014 1-6/2014 1-6/2015

EBIT EBIT %

Brands Division’s EBIT

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M€ % Excluding one-off items

5.8

9.0 9.4

6.4

11.3

8.4

11.0 11.1

8.2

14.3

10.4 9.7

10.8 10.8

6.6 7.6

10.0 10.6

0

5

10

15

20

Excludind one-off items

Brands Division’s EBIT by quarters

M€

19

Q1 Q2 Q3 Q4

2011 2012 2013 2014 2015

Brands Division’s net sales

315 330 305 306

146

192

0

50

100

150

200

250

300

350

2011 2012 2013 2014 1-6/2014 1-6/2015

20

M€

Net sales Q2/2015: 97.8 M€ (73.7 M€)

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Raisioagro

Raisioagro

• EBIT at the comparison period level, relative profitability improved • Sales in highly processed special products increased

• Sales in farming supplies for dairy farms increased

• Slow start for the fish feed season due to cold spring

• Net sales cut by 28% • Comparison period net sales include vegetable oils and pig and poultry

feeds whose production were discontinued in autumn 2014

• Working capital was 9 M€ lower than in the comparison period due to streamlining efforts

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Raisioagro

• Cattle feeds

• In Finland, over 10% of dairy cattle Benemilk-fed

• Component feeding more commonly used, concentrates and protein concentrates increasing in popularity

• Cattle feed market remained cautious due to the milk import ban in Russia

• Export of Benemilk feeds to Russia started again

• Fish feeds

• Cold spring and cool waters slowed down the start of the fish feed season

• Raisioaqua launched Hercules Plus feed innovation enhancing fish growth and increasing egg production

• Online store

• Online sales grew by over 50%

• Customer base and order volume significantly higher than in the comparison period

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2.9

-0.3

3.1 3.4

1.4 1.5

-3

-2

-1

0

1

2

3

4

5

2011 2012 2013 2014 1-6/2014 1-6/2015

Raisioagro’s EBIT

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M€ Excluding one-off items

0.7

-1.8

-0.6

0.0 0.1

2.3

0.4

1.3 1.4 1.4

0.4

1.2

2.6

2.0

-0.5 -0.1

-0.3

0.0

-3

-2

-1

0

1

2

3

Excluding one-off items

Raisioagro’s EBIT by quarters

M€

25

Q1 Q2 Q3 Q4

2011 2012 2013 2014 2015

241 256 254

202

112

77

0

50

100

150

200

250

300

2011 2012 2013 2014 1-6/2014 1-6/2015

Raisioagro’s net sales

26

M€

Net sales Q2/2015: 44.7 M€ (62.6 M€)

Guidance 2015

• Raisio expects its EBIT to return on its long-term upward trend.

• Raisio estimates its net sales of 2015 to increase from last year and EBIT margin, excluding one-off items, to be clearly higher than the 7.0 per cent of 2014.

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