Raisio’s Interim Report January-March 2015

CEO Matti Rihko

Raisio plc

7 May 2015 Q1/2015

2

• EBIT 9.6 (5.4) M€, +78% • Raisio’s best Q1 EBIT ever

• 7.9 (4.6)% of net sales

• Strong cash flow 7.7 (-10.9) M€

• Brands Division delivered the best quarterly result ever, 11.3 M€

• Benecol business acquisition from the affiliates of Johnson & Johnson successfully integrated; sales increased

• Benecol products launched in South Korea

• Raisio continued strong efforts for global commercialisation of the Benemilk innovation

Raisio’s Q1/2015

-5

0

5

10

15

20

25

30

35

40

45

2007 2008 2009 2010 2011 2012 2013 2014 Q1/2015

3

Group EBIT 2007 – Q1/2015 (Continuing operations, rolling 12 months)

Rolling 12 months EBIT

(EBIT excluding one-off items)

M€

31.8 34.6

39.3

34.8

5.4

9.6

0

2

4

6

8

10

0

10

20

30

40

50

2011 2012 2013 2014 1-3/2014 1-3/2015

EBIT EBIT %

Group EBIT

M€ % Excluding one-off items

4

6.1 6.6

8.0

5.4

9.6 10.2

10.6 11.0

8.5

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€

5

Q1 Q2 Q3 Q4

2011 2012 2013 2014 2015

0

100

200

300

400

500

600

700

2011 2012 2013 2014 1-3/2014 1-3/2015

Group net sales

6

M€

553 584 558

117 123

Brands Raisioagro

494

Key figures, result

Q1/ 2015

Q1/ 2014

2014

Net sales M€ 122.5 116.7 493.9

Change in net sales % 5.0 -9.1 -11.4

EBIT M€ 9.6 5.4 34.8

EBIT % 7.9 4.6 7.0

Depreciation and impairment

M€ 3.6 3.9 14.6

EBITDA M€ 13.2 9.3 49.5

Net financial expenses M€ -0.5 -0.3 -1.5

Earnings per share (EPS) € 0.05 0.03 0.18

7 Figures excluding one-off items

Key figures, balance sheet

Q1/ 2015

Q1/ 2014

2014

Equity ratio % 55.7 64.7 60.2

Gearing % 20.6 -4.2 22.2

Net-intrest bearing debt M€ 67.4 -13.3 72.2

Equity per share € 2.08 2.00 2.07

Investments* M€ 2.1 4.8 104.9

8

* Including acquisitions

9

Brands

31.2

37.4

41.4

35.9

6.4

11.3

0

2

4

6

8

10

12

14

16

0

10

20

30

40

50

2011 2012 2013 2014 1-3/2014 1-3/2015

EBIT EBIT %

Brands Division’s EBIT

10

M€ % Excluding one-off items

5.8

9.0 9.4

6.4

11.3

8.4

11.0 11.1

8.2

10.4 9.7 10.8 10.8

6.6

7.6

10.0 10.6

0

5

10

15

Excluding one-off items

Brands Divion’s EBIT by quarters

M€

11

Q1 Q2 Q3 Q4

2011 2012 2013 2014 2015

Brands Division’s net sales

315 330 305 306

72 94

0

50

100

150

200

250

300

350

2011 2012 2013 2014 1-3/2014 1-3/2015

12

M€

Benecol

• Benecol business includes

• Home markets for consumer products; the UK, Ireland, Belgium, Poland, Finland, Portugal and Hong Kong

• Sale of plant stanol ester, a Benecol product ingredient, to licensing partners

• Net sales 34.5 (13.1) M€

• Benecol business acquisition from J&J was a successful deal for Raisio

• In the UK, sales volume increased and market leader position strengthened

• South Korea and Brazil significant new markets for Benecol products

• In Finland, sales growth driven by novelties

13

14

• Markets include the UK, North Europe and Russia

• Net sales EUR 33.9 (34.7) million

• North Europe stable

• Increased sales for Elovena products and higher share of net sales for further processed products

• Raisio maintained its market position in the growing porridge market

• In Russia, EBIT improved and was clearly positive

• Sales volume decreased due to price increases and exchange rate changes

• UK at the comparison period level

• Positive EBIT for snack bars due to the objective-driven production improvement

• Raisio continues to assess the future operating conditions of the cereal business

Snack & Cereal

15

Benemilk

• Commercial negotiations with potential partner candidates continued in Asia, North America, Oceania and Europe

• Scientific Advisory Board established. Members are the best US experts in milk chain:

• Jim Nocek, Adam L. Lock, Jose Eduardo P. Santes, Thomas Jenkins

• Planning and implementation of feeding trials with partner candidates continued

• New innovations open up opportunities for business expansion

16

Confectionery • Net sales and EBIT at the comparison period level

• UK sales in Czech-made gums and jellies clearly up due to the additional capacity brought by the investment and effective sales efforts

• Increased sales for Poppets and XXX products in the UK

• In the Czech Republic, sales growth for Raisio’s own brands supported by good customer cooperation with distributors and retailers

17

18

Raisioagro

2.9

-0.3

3.1 3.4

0.0 0.1

-3

-2

-1

0

1

2

3

4

5

2011 2012 2013 2014 1-3/2014 1-3/2015

Raisioagro’s EBIT

19

M€ Excluding one-off items

0.7

-1.8

-0.6

0.0 0.1

2.3

0.4

1.3 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€

20

Q1 Q2 Q3 Q4

2011 2012 2013 2014 2015

241 256 254

202

49 33

0

50

100

150

200

250

300

2011 2012 2013 2014 1-3/2014 1-3/2015

Raisioagro’s net sales

21

M€

Raisioagro

• The capital tied up in the business released nearly a third

• Net sales were down primarily due to the termination of pig and poultry feed production

• Component feeding is increasingly common on dairy farms, which supports the sale of concentrated products

• Online sales increased

22

Raisioagro

• Cattle feeds

• Russia’s ban on dairy product imports has increased milk producers’ interest to enhance the feeding and improve milk contents

• In Finland, some 28,000 cows are Benemilk-fed. This accounts for about 10% of Finnish dairy cows

• New Benemilk Booster well received by customers

• Raisioagro continues scientific studies in Finland and abroad on Benemilk feeds as well as its extensive farm monitoring

• Fish feeds

• Aim to strengthen the market leader position in Finland

• Focus on export markets in the Baltic Sea region

• Northwest Russia still the largest export market

23

24