27.11.2019

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Atria Capital Markets DayAtria Russia27.11.2019

Ilari Hyyrynen, Executive Vice President Atria Russia

Contents

1. Q3 2019 results & Atria Russia

2. Russian market update

3. BA Russia strategic focus areas and actions taken

CMD 27.11.2019 / Ilari Hyyrynen, Atria Russia2

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Q3 2019 results &Atria Russia

Atria Russia, Q3/2019

• The decline in net sales was caused by low performance in retail.• Development of Food Service has been very positive (+17%) Q3 y-o-y.• Sibylla Concept sales has been positive (+6%) Q3 y-o-y.• Raw-meat price turbulence has stabilized and sales price increases have taken place in all

business segments.• Macroeconomic indicators have developed moderately, but real disposable income continues

to decline.

4

MEUR Q3 Q1–Q3 FY

2019 2018 2019 2018 2018

Net sales

20.7 19.4 54.9 55.2 75.1

EBIT 0.4 -0.8 -2.0 -1.4 -4.0

CMD 27.11.2019 / Ilari Hyyrynen, Atria Russia

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Atia Russia, locations SPb

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SPb,Office, Admin

Gorelovo,Manufacturing & warehousing

Sinyavino,Manufacturing

Moscow:Sales OfficeLogistics Center (3PL)

Manufacturing sites

6

Sinyavino• 9 644 m²

• 13 buildings (1-2 with all administration and manufacturing, 11 service buildings)

• Capacity is 250 tons of products per month

CMD 27.11.2019 / Ilari Hyyrynen, Atria Russia

Experts have acknowledged “Atria Russia” factory in Gorelovo to be the most

technically advanced meat processing plant in north-western Russia

Gorelovo

• 22 000 m2

• Meat processing plant and logistics center.

• Factory layout copies Atria’s production site in Nurmo, Finland.

• Capacity is 115 tons of products per day.

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Business segments and brands

Retail

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Food Service Fast Food Concept

Russian market update

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Macro Economics

9

2018 2019E 2020B

GDP growth rate 2.3 1.3 1.7

Consumer prices 2.9 4.7 3.0

Private consumption (HICP) 0.1 0.1 1.5

Unemployment rate 4.8 4.6 4.5

• Source: Ministry of economical development of Russia, latest forecast dated 30/09/19, basic scenario.• Analysts expect no growth of GDP in part of commodities and retail

CMD 27.11.2019 / Ilari Hyyrynen, Atria Russia

FMCG and retail development

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Retail formats R12 / August 2019:• Hypermarkets - 4.6%• Supermarkets - 0,8%• Discounters + 83%• Specialty stores + 24,3%• Convinience stores + 9,5%

FMCG segment R12 / August 2019:- Revenue +2.8%- Volume < 0,0%

Retail 1-8 / 2019:- Revenue +1.5% (+2.8%)- Volume <0,0%

Meat category:• Delicacies -3,2 %• Fresh meat -6,4%• Sausages and

frankfurters -1,8%

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Market trends- From hypermarkets to convenience stores

- Sustainability

- Healthy Food

- Quality

- Food safety and origin of the products and

raw-materials

- Ready meals getting more popular

- Out of home and On-the-go

- Promo sales accounts ~70 % of offtake

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Market Share, Saint Petersburg

12 CMD 27.11.2019 / Ilari Hyyrynen, Atria Russia

St.Pete Top-10 Brands in Value. Jan-Aug 2019 vs Jan-Aug 2018

1. Ostankino 17%

(Papa Moshet included)

2. Velikoluksky 11%

3. Cherkizovo 6,9%

…

8. Atria 5 %

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Market Shares, Moscow

13 CMD 27.11.2019 / Ilari Hyyrynen, Atria Russia

Msk Top-10 Brands in Value. Jan-Aug 2019 vs Jan-Aug 2018

1. Ostankino 15%

2. Klinski 9%

3. Velkom 8,3%

…

17. Atria 1,2%

BA Russia Strategic focus areas and actions taken

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15

Atria’s Healthy Growth in RussiaStrategic actions and implications

• Re-launch of Pit-Product, focus on Food Service and Sibylla expansion

• Enables the growth and profitability improvement

• Enhance employer image,secureprofessional and well-motivated staff

CMD 27.11.2019 / Ilari Hyyrynen, Atria Russia

Category and Brand management

Atria Way of Work and Way of Leading (HR)

Sales Excellence

Operations efficiency improvements

Atria Russia focus areas and growth drivers.

Retail Food-service

Fast Food

Serving Retail

partners in Russia with premium

and added value

assortment.

Geographic expansion

with a broad portfolio of categories

and corporate

brand.

Shop in Shop concept.

Continuous growth and

geographical expansion,

export included, by

extended assortment.

16

Growth Growth

CMD 27.11.2019 / Ilari Hyyrynen, Atria Russia

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Actions taken according to strategy• The Sibylla concept has grown as planned.

The number of Sibylla sales outlets has

increased being above 4 000.

• Foodservice sector has grown significantly,

profitability improved.

• Pit-Product re-branding done, active

marketing and promo campaigns started.

• Maintenance investments done for

manufacturing sites and machinery to secure

efficient processes and material flows.

4 CMD 27.11.2019 / Ilari Hyyrynen, Atria Russia

Key Commercial actions to be taken

18

Portfolio

Price

Place

Promotion

People

• New premium novelties.

• SKU optimization

• High‐end positioning in Premium segment.

• Focus on Modern Retail.• Regional expansion to 

Golden cities.

• Secure premium positioning.

• Improve cooperation with Federal Key Accounts.

• Launch new added value assortment. • SKU optimization to increase 

profitability.

• Product‐driven promotion in addition to Price‐driven promotion.

• North‐West region in focus. • First listings to Moscow.

• Promote Finnishness by new Pit.• Launch Social responsibility project.

• Improve efficiency of Sales. Route to market.

• Utilization of gathered market  insight data for promo actions and marketing.

• Efficient NPD process –together with KA’s.

• Improve profitability.

• Frozen – all Russia.• Chilled – North West & 

Center regions.

• Promote international roots.

• Professionalism of sales and marketing team –B2B KAM model in focus.

• Efficient assortment development and expansion

• Maintain profitability.

• Russia & CIS.

• POS promotion.

• B2B KAM model & Professionalism.

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Thank You – Kiitos – Спасибо!