Atria Group's Q4/2006: - Turnover EUR 298.3 million (EUR 259.9 million), growth 14.8 % - Operating profit EUR 17.8 million (EUR 10.3 million) - Comparable operating profit EUR 9.8 million (EUR 10.3 million) - Profit before tax EUR 15.0 million (EUR 8.9 million) - Earnings per share 0.57 euro (0.28 euro). Atria Group 1-12/2006: - Group turnover EUR 1,103.3 million (EUR 976.9 million), growth 12.9 % - Operating profit EUR 41.5 million (EUR 40.2 million) - Comparable operating profit EUR 33.5 million (EUR 40.2 million) - Profit before tax EUR 34.6 million (EUR 37.8 million) - Earnings per share 1.15 euro (1.24 euro). Group During the first part of the year, the net profit was weaker than the previous year in all market areas. Summer sales went well both in Finland and in Sweden, and profit in Russia also took a positive turn during the summer. The rest of the year was a time of positive growth for both the profit and business operations in a wider sense in all business areas, with the exception of the Lithuania. The operating profit for Finnish operations exceeded last year's level in the fourth quarter and amounted to EUR 11.0 million (EUR 6.5 million). The comparable operating profit amounted to EUR 9.2 million (EUR 6.5 million). In Sweden, the operating profit for the fourth quarter was EUR 9.4 million (EUR 1.7 million). The comparable operating profit amounted to EUR 1.7 million (EUR 1.7 million). In Russia sales and profit experienced positive development during the period and operating profit in the fourth quarter was positive. In the Baltic region, development and reorganization of operations continued, but result remained unprofitable because of the weak development in Lithuanian business. The operating profit of the fourth quarter includes EUR 10.1 million of non- recurring revenues and EUR 2.1 million of non-recurring costs. In Sweden, we entered a sales profit of EUR 8.3 million for the sale of the shares of Svensk Snabbmat för Storkök AB. In Finland, a profit of EUR 1.8 million was received from the sale of capital assets. The most significant non-recurring costs were caused in Lithuania by a removal of a brand (EUR -1,5 million) and in Sweden by additional write-offs (EUR -0,6 million). In 2006, the Atria Group implemented a significant change to the organization's operational model. A Management Group was established for the Group. All central group functions are represented in the Management Group: - Primary Production - Quality and Product Safety - International Accounts - Information Management, Steering and Logistics - Finance and Administration - Purchasing and Investments - Human Resources Another crucial reform was the division of the group into three independently accountable business areas, which include Atria Finland, Atria Sweden and Atria Russia and Baltic. The purpose of reforming the operational model is to clarify accountability for business results, enable faster decision-making processes, and especially to weave Atria's international operations more tightly into the group strategy. The new Atria operational model will better support the group's international activities, as well as boosting the operative efficiency and transparency of the business areas. In 2006, the Board of Directors of Atria Group Plc published the economic objectives set for its operations: - Operating profit 5 % - Equity ratio 40 % - Share of international operations 50 % - Return on equity 12 % - Dividend distribution of profit from period 50 % Finland Atria Finland Q4/2006: - turnover EUR 179.9 million (Q4/2005 EUR 165.7 million) - operating profit EUR 11.0 million (Q4/2005 EUR 6.5 million) - comparable operating profit EUR 9.2 million (EUR 6.5 million). Atria Finland 1-12/2006: - turnover EUR 686.1 million (2005: EUR 634.3 million) - turnover EUR 33.4 million (2005: EUR 31.6 million) - comparable operating profit EUR 31.6 million (EUR 31.6 million). There was positive development in sales and market shares. Atria's domestic producer share for 2006 was nearly 30 per cent. When the producer share is considered, Atria is the clear market leader in Finland. The good Q4 result was based on sales volumes growth and strict cost control. Sales of products carrying the Atria label grew 12.9 per cent during the year, which is more than twice the growth of the entire market (5.1 per cent). The summer barbecue season was an especially profitable time for Atria, with market share reaching a record level of 45 per cent. Atria's share of new industry products launched during the year was over 35 per cent. The Nurmo pig slaughtering plant started up during the first part of 2006. After the start-up period, the processing capacity of the plant has levelled out at approximately 3,500 pigs per day. The construction of the Nurmo logistics centre expansion is progressing according to plan. Implementation began in January 2007. By June 2007, the extension will be up and running at 40 per cent capacity and the project will be completed in September 2007. The integration of Liha ja Säilyke Oy's operations and Atria's Meal Solutions business unit progressed according to plan. Liha ja Säilyke Oy's dismissal negotiations were completed in September. Meat products manufacturing was transferred from Forssa to Nurmo at the beginning of 2007. In December, Atria Group Plc's share of A-Tuottajat Oy jumped from 5.4 per cent to 97.9 per cent. At the beginning of September, price increases were implemented in several product groups. Thus, most of the cost increases from the first part of the year could be transferred to retail prices. Christmas season deliveries, especially ham deliveries, were completed successfully. In Finland, the development of Atria operations continued to be strong throughout the year. Atria joined forces with HK Ruokatalo Oy to search for solutions for the weak profits of turkey operations. Atria and HK Ruokatalo established a turkey meat production company, Länsi-Kalkkuna Oy. The ownership of the new company will be equally shared between the companies (50/50). The turkey meat production company launched its production operations at the beginning of 2007. The cooperation covers only primary production, slaughtering and cutting of the meat, which will be combined in Länsi-Kalkkuna Oy. The Atria subsidiary A-Rehu Oy decided to tighten its cooperation with Altia Oy in the feed component trade. A-Rehu Oy will take responsibility for producing cattle feed from feed components emerging from fuel ethanol production. A-Rehu is actively striving to reduce the production costs of farms by inexpensive feed solutions. The agreement made with Altia makes this possible. Sweden Atria Sweden Q4/2006: - turnover EUR 96.0 million (Q4/2005 EUR 76.1 million) - operating profit EUR 9.4 million (Q4/2005 EUR 1.7 million) - comparable operating profit EUR 1.7 million (EUR 1.7 million). Atria Sweden 1-12/2006: - turnover EUR 336.4 million (2005: EUR 314.0 million) - turnover EUR 15.1 million (2005: EUR 7.1 million) - comparable operating profit EUR 7.4 million (EUR 7.1 million). Sales in Q4/2006 were successful in Sweden. The sales of the Lithells brand in the retail sector grew 3 per cent during the period compared to sales in the previous quarter. (Source: AC Nielsen) The price increases implemented during the Q3 period in Sweden showed as a partially positive profit development during the Q4 period and full effects will be shown during the Q1/2007 period. Svensk Snabbmat för Storkök AB, which specialises in local wholesale operations, strengthened its position in the Swedish market. Svensk Snabbmat för Storkök AB and Matgruppen för Storkök i Norr AB signed an agreement on company reorganisation, the result of which was the transfer of Matgruppen i Norr AB's outlets to the ownership of Svensk Snabbmat för Storkök AB. At the same time, the Matgruppen outlet owners became shareholders in Svensk Snabbmat. Atria continues to be a majority shareholder in the company. The combined 2006 turnover of the wholesale businesses now owned by Svensk Snabbmat was more than SEK 500 million. As a result of the business deal, the annual turnover of Svensk Snabbmat will increase to almost two billion krona. Following the re-organisation, Svensk Snabbmat now has a total of 18 offices covering all of Sweden. The acquired companies were consolidated into the Atria Group on 1 November 2006. The joining of Matgruppen with Svensk Snabbmat at the beginning of November improved the profit of the company. The purchase price was EUR 22.1 million. Of the purchase price, EUR 12.8 million were directed into customer relationships. With the deal, goodwill within the group increased by EUR 4.6 million. During the autumn, Atria negotiated to buy Sweden's largest meat company, Swedish Meats. Russia and the Baltic Countries Atria Russia & Baltic Countries Q4/2006: - turnover EUR 27.7 million (Q4/2005 EUR 21.6 million) - operating loss EUR -2.6 million (Q4/2005 profit EUR 2.1 million) - comparable operating loss EUR -1.1 million (profit EUR 2.1 million). Atria Russia & Baltic Countries 1-12/2006: - turnover EUR 104.6 million (2005: EUR 42.7 million) - operating loss EUR -7.0 million (2005: profit EUR 1.5 million) - comparable operating loss EUR -5.5 million (profit EUR 1.5 million). Atria's growth in the St. Petersburg economic area continued strong. Pit- Product's position as market leader in the area was also consolidated. Since the beginning of the year, Pit-Product's total share of St. Petersburg's modern retail markets has increased to 25.1 per cent. In the St. Petersburg area, the growth in demand has focused on increasingly high quality and more processed products and product groups, which are also Pit-Product's key targets of investment. The takeover process of Pit-Product, which was acquired by Atria Group at the end of 2005, progressed according to the set goals. The company's management was reorganised as part of the takeover process. Price increases were implemented during Q3, which had a positive impact on the profit of Q4. The profitability of Pit-Product improved significantly during the latter part of the year and was positive. In October a decision was made to build a logistics centre and meat product factory in the Gorelovo district in Leningrad oblast. The total cost estimate of the new constructions is EUR 70 million. The plant is located on the new ring road, about 20 kilometres from the city centre. Operational reorganisation continued in the Baltic Countries during the review period. The primary aim of the reform is to seek business operation growth, as well as improving profitability for Atria's operations in the Baltics. Another aim is to seek synergy in our Baltic business operations, as well as creating closer co-operation with Atria Group. The new operating method aims at a radical improvement in business thinking, the implementation of reforms and, particularly, cost efficiency. The expenses of these measures took their toll on the profit, making the result of Q4 negative. Atria integrated the business operations of AS Valga Lihatööstus (Estonia) and UAB Vilniaus Mesa (Lithuania) into a unified Baltics business, starting 5 September 2006. In addition, in Lithuania the brand was removed from the balance sheet and entered as an expense. This was done because profit development in Lithuania didn't support keeping the value of the brand in the balance sheet. The operating profit was in the red in Lithuania. Human Resources In 2006, the average number of personnel at Atria Group was 5,740 (4,433). Matti Tikkakoski, Msc. (Econ.), took over the post of President and CEO on 1 February 2006. He was also appointed to the Atria Group's Board of Directors to replace Seppo Paatelainen. On 27 June, Atria Group's Supervisory Board appointed Leena Saarinen, CEO of Altia Corporation, onto the Board of Directors to replace retiring member Erkki Roivas. The previously retired Tuomo Heikkilä and Ilkka Yliluoma were reappointed. Christer Åberg was appointed as CEO of Lithells AB starting from 1 April 2006. Juha Ruohola assumed the duties of CEO of Pit-Product on 1 November 2006. Seija Pietilä was appointed as the new Group Vice President for Human Resources starting from 4 December 2006. Investments The investment in Nurmo's logistics centre that will be completed in the autumn of 2007 continued during the period. No new large investments were initiated in Finland during the period. In October a decision was made to build a logistics centre and meat product factory in the Gorelovo district in Leningrad oblast. The total cost estimate of the new constructions is EUR 70 million. The plant is located on the new ring road, about 20 kilometres from the city centre. The group's investments for the entire year totalled EUR 89.0 million (35.9 million for Q4). Financing In May 2006, Atria Group Plc completed a directed issue. Shares were offered to predefined Finnish and international institutional investors. During the share issue, the entire new offering of 1,100,000 A Series shares was subscribed to. The share capital increase of EUR 1,870,000 was registered on 16 May 2006. In the purchase of A-Tuottajat Oy, Atria Group Plc acquired a total of 10,000,000 series A shares of A-Tuottajat Oy from Itikka Osuuskunta and Lihakunta. After the transaction, Atria holds 97.9 % of the issued share capital of A-Tuottajat and 99.0 % of the votes. The transaction was priced at A-Tuottajat's equity value. As the purchase price, Atria paid a total of 900,000 new series A shares and EUR 1,283,308 in currency. The shares were offered for subscription by a decision of Atria's Board of Directors, based on the authorization of the AGM on 3 May 2006. According to the agreement, the subscription price is the higher of the following: the trading-volume-weighted average from 7.12.2006 - 20.12.2006 or the closing price on 20.12.2006. Based on these, the subscription price was EUR 18.50 per share. As a result of the share issue, Atria's share capital will increase from EUR 37,727,637.60 to EUR 39,257,637.60. The number of series A shares will increase from 12,988,747 to 13,888,747. Svensk Snabbmat för Storkök AB and Matgruppen för Storkök i Norr AB carried out a company reorganisation process, the result of which was the transfer of Matgruppen i Norr AB's operations to the ownership of Svensk Snabbmat för Storkök AB. The Matgruppen owners became shareholders in Svensk Snabbmat, with Atria continuing as the majority shareholder. The purchase was financed by loans totalling SEK 200 million from Swedish banks. In the autumn, the company issued a EUR 40 million bond to institutional investors with the purpose of substituting short-term financing. The Board's valid issue authorisations The AGM authorised the Board of Directors to decide on increasing the company's share capital by means of one or more subscription issues, so that the maximum number of the company's series A shares, with a nominal value of EUR 1.70, should not exceed a total of 4,218,545 shares, thereby increasing the company's share capital by a maximum of EUR 7,171,526.50. The authorisation is valid for one year from the empowerment decision taken by the AGM, until the AGM of 2007. A total of 2,000,000 authorised series A shares have been used. Events occurring after the review period Atria Group Plc announced the purchase of the majority of Swedish AB Sardus on 19 February 2007. The purchase price for 57.1 % of the shares was EUR 80 million. Atria means to acquire the entire share capital of the company. The current deal was closed at the share price of SEK 115, and the rest of the shares will be purchased at the same price. The total purchase price will thus be EUR 126 million. Together with various acquisition costs, the total cost of the acquisition will be EUR 127 million. The purchase price exceeds the equity of the company as listed in the balance sheet by EUR 86 million. The overprice will be targeted at the tangible and intangible assets of the acquired group, with the remaining proportion becoming goodwill value. The table below contains the group's unaudited income statement and balance sheet according to the financial statement bulletin published by Sardus on 31 January 2007. Reference data from the previous year is included. INCOME STATEMENT 1.1. - 31.12. 2006 2005 Turnover 232,1 210,2 Operating profit 8,9 10,5 Financing -4,9 -4,0 Profit before tax 4,0 6,5 Taxes -1,0 -1,8 Profit for the period 3,0 4,7 BALANCE SHEET 31.12. 2006 2005 Assets Tangible assets 54,5 55,8 Intangible assets 46,3 46,8 Financial assets 0,1 0,3 Inventories 25,7 24,2 Trade and other receivables 30,4 25,1 Cash and cash equivalents 6,0 9,1 Total assets 163,0 161,4 Equity and liabilities Equity 40,7 41,1 Long-term liabilities 92,5 90,5 Current liabilities 29,8 29,8 Equity and liabilities, total 163,0 161,4 Atria has had no mutual trade with Sardus. Hence the effects of the trade on the result of Atria Group can be assumed to equal the information on the Sardus income statement for 2006 - in other words, the Group's turnover should increase by the amount of the turnover of Sardus. In addition to the profit brought in by Sardus, the financing costs of the deal and possible depreciations of tangible and intangible assets due to the targeting of the purchase price will also have an effect on the financial result of the Atria Group. Sardus is undergoing a development programme aiming at improving profitability. The goal of the project is to launch a strong profit development. Management has been reorganized, and personnel cuts will be made to improve profitability. Purchases, production and logistics will be the main targets of the cost savings. Sardus is aiming at annual savings of approximately EUR 6.5 million in these areas for the next five years. Other central objectives of the development plan are to strengthen the company's brands and to intensify marketing and product development. The purchase is expected to have a positive effect on the profit and the earnings per share of the Atria Group for 2008. Atria Group Plc will finance the share transaction with available cash and current bank loans. The annual interest burden caused by the financing of the deal is estimated at EUR 5 million. As a consequence of the deal, the Group's balance sheet total will increase to EUR 980 million, which means an equity ratio of 32 %. The purchase is part of Atria's goal to become one of the leading food-industry companies in the Baltic Sea region. The Swedish food industry is undergoing a structural change and integration development, and there are a limited number of major operators. The price competition has been tightened by the emerging of new discount chains operating in daily consumer goods retail, as well as by the rising market share of the chains' own brands. Merging Atria and Sardus strengthens the ability of both companies to respond to the new challenges set by the integrating markets. There is a clear industrial logic behind the purchase. Together, the companies complement each other and form a stronger operator with a wide selection of strong brands. The merger is expected to produce synergy benefits for product development, purchases, logistics, production and marketing. The wider product range and the synergy benefits form the main accelerators of growth. They strengthen the brands and product groups of both companies. After the merger Atria and Sardus will have the potential to become one of Sweden's leading food industry suppliers and business partners for customers operating in daily consumer goods, institutional kitchens and fast food. The position of the companies is also strengthened in relation to other interest groups. Sardus will be integrated with Atria's industrial operations in Sweden and will be reported within the Swedish segment. Starting from the beginning of 2007, the names of the Atria Group's subsidiaries operating in various geographical areas were unified under the Atria name. The operative units are called Atria Finland, Atria Sweden, Atria Baltic and Atria Russia. This will also cause adjustments to segment reporting, starting from the beginning of 2007. Outlook for the future Atria Group has excellent prerequisites for profitable growth in all its business areas in 2007. In Finland, completed investments and reorganization measures have improved cost-efficiency significantly. This competitive advantage will be utilized to its full extent. Atria is also investing in strengthening its brands, increasing consumer knowledge and promoting customer cooperation, as well as in achieving excellent cost management in our entire production chain. Atria Finland's turnover and result for the first quarter of 2007 are estimated to be slightly better than the previous year. In Sweden the consolidation of AB Sardus to Atria Group and exploring of synergies will be carried out during the year 2007. In Sweden, the reorganization of the meat industry was the beginning of a major structural change of the entire industry. In the current situation, Atria is paying special attention to securing its raw material supply. We will look into the possibilities of creating our own raw material supply in southern Sweden. Atria Sweden's turnover and result for the first quarter of 2007 are estimated to be better than the previous year. The strong development of the Russian market creates good growth opportunities for Atria. In 2007 we will expand our sales operations to Moscow and other major Russian cities. New products and packages will be launched in Russia and the Baltic countries. Consumer marketing and finding new customers will be important investment targets. The investment project of the new production plant and logistic centre will be carried out during the years 2007 and 2008. Atria Russia's turnover and result for the first quarter of 2007 are estimated to be better than the previous year. Atria Baltic's turnover and result for the first quarter of 2007 are estimated to remain a par with the previous year. Atria Group Plc's turnover and result for the first quarter of 2007 are estimated to be better than of the previous year. Corporate Governance Our Corporate Governance Code, any exceptions to them and the associated personnel data are published on our website, www.atria.fi/konserni. Dividend proposal The Board of Directors proposes that a dividend of EUR 0.595 be paid for each share for the financial year of 2006. Annual General Meeting 3 May 2007 Atria Group Plc's shareholders are invited to the Annual General Meeting (AGM), to be held at the company's premises in Kuopio on Thursday, 3 May 2007, starting at 2:00 pm; the address is Ankkuritie 2, 70460 Kuopio, Finland. The AGM will address the following: 1. The matters to be addressed at the AGM as set out in item 16 of the Articles of Association 2. The Board of Directors' proposal to authorise the Board of Directors to decide on increasing the share capital through one or more new issues Restrictions on trading by insiders On 21 February 2002, Atria Group Plc's Board of Directors decided that the period during which the company's insiders may trade shares is 14 days after the publication of Atria Group Plc's Interim Reports and financial statement bulletins. However, any insider who wishes to trade shares during this period must request permission to do so in advance from the secretary of the Board of Directors. Insiders may not trade shares at other times ('closed window'). The restriction on trading also applies to parties under the guardianship of insiders and their controlled corporations as defined in Chapter 1, Section 5 of the Securities Market Act. ATRIA GROUP PLC CONSOLIDATED BALANCE SHEET Assets mill. EUR 31-12-06 31-12-05 Non-current assets Property, plant, and equipment 362.8 329.3 Goodwill 57.7 50.1 Other intangible assets 33.3 22.7 Loan assets and other receivables 6.9 5.1 Investments 6.3 5.8 Total 467.0 413.0 Current assets Inventories 63.4 58.6 Trade and other receivables 165.8 151.0 Cash in hand and at bank 35.4 17.5 Total 264.6 227.1 Total assets 731.6 640.1 Equity and liabilities mill. EUR 31-12-06 31-12-05 Equity Shareholder's equity 306.6 254.8 Minority interests 5.8 20.2 Equity, total 312.4 275.0 Long-term liabilities Interest-bearing liabilites 165.4 115.5 Deferred tax liabilies 26.9 22.5 Pension obligations 0.3 0.4 Total 192.6 138.4 Short-term liabilities Interest-bearing liabilites 78.8 91.4 Trade and other payables 147.8 135.3 Total 226.6 226.7 Liabilities, total 419.2 365.1 Total equity and liabilities 731.6 640.1 CONSOLIDATED PROFIT AND LOSS ACCOUNT mill. EUR 10-12/06 10-12/05 1-12/06 1-12/05 Turnover 298.3 259.9 1 103.3 976.9 Expenses -268.7 -242.1 -1 024.0 -905.3 Depreciations -11.8 -7.5 -37.8 -31.4 Operating profit 17.8 10.3 41.5 40.2 * % of turnover 6.0 4.0 3.8 4.1 Income from associates -0.4 0.4 0.8 Financial income and expenses -2.4 -1.4 -7.3 -3.2 Profit before tax 15.0 8.9 34.6 37.8 * % of turnover 5.0 3.4 3.1 3.9 Income taxes -2.3 -2.9 -8.6 -10.8 Profit for the period 12.7 6.0 26.0 27.0 * % of turnover 4.3 2.3 2.4 2.8 Profit distribution for the accounting period: To parent company shareholders 12.4 5.8 25.1 26.2 To minority shares 0.3 0.2 0.9 0.8 Total 12.7 6.0 26.0 27.0 Basic earnings/share, € 0.57 0.28 1.15 1.24 Diluted earnings/share, € 0.57 0.28 1.15 1.24 CALCULATION OF CHANGES IN SHAREHOLDERS' EQUITY mill. EUR Equity belonging to the owners Mino- Share of the parent company rity holders' share equity in total Share Share Trans Retained Total capital premium lation earnings diff. Shareholders' equity 1.1.2005 35.8 104.4 0.5 103.7 244.4 19.3 263.9 Translation differences -1.5 -1.5 -0.1 -1.6 Other changes -1.6 -1.6 -1.6 Profit for the period 26.2 26.2 0.8 27.0 Distribution of dividends -12.7 -12.7 -12.7 Shareholders' equity 31.12.2005 35.8 104.4 -1.0 115.6 254.8 20.2 275.0 Shareholders' equity 1.1.2006 35.8 104.4 -1.0 115.6 254.8 20.2 275.0 Translation differences 1.7 1.7 0.1 1.8 Other changes -15.0 -15.0 Profit for the period 25.1 25.1 0.9 26.0 Distribution of dividends -12.6 -12.6 -0.4 -13.0 Share issue 3.5 34.1 37.6 37.6 Shareholders' equity 31.12.2006 39.3 138.5 0.7 128.1 306.6 5.8 312.4 CASH FLOW STATEMENT FOR GROUP mill. EUR 1-12/06 1-12/05 Cash flow from operating activities Operating activities 62.2 59.3 Financial items and taxes -14.5 -12.4 Cash flow from operating activities, total 47.7 46.9 Cash flow from investing activities Tangible and intangible assets -68.9 -98.3 Investments -2.1 -3.5 Cash flow from investing activities, total -71.0 -101.8 Cash flow from financing activities Cash share issue 20.9 Loans drawn down 99.7 91.4 Loans repaid -66.0 -19.2 Dividends paid -13.0 -12.7 Cash flow from financing, total 41.6 59.5 Change in liquid funds 18.3 4.6 SEGMENT-SPECIFIC INFORMATION GEOGRAPHICAL mill. EUR 10-12/06 10-12/05 1-12/06 % 1-12/05 % Turnover Finland 179.9 165.7 686.1 62.2 634.3 64.9 Sweden 96.0 76.1 336.4 30.5 314.0 32.1 Russia and Baltic 27.7 21.6 104.6 9.5 42.7 4.4 Eliminations -5.3 -3.5 -23.8 -2.2 -14.1 -1.4 Total 298.3 259.9 1 103.3 100.0 976.9 100.0 Operating profit Finland 11.0 6.5 33.4 80.5 31.6 78.6 Sweden 9.4 1.7 15.1 36.4 7.1 17.7 Russia and Baltic -2.6 2.1 -7.0 -16.9 1.5 3.7 Total 17.8 10.3 41.5 100.0 40.2 100.0 Comparable operating profit (sales profits and additional write-offs reduced) Finland 9.2 6.5 31.6 94.3 31.6 78.6 Sweden 1.7 1.7 7.4 22.1 7.1 17.7 Russia and Baltic -1.1 2.1 -5.5 -16.4 1.5 3.7 Total 9.8 10.3 33.5 100.0 40.2 100.0 Investments Finland 51.9 58.3 97.6 91.0 Sweden 21.6 24.3 4.3 4.0 Russia and Baltic 15.5 17.4 5.4 5.0 Total 89.0 100.0 107.3 100.0 31-12-06 % 31-12-05 % Assets Finland 578.7 79.1 534.3 83.5 Sweden 171.6 23.5 132.1 20.6 Russia and Baltic 89.6 12.2 78.8 12.3 Eliminations -108.3 -14.8 -105.1 -16.4 Total 731.6 100.0 640.1 100.0 Liabilities Finland 283.8 67.7 268.3 73.5 Sweden 93.5 22.3 69.1 18.9 Russia and Baltic 50.5 12.0 33.3 9.1 Eliminations -8.6 -2.1 -5.6 -1.5 Total 419.2 100.0 365.1 100.0 BUSINESS mill. EUR 1-12/06 % 1-12/05 % Turnover Meat Industries 870.6 78.9 806.8 82.6 Wholesale Trade 257.9 23.4 245.0 25.1 Eliminations -25.2 -2.3 -74.9 -7.7 Total 1 103.3 100.0 976.9 100.0 LIABILITIES mill. EUR 31-12-06 31-12-05 Debts with mortgages or other collateral given as security Loans from financial institutions 90.4 79.8 Pension fund loans 7.0 6.2 Total 97.4 86.0 Mortgages and other securities given as comprehensive security Real estate mortgages 83.6 78.7 Corporate mortgages 44.2 44.2 Other securities 52.6 47.3 Total 180.4 170.2 Guarantee engagements not included in the balance sheet Unused limits 104.7 107.8 Guarantees 27.8 13.5 FINANCIAL INDICATORS IFRS IFRS IFRS FAS FAS FAS 31-12-06 31-12-05 31-12-04 31-12-03 31-12-02 31-12-01 Turnover, mill. EUR 1 103.3 976.9 833.7 833.7 765.1 707.0 Operating profit mill. EUR 41.5 40.2 49.3 38.8 30.9 25.6 % of turnover 3.8 4.1 5.9 4.7 4.0 3.6 Financial income and expenses, mill. Eur -7.3 -3.2 -5.2 -5.1 -7.3 -5.2 % of turnover 0.6 0.3 0.6 0.6 0.9 0.7 Profit before tax 34.6 37.8 44.6 33.7 23.6 20.4 % of turnover 3.1 3.9 5.3 4.0 3.1 2.9 Return on equity (ROE) % 8.8 10.0 13.9 10.3 7.5 7.7 Return on investment (ROI) % 8.7 10.3 13.9 10.7 9.1 7.9 Equity ratio % 42.8 43.0 50.9 51.3 49.6 43.3 Gross investments in fixed assets, mill. EUR 89.0 107.3 37.3 33.8 36.4 66.0 % of turnover 8.1 11.0 4.5 4.1 4.8 9.3 Interest-bearing liabilities 244.2 206.9 116.1 110.3 129.4 157.9 Average personnel 5 740 4 433 3 638 3 638 3 377 3 300 Research and development costs, mill. EUR 7.4 6.7 7.0 7.0 6.7 6.1 % of turnover 0.7 0.7 0.8 0.8 0.9 0.9 Volume of orders** - - - - - - * Booked in total as expenditure for the financial year ** Not a significant indicator. as orders are generally delivered on the day following the order being placed SHARE-ISSUE ADJUSTED PER-SHARE INDICATORS IFRS IFRS IFRS FAS FAS FAS 31-12-06 31-12-05 31-12-04 31-12-04 31-12-03 31-12-02 Earnings per share (EPS), EUR 1.15 1.24 1.58 1.17 0.83 0.78 Shareholders'equity per share, EUR 13.28 12.08 11.58 11.42 10.65 10.45 Dividend/share, EUR* 0.595 0.595 0.595 0.595 0.425 0.372 Dividend/profit, %* 51.7 48.0 37.7 50.7 51.5 47.8 Effective dividend yiel* 3.3 3.3 5.3 5.3 4.7 5.5 Price/earnings ratio (P/E) 15.9 14.5 7.2 9.6 10.9 8.7 Market capitalisation, mill. EUR 422.4 379.5 238.3 238.3 190.9 121.8 Share turnover/ 1 000 shares, A 3 899 5 704 3 800 3 800 2 325 1 249 Share turnover %, A 28.1 48.0 32.0 32.0 29.9 18.9 Number of shares million, total 23.1 21.1 21.1 21.1 21.1 15.8 Number of shares, A 13.9 11.9 11.9 11.9 11.9 6.6 Number of shares, KII 9.2 9.2 9.2 9.2 9.2 9.2 Average share issue-adjusted number of shares 21.8 21.1 21.1 21.1 18.3 18.1 Share issue-adjusted number of shares on 31 December 23.1 21.1 21.1 21.1 21.1 18.1 SHARE PRISE DEVELOPMENT Lowest of period A 15.00 11.50 8.55 8.55 6.81 5.85 Highest of period A 21.50 18.18 11.75 11.75 11.40 8.90 At end of period A 18.29 17.99 11.30 11.30 9.05 7.70 Average price for period A 18.31 15.33 9.42 9.42 9.20 7.35 * Proposal of the Board of Directors This interim report has been prepared in accordance with the (IFRS) Interim Financial Reporting standard. Valid IAS- and IFRS standards as well as SIC- anc IFRIC interpretations have been applied. This interim report is unaudited. For further information, please contact Mr Matti Tikkakoski, President & CEO, tel. +358 50 2582. ATRIA GROUP PLC Matti Tikkakoski President and CEO DISTRIBUTION Helsinki Stock Exchange Principal media www.atria.fi/konserni The Financial statements will be mailed to you upon request and are also available on our website at www.atria.fi/konserni.