Atria Corporate Responsibility Report 2011

The focus of Atria’s responsibility efforts in the different business areas varies depending on the operational environ-ment and stakeholder requirements. The map illustrates the focus areas of each business area in the responsibility development work and cites examples of key achievements in 2011. The results are presented fully on pages 6–7.

ATRIA fInlAnd

ATRIA SCAndInAVIA

ATriA Plc's corPorATe resPonsibiliTy mAP 2011

Contents

Atria Plc's corporate responsibility map 2011 2

Atria’s Handprint programme 4

Interview by the CEO 5

Key achievements 6

Atria’s stakeholders 8

Social responsibilityEmployee well-being 12 Safe Atria Quality 16 nutrition 18 Communications 22 Animal welfare 24

Environmental responsibility 26

Economic responsibility 32

description of the organisationKey facts about Atria Group 33Atria’s strategy 34Business operations and customer groups 36Product groups 37

Corporate responsibility development projects 38

GRI content index 39

Reporting principles 40

Map and contact details 41

ATRIA PlCAtria Plc is a powerfully growing and internationalizing finnish food-industry company. Atria is one of the leading food industry companies in finland and in the nordic countries, Russia and the Baltic region.

Atria’s net sales in 2011 was EUR 1,302 million and it employed an average of 5,467 persons. The Group is divided into four business areas: Atria finland, Atria Scandinavia, Atria Russia and Atria Baltic.

Plant focus Areas Results 2011•nurmo•Kuopio•Forssa•Kauhajoki•Karkkila•seinäjoki

•environment•Animal welfare•nutrition•Product safety•Personnel•Finances•communications

•Atria’s Handprint programme was advanced on a wide front in Finland. •The most significant strategic decisions in 2011 include the extension of the Kauhajoki

bovine slaughterhouse and cutting plant and the renovation of a chicken hatchery. •in the year under review, Atria attained extensive media visibility and took part in

stakeholder discussions through the five-part domestic meat campaign. The campaign addressed the qualities of domestic meat, animal welfare and responsible use of additives.

•The Group reorganised its responsibility management under the safe Atria Quality process. The new management model brings the promotion of responsibility closer to Atria's day-to-day management routines.

•Atria Finland appointed a responsibility manager to develop Atria's responsible operations and to coordinate responsibility promotion projects.

Key figures•net sales, eUr million ..............793.7•ebiT, eUr million ..........................19.3•Average personnel .....................2,113

Plant focus Areas Results 2011•sköllersta•Tranås •Falköping•skene•moheda •borås •Horsens•Halmstad•malmö

•Product safety•Personnel•environment

•Atria’s Handprint projects focused on three themes in scandinavia: quality assurance, personnel and the environment. The quality assurance programme launched to improve product quality has brought results and the number of notices of defects in products has decreased significantly.

•Atria scandinavia demonstrated its financial responsibility by increasing operational efficiency through automation of the black pudding production process. The production was transferred from the saltsjö-boo plant in stockholm to Tranås.

•Atria scandinavia also launched a high-visibility response to consumer demands for healthier processed meat products. it launched seven new meat products which meet the "keyhole" – nyckelhålet label criteria (low fat and salt content).

•Atria scandinavia started to advocate children's rights by supporting the "barnens rätt i samhället" association.Key figures

•net sales, eUr million .............. 374.9•ebiT, eUr million ......................... 13.8•Average personnel ....................1,153

Horsens

2 Atria corporate responsibility report 2011

Atria corporate responsibility report 2011 3

CO

RP

OR

ATE RE

SPO

nSIB

IlITy 2011

ATRIA RUSSIA

ATRIA BAlTIC

Plant focus Areas Results 2011•st Petersburg

region (Gorelovo, sinyavino)

•moscow

•Finances•Product safety•Personnel

•in russia Atria's responsibility programme has focused on improving the economic efficiency. A development programme launched in 2010 to improve the efficiency of Atria russia's production capacity and profitability was completed in accordance with the plan. The production of meat products is now concentrated to the Gorelovo and sinyavino plants in st Petersburg.

•investments were made in personnel well-being at work and the development of skills in the year under review. several development projects were launched in russia, with focus on improved occupational health care and ergonomics and development of employees' skills.

Key figures•net sales, eUr million .............. 123.0•ebiT, eUr million ........................ -18.9•Average personnel ....................1,812

Plant focus Areas Results 2011•Valga •Vastse-

Kuuste

•Finances•Product safety•Personnel•nutrition

•in the baltic countries, responsibility efforts focused on measures to improve product safety and nutrition. At the end of the year, the maks & moorits brand was relaunched with a high-visibility campaign, and monosodium glutamate was eliminated from all products. These efforts became evident in improved sales of consumer-packed meat, in particular. Another response to consumer expectations regarding the responsible use of additives in the baltic market has been an increased offer in the additive-free and low sodium level Jussi product family.

Key figures•net sales, eUr million ................ 35.2•ebiT, eUr million ..........................-2.2•Average personnel ...................... 389

nurmo

Kuopio

ForssaKarkkila

st Petersburg

moscowValga

Vastse-Kuuste

Horsens

moheda

Tranås

Halmstadskene

boråsFalköping

sköllersta

seinäjoki

Kauhajoki

malmö


ATriA´s HAndPrinT

Atria Code of ConductAtria has compiled its ethical principles and guidelines in the Atria code of conduct. This code reflects the values and practices guiding the company’s operations, and which are in compliance with sustainable development and continuous improvement.

The Atria code of conduct covers five themes: •safe Atria Quality 1) •respect for the environment 2)

•interest group relations•motivated people •business integrity.

The code of conduct applies to all Atria employees, partners and clerical employees as well as members of the management team, the board of directors and the supervisory board. it covers all business areas and also the partnerships and joint ventures in which Atria has a controlling interest and/or positions of responsibility.

1) including guidelines on Gmo-free products, the responsible use of additives etc.

2) including a statement regarding the welfare of production animals.

Management of corporate responsibility

Atria’s corporate responsibility policy is managed at two levels. A Group-level workgroup determines the main principles of corporate responsibility and ensures that the business areas’ development programmes support the Group’s common goals.

steering groups in the business areas analyse the expectations their key stakeholders have regarding Atria’s responsibility and initiate development programmes.

Atria’s corporate responsibility management was reorganised in 2011. The tasks of the Atria corporate responsibility management meeting (crmm), which laid down the Group-level corporate responsibility principles, were reassigned to the safe Atria Quality group. This allowed the company to link the promotion of responsibility to Atria’s day-to-day operational management routines across the business areas.

The chair of the safe Atria Quality group is Merja leino, who, acting jointly with the country organisations, is in charge of the strategic planning of corporate quality and responsibility issues and the implementation of Group-level projects. The reorganisation of the responsibility management duties also involved the appointment of Eeva Juva as Atria Finland’s responsibility manager.

Safe Atria Quality: page 16

HANdpRINT of RESpoNSIbLE

ATRIA

Atria’s HandprintAtria promotes its diverse corporate responsibility through the far-reaching Handprint programme. it brings together the principles, practices, projects and results of Atria’s responsible operations and provides comprehensive updates on their progress. Under the Handprint programme, responsibility is developed and measured in seven sectors.These are: •Finance •The environment •Animal welfare •Product safety •nutrition •Personnel •communications.

The symbol of Atria’s Handprint programme is the Handprint logo. it signifies the personal contribution of each person participating in the Atria food production chain, and its colours communicate the effects of responsibility.

www.atriagroup.com/en/corporateresponsibility

Kim

mo

män

tylä


inTerView wiTH THe ceo

Atria Plc CEO Juha Gröhn, how would you describe the significance of responsibility to Atria’s business? responsibility has a special significance for Atria and for the food industry as a whole. our products are part of people’s daily lives – we all have to eat every day. our customers and consumers want to know very precisely where our products come from, how they are produced and what they contain. People also want to know what sort of impact our operations have on their immediate environment and at a societal level.

From a business perspective, responsibility is the cornerstone of all operations. in my opinion, if a company is not honest and transparent in its operations, it will not operate for long. responsible practices and products are a big part of Atria’s strategy. we are convinced that responsibility also pays off from a business perspective, in terms of growth and profitability.

responsibility must not – and by current standards it cannot – be disconnected or seem to be an afterthought. it must be a natural part of daily operations. operations must continuously meet various responsibility requirements and withstand critical external reviews.

financial responsibility seems to have featured prominently in Atria’s operational management in 2011. Is that correct? That is correct. The year was very challenging financially, and we are not satisfied with the results. challenges arose from increased economic uncertainty and an imbalance in the meat raw material markets. The market did stabilise towards the end of the year, though. Atria scandinavia, Atria russia and Atria baltic partially depend on imported meat. These business areas are at a disadvantage when the price of imported meat goes up. in Finland, we only use domestically sourced meat in Atria products.

our most important strategic financial goal is to improve significantly the profitability of our international operations. we also aim to improve our profit level in Finland. we launched new products in all business areas to improve profitability and growth. we also took significant operational efficiency improvement measures to improve our competitiveness. Unfortunately, these measures also involve staff reductions in most cases. in 2011, the number of personnel fell by 350, which is approximately 6 per cent of the average number of employees.

How would you assess the results of Atria’s Handprint corporate responsibility programme?Atria’s Handprint is a very far-reaching programme, and our progress in all seven focus areas has been much anticipated, considering the challenging financial situation. in my opinion, just the organisational change of bringing the programme under the safe Atria Quality process is a big step. now the management and development of corporate responsibility are truly incorporated in everyday operations at Atria.

Among the individual projects within the programme, i would like to highlight the early caring employee well-being project in Finland. its results are very impressive, and the programme has touched almost everyone working for Atria. The increased transparency of the meat production chain and the measures to promote animal welfare have also been very well received by our stakeholders.

nutritional responsibility and the responsible use of additives are major issues in all our operating countries. besides Finland, sweden and denmark, they receive much attention in estonia and, i would think, soon in russia as well. besides product safety, healthiness and nutritional value will be important focus areas of product development. controlling the environmental impact of our products and operations is also a priority far into the future.

All these development areas obviously require sizeable investments. These are investments which should be done on time, and preferably in the vanguard. A time will come when they can no longer be postponed. when we act proactively and lead the way, we can stand behind our slogan: Good food – better mood.

Kaj

Kus

nets

ov


Key AcHieVemenTs

Targets 2011 Key results in 2011 Targets 2012 Read moreSocial responsibility

Personnel

•improving well-being at work by business area. •Good results were achieved in occupational well-being promotion projects across the Group’s operating countries.

•Atria Finland funded the building of a new occupational health station. •The Hr operations were reorganised in scandinavia and russia.

•description, analysis and implementation of the leadership profile.

•development of leadership throughout Atria Group and at all organisational levels in line with the intended profile.

•Turning the Talent management process into an executive, middle management and administrative tool.

•Harmonising pay structures across Atria Group.

•Human resources development focus areas and goals by business area, page 13.

Product safety •Harmonising product safety procedures in all business areas as part of the safe Atria Quality programme. certified product safety systems for all Group facilities by 2014.

•Promotion of good hygiene practices through internal audits. Product safety certification proceeded on schedule. new iso 22000:2005 product safety system certifications: Atria finland: Karkkila, Forssa. Atria Baltic: Valga, Vastse-Kuuste and Tartu logistics centre. Atria Russia: Fssc 22000 pre-audit of Gorelovo's operations. Atria Scandinavia’s sköllersta plant complies with iKeA’s quality requirements, the iKeA way on Purchasing Food (iwAy).

•internal audits were carried out between the Group countries to propagate best practices for pathogen control.

•substantiating best practices in the safe Atria Quality programme. certified product safety systems for all Group facilities by 2014.

•Targets and results of the safe Atria Quality programme, page 16.

•Atria is well positioned to achieve its product safety system certification targets, page 16.

nutrition •maintaining and developing Atria’s balanced product portfolio with consideration for nutritional aspects.

•development of products with low sodium levels and reduction of salt in existing products. •increase in the number of additive-free products in all markets.

•maintaining and developing a versatile product range so that it is easy for consumers to make smart and healthy choices among Atria products.

•Principles and targets of nutritional responsibility, page 18.

Communication •increasing the transparency of operations in the food production chain.

•Atria Finland conducted the domestic meat publicity campaign introducing five key themes. Atria Finland provided a tool for consumers to trace back the chicken fillets they purchased.

•development of responsibility communications and promotion of transparency throughout the chain.

•development of a responsibility reporting.

•The domestic food campaign raised awareness of the benefits of domestic meat, page 23.

Animal welfare •Promoting animal welfare and developing assessment methods.

•development of internal reporting systems. •Active participation in the development of national health care systems and putting new operations into

practice. •Analgesia during castration of male pigs was introduced. •Participating to a study of welfare Quality assessment methods in Finland.

•Promoting animal welfare in the long term through species-specific projects, and developing welfare assessment and measuring methods. collaborative research in welfare promotion.

•Animal welfare projects' key achievements and targets by species, page 25.

Environmental responsibility

•reducing the direct environmental impact of industrial operations.

•Atria continued the development of environmental goals and targets, as well as measuring principles, common to all business areas.

•At Group level, energy consumption has evened out and energy efficiency has been improved. •Greenhouse gas emissions from direct operating energy consumption are low, at an average of 118 co2ekg/t. •At Group level, water consumption relative to production output has remained at a moderate level. Total

water consumption increased by four percent due to the increased output of the st Petersburg plants in russia.

•98% of the waste and by-products end up being recycled.

•reducing direct environmental impact. identifying and managing the environmental impact throughout the chain through collaboration.

•significant investments to achieve energy efficiency, page 30.

•reduction of waste in the food chain, page 31.

Economic responsibility

•delivery on product leadership strategy pledges. •significant improvement of the profitability of

Atria’s operations. •investments in product development and

marketing as well as in the development of new types of operating models.

•Atria’s net sales for the year remained at the previous year’s level and ebiT weakened slightly. The Group’s ebiT was eUr 8.0 million in 2011.

•in all business areas, new programmes to increase the efficiency of operations were launched and changes and operational reorganisations were implemented as planned.

•The launches of significant new products and projects to increase the efficiency of operations aim to increase net sales and ebiT in all business areas.

•The realisation of financial responsibility, page 32, Atria's Annual report 2011, www.atriagroup.com.

Summary of Atria’s key targets and achievements in 2011 by responsibility focus area. Corporate responsibility

development projectsAtria’s Handprint corporate responsibility programme promotes and measures responsibility in seven sectors: personnel, the environment, product safety, nutrition, animal welfare, finance and communications.

by improving all sectors in a balanced manner, Atria aims to become a leading company in responsible food production in its areas of operation.

The development projects, which vary according to business area, bring together established practices and also help create entirely new operating methods.

Satu Tuominen and Emma-Kaisa Rautio from Atria Finland's product development.


KE

y AC

HIE

VEMEn

TS

Targets 2011 Key results in 2011 Targets 2012 Read moreSocial responsibility

Personnel

•improving well-being at work by business area. •Good results were achieved in occupational well-being promotion projects across the Group’s operating countries.

•Atria Finland funded the building of a new occupational health station. •The Hr operations were reorganised in scandinavia and russia.

•description, analysis and implementation of the leadership profile.

•development of leadership throughout Atria Group and at all organisational levels in line with the intended profile.

•Turning the Talent management process into an executive, middle management and administrative tool.

•Harmonising pay structures across Atria Group.

•Human resources development focus areas and goals by business area, page 13.

Product safety •Harmonising product safety procedures in all business areas as part of the safe Atria Quality programme. certified product safety systems for all Group facilities by 2014.

•Promotion of good hygiene practices through internal audits. Product safety certification proceeded on schedule. new iso 22000:2005 product safety system certifications: Atria finland: Karkkila, Forssa. Atria Baltic: Valga, Vastse-Kuuste and Tartu logistics centre. Atria Russia: Fssc 22000 pre-audit of Gorelovo's operations. Atria Scandinavia’s sköllersta plant complies with iKeA’s quality requirements, the iKeA way on Purchasing Food (iwAy).

•internal audits were carried out between the Group countries to propagate best practices for pathogen control.

•substantiating best practices in the safe Atria Quality programme. certified product safety systems for all Group facilities by 2014.

•Targets and results of the safe Atria Quality programme, page 16.

•Atria is well positioned to achieve its product safety system certification targets, page 16.

nutrition •maintaining and developing Atria’s balanced product portfolio with consideration for nutritional aspects.

•development of products with low sodium levels and reduction of salt in existing products. •increase in the number of additive-free products in all markets.

•maintaining and developing a versatile product range so that it is easy for consumers to make smart and healthy choices among Atria products.

•Principles and targets of nutritional responsibility, page 18.

Communication •increasing the transparency of operations in the food production chain.

•Atria Finland conducted the domestic meat publicity campaign introducing five key themes. Atria Finland provided a tool for consumers to trace back the chicken fillets they purchased.

•development of responsibility communications and promotion of transparency throughout the chain.

•development of a responsibility reporting.

•The domestic food campaign raised awareness of the benefits of domestic meat, page 23.

Animal welfare •Promoting animal welfare and developing assessment methods.

•development of internal reporting systems. •Active participation in the development of national health care systems and putting new operations into

practice. •Analgesia during castration of male pigs was introduced. •Participating to a study of welfare Quality assessment methods in Finland.

•Promoting animal welfare in the long term through species-specific projects, and developing welfare assessment and measuring methods. collaborative research in welfare promotion.

•Animal welfare projects' key achievements and targets by species, page 25.

Environmental responsibility

•reducing the direct environmental impact of industrial operations.


•At Group level, energy consumption has evened out and energy efficiency has been improved. •Greenhouse gas emissions from direct operating energy consumption are low, at an average of 118 co2ekg/t. •At Group level, water consumption relative to production output has remained at a moderate level. Total

water consumption increased by four percent due to the increased output of the st Petersburg plants in russia.



•significant investments to achieve energy efficiency, page 30.


Economic responsibility

•delivery on product leadership strategy pledges. •significant improvement of the profitability of

Atria’s operations. •investments in product development and

marketing as well as in the development of new types of operating models.

•Atria’s net sales for the year remained at the previous year’s level and ebiT weakened slightly. The Group’s ebiT was eUr 8.0 million in 2011.

•in all business areas, new programmes to increase the efficiency of operations were launched and changes and operational reorganisations were implemented as planned.

•The launches of significant new products and projects to increase the efficiency of operations aim to increase net sales and ebiT in all business areas.

•The realisation of financial responsibility, page 32, Atria's Annual report 2011, www.atriagroup.com.

more detailed results and targets by business areas are presented later.


RIddERHEIMS InVITES COnSUMERS On A TwITTER dATE

Atria scandinavia’s ridderheims brand makes innovative use of the social media. ridderheims delikatesser invited singles to a tasting of its new products on Valentine’s day 2012. Users of the microblogging site Twitter were invited to sign up on Twitter.

There are around 160,000 active Twitter users in sweden, and it is an important product development and marketing channel for ridderheims. Twitter allows the company to gather direct customer feedback, which can be utilised in production.

it remains unknown how many matches resulted from the Pasta Amore dinner!

lARGE dOnATIOn fOR fInnISH fOOd And nUTRITIOn RESEARCH

Atria Plc made donations amounting to eUr 150,000 to the University of eastern Finland, the University of Vaasa and the south ostrobothnian University Fund – eUr 50,000 to each university. The company’s sponsorship focus is on food research and the promotion of well-being. Food and nutritional science are important research areas for Atria, but linking them with the daily lives of Finnish consumers is a great challenge for the food industry. From Atria’s viewpoint, it is also important that Finland has several actively functioning universities that contribute to regional development and serve as the engines of dynamic provinces.

sTAKeHolders

Atria’s stakeholdersAtria’s key stakeholders have been defined on the basis of Atria’s business strategy. strategically significant stakeholders include customers, consumers, personnel, producers and shareholders. other significant stakeholders include authorities, financial institutions, schools and the media.

Atria’s corporate responsibility policy is embodied in the day-to-day work with stakeholders. Atria uses various surveys, questionnaires and analyses, as well as meetings and personal interaction with stakeholders, to gain extensive knowledge of their expectations.

Atria only deals with those primary producers and subcontractors, customers and other business partners who are known to be trustworthy and honest. Atria favours partners who, in addition to offering a reasonable price and high quality,

are able to demonstrate that they operate in accordance with ethically acceptable practices. For example, one of Atria’s selection criteria for material and/or raw material suppliers is the quality of their environmental management.

customers and consumers are the most important external stakeholder groups for Atria’s business operations. with its customers, Atria engages in sustainable cooperation in which both parties listen to and understand each other’s needs, wishes and opportunities, also in relation to responsibility.

consumer preferences and wishes ultimately determine the product groups and products Atria supplies to retailers and other customers. insights into consumer needs gained from research on consumer behaviour guide Atria’s product development and marketing.

Product development and marketing: page 22

Atria Russia starts regular product donations to orphanages Atria russia has started regular monthly product donations to orphanages in st Petersburg and moscow. The food donations go to orphanages in Tikhvinsky, nadezhda and masha near st Petersburg and to the blago orphanage in odintsovo, moscow.

in 2011, Atria russia also made product donations to war veterans in moscow and st Petersburg and to several charities, including the Golden Pelican and bolshaya medveditsa. Food donations to orphanages and veterans support the daily well-being of children and veterans directly, without intermediaries.

The cornerstone of Atria russia’s charitable donations is to support only trustworthy causes and organisations, with whom the company seeks to engage in long-term cooperation.


SyAK

EHO

ldER

S

Stakeholder group Expectations of the stakeholder group Atria’s expectationsExamples of meeting stakeholder expectations Interaction channels

Customers competitive pricing, safety and quality, customer-oriented service, reliability in deliveries and other operations

common operating models, implementation of the agreed actions, forecasts

customer satisfaction survey provides valuable ideas for improvement, page 10

Personal interaction, marketing communications, online services, mass media, product launches, campaigns, visits, customer magazines

Consumers Products to meet consumer needs, affordable price, safety and quality, reliability, ethically sound products

selecting Atria’s products, confidence in and willingness to pay for the Atria brand

Atria’s Family Farm chicken answers the call for transparency in meat production, page 20

marketing communications, online services, mass media, product launches, campaigns

Personnel salary, continuity of employment, social security benefits, comfortable and safe working conditions, and opportunities for career advancement

work contribution, innovation Atria Finland: construction of the occupational health station, page 15, Talent management, page 12

Personal interaction, online services, mass media, performance appraisals, personnel surveys, training, seminars and events, our Atrium in-house magazine, units’ own communication channels

Producers reliable long-term partner, professional guidance, competitive producer price

commitment, raw material that meets quality requirements, reliable, long-term cooperation

management of animal welfare, page 24.

Personal interaction, online services, producer publications, seminars and other events

Shareholders, Investors

return on investment, continuity of operations, decision-making power and capital returns

distribution of economic value added to stakeholders

distribution of economic value added to stakeholders, page 32

Personal interaction, annual report, online services, mass media, General meeting, capital markets day, press and stock exchange releases

financiers repayment of loans as agreed, reliability, continuity, debt-carrying capacity

borrowing at agreed price distribution of economic value added to stakeholders, page 32

Annual report, online services, mass media, press and stock exchange releases

Authorities Tax income, employment, international competitiveness, investments, openness, cooperation and environmental care

legislation, public services such as hygiene control and financing

Atria is well positioned to achieve its product safety system certification targets, page 16

Personal interaction, annual report, online services, mass media, stakeholder survey, seminars and events, cooperation with authorities, press and stock exchange releases

Subcontractors and partners

reliable payment of invoices, long-term customer relationship, predictability and growing demand

delivery of factors of production, such as raw materials, services and finished products, of the agreed quality and in accordance with the agreed delivery terms

Purchasing does its share to ensure product safety, page 17

Personal interaction, marketing communications, annual report, online services, mass media, stakeholder surveys, product launches, campaigns, seminars and events, research and development projects

Opinion leaders and media

Transparency, special expertise influencing general attitudes local food campaign raised awareness of the benefits of domestic meat in Finland, page 23

Personal interaction, marketing communications, annual report, online services, Hyvä ruoka customer magazine, stock exchange and press releases, media cooperation

local communities and schools

employment, cooperation, environmental care, internships

skilled and motivated potential workforce, public services such as training, infra-technology

Atria at the enterprise society, page 10

Personal interaction, online services, mass media, seminars and meetings, visits, training and thesis jobs, research and development projects

Research Partner, research needs reliable partner, expert, research quality

Atria Plc donated eUr 150,000 to Finnish universities and the south ostrobothnian University Fund, page 8

Personal interaction, mass media, seminars and events, visits, research and development projects

Atria’s stakeholders

Kaj

Kus

nets

ov


Atria finlandin its annual FAcTUm survey, Finfact oy measures the

satisfaction of both retail trade customers and the food service sector with suppliers in Finland. The survey covers the leading operators in both sectors. in the 2011 customer satisfaction surveys, Atria Food service in particular improved its ranking in terms of overall success of cooperation.

customers consider Atria’s Food service sales highly professional, and its problem-solving ability was especially appreciated. The fact that the products are easily replaceable is a challenge to Atria’s Food service operations. Atria has lost some points with regard to delivery reliability compared with previous years. Although customers felt delivery reliability had slightly suffered, Atria Food service still shares first rank alongside its main competitor in the sector. Atria Fs has also improved its ranking in terms of overall success compared with previous years.

in 2011, Atria’s strengths in the eyes of its retail customers included expertise in developing the order-supply chain and measuring mutual logistical capacity. whilst customers found room for improvement in delivery reliability, they were satisfied with Atria’s brands, marketing and product development.

The results of the customer satisfaction survey are just one part of ongoing dialogue between Atria and its customers. The sales organisation works with customers on a daily basis and conveys customers’ wishes and thoughts regarding future cooperation to the organisation. in the year under review, Atria lost some points regarding delivery reliability, and measures were taken in the supply chain steering organisation to improve reliability.

Atria ScandinaviaAlmost all Atria scandinavias companies improved their rating in the customer satisfaction surveys in the Atria scandinavia markets from the previous year. Atria retail, which delivers meat delicacies and convenience foods to retail stores, gained 10 notches in sweden’s chain barometer survey, which covers nearly all retail chains. The survey measures retail chains’ satisfaction with suppliers’ sales and marketing efforts. Atria deli, which delivers fresh delicatessen products, improved its ranking in the store barometer survey by five notches since the previous year. The store barometer survey puts more focus on store-level operations than the chain barometer. Atria Food service performed steadily in the scandinavian markets, and the satisfaction survey among institutional kitchen customers placed it slightly above average, as before.

Atria RussiaPit-Product is the market leader in the sausages and meat delicacies category in the st Petersburg region. The strong status of the products is evident from the brand’s success in the 2011 consumer awareness surveys. The unaided awareness rating for these products was 70%, and 98% of respondents recalled the brand when prompted (comcon synovate survey 12/2011). Pit-Product products also won the annual award for consumer rights and service Quality in the russian fast-moving consumer goods suppliers category. This recognition indicates a genuinely responsible approach to consumer rights promotion and product and service quality development. it is a significant achievement in russia.

Customer satisfaction survey provides valuable ideas for improvement

sTAKeHolders

Future employees familiarising themselves with Atria at the Enterprise Society in Seinäjoki in autumn 2011. The Enterprise Society study module for 5th and 6th graders gave the pupils the opportunity to familiarise themselves with corporate operations by working for one day. At the same time, they learnt more about their role as consumers and citizens. The pupils were paid for their work. At the Atria restaurant of the Enterprise Society, the pupils were introduced to restaurant work, including food storage, display and sale, as well as wastage disposal. The popular event was an excellent demonstration of the cooperation between companies and educational institutions. It gave many children positive work-related images and experiences.

Kir

si T

uura

Atri

a Ve

näjä

Pau

la m

yöhä

nen


Food fairs are a great opportunity for dialogue with key stakeholders, including customers and consumers. The photo features Atria Russia’s CampoMos stand at Moscow’s PRODEXPO fair in February 2012.

In the latest customer satisfaction survey, Atria Food Service received special praise for its ability to cooperate and shares first rank alongside its main competitor. The photo features cook Merja Häkkinen from Mikkeli.

Most of all, retail customers value the reliability of Atria’s order-supply chain. The photo features outlet ma-nager Heikki Kuisma and Atria’s sales manager Anne Rindell.

SyAK

EHO

ldER

S


Employee well-beingAt Atria, social responsibility with regard to people covers employee well-being, competence development, fair pay, product safety, consumer protection, marketing communications and product labels. social responsibility also involves open dialogue with stakeholders and the Atria code of conduct.

developing the competence and well-being of our personnel is a key feature of Atria’s social responsibility. The quality of Atria’s operations and products and the achievement of our growth targets rely on these factors.

in 2011, the key focus of Atria’s Hr work was on promoting well-being and safety at work. several strategy-driven personnel development and training programmes were also implemented in all business areas. A new focus area involved turning the Talent management process into a management, middle-management and administration's tool. The goal is to ensure that we have competent personnel to face the business challenges of the future.

sociAl resPonsibiliTy

Atria’s Talent Management process nurtures talent to serve business needsThe Talent management process is one of the Hr management processes. Atria’s focus on talent management seeks to identify current and future managers and experts and ensure their commitment, accurately directing development measures and promoting internal mobility.

The Talent management process has been developed at Atria in active cooperation with the business operations since 2007. The priority is to use wisely targeted development measures to support the growth and development of individuals in their professional roles. “Talent management is an old practice, but now Atria has a systematic, business-aligned process, and the tools for it,” says Hr development expert Jutta Mäkipelkola.

The implementation of the Talent management process started at the Group level in 2011. in scandinavia and the baltic countries, the process has taken off well and implementation will continue as planned. The uniform process has been adopted in all Group units in 2012.


SOC

IAl R

ESP

On

SIBIlITy

Business area Achievements in 2011 Goals for 2012Atria Group •strategy-driven training

•development of well-being at work•implementation of personnel survey and definition and

implementation of development measures

•description, analysis and implementation of the leadership profile•development of leadership throughout Atria Group and at all organisational

levels in line with the intended profile•Turning the Talent management process into an executive, middle

management and administrative tool •Harmonising pay structures across Atria Group

Atria finland •The early caring welfare programme: permanent oHs structures and processes established

•description and implementation of the oHs management system•introduction of oHs interviews at Atria•strategy-driven development and training programmes established•Talent management process established•new occupational health station inaugurated

•completion of the early caring programme, setting up permanent structures and processes

•developing the performance management process•developing the Talent management process to make it a useful tool for

executive and middle management•developing supervision through revised structures and long-term

training programmes•increasing in-house mobility among both clerical employees and factory workers

Atria Scandinavia •new organisational model•new Hr organisation•strategy-aligned management training •Training in project management•Talent management programme developed

•support for Atria scandinavia's product leadership strategy through training, e.g. sales Academy

•supporting the efficiency and growth targets in the selected product groups through the implementation of organisational changes

•continuation of the Talent management programme

Atria Russia •new organisational model•Personnel impacts reduced as production moves from moscow to Gorelovo•Training for sales and marketing staff •development of managerial skills•Assessment and development of working conditions at production plants •employee satisfaction survey•development of recruiting processes•Health care plan•Joint events for the entire personnel •new strategy introduced and communicated to the personnel

•Harmonising and clarifying personnel benefits •introducing competence assessment •introducing Hr development plans•launching the Talent management programme•induction schemes for new employees•development of internal communication

Atria Baltic •reorganizing sales and marketing departments and creation of training, rewar-ding and recruitment systems

•Product development training•internal communication improvement through quarterly strategy meetings•salary system unification•beginning of new talent management process•improvement of work safety

•supporting business strategy and internal processes•simplify reporting and iT-systems•organizational development: Talent management, cooperation and

commitment improvement

Achievements in 2011 and goals for 2012 of the HR function


The sickness absence rates in the food production sector are higher than in many other sectors largely due to the nature of the work. on average, private sector employees have 11 sick days a year, but food industry workers have a total of 18 sick days a year.

Atria Finland launched the early caring project in 2009. This is one of the most significant and comprehensive personnel well-being projects in the Finnish manufacturing industry, encompassing all of Atria Finland’s 2,100 employees. The results have been excellent.

“The project has yielded exceptionally good results in reducing sickness-related absences,” says Atria Finland’s senior oHs physician Timo Kinnunen.

The number of sick days has fallen from 9.4% of regular working time (24 days) in 2008 to 7.07% (18 days) in 2011. The average sickness-related absence rate in the food production industry was 7.0% in 2010.

early caring is not just a project, but a new attitude adopted by the company. it has increased the operational capacity and well-being at work of the personnel as a whole, reduced absences due to sickness and accidents, and prevented early retirement.

Early Caring reduces sickness-related absences

Atria Finland ........... 39 %

Atria scandinavia .... 21 %

Atria russia ............ 33 %

Atria baltic ................7 %

Atria Plc employed on

average 5,467 people

2,500

2,000

1,500

1,000

500

0

25

20

15

10

5

0

876543210

Average number of personnel

Sickness absencesAveragetraining days

persons

% of regular working time days/employee

%

20112010

20112010

20112010

Atria

Fin

land

Atria

Sca

ndin

avia

Atria

Rus

sia

Atria

Bal

tic

Atria

Fin

land

Atria

Sca

ndin

avia

Atria

Rus

sia

Atria

Bal

tic

Atria

Fin

land

Atria

Sca

ndin

avia

Atria

Rus

sia

Atria

Bal

tic

Atria

Fin

land

Atria

Sca

ndin

avia

Atria

Rus

sia

Atria

Bal

tic

100

80

60

40

20

0

Proportion of women/men

2011womenmen

2010womenmen



Age structure in Atria Group*

persons

Atria Finland Atria scandinavia Atria russia Atria baltic *Personnel situation on 31 december 2011

Und

er 2

0

20–2

4

25–2

9

30–3

4

35–3

9

40–4

4

45–4

9

50–5

4

55–5

9

60–6

4

ove

r 65

500

400

300

200

100

0

years of service*

unde

r 1

year

1–5

year

s

6–10

yea

rs

11–1

5 ye

ars

16–2

0 ye

ars

21–2

5 ye

ars

26–3

0 ye

ars

31–3

5 ye

ars

36–4

0 ye

ars

yli 4

0 ye

ars

persons

Atria Finland Atria scandinavia Atria russia Atria baltic *Personnel situation on 31 december 2011

1,200

1,000

800

600

400

200

0

Atria’s new occupational health station A new occupational health station was completed on the site of Atria’s nurmo plant. The station, inaugurated by minister of social Affairs and Health Paula Risikko in January 2012, is one among several projects geared at improving the well-being of Atria’s employees.

The single-story building has a floor area of 650 square metres. it has rooms for two oHs physicians, four oHs nurses, two physiotherapists, a secretary and a rehabilitation counsellor. The site now also has its own laboratory and treatment room.

According to senior oHs physician Timo Kinnunen of Atria Finland, the new occupational health station supports the operations of occupational health care and is an important investment in the continued development of well-being at work at Atria.

The cost of the new oHs station was over eUr 1 million.

Kaj

Kus

nets

ov

SOC

IAl R

ESP

On

SIBIlITy

Kat

ja l

ösön

en


Safe Atria QualityThe safety and microbiological quality of Atria’s products are based on self-monitoring plans that are approved by the authorities and cover raw materials, production processes and distribution chains. The plans are based on risk management according to the Hazard Analysis and critical control Point (HAccP) system. Through authority approval and regular audits, Atria ensures that the plans comply with the latest legislation and product safety standards in the industry and with the requirements of international trade.

Atria has an extensive “safe Atria Quality” programme, which covers product safety, healthiness, ease of use and environmental impact throughout the life cycle. with this programme, Atria aims to harmonise its product safety

ATRIA IS wEll POSITIOnEd TO ACHIEVE ITS PROdUCT SAfETy SySTEM CERTIfICATIOn TARGETS

it is Atria’s goal that all production facilities will have a regularly audited, standardised product safety system in place by 2014. we are on schedule towards achieving this goal. At the end of the year under review, 81 per cent of Atria’s total production took place at plants applying an externally verified product safety system.

All Atria scandinavia production facilities have introduced a brc system. However, scandinavia is proceeding towards compliance with the Fssc 22 000 food safety management and quality system. in the year under review, estonia achieved the Group target of certification of production facilities, as the product safety management systems of the Valga and Vastse-Kuutse plants and the Tartu logistics centre were audited in compliance with the iso 22 000:2005 requirements. The Forssa and Karkkila plants in Finland also passed the iso 22 000:2005 certification audit. A product safety system audit will be performed at the Kauhajoki bovine slaughterhouse once the extension investment has been completed and the new production facilities are in use. certification will be sought for the product safety system of the Gorelovo plant in russia in 2012.

“The system is not an end in itself. Atria makes continuous investments in enhancing product safety and in proactive risk management. The systems guide employees and provide them with a framework and tools for properly managing product quality and safety. A certified product safety management system is proof of the high quality of our operations; it is crucial for us that consumers can trust in the safety of Atria products,” says director Merja leino.

procedures in all business areas. A concrete goal is to develop product safety guidelines which apply to all of Atria’s business areas and which each unit can use to develop further its own safety procedures in compliance with national regulations and standards.

Self-monitoring ensures safety and qualityAtria has a dedicated organisation whose principal task is to implement measures that ensure product safety and quality. Atria’s employees have been trained in their respective duties and in the special requirements of the food production industry. Products may be exported from Atria’s production sites to customers abroad, and they must therefore meet several

countries’ export requirements. The statutory self-monitoring is effective and, at Atria, the functioning of the internal monitoring system is ensured in cooperation with the public authorities who oversee each facility and its personnel. no complaints were filed for Atria’s activities during the reporting period, and no significant fines or warnings were issued concerning the provision and use of products or services.


Juho

Paa

vola


Targets 2011 Results 2011 Targets 2012•certified product safety systems for all

Group facilities by 2014.•iso 22 000:2005 certification for all

Atria baltic production facilities. •iso 22 000 product safety system

certification for Atria Finland’s Karkkila and Forssa facilities.

•Atria scandinavia’s sköllersta plant complies with iKeA’s quality requirements, the iKeA way on Purchasing Food (iwAy).

•certified product safety systems for all Group facilities by 2014.

•Fssc 22 000 certification for Atria russia’s st Petersburg facilities.

•Atria scandinavia to switch to Fssc 22 000 compliance from the brc system.

•Harmonisation of meat raw material classification within the Group.

•Harmonisation of raw materials’ microbiological quality criteria within the Group.

•review of existing classification practices began.

•Atria Finland – VeTÄVÄ project.

•review of existing classification practices to be completed.

•determination of microbiological quality criteria for meat project continues.

•creation and harmonisation of good hygiene practices within the Group.

•internal audits were conducted in Atria Finland and Atria scandinavia to harmonise good practices.

•improved pathogen control. •internal audits are used to find best

practices for listeria prevention.

•no product withdrawals. •Two product withdrawals in Atria scandinavia due to listeria.

•one product withdrawal in Atria Finland due to inaccurate labelling (allergens insufficiently indicated).

•no product withdrawals.

Safe Atria Quality -programme, results 2011 and targets for 2012

The cook’s meat thermometer ensures that the meat is properly cooked.

Purchasing does its share to ensure product safetyAn important factor in product safety is the impeccable quality of purchased raw materials and goods used in production. one way of ensuring the safe quality of Atria products is to improve purchasing processes and develop supplier partnerships in line with the purchasing strategy. Atria audits its suppliers to ensure that their quality systems are up to date and the quality of operations meets Atria’s requirements. Atria’s units have engaged in purchasing cooperation since 2002. This involves arranging bidding contests jointly and concentrating purchases, as well as introducing shared information systems at the Group level. The use of these common systems increases transparency and control. during the reporting year renewal work for Atria's claims process was also started. develoment process involves also purchasing.

SOC

IAl R

ESP

On

SIBIlITy



nutritional responsibility“nutritional responsibility” refers to the healthiness and nutritional value of raw materials and processed products and the provision of sufficient product information to support consumer choices.

At Atria, we understand our responsibility for public health and we take care of it with pride as part of responsible r&d operations. The starting point for all product development work is balancing consumer preferences and nutritional recommendations.

we are proud to develop versatile meat products which meet diverse consumer needs. meat is an excellent source of natural good protein. it contains all the amino acids that our bodies need. Proteins are the body’s protective nutrients. Protein is necessary for growing muscle and repairing damage to the body. Proteins also help maintain satiety.

Product labels provide clear and distinct product informationAtria’s objective is to maintain and develop a diverse product range so that it is easy for consumers to make smart and healthy choices among Atria products. we strive to facilitate this choice by informing the consumer about ingredients as clearly as possible. A quick reference bar on the label allows the consumer to check at a glance the salt, saturated fat and energy content of Atria Finland products. Atria products in Finland and the baltic provide detailed nutritional information, which is entirely voluntary.

The requirements of the new eU regulation on the provision of food information to consumers will create changes to the required disclosure by 2013. Atria will consistently continue to ensure informative and clear product labelling.

wHAT IS A nUTRITIOn ClAIM?

A nutrition claim is a claim that asserts that the food product has particular beneficial nutritional properties in terms of energy content, nutrients or other ingredients. nutrition claims include such statements as “reduced salt”, “light” and “high fibre”. The european Union now only allows health and nutrition claims which are approved in the Annex of the regulation on nutrition and health claims made on foods.

in principle, Atria only uses nutrition claims which are also considered important by consumers. our product labels may contain the following claims: “high protein”, “source of omega-3”, “source of iron” and “light”.

Atria has set out the following nutritional responsibility principles:

•we only use Finnish meat in in Atria branded products.•we do not add meat protein (a powder made

of dried meat).•we only use Gmo-free raw materials. •our use of additives complies with sustainable

principles.•in salt content, we comply with national

recommendations and avoid launching heavily salted products.

•new Heart symbol products are being launched for retail trade as well as for food service customers.

•we actively participate in research projects that increase nutritional awareness.

“Source of omega-3” and “light” are among the nutrition claims that Atria uses in its products.

Atri

a su

omi


Atria Scandinavia launched seven new products that display the Nyckelhålet (keyhole) sign, which signals low fat and low salt content.

Business area Targets 2011 Results 2011 Targets 2012Atria finland •development of low-sodium

products.•elimination of monosodium

glutamate and yeast extract from products.

•Participation in nutritional researches.

•new Heart label products.•lingonberry – packed with

additives: communications campaign on the responsible use of additives.

•Participation in studies which increase nutritional awareness, such as seniori-sapuska, Tervas, KUlUmA.

•elimination of monosodium glutamate from all products.

•elimination of yeast extract from products continues, target 2013.

•Applying the eU food information regulation to Atria’s labelling in a clear and consumer-friendly manner.

•revision of the nutritional information section on the Atria.fi website.

Atria Scandinavia •developing low salt and low-fat meat products. Assessing the necessity of additives.

•seven new keyhole-labelled (low-fat and low salt) meat products. elimination of additives from several products.

•Assessment of the necessity of additives and measures to reduce them.

•development of low-sodium products.

Atria Baltic •expansion of the e-code-free Jussi product range for children.

•elimination of monosodium glutamate from the maks & moorits products.

•new Jussi products were launched. These products are low-sodium and e-code-free. monosodium glutamate was eliminated from the maks & moorits products.

•expansion of the Jussi product range.

Key targets and results in Atria’s nutritional responsibility development

Atria has succeeded in reducing the use of nitrite without compromising product safetyVegetables contain nitrates either naturally or as a result of fertilizer use. The highest nitrate contents are found in spinach, rocket and beetroot. The nitrate is broken down into nitrite in the human body, and the compound added to food products is sodium nitrite.

small levels of sodium nitrite are used in meat products to ensure preservability and safety. it prevents the activity of the hazardous toxic botulinum bacterium, which causes food poisoning, as well as preserving the redness of meat. if nitrates were not added to sausages, they would be greyish.

The guideline daily amount of sodium nitrite is 0.1 mg per kilogram a day. At current usage levels this means that toddlers who weigh under 15 kg can eat 1.5 frankfurters a day. The amounts of nitrite added to meat have been cut in the past few years in Atria Finland’s products without compromising product quality.

SOC

IAl R

ESP

On

SIBIlITy


Transparency in meat productionAn important development area for Atria’s responsible operations is increasing transparency at all levels. Highlighting the transparency of the production chain means that information is provided on the origin and production chain of food and on animals’ living conditions. only production that is conducted transparently can truly win over consumer trust.

surveys show that Finnish consumers are concerned about the conditions in which chickens are farmed and the ethicality of meat. most consumers want more information on the origin of meat before purchasing. The conditions under which products are manufactured and the practical arrangements applied to ensure animal welfare are also of interest to consumers.

now you know where the chicken comes fromin 2011, Atria decided to answer the call by opening up the

chicken production chain and enabling full traceability for consumers, from the farm all the way to the retail package.

The Family Farm concept offers consumers the opportunity to take a look at the farm that has produced the poultry meat they buy. since January 2012, Atria chicken fillet packages indicate the name of the Family Farm as well as an Upcode that, when scanned using a Qr code scanner downloaded on a smartphone, links to the Family Farm website. This makes products genuinely traceable all the way to the farm.

finnish chickens rarely need medication The use of antibiotics in meat production is many times more common in other parts of europe than in Finland. europe-wide data reveals that Finnish meat production has the lowest medication rate in europe, alongside sweden and norway.

no medication is used in Finnish chicken production, or it is only used as a last resort in rare cases. The last time Atria had to give a course of antibiotics to a chicken batch was more than two years ago. Finnish chicken production relies on preventive measures, and securing good living conditions and welfare lead

SVEnSK KöTT lABEl REVEAlS THE ORIGIn Of MEAT

Atria scandinavia also focused on local production and domestic origin. Atria scandinavia’s lönneberga pro-ducts only contain swedish meat, and the products have displayed the svenskt Kött label since the autumn 2011 as recognition of this.

Responsible use of additivesAtria assesses the necessity of additives both in terms of consumer health and product safety. only important additives necessary for product safety and essential product characteristics are used, and only if they all have a proven safety record.

Atria stays actively informed of legislation and recommendations regarding additives. we also consider consumer expectations regarding the use of additives in new product launches and make sure that consumers are given accurate information on the responsible use of additives.

Additive-free choices are available in our minced meat and unseasoned meat selection. Atria Finland will eliminate monosodium glutamate from all products in 2012 and yeast extract in 2013. Atria baltic’s maks & moorits products have been free of monosodium glutamate since 2011, and the Jussi range is entirely free of any “e codes”. Jussi products are processed meat products especially for children. Atria scandinavia also offers several additive-free products already. developing low-salt products and reducing salt in existing products is a priority in the scandinavian markets.



to a disease-free existence.studies by pharmaceutical companies show that medicating

chickens with antibiotics is very common in europe. According to a study commissioned by the animal health firm elanco in 2007, many German and italian chickens get their first dose of antibiotics within their first days of life, often right after hatching, just to be safe.

“The impact of this regimen on public health is enormous, since the uncontrolled use of antibiotics gives rise to strains of bacteria which are resistant to antimicrobials. The latest research shows that these strains may live on for several years, even after the use of antibiotics has ceased,” says Petri yli-Soini, veterinarian at Atria Finland.

According to yli-soini, antibiotics are used in other countries to cover up poultry welfare issues and to reduce disease pressure, whereas in Finland preventive welfare work is so effective that disease pressure is non-existent.

finnish focus on animal health care and prevention of diseases bears fruitAtria’s poultry farms and contract producers have opted for prevention, even though it costs more than applying drug regimens. we have zero tolerance for salmonella. Production units apply disinfection procedures and strict hygiene regulations. The poultry houses are cleared and filled en masse; the flock arrives, lives, grows and goes to slaughter as one batch. After one batch leaves, the entire house is cleared out including litter, washed and disinfected. no animals or materials remain at the farm that might allow germs to live on. The poultry houses are made of washable aggregate materials.

in central and southern europe, poultry houses are not emptied en masse, so hygiene can never be at the level it is in Finland. central european markets demand chickens of various ages, so the brood is periodically culled. This also means that the floor space can be optimally used.

Production must be efficient in Finland, too, but the methods for achieving this end are different. in Finland, animal welfare leads to good health, rendering medication redundant.

“Anything that exposes the animal to stress also exposes it to bacterial infections. in Finland, we have the means and intent to focus on animal welfare,” says yli-soini.

The infrastructure of Finnish chicken production, where slaughterhouses play an important role, has been built to

prevent the spread of animal diseases. Freedom from diseases ultimately improves production efficiency as well.

The carefully controlled production system guarantees for the Finnish consumer the traceability of chicken products.

SOC

IAl R

ESP

On

SIBIlITy

The packages of Family Farm Chicken fillet products are labelled with the name of the family farm and an Up-Code, which consumers can use to access information online regarding the farm.


Product development and marketing constitute an integrated function at Atria on both a strategic and operational level. Atria’s strategy states that product leadership is the guiding principle in the development of product groups and operations. Atria uses product leadership to gain long-term competitive advantage and stand out from its competitors.

The Group’s research and development operations focus on studying consumer behaviour and market data. in addition, Atria participates in applied research in the areas of product and packaging technology and food science. in 2011, Atria Finland participated in nearly 30 public research projects, most of which span several years.

in order to make its operations and supply more customer-driven, Atria has stepped up its research and product development investments in recent years. in 2011, Atria’s research and product development investments amounted to 0.9% of net sales at around eUr 10 million.

Atria achieved good results with its product launches across business areas in 2011. Atria Finland, for example, launched more than 90 new products. These accounted for approximately 5% of net sales. All business areas combined, the Group launched a total of 340 new products. The figure includes new packages and new product support innovations.

Investments in research and marketing Atria is concentrating its

R&D and marketing efforts on strengthening its own brands. Strong brands put Atria in an excellent position to develop pro-ducts with a higher degree of processing and more profitable price levels.

Responsible marketing communicationsAtria complies with the updated guidelines for responsible food marketing communications, which are based on the principles of responsible marketing communications of the confederation of the Food and drink industries of the eU (Fooddrinkeurope). They illustrate the common way of thinking at the eU level and serve as a guideline for voluntary self-regulation within

companies. The guidelines emphasise the truthfulness of marketing communications, the promotion of a healthy lifestyle, moderation, parental authority and the use of communication methods that take into account the level of media literacy among young audiences. marketing communications include all paid marketing on television, in newspapers and on the internet.



“wolf in cow’s clothing”

“As a vet, I look after humans”

“lingonberry – packed with additives”

“where does the chicken come from?” “Grown free”

message Finnish beef cattle are traditionally reared in accordance with sustain-able development, the feed mostly procured from domestic sources and the animals medicated with caution. The meat is not radiated. consumer must be given the tools to recognise safe domestic meat products at the time of purchase

The Finnish pork chain is highly professional, from farms to produc-tion. The piggeries have free space to reduce tail biting. Animals at Atria farms are healthy, with more than 200 vets and officials ensuring their well-being. Transportation times have been cut to a minimum and journeys are planned on the animals’ terms.

Additives, when used sensibly, are in the consumer’s best interest. many carefully researched substances added to meat are naturally present in fruit, vegetables and berries. The most common sources of nitrates, for example, are vegetables and tap water. small amounts of natural nitrites are used to preserve con-sumers’ health.

The quality of chicken products is the result of a commitment across the entire Atria product chain to caring for the well-being of produc-tion animals. consumers can trace Atria chicken products right back to the family farm which produced it. A journey of only 48 hours from farm to shelf ensures the freshness of the goods.

Atria beef cattle are raised free, eat grass grown on the farm and are rarely sick. compared with Finnish beef, the carbon footprint of foreign beef is many times larger.

results The ad’s media reach was notably above the average for full-page ads. it was considered individual and interesting.

with an approach that was more restrained than that of the “wolf in cow’s clothing” ad, this ad was effective in building trust in Atria’s pork chain across age groups. The ad succeeded in promoting Atria’s long-term corporate image.

The bold statement bore fruit, par-ticularly in the under-30 age group. This age group’s trust in Atria’s products rose to a new high. This ad had high media reach across all age groups.

This ad had the highest media reach compared with the previously published ads in the series. it further increased trust in Atria.

77 per cent of the readers espoused for beef cattle’s breeding circum-stances comparison between Finnishand foreign countries

Atria Finland launched an extensive advertising campaign that highlighted five topic areas in 2011. The campaign continued in the spring of 2012. it told Finnish consumers about the advantages of choosing Finnish meat for their shopping basket. The full-page ads, published in 26 newspapers

and magazines, had excellent media reach. opinion polls indicate that the campaign significantly reinforced consumer confidence in Finnish meat production and in Atria.

Corporate image advertising makes a point

SOC

IAl R

ESP

On

SIBIlITy

Atri

a su

omi


Animal welfareAnimal health and good output primarily depend on the professionalism of producers, good care of the animals, systematic feeding and sound management of conditions. by providing advice to contract farms, Atria shares the task of monitoring and developing animal welfare at the farm level with producers. Atria has prepared production handbooks on each production species to assist producers; these handbooks provide clear guidance on the breeding, feeding, living conditions and health care of animals. Atria’s contract producers are required to comply with the instructions in the handbooks, and their operations are monitored through veterinary checks at intervals of 1– 12 months, depending on the type of farm.

Atria’s own expert veterinarians lead the workAt Atria, the promotion of animal welfare is managed by Atria’s own expert veterinarians. Progress is measured by agreed indicators. when alert limits are exceeded, the farm in question is contacted and the issues detected are corrected in cooperation between the producer and the veterinarian in charge. Any observations, contacts and measures regarding individual farms are recorded in the customer information system. repeated offences can lead to the termination of the production contract. over the long term, animal welfare is promoted within the framework of Atria’s development projects and in collaboration with active operators in the sector.

wElfARE QUAlITy PROJECT TO CHART THE lIVInG COndITIOnS Of PIGS

welfare Quality measurements were carried out at Finnish pork farms in the autumn of 2011. Atria’s chain was best represented in the measurements among Finnish meat producers. The wQ measurements assign to each farm points for a variety of welfare-related issues. The resulting index stresses factors measured through observation, such as pathological symptoms and behaviour.

Finnish pork farms ranked well above the level in central european in comparison. All the farms in Finland were ranked as either ‘good’ or ‘excellent’. According to this study, rooting and foraging material is the most crucial external factor determining the welfare of both breeding sows and fattening pigs. The space available for each animal and the stimulating quality of bedding material were also found to be crucial welfare factors.

CASTRATIOn AnAlGESIA

All male piglets are castrated when less than one week old to prevent boar taint. An amendment to legislation regarding the provision of veterinary medicines to farms, in force since the spring of 2011, enabled the introduction of analgesia in castration. Atriasika requires that all its producer farms use analgesia in castration. The application of analgesia is monitored by checking the pharmaceutical records kept by farms. besides the ethical advantages, the use of analgesia also has a clear production-enhancing effect.

work on the castration issue continues, as the long-term target is to give up entirely castration in the Atria pork chain by 2016.The porcine circovirus vaccine was also introduced in the autumn of 2011. All piglets that are passed on in the chain are

vaccinated against it at three weeks. The circovirus vaccine promotes swine health and is likely to result in a more even quality of piglets and fattening pigs, lower nursery mortality and steadier daily growth.


Atri

a su

omi


Targets 2011 Results 2011 Targets 2012

AtriaSika (pig)

•developing a less painful method of castration of piglets. The target is to discontinue the practice of castrating piglets without anaesthetics in 2011 and to give up castration altogether by 2016.

•intact pig-tails by 2014. development of production conditions so that tail-biting is eliminated.

•reduction of slaughter rejections.

•Atria adopted analgesia in castration in november 2011.

•The occurrence of tail-biting was much lower in 2011 than the year before. occurrences dropped by 14% year-on-year.

•Full and partial carcass rejections fell from 2010. The drop in full carcass rejections was 20%.

•research continues into alternatives to castration.

•reduction of tail-biting.•reduction of full and partial slaughter

rejections.•research cooperation to promote

animal welfare.

AtriaNauta (bovine)

•Promotion of calf welfare.•Active national promotion of cattle health

care. implementation of new forms and reporting practices in 2012.

•safer beef chain, improved quality reporting•suitability of visual cattle assessment as a

production development tool.

•The quality and welfare of calves was improved in cooperation with producers. best practices were reported in the producers’ magazine, at training events, on the website and on farm visits. eid-tags, which significantly facilitate the record-keeping of animal treatment practices, were introduced. Around 1,000 customers acquired the “calf Pass” to demonstrate their competence in calf care.

•The health care visits of naseva (Finnish cattle farm health care monitoring system) were revised. Veterinary specialists were trained and improvements to the control visit form and reporting have been initiated.

•The information system application for the quality reporting development platform was completed.

•research began on the applicability of the visual assessment based QbA indicator, which is part of the wQ welfare standard, as a production development tool.

•information system revisions to develop quality reporting.

•development of cattle health through the national cattle health care database (naseva). introduction of new naseva forms and reporting practices in 2012.

•investigation regarding the suitability of the QbA indicator as a production development tool to be completed.

•research cooperation to promote animal welfare.

AtriaSiipi (poultry)

•measures to comply with the requirements of the eU broiler welfare directive.

•Guidance and farm audits in connection with the Family Farm concept and quality improvement.

•Atriasiipi production guidelines for farms were updated to comply with the new broiler welfare directive. Producers were provided with guidance and training on the new requirements.

•every one of Atria’s 78 contract production farms signed an agreement on consumer-to-farm traceability for Atria chicken fillet products.

•renovation of the chicken hatchery.•research cooperation to promote

animal welfare.

2011 – YeAr of the cAlf

Atrianauta, the beef division in Finland, collaborated with the Association for Animal disease Prevention (eTT) on the “Katse vasikkaan” (“eyes on calves”) campaign in 2011. The target groups included dairy, suckler cow and feedlot farms and calf-rearing facilities. several producer events were arranged over the course of the year in cooperation with various stakeholders. The “class A calf Pass” certificate, based on the theme year’s online learning materials, was acquired by 1,000 individuals, a large number of them Atria producers.

Atrianauta also participated in the planning of the animal flow report, which was set up in connection with naseva, the cattle farm health care monitoring system in Finland. The report will help to identify potential problems more easily and facilitate problem-solving at farms.

The best calf rearers were rewarded on a cruise organised for farmers in the autumn. The criteria were that the calves sent from the farm had to be in perfect health and enjoy good growth, there were no quality defects and none of the calves leaving the farm had perished during the growing and finishing period.

Key animal welfare development projects and targets reached in 2011 by Atria finland

SOC

IAl R

ESP

On

SIBIlITy


Atria GroupAtria and the entire food industry depend on a healthy environment. Atria Group’s environmental responsibility is built around three main elements:•taking the environment into consideration at all

operational levels,•identifying the indirect environmental impact of various

stages of the operating chain, and•reducing the direct environmental impact of operations.

The key environmental aspects, which can be influenced through our own actions, are the consumption of energy and water, wastewater production and the generation of municipal waste. Transportation and primary production have a significant indirect impact on the environment. The company is aware of these impacts and monitors key variables, such as the fuel consumption of vehicles. in primary production, we guide farms

enVironmenTAl resPonsibiliTy

Key results environmental responsibility

Targets 2011 Results 2011 Targets 2012 Read more•reducing the direct

environmental impact of industrial operations.


•At Group level, energy consumption has evened out and energy efficiency has been improved.

•Greenhouse gas emissions from own production of heat are low, at an average of 118 co2ekg/t.

•At Group level, water consumption relative to production output has remained at a moderate level. Total water consumption increased by four percent due to the increased output of the Pit Product plant in russia.


•There were no cases of environmental damage or environmental negligence leading to significant fines or reprimands at Atria’s production plants.


•significant investments in the improvement of energy efficiency and production conditions, page 30.


in environmental efficiency and recommend that they make a commitment to comply with the conditions for environmental subsidies from the european Union.

environmental management at Atria Finland and, in some plants, at Atria scandinavia is based on an environmental management system certified in compliance with the iso 14001 standard. in other business areas, the company strives to achieve a corresponding level of environmental management. environmental solutions are developed in collaboration with local environmental groups and through networking with the best experts in the area. in Finland, Atria has a representative on the environmental committee of the Finnish Food and drink industries’ Federation. This gives us access to the latest information and best practices to support continuous improvement.


EnVIR

On

MEn

TAl R

ESP

On

SIBIlITy

Business Area Quality system Environmental system Plants affectedAtria finland iso/iec 17025:2005 (laboratory

accreditation)nurmo, Kuopio, Kauhajoki

sFs-en iso 9001:2000 nurmo, Forssa, Kuopio, Kauhajoki, Karkkila, seinäjoki

iso 22000:2005 nurmo, Karkkila, Forssa

sFs-en iso 14001:2004 nurmo, Kuopio, Forssa, Kauhajoki, Karkkila, seinäjoki

monitoring of air quality,environmental management:seinäjoki and Kuopio region Air Quality monitoring Group, bioindicator study

seinäjoki, Kuopio

Atria Baltic iso 22000:2005 Valga, Vastse-Kuuste and logistic centre at Tartu

iso/iec 17025:2006 (laboratoryaccreditation)

Valga

Atria Russia iso 9001:2000 campomos

GosT r 51705.1-2001, europeanParliament and commission decree(ec) no. 852/2004, 29 April 2004 onfood hygiene.

Pit-Product, campomos

Atria Scandinavia

brc Global standard - Food (number5: January 2008) class A

sköllersta, Tranås, Falköping, skene, moheda, borås, Horsens, Halmstad

The iKeA way on Purchasing Food (iwAy)

borås, Falköping, sköllersta

brc Global standard for Food safety(number 5: January 2008) class b

sköllersta, malmö

ds/en iso 9001:2000 Horsens

iso 14001:2004 sköllersta

organic production in accordancewith council decree (eTy) no. 2092/9

Tranås, moheda, borås

organic production in accordancewith the KrAV regulations

Falköping

CR Report 2011 Quality and enviromental systems in Atria Groups´s plants

Atria’s bovine slaughtering on the cutting edge in EuropeAtria is investing approximately eUr 26 million in building and renovating the Kauhajoki bovine slaughterhouse and cutting plant. This slaughterhouse will count among europe’s biggest and significantly improve the productivity of Atria’s meat-cutting operations: •to be completed in early 2013•raises Kauhajoki’s slaughtering capacity from

26 to 40 million kilograms a year•enables the processing of larger animals•the facilities, process technology and phasing of work

have been developed to achieve optimal results as regards animal welfare, production hygiene, production efficiency and work safety

•the main machine supplier is mPs red meat slaughtering, a global market leader in meat processing systems; the main building contractor is lemminkäinen

Hav

ainn

ekuv

a Ar

kkite

htito

imis

to l

iark

oy

serg

ey G

rach

ev


Energy consumptionin the food industry, energy consumption is highest in various manufacturing-related heating and cooling processes, as well as in the maintenance of material flows and the refrigeration chain. Total energy consumption has been stabile in 2011. Production volumes has affected unfavourably to energy efficiency which declined by 2.5%.

water consumptionThe food industry uses large amounts of water, mainly because of production hygiene requirements. The improvements of production hygiene at the russian plants in the period under review led to an increase in overall water consumption. The total water consumption in the Group increased by 4 percent. water consumption efficiency stayed at the level of fields average 5.1 m3 produced tonne. The water consumption by Atria Finland is below the average, less than 3.9 m3 produced tonne.

Atria strives to minimise the environmental impact of water consumption in cooperation with local utilities by increasing the use of surface water when needed and levelling off consumption peaks.

1) eTl environmental responsibility report: relative water consumption in Finland’s food industry in 2009 was 4.3 m3/t

wastewaterThe volume of wastewater generated is almost as high as Atria’s water consumption. The wastewater volume was estimated to total 2.7 million cubic metres in the monitoring period. At the larger production sites, Atria pretreats its effluents before flushing them into the municipal sewage network. Plant-specific environmental permits determine the target values for wastewater quality. The plants monitor compliance with the target values carefully. The bod load of Atria Finland’s effluents decreased by a significant 20% in the period under review, thanks to the modernisation and

Atria FinlandAtria scandinaviaAtria russiaAtria baltic

GJ2,000,000

1,500,000

1,000,000

500,000

0

Energy consumption

2009 2010 2011 2009 2010 2011

renewable sources

non-renewable sourcesslowly reneable sources

GJ700,000

600,000

500,000

400,000

300,000

200,000

100,000

0

direct energy consumption by primary source

renewable sourcesnon-renewable sources

Indirect energy consumption by primary source

Atria Group

Atria Russia’s Gorelevo plant in St Petersburg represents the latest western process technology in the meat industry. In 2012, the plant will be certified according to the FSSC 22 000 standard.


2009 2010 2011

GJ1,200,000

1,000,000

800,000

600,000

400,000

200,000

0


optimizing of the pre-treatment facility.As Atria’s scandinavian and estonian business areas do

not measure bod, their load has been estimated based on the load generated by a similar facility.

Greenhouse gas emissionsGreenhouse gas emissions arising from the production of operating energy (calculated as carbon dioxide equivalents) increased during the monitoring period but proportioned to production greenhouse emissions has been relanvantly low, on average 118 co2ekg / produced tonne.

food production waste and by-productsThe by-products of food production are carefully utilised. Among the by-products that are useless for Atria’s core business, 98% are still reused one way or another. The market price of raw materials and local infrastructure play a key role in the eventual destination of by-products.


m3

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0

water consumption

2009 2010 20112009 2010 2011

2009 2010 2011

2010 2011

surface waterGroundwater

m3

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0

water consumption by main source

t1,200,

1,000 800

600

400

200

0

BOd emissions total

water treatment on sitemunicipal water treatment facility

wastewater treatment


t80,00070,00060,00050,00040,00030,00020,00010,000

0

Greenhouse gas emissions, CO2

Hazardous wasteotherslaughter wastelandfillincinerationrecoveryrecyclingreusecomposting

2009 2010 2011

t160,000

120,000

80,000

40,000

0

Total weight of waste by type and disposal method

EnVIR

On

MEn

TAl R

ESP

On

SIBIlITy


Atri

a su

omi


Significant investments in the improvement of energy efficiency and production conditionsAtria’s greatest environmental challenges arise from the energy savings target of 9% from the 2005 level by 2016, laid down in the national energy efficiency action plan. energy efficiency investments started to bear fruit in 2011. The absolute energy consumption by Atria Finland has declined, and the results of energy efficiency work have been impressive. A total of eUr 5 million has been invested, for example, in improved heat recovery and investments that not only seek to save energy but also to influence production conditions to improve product safety and quality and ergonomics.

Atria finland Atria Finland’s environmental management is handled by a steering group, which works under the management Team and is in charge of planning and monitoring environmental manage-ment. The steering group has representatives from purchasing, production, product development, packaging design and energy production. The composition of the team ensures that manage-ment encompasses all of the areas in which Atria can control its environmental impact. The group analyses the results achieved in the previous year, discusses the required investments and sets the targets for the following period.

in 2011, Atria Finland ended a three-year environment strategy period, which sought to support the sustainable use of natural resources, with metering equipment correlated to production numbers. The most important and extensive objec-tive, the improvement of energy efficiency, was successfully achieved during the period.

KarkkilareachedTarget -9% by 2016 Forssa

nurmoKuopioKauhajoki

mwh/akwh/product kg3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0

0,7

0,6

0,5

0,4

0,3

0,2

0,1

0

Energy consumption

Energy consumption

2009 2010 20112009 2010 2011

Various packaging solutions were used to affect a product’s environmental impact during its life-cycle. The use of plastic in packaging has been reduced by reducing package depth and weight without compromising product safety. The amount of plastic used was reduced by 10 % during the strategy period. The use of metal packaging, such as aluminium trays, was also reduced in the period by 50 % by making packages lighter and replacing aluminium packaging with cardboard. The use of recyclable cardboard packaging was extended to cold cuts and convenience foods.

The objectives of the new strategy period have not changed significantly. The objectives have been adapted to fit changes in the operational environment, of which the most significant have been the advancement of energy efficiency, the prevention of waste generation, and the optimised steering of by-product flows.

Atria has made significant invest-ments in the modernisation of the production environment; in addition to energy efficiency, this has improved product safety and quality and ergo-nomics in the workplace.



Reduction of waste helps restrict the environmental impacts of food processingAtria has participated in the Foodspill project coordinated by mTT Agrifood research Finland from 2010 to 2012. The project aims to come up with a first estimate of the volume of food waste arising in the Finnish food production chain. The project has also focused on the reasons for waste and its impacts on the environment and the economy.

The impacts of food production and consumption on the environment and the economy are significant: food accounts for more than a third of the environmental impact of Finnish households. The waste of edible food is ethically, ecologically and economically unsustainable.

Through its participation in the project Atria has gained valuable knowledge of the origin and potential means of reduction of food waste in households and in the restaurant and catering industry. As expected, the industry accounts for the smallest share of total food waste arising in the chain, but Atria holds itself responsible for developing its product offer with the aim of minimising food waste where most of it arises – in households. in the cold cuts product group, for instance, Atria has a broad selection for different consumer needs, from 100 g packs to large unsliced cold cut sausages.

Objective Target Programme management of energy consumption (electricity and heat)

As stated in the national energy efficiency action plan: relative consumption down by 9%, compared with 2005

•implementation of the nurmo plant energy audit and analysis measures.

•improving the efficiency of the controls of cold stores and refrigeration systems

•Profitably increased heat recovery

management of water consumption

relative water consumption down by 1% by 2014, compared with 2011

•more effective recycling of water and identification of new recycling possibilities

•identification of waste through new consumption monitoring and alerts

•optimisation of water consumption in process washes

source reduction relative mixed waste volume down 20% by 2014, compared with 2011

•optimised steering of by-product flows •improved sorting •Planning the location of waste containers and

collection points •sharpening of procedures •choice of partners

legality monitoring and attainment of measurable target values determined by environmental permits

•comprehensive monitoring, assignment of responsibility to respond.

Atria finland’s environmental objectives, targets and programmes for 2012–2014

EnVIR

On

MEn

TAl R

ESP

On

SIBIlITy


FinAnciAl resPonsibiliTy

Its all about profitabilityby economic responsibility, Atria refers to meeting its financial targets in such a way that it can generate long-term financial added value for its shareholders and other stakeholders and increase well-being in the surrounding communities and society.

in order to reach the financial targets, Atria’s business must first and foremost be profitable. This is supported by good competitiveness and efficiency, together with business risk management.

For Atria, economic responsibility also means healthy

and responsible business practices. corporate responsibility, decision-making and administration are subject to national legislation and regulations, as well as the corporate Governance code for Finnish listed companies.

Profitability and efficiency create the preconditions for assuming social and environmental responsibility. Atria believes that socially and environmentally responsible conduct also works in the other direction by strengthening economic responsibility.

distribution of economic value added by Atria

Customersconsumer goods retail trade marketFood service customersFood industryexport customers

Atrianet sales and other operating income1,310 meUr

PartnersPrimary production in particularPurchasing and other expenses1,008 meUr

Personnelsalaries and benefits182 meUr

SocietyTaxes and social security expenses52 meUr

Shareholdersshares 1)

6 meUr

financiersFinancial expenses14 meUr

Growth investmentsGross investmentsresearch and development59 meUr

1) board of director's proposal

Atria production plant in Nurmo.


dE

SCR

IPTIO

n O

f THE O

RG

An

ISATIOn

descriPTion oF THe orGAnisATion

Basic information about Atria GroupAtria Plc is a strongly growing Finnish listed company in the food industry which is rapidly expanding its international presence. Atria Group is one of the leading food industry companies in Finland and in the nordic countries, russia and the baltic region. The parent company, Atria Plc, and its subsidiaries make up the international Atria Group, which has its registered office in Kuopio. Atria’s head office is located in seinäjoki.

Atria’s net sales in 2011 amounted to eUr 1,302 million and it employed an average of 5,467 persons. The Group is divided into four business areas: Atria Finland, Atria scandinavia, Atria russia and Atria baltic.

Atria’s customer groups are the consumer goods retail trade, Food service (1 customers and the food industry. in addition, it has a Fast Food concept business based on its own brands. Atria’s roots go back to 1903, when its oldest shareholding cooperative was founded. Atria Plc’s shares are quoted on the nAsdAQ omX Helsinki ltd stock exchange. The company has approximately 11,340 shareholders.

Atria Plc’s products include fresh and consumer packed meat, meat products, convenience foods, poultry products and delicatessen products. Atria produces meat products from pork, beef and poultry. The processed meat products include cold cuts and sausages. convenience foods include home food products as well as fast food and hot-dog stand products. Atria did not receive any awards during the reporting period.

1) includes hotel, restaurant and catering enterprises as well as public administration customers.

Atria Plc is a member •in Finland: of the Finnish Food and drink industries’

Federation (eTl), the international chamber of commerce, the norden Association promoting official and unofficial cooperation in the nordic region, as well as the Pellervo confederation of Finnish cooperatives

•in russia: of the st Petersburg and leningrad oblast meat association and food industry association and east office, which promotes excellence in russia

•in sweden: of the food industry employers’ association livsmedelsföretagen (li), the swedish meat industry Association (KcF), the swedish Frozen Food institute, Grocery manufacturers of sweden (dlF), the swedish institute for Food and biotechnology (siK), ideon Agro Food and the innovation Pioneers.

•in estonia: of the estonian Association for Personnel development PAre, the estonian chamber of commerce and industry, Gs1 estonia mTÜ and the Association of estonian Food industry.

Atria Group key indicators

2011 2010net sales, eUr million 1,301.9 1,300.9ebiT, eUr million 8.0 9.8ebiT, % 0.6 0.8Profit before tax, eUr million -4.7 0.3earnings per share, eUr -0.24 -0.18equity ratio, % 39.5 40.2Gross investments, eUr million 47.0 46.2Gross investments of net sales, % 3.6 3.5Average personnel 5,467 5,812


Atria’s strategyAtria’s mission is Good food – better mood. Atria’s visionis to be the first choice for consumers and customers infresh foods in the baltic sea region and european russia.To put the vision into practice, Atria applies a strategy of profitable growth, with which the strategy, extending to 2013, has been aligned. The strategy dictates that Atria look for growth in the traditional meat and meat processing market and also more extensively across the entire food sector, but particularly in the fresh food segments. Atria aims to grow organically but complementing acquisitions are also possible.

Atria’s competitive strategy is based on productleadership, in order to gain long-term competitiveadvantage and stand out from competitors. To achieveoptimal success, product leadership requires consumer driven operations and clear segmentation of product lines. sustained success also requires a comprehensive and balanced offering, which Atria is well positioned to provide as one of the leading operators in the sector.

Atria also aims to be the best employer: the tools aregood management and systematic development of skillsbased on the strategy.

Atria’s values•consumer and customer focus•individual and co-operative initiative •networking – teamworking•cost-efficiency

Vision

Strategy 2010–2013

Strategic means

Mission

Atria is the first choice for consumers and customers in fresh foods in the Baltic Sea region and European parts of Russia.

1. significantly improving the profitability of international operations.2. strengthening the market position and organic growth.

1. Achievement of long-term competitive advantage based on product leadership, which is based on proprietary brands.

2. investments in Atria’s brands and profitability within Atria Finland. improving profitability will entail restructuring operations.

3. Product group and brand strategy creation and production restructuring within Atria scandinavia.

4. rapid profit improvement in Atria russia’s business areas. 5. increase in sales and full restructuring of operations in estonia.6. reduction of working capital.

Good food – better mood.

descriPTion oF THe orGAnisATion

Examples of high-end, mid-range and low-end products

Lönneberga is a strong and well-known brand in Sweden. It datesback to the 1930s and has an image of excellent quality.

The Kulinaari products come from the best hams and roasts. They contain no monosodium glutamate and the products come in modern recyclable paperboard packages.


Growth through product leadershipAtria will develop its product groups using product leadership as the guiding principle. Product leadership is Atria’s competitive strategy to gain long-term competitive advantage and clearly stand out from competitors.

in line with the product leadership model, Atria is concentrating its r&d and marketing efforts on strengthening its own brands. strong brands put Atria in an excellent position to develop products with a higher degree of processing and more profitable price levels. The goal is to develop entirely new, innovative product groups, concepts and business models.

In accordance with the product leadership strategy, Atria will do the following:•develop proprietary products that genuinely bring added value to consumers•Focus on its own brands•Avoid monitoring or copying competitors’ products•Heavily invest in improving consumer understanding and in market research•Heavily invest in product development and marketing•maintain product innovations as a key preference, aiming for pioneering

innovations in all business areas •create a balanced product portfolio which also comprises longer-term

development projects•Analyse and carefully select the product groups in which product leadership is

targeted; product leadership does not apply to all product groups•Apply sustained efforts; the successful development of product range

management, r&d and marketing processes takes 2–3 years.

Atria’s product leadership strategy

1. Product leadership

Through product leadership, Atria will improve its competitiveness in the

long term. The company will develop its product groups throughout all price

categories.

2. Cost leadershipefficient operations and

sufficient operational scale create the preconditions for profitable

operations.

3. Customer orientationAtria enhances its attractiveness

as a supplier through excellent offerings and a deep understanding

of consumers.

The CampoMos brand has revolutioni-zed the cold cuts market in Russia. The brand led the way by declaring the meat content on the label, a practice which local competitors have begun to use in their own packages.

Sibylla is one of Sweden’s best-known brands and it is rapidly expanding into other markets too. It launched a new Sibylla Hot Dog double bun last year.

Black pudding is popular traditional fare in Sweden, and Gea’s is the best-known brand in the category. Its market share in Sweden is 80 per cent.

Atria’s casseroles are popular meals with a steady demand in the Finnish consumer goods market.

dE

SCR

IPTIO

n O

f THE O

RG

An

ISATIOn


ATRIA fInlAndAtria Finland’s key companies are Atria Finland ltd, A-Farmers ltd and A-rehu oy. Atria Finland ltd develops, produces and markets Finnish fresh food products and related services. Atria Finland ltd has production plants in nurmo, Forssa, Kuopio, Kauhajoki and Karkkila.

The A-Farmers ltd subsidiary manages meat procurement and A-rehu oy manages the feed business. The production plants are located in Varkaus and Koskenkorva.

Atria Finland’s net sales in 2011 increased by more than three percent. net sales for the reference period were weakened by the labour market disputes in the food industry in the spring 2010. Full-year ebiT, eUr 19.3 million, was clearly weaker than in the previous year. The result for the first two quarters was affected by instability in the market, a poor sales structure and increased raw material prices. in the third quarter, the meat market turned around and Atria Finland’s ebiT grew.

ATRIA SCAndInAVIAAtria scandinavia’s key companies are Atria retail Ab, Atria Foodservice Ab, Atria deli – ridderheims & Falbygdens Ab, Atria concept Ab and Atria denmark – 3-stjernet A/s. Atria retail Ab supplies meat products and convenience foods for the consumer goods retail trade. Atria Foodservice Ab is a supplier of meat products and convenience foods for the restaurant and catering business. Atria deli – ridderheims & Falbygdens Ab supplies fresh delicatessen products for the consumer goods retail trade and restaurant and catering business. Atria concept Ab develops the sibylla fast food concept. Atria denmark – 3-stjernet A/s supplies cold cuts for the consumer goods retail trade particularly in denmark.

in 2011, Atria scandinavia continued to develop positively. Atria scandinavia’s ebiT was on a par with the previous year at eUr 13.8 million. The company’s net sales fell by approximately four percent to eUr 374.9 million. Atria scandinavia’s development programme continued according to plan. The saltsjö-boo facility was closed down and the production of black pudding was transferred to the Tranås plant.

ATRIA RUSSIAAtria russia operates in russia under two main brands. Processed meat products, such as sausages and cold cuts, are produced under the Pit-Product brand. Processed meat products, cold cuts, pizzas, cooking sausages and fresh meat are sold under the campomos brand. Atria russia has concentrated its processed meat production to the Gorelovo and sinyavino plants in st Petersburg. Pizza production and a logistics centre operate in moscow. A pig breeding facility also

operates in the moscow oblast.sluggish sales affected Atria russia’s net sales in 2011. net

sales fell slightly to eUr 123.0 million. The company’s ebiT was still negative, although the loss abated significantly to eUr -18.9 million. Atria russia’s earnings took a turn for the better in the second half of the year. The improved results were due to improved cost-efficiency, price rises and a streamlining of the product range.

Breakdown of net sales

(1,302 EUR mill.)by business area

Atria Finland 60 %

Atria scandinavia 28 %

Atria russia 10 %

Atria baltic 2 %

Consumer goods

retail trade market

food Service

food industry Concept

Export customers

Atria Finland ■ ■ ■ ■ ■

Atria scandinavia ■ ■ ■ ■ ■

Atria russia ■ ■ ■ ■

Atria baltic ■ ■

Customers are categorised by business operation as follows:

Consumer goods

retail trade market

food Service

food industry Concept

Export customers

meat ■ ■ ■ ■

meatproducts ■ ■ ■ ■

meals ■ ■ ■

Poultry ■ ■ ■

delicatessen products ■ ■

in addition, Atria scandinavia has the deli and denmark customers as its own customer group.

bUsiness AreAs

Business operations are categorised by customer as follows:


ATRIA P

lC

Brandsstrong regional and international brands are an essentialelement of Atria’s growth strategy. by investing in them,Atria is safeguarding the competitiveness of its currentproduct groups and services. Furthermore, this makes iteasier for Atria to launch new product groups and foodinnovations. Atria’s goal is to place its brands among thetwo best-known brands in the existing fresh food marketsand emerging meat product and meat industry markets.

leading brands in each business area

Atria finland:

Atria Scandinavia:

Atria Russia:

Atria Baltic:

ATRIA BAlTICAtria baltic operates under three brands: maks & moorits, wõro and VK. The company’s main products are cold cuts, sausages and consumer-packed meat. The baltic production plants are located in Valga and Vastse-Kuuste in estonia.

Atria baltic’s operating losses abated significantly from the previous year. The company’s net sales remained on a par with the previous year at eUr 35.2 million. Profitability improved predominantly through the long-term measures taken to

reduce costs and increase profitability.

Significant changes in Atria’s structureAtria made no new acquisitions in 2011. However, it did focus on concentrating and stabilising operations.

Atria scandinavia closed down the saltsjö-boo facility and the production of black pudding was transferred to the Tranås plant. in early 2012, Atria scandinavia announced to launch

a new programme aimed at streamlining and automating the production of ham products and the slicing of cold cuts. The Halmstad plant will be shut down and production will be trans-ferred to the malmö plant.


ATriA’s corPorATe resPonsibiliTy ProJecTs

endsfInAnCEefficiency improvement and harmonisation of procurement in group Atria Plc continuesimproved efficiency of bovine slaughtering Atria Finland 2013nurmo production plant development programme Atria Finland 2011extension of the chicken hatchery Atria Finland 2012revamp of the organisational structure Atria russia 2011Personnel reorganization Atria russia 2011

HUMAn RESOURCES And SOCIAl RESPOnSIBIlITyAtria meat Technology seminar Atria Plc 2012development of talent management, Atria Talent management programme Atria Plc continuesPersonnel survey Atria Plc 2011early caring Atria Finland continuesimprovement of safety at work Atria Finland continuesAtria JoKo – education for managerial staff Atria Finland 2014Asc sales Academy: sales skills development programme Atria scandinavia 2012managerial training for foremen and coordinators Atria scandinavia 2011managerial training for middle and general management Atria scandinavia 2012development of project skills Atria scandinavia 2012sales skills training, part 1. Atria russia 2011ergonomics charting and improvement programme Atria russia 2011development of the internal recruiting process Atria russia 2011development of clerical employees' occupational health care Atria russia 2012development of employee reward systems Atria russia continues

nUTRITIOn

elimination of artificial additives Atria Finland, Atria

scandinavia 2020elimination of monosodium glutamate (msG) Atria Finland 2012elimination of yeast extract from Atria-branded products Atria Finland 2013development of 'light' product offer Atria scandinavia 2011study on the use of salt Atria scandinavia 2012reduction of additive use Atria scandinavia continuesAdditive-and allergen-free Jussi products Atria baltic continues

EnVIROnMEnTnational energy efficiency action plan Atria Finland 2016reduction of food wastage in the food chain Atria Finland 2012increase of msc-certified seafood products Atria scandinavia continues

endsAnIMAl wElfAREdevelopment of pain-free castration of piglets Atria Finland 2016intact tails of Atria pigs Atria Finland 2013reduction of slaughter rejections in Atria pork chain Atria Finland 2012welfare Quality research project Atria Finland 2012national promotion of cattle health care Atria Finland continuesPromotion of calf welfare, "year of the calf" Atria Finland 2011welfare indicator for Atria beef chain Atria Finland 2013safer beef chain (improved quality reporting) Atria Finland 2012Production requirements imposed by the eU broiler welfare directive Atria Finland 2011

PROdUCT SAfETyiso 22000 certification of production plants Atria Plc 2014Harmonisation of good hygiene practices Atria Plc 2012Harmonisation of the microbiological criteria of raw materials Atria Plc 2012new guidelines for pathogen management Atria Plc 2012survey of conditions Atria Finland 2012Vetävä – a development project for quality control of raw materials and finished products Atria Finland 2012sensory quality assurance Atria scandinavia continuescoordinated information system for deviation reporting Atria scandinavia 2011development of a management system for product information Atria scandinavia 2012implementation of a new laboratory analysis method Atria scandinavia 2012Accreditation of the sköllersta laboratory Atria scandinavia 2013switch from the brc system to Fssc 22 000 product safety compliance Atria scandinavia 2012Gorelovo's Fssc 22 000 certification Atria russia 2012

COMMUnICATIOnSdevelopment of corporate responsibility reporting and related communications Atria Plc continuesincreasing the transparency of the food production chain Atria Finland 2011social media strategy Atria Finland 2012

development of intranet Atria Finland,

Atria scandinavia 2012

development of web strategy Atria Finland,

Atria scandinavia 2012

internal responsibility communications

Atria Finland, Atria scandinavia,

Atria baltic continuesrevamping the website structure to meet the needs of responsi-bility communications Atria scandinavia 2012Training in crisis communication Atria scandinavia 2011


comPArison oF conTenT wiTH THe recommendATions oF THe Gri GUidelines

Page1. Strategy and analysis1.1. ceo’s review 51.2. description of key impacts, risks and opportunities 5

2. description of the organisation2.1. name of the organisation 332.2. main products, services and trademarks 36–372.3. operational structure 362.4. location of the head office 332.5. Geographical location of operations 2–32.6. ownership and legal form of the organisation 332.7. market areas 36–372.8. scope of the organisation’s operations 36–372.9. significant changes in the organisation’s size, structure

or ownership during the reporting period 36–372.10. Awards received during the reporting period 33

3. Report parameters3.1. reporting period 403.2. Publication date of the previous report 403.3. reporting cycle 403.4. contact details 413.5. description of report content 403.6. boundary of the report 403.7. Particular limitations in the scope and definition of the report 403.10. changes in the information previously reported 403.11. significant changes in the scope, definition or measuring

methods of the report 403.12. Gri content comparison 393.13. Policy and current practice with regard to seeking external assurance

for the report 40

4. Governance, commitments and engagement4.1-4.7. corporate governance principles coc4.8. mission, values and ethical principles Ar4.9. How the board of directors oversees the organisation's

social responsibility work coc4.10. evaluation of the board of directors' work coc4.11. Application of the prudence principle coc4.12. Principles and initiatives of external parties recognised

or promoted by the organisation coc4.13. memberships in organisations, associations and lobbying organisations 334.14. organisation's stakeholders 8–94.15. identification and selection of stakeholders 8–94.16. Forms of stakeholder interaction 8–94.17. matters and concerns raised in stakeholder interaction 8–9

PageEnvironmental indicators

en 1 Use of materials 28–29en 3 direct energy consumption of the main sources 28en 4 indirect energy consumption of the main energy sources 28en 8 Total water consumption by source 29en 16 direct and indirect greenhouse gas emissions by mass 29en 21 Total water discharge by quality and destination 29en 22 Total mass of waste by type and disposal method 29en 23 significant accidental emissions and leaks 26en 26 measures to curb the environmental impact of products

and services and the scope of operational impacts 28–31en 28 Total monetary value of significant fines and the number of other penalties

imposed for non-compliance with environmental laws and regulations 26

Product responsibilityPr 1 evaluation of the health and safety effects of the products

and services at the various phases of their life cycle 16Pr 5 operating practices relating to customer satisfaction and results of

customer satisfaction surveys 10Pr 6 Practices supporting compliance with laws, norms and voluntary

regulations concerning marketing communication 22Pr 9 Total monetary value of significant fines and number of other penalties

imposed for non-compliance of laws and regulations governing the delivery and use of products or services 16

FP 5 Production kilograms produced at certified plants 16FP 8 delivery of product information exceeding legal requirements to consumers 18

Animal welfare indicatorsFP 9 Processed volumes of production animals by species 24FP 10 Policies and practices, by species, related to physical alterations

and the use of anasthetic 24FP 12 Animal medication practices and the use of growth promoters by species 24FP 13 Total number of incidents of non-compliance with laws and regulations,

and adherence with voluntary standards related to transportation, handling, and slaughter practices for animals 24

Indicators relating to HR practices and well-being at worklA 2 Total amount and rate of personnel turnover by age group, sex and

organisation’s business area 15lA 7 Frequency of accidents, occupational diseases, lost work days, absences,

work-related fatalities by sector 14lA 10 Average training hours per employee 14lA 12 Performance appraisals and performance reviews 12–13

reported

Partly reported


rePorTinG PrinciPles

This report describes the impact Atria has on its operating environment and on society as a whole, as well as how Atria takes corporate responsibility into account in its current and future operations. The report describes Atria’s key events, results and impacts in 2011 from the point of view of corporate responsibility.

in applying the general principles for corporate responsi-bility in its various business areas, Atria complies with good practice while respecting the various views of its stakeholders with regard to responsibility and ethical operations. These views and operations cannot, however, be in conflict with local or international legislation, Group management principles or Atria’s values.

safe Atria Quality management -team, which has members from every business area, is responsible for monitoring and developing Atria’s corporate responsibility policy. The team is led by the Atria Finland director for product safety and quality.

As the basis for its reporting, Atria uses the international Global reporting initiative (Gri) guidelines, a three-pillar model in which corporate responsibility is viewed from the angles of economic, social and environmental responsibility. Atria has

selected from the Gri guidelines the essential measurements and indicators relevant to its operations and stakeholders. The essential elements have been defined on the basis of stakehol-der surveys and various reports.

This Atria corporate responsibility report has not been cer-tified independently. The text and other presentation methods of the corporate responsibility report do not follow the order or headings of the Gri guidelines for key indicators. However, the table at the end of the report contains a comparison of the report’s coverage in relation to the Gri guidelines.

Atria’s first corporate responsibility report was published in 2010. Previously, corporate responsibility was presented and reported on as part of the Annual report. The report covers the company’s operations for the financial period 1 January to 31 december 20111. Atria publishes the english report in electronic format.

As a rule, Atria’s corporate responsibility report covers its operations Group-wide. The corporate responsibility report is an independent entity describing Atria’s corporate responsibility practices. However, the administration section is not included in the report. instead, it can be found in Atria’s 2011 Annual

report, which is available on Atria’s web site at www.atriagroup.com.

The methods used to measure corporate responsibility vary greatly across Atria’s various business areas. The reason for this is the variations in the nature of the business areas and stakeholder needs. From the point of view of reporting, the most comprehensive set of key indicators is provided under Atria Finland. A set of animal welfare indicators is still lacking in other business areas due to strategic differences in meat procurement. new indicators to be included in the corporate responsibility report will be added in the coming reporting years, in accordance with Atria’s plan.

The transparency and openness of operations are an inte-gral part of Atria’s corporate responsibility policy. Accordingly, Atria communicates on its corporate responsibility activities to its internal and external stakeholders in an open, comprehensi-ve and systematic manner.

1) some of the matters, timed in 2012, are raised in this report because of their topicality.


ATRIA PlCHead office:itikanmäenkatu 3, seinäjoki Finlandbox 900, Fi-60060 ATriATel. +358 20 472 8111Fax +358 6 416 8440

ATRIA fInlAnd lTdHead office:Atriantie 1, seinäjoki, Finlandbox 900, Fi-60060 ATriATel. +358 20 472 8111Fax +358 6 416 8440

Invoicing address:box 1000Fi-60061 ATriA

[email protected]@atria.fiwww.atria.fi

ATRIA SCAndInAVIA ABoffice:Augustendalsvägen 19box 1229se-131 28 nacka strandswedenTel. +46 10 482 30 00Fax +46 19 230 022

sockenvägen 40se-697 80 sköllersta, swedenTel. +46 10 482 30 00Fax +46 19 230 022

[email protected]

ATRIA dEnMARK3-Stjernet A/S office/plantlangmarksvej 1dK-8700 Horsens, denmarkTel. +45 76 28 25 00Fax +45 76 28 25 01

ATRIA RUSSIAOOO Pit-Productobukhovskoy oborony pr. 70rUs-192029saint-Petersburg, russiaTel. + 7 812 33 66 888 +7 812 412 88 22Fax + 7 812 346 [email protected] OOO MPZ CampoMosryabinovaya street 32rUs-121471moscow, russiaTel. +7 495 448 67 04 +7 495 448 12 55Fax +7 495 448 [email protected]

ATRIA BAlTICAtria eesti Asmetsa str. 19ee-68206 Valga, estoniaTel. +372 76 79 900Fax +372 76 79 901

[email protected]@atria.eewww.atria.ee

ATRIA'S LOCATIONS

conTAcT inFormATion

nurmo

Kuopio

ForssaKarkkila

st Petersburg

moscowValga

Vastse-Kuuste

Horsens

moheda

Tranås

Halmstadskene

boråsFalköping

sköllersta

seinäjoki

Kauhajoki

malmö


Good food - better mood.Atria's corporate responsibility is cristallized in the sentence: “Good food – better mood”. For Atria, the concept of good foodcovers the entire food chain from primary production to the consumer’s table. Atria’s good food is produced in a responsible and ethical manner; it is of high quality, it is safe and it generates a better mood for all our stakeholders.

HÄMEEN KIRJAPAINO OY 2012

441 209Printed matter

Atria Corporate Responsibility Report 2011safe Atria Quality group, chairperson: director merja leino

reporting work management: corporate responsibility manager eeva Juvareport editing and layout: selander & co communications Agency

illustration: ossi PirkonenPrinting: Hämeen Kirjapaino oy, 4/2012

Atria Plcbox 900, Fi-60060 ATriA

Tel. +358 20 472 8111Fax +358 6 416 8440

www.atriagroup.com

Atria Corporate Responsibility Report 2011 · nurmo Kuopio Forssa Karkkila st Petersburg moscow...

Documents

Transcript of Atria Corporate Responsibility Report 2011 · nurmo Kuopio Forssa Karkkila st Petersburg moscow...