* IN FINLAND, THE YEAR BEGAN WITH STRONG GROWTH * IN SWEDEN, EARNINGS IMPROVED SIGNIFICANTLY * IN RUSSIA, EARNINGS WERE CLEARLY IN THE BLACK * IN THE BALTICS, EARNINGS WERE STILL UNSATISFACTORY Atria Group Q1/2007: - Turnover EUR 276.0 million (EUR 244.9 million), growth 12.7 per cent - Operating profit EUR 11.5 million (EUR 4.5 million) - Comparable operating profit EUR 11.5 million (EUR 4.5 million) - Profit before tax EUR 7.6 million (EUR 3.8 million) - Earnings per share 0.23 euro (0.13 euro). Group Atria Group's turnover and operating profit were significantly better than during the corresponding period last year in all our market areas, with the exception of the Baltic region. Atria Finland's turnover for the first quarter increased by more than eight per cent compared to the same period last year, amounting to EUR 169.5 million (EUR 156.8 million). The comparable operating profit more than doubled to EUR 9.4 million (EUR 4.5 million). In Sweden, turnover for the first quarter was EUR 92.3 million (EUR 70.5 million). The comparable operating profit amounted to EUR 1.8 million (EUR 0.3 million). In Russia, turnover and earnings developed positively during the review period and the operating profit for the first quarter sextupled compared to the same period last year, amounting to EUR 1.2 million (EUR 0.2 million). In the Baltic region earnings were unsatisfactory. The turnover was on the same level as last year and the operating profit was in the red EUR -0.9 million (EUR -0.5 million). During the review period Atria Group bought 57 per cent of the Swedish food company Sardus AB and made a public cash offer for the rest of the shares. The value of the offer was SEK 475 million and the total value of the Sardus acquisition amounted to approximately SEK 1,162 million. In April 2007, after the review period, Atria announced the completion of the acquisition of a total of 10,016,138 shares and 297,750 share options in Sardus, which corresponds to 98.6 per cent of all Sardus shares and votes. In addition, Atria decided to initiate expropriation proceedings to acquire the remaining Sardus shares. The last trading day for Sardus shares will be 27 April 2007, after which the share will be withdrawn from the stock exchange in Stockholm. Business segments Segment reporting was further specified from the beginning of 2007. Russia is reported as a separate business segment and the data for the Baltic region are included in the item “Others”. Pit-Product's parent company Atria-Invest Oy is included in the Russian business segment. Comparison data have been recalculated to correspond to the current business segment structure. On 2 April 2007 the Swedish competition authorities approved Atria's acquisition of the shares in Sardus AB. Sardus AB became a subsidiary of Atria on 2 April 2007 and will be included in the data for the Atria Scandinavia business segment. Sardus AB is not included in Atria's interim report for the first quarter. Finland Atria Finland Q1/2007: - turnover EUR 169.5 million (Q1/2006 EUR 156.8 million) - operating profit EUR 9.4 million (Q1/2006 EUR 4.5 million) - comparable operating profit EUR 9.4 million (EUR 4.5 million) The earnings improved thanks to excellent sales, high utilisation rates at the production plants and efficient cost management. Costs caused by the implementation of the new pig slaughtering plant and increased energy costs depressed earnings at the beginning of last year. The development of the Atria brand has been strong in comparison with the market. The total growth of the Atria brand was 10.5 per cent (industry growth 6.6 per cent) during the first three months of the year. Atria's supplier share at the beginning of the year was 29 per cent. Atria is still clearly the market leader in the food product groups that the company represents. Atria consolidated its market leadership at the beginning of the year, especially in cold cuts; the development of the Atria brand was 15 per cent in value compared to last year. The Atria brand also significantly strengthened its share in the food sausage and poultry product groups during the early part of the year. In the convenience food product group, both of Atria's brands - Atria and Forssan - developed in a positive direction compared to sales during last year. The beginning of the year has been excellent in Atria's food product market - the total growth in value of the market has been 6.6 per cent. All product groups in the industry have increased in value compared to last year. The strong growth in the value of poultry products (21.4 per cent) during the first three months of the year has been particularly positive. Delivery reliability and utilisation rates at the plants are still good due to the controlled development of volume. The logistics centre expansion was taken into use in March and will provide approximately 30 per cent additional logistics capacity for the coming summer season deliveries. Special attention has been paid to continuous cost management, which is now at a good level. Production plant efficiency has been increased with the help of long-term investments and measures to improve efficiency. Sweden Atria Sweden Q1/2007: - turnover EUR 92.3 million (Q1/2006 EUR 70.5 million) - operating profit EUR 1.8 million (Q1/2006 EUR 0.3 million) - comparable operating profit EUR 1.8 million (EUR 0.3 million) The beginning of the year has been good in all Atria AB's business operations. Turnover increased by 31 per cent and operating profit improved significantly compared to the corresponding period last year. Profitability developed positively during the first quarter due to both business growth and price increases implemented at the end of last year. The market share of the Lithells brand increased from 11.7 per cent in 2006 to 12.1 per cent at the beginning of the year (source AC Nielsen). A long-term agreement with Coop Sverige regarding the delivery of retail-packed meat will further consolidate Atria's market position. Raw material prices have remained stable during the review period. Sardus AB Q1/2007 Sardus' earnings for the beginning of the year improved significantly compared to the corresponding period last year. The company's earnings and turnover developed in a positive direction due to excellent sales and improved profitability. Sales and cost management succeeded particularly well in the units Chark & Deli and Foodpartner at the beginning of the year. A programme to improve efficiency was initiated at Sardus last year and the effects of the programme are now becoming evident in the form of improved earnings in various units. The integration of Sardus into Atria Group and mapping of the synergies will be done in a large extent during the during the second quarter of 2007. Sardus' operations will be consolidated into the Atria Group starting from 2 April 2007. Sardus briefly 1.1.-31.3.2007 1.1.-31.3.2006 1.1.-31.12.2006 Turnover 55.2 50.9 229.8 Operating profit 3.5 2.4 8.9 % of turnover 6.2 4.7 3.9 31.3.2007 31.3.2006 31.12.2006 Assets 160.7 155.7 160.1 Equity 42.0 41.8 40.0 Liabilities 118.7 113.9 120.1 Russia Atria Russia Q1/2007: - turnover EUR 16.0 million (Q1/2006 EUR 15.4 million) - operating profit EUR 1.2 million (Q1/2006 EUR 0.2 million) - comparable operating profit EUR 1.2 million (EUR 0.2 million) Atria's strong growth continues in modern trade in the St. Petersburg economic area. New customer relationships were established in the Moscow region and other large cities during the review period, and deliveries will be initiated during the second quarter. Pit-Product has further increased its market share in highly processed products. At the beginning of the year the total market share of modern retail trade in St. Petersburg was more than 25 per cent (AC Nielsen). Raw material prices remained stable during the review period. Pit-Product decided to centre its production around the Sinyavino plant in the St. Petersburg economic area. Production at the plant in the centre of St. Petersburg will be discontinued and operations will be moved to Sinyavino in May 2007. The project to centre production around one production plant will improve the operative efficiency of production, facilitate better management of production processes and simplify internal logistics. The project will provide annual savings of approximately EUR 1.5 million; EUR 700,000 will accumulate in 2007. The personnel will be reduced by approximately 220 employees. Pit-Product's investment programme for 2006-2008 includes many measures to improve the efficiency of production, and investment in equipment at the Sinyavino plant, as well as construction of a new production plant and logistics centre in Gorelovo. The investments to be made in 2006-2007 at the Sinyavino plant (totalling EUR 10 million) will increase the plant's capacity by almost 50 per cent. The capacity of the plant in central St. Petersburg is only one-fifth of the capacity at Sinyavino, and the plant is located on leased premises. The new plant and logistics centre (EUR 70 million) construction project in Gorelovo has progressed according to plan. Baltic Atria Baltic Q1/2007: - turnover EUR 6.7 million (Q1/2006 EUR 6.9 million) - operating loss EUR 0.9 million (Q1/2006 EUR 0.5 million) - comparable operating loss EUR 0.9 million (operating loss EUR 0.5 million) The adaptation of operations and development of a new business model in the Baltic region are progressing and new resources have been recruited to the company's management. During the review period Atria's Board of Directors approved an investment programme valued at approximately EUR 8 million for the Estonian business operations. Atria will invest EUR 6 million in the meat production in Estonia by constructing and modernising pig farms. In addition, the production lines at the Valga plant will be automated and new lines valued at approximately EUR 2 million will be built. New products will be launched in the Estonian market in time for the summer season. A reassessment process involving the Lithuanian business operations is currently in progress. Decisions regarding operations in Lithuania will be made during the second quarter. Human Resources Atria Group's personnel numbered approximately 5,418 (5,293) during the review period. Investments The Nurmo logistics centre investment project progressed to the implementation stage during the review period. The investment will be completed during the autumn of 2007. No new large-scale investments have been initiated in Finland during the review period. The construction of a new production plant and logistics centre has begun in the Gorelovo region of St. Petersburg. The new plant will be completed by the end of 2008. The value of the investment is approximately EUR 70 million. An investment programme valued at approximately EUR 8 million was initiated in Estonia, including investments in primary production and automation of the Valga production plant. Group investments during the first quarter totalled EUR 142.4 million, of which the value of the shares in Sardus AB amounted to EUR 123.1 million. Financing Atria will assess the possibilities of strengthening the Group's equity structure in order to flexibly complete current significant investment programmes and corporate acquisitions. A primary option for acquiring financing would be a share issue. The acquired assets will be used to finance the corporate acquisition of Swedish Sardus AB, the construction of a new plant in St. Petersburg and to increase the business in Russia by possible acquisitions. Nordea acts as Atria's financial advisor in the assessment of potential share issue. Interest-bearing liabilities increased by EUR 131.6 million during the review period. The Board's valid issue authorisations On 3 May 2006 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 In April 2007, after the review period, Atria announced the completion of the acquisition of a total of 10,016,138 shares and 297,750 share options in Sardus, which corresponds to 98.6 per cent of all Sardus shares and votes. In addition, Atria decided to initiate expropriation proceedings to acquire the remaining Sardus shares. The last trading day for Sardus shares will be 27 April 2007, after which the share will be withdrawn from the stock exchange in Stockholm. Efficiency at Atria Sweden AB's production plants in Årsta and Sköllersta will be improved with the help of investment in new automation. These measures will improve profitability and secure competitiveness in the future. The arrangement will affect approximately 70 employees. Negotiations with the trade unions were initiated in April. Atria sold its holding in the Swedish subsidiary Svensk Snabbmat för Storkök AB to Euro Cater A/S on 26 April 2007. Future prospects Atria Group has excellent prerequisites for profitable growth in all its business areas in 2007. Finland: The summer season selection decisions in the retail trade were positive from Atria's point of view, which means that Atria is well positioned for the upcoming summer season. Preparations have been partly made for the effects on costs of the collective agreement, but they require strict management of prices and productivity towards the end of the year. We estimate that earnings for the second quarter in Finland will be better than during the same period last year. Sweden: Atria AB will continue to invest in the Lithells and Sibylla brands. The Sibylla brand will be used to launch new product ranges in the retail trade. In Sweden, Sardus will be integrated into Atria Group and the synergy benefits mapped during the second quarter of 2007. We estimate that the operative indicators for the second quarter will be better than the indicators for the corresponding period last year. Russia: We expect the turnover to increase in Russia, particularly when the deliveries will be started to Moscow and other big cities. The closure of our plant in St. Petersburg city centre will improve our efficiency starting from the second quarter. During the second quarter we will launch many new products in Russian market. Pit-Product will be the first company in Russia to launch resealable cold cut packages, which will be our most important novelty. We expect the second quarter in Russia to be profitable and clearly better than the second quarter last year. Baltic region: The summer season in Estonia will see new products, which are expected to improve sales. A reassessment process involving the Lithuanian business operations is currently in progress. Decisions regarding operations in Lithuania will be made during the second quarter. The second quarter will not bring significant improvement in earnings in the Baltic region, although the operating loss is expected to decrease compared to the first quarter. The Baltic business operations are expected to turn into a profit during the third quarter of 2007. Atria Group Plc's turnover and operating profit for the second quarter of 2007 are estimated to be stronger than during the corresponding period last year. Corporate Governance Our Corporate Governance Code, any exceptions to it and the associated personnel data are published on our website, www.atria.fi. Principles applied in preparing the interim report This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. The firm has applied the same principles in preparing this interim report as in preparing the 2006 annual financial statements. This interim report is unaudited. KEY INDICATORS mill. EUR 1-3/07 1-3/06 1-12/06 Basic earnings/share, € 0.23 0.13 1.15 Diluted earnings/share, € 0.23 0.13 1.15 Equity/share, € 13.44 12.21 13.28 Interest-bearing liabilities 375.8 223.6 244.2 Interest-bearing assets 49.4 48.8 44.6 Equity ratio, % 36.7 43.4 42.8 Gross investments 142.4 13.9 89.0 Gross investments of turnover, % 51.6 5.7 8.1 Average personnel 5 418 5 293 5 740 Principles applied in preparing the interim report This interim report has been prepared in accordance with the IAS 34 Interim Financial Reporting standard. The firm has applied the same principles in preparing this interim report as in preparing the 2006 annual financial statements. This interim report is unaudited. ATRIA GROUP PLC CONSOLIDATED BALANCE SHEET Assets mill. EUR 31.3.07 31.3.06 31.12.06 Non-current assets Property, plant and equipment 370.2 332.7 362.8 Goodwill 57.3 52.0 57.7 Other intangible assets 32.3 22.7 33.3 Loan assets and other receivables 7.6 5.6 6.9 Investments 130.1 6.3 6.3 Total 597.5 419.3 467.0 Current assets Inventories 77.5 64.5 63.4 Trade and other receivables 160.5 143.8 165.8 Cash in hand and at bank 27.3 13.2 35.4 Total 265.3 221.5 264.6 Total assets 862.8 640.8 731.6 Equity and liabilities mill. EUR 31.3.07 31.3.06 31.12.06 Equity Shareholders´equity 310.3 257.5 306.6 Minority interests 5.9 20.3 5.8 Equity, total 316.2 277.8 312.4 Long-term liabilities Interest-bearing liabilites 219.6 125.2 165.4 Deferred tax liabilites 26.8 22.9 26.9 Pension obligations 0.3 0.4 0.3 Total 246.7 148.5 192.6 Short-term liabilities Interest-bearing liabilities 156.2 98.4 78.8 Trade and other payables 143.7 116.1 147.8 Total 299.9 214.5 226.6 Liabilities, total 546.6 363.0 419.2 Total equity and liabilities 862.8 640.8 731.6 CONSOLIDATED PROFIT AND LOSS ACCOUNT mill. EUR 1-3/07 1-3/06 1-12/06 Turnover 276.0 244.9 1 103.3 Expenses -254.0 -231.8 -1 024.0 Depreciations -10.5 -8.6 -37.8 Operating profit 11.5 4.5 41.5 * % of turnover 4.2 1.8 3.8 Income from associates 0.5 0.4 Financial income and expenses -3.9 -1.2 -7.3 Profit before tax 7.6 3.8 34.6 * % of turnover 2.8 1.6 3.1 Income taxes -2.1 -1.0 -8.6 Profit for the period 5.5 2.8 26.0 * % of turnover 2.0 1.1 2.4 Profit distribution for the accounting period: To parent company shareholders 5.5 2.8 25.1 To minority shares -0.2 0.9 Total 5.3 2.8 26.0 Basic earnings/share, € 0.23 0.13 1.15 Diluted earnings/share, € 0.23 0.13 1.15 CALCULATION OF CHANGES IN SHAREHOLDERS' EQUITY mill. EUR Equity belonging to the owners of Mino Share the parent company rity holders' share equity in total Share Share Trans Retained Total capital premium lation earnings diff. Shareholders' equity 1.1.2006 35.8 104.4 -0.9 115.5 254.8 20.2 275.0 Translation differences -0.1 -0.1 0.1 Profit for the period 2.8 2.8 2.8 Shareholders' equity 31.12.2006 35.8 104.4 -1.0 118.3 257.5 20.3 277.8 Shareholders' equity 1.1.2007 39.3 138.5 0.7 128.1 306.6 5.8 312.4 Translation differences -1.6 -1.6 -0.1 -1.7 Profit for the period 5.3 5.3 0.2 5.5 Shareholders' equity 31.12.2007 39.3 138.5 -0.9 133.4 310.3 5.9 316.2 CASH FLOW STATEMENT FOR GROUP mill. EUR 1-3/07 1-3/06 1-12/06 Cash flow from operating activities Operating activities -12.2 -5.6 62.2 Financial items and taxes -5.6 -1.0 -14.5 Cash flow from operating activities, total -17.8 -6.6 47.7 Cash flow from investing activities Tangible and intangible assets -123.5 -14.0 -68.9 Investments -0.1 -0.6 -2.1 Cash flow from investing activities, total -123.6 -14.6 -71.0 Cash flow from financing activities Cash share issue 20,9 Loans drawn down 146.5 28.8 99.7 Loans repaid -13.5 -11.9 -66.0 Dividends paid -13.0 Cash flow from financing, total 133.0 16.9 41.6 Change in liquid funds -8.4 -4.3 18.3 SEGMENT-SPECIFIC INFORMATION GEOGRAPHICAL mill. EUR 1-3/07 1-3/06 1-12/06 Turnover Finland 169.5 156.8 686.1 Sweden 92.3 70.5 336.4 Russia 16.0 15.4 74.1 Others 6.7 6.9 30.5 Eliminations -8.5 -4.7 -23.8 Total 276.0 244.9 1 103.3 Operating profit Finland 9.4 4.5 34.0 Sweden 1.8 0.3 15.1 Russia 1.2 0.2 -2.7 Others -0.9 -0.5 -4.9 Total 11.5 4.5 41.5 Comparable operating profit Finland 9.4 4.5 32.2 Sweden 1.8 0.3 7.4 Russia 1.2 0.2 -2.7 Others -0.9 -0.5 -3.4 Total 11.5 4.5 33.5 LIABILITIES mill. EUR 31.3.07 31.3.06 31.12.06 Debts with mortgages or other collateral given as security Loans from financial institutions 98.5 86.4 90.4 Pension fund loans 7.0 6.3 7.0 Total 105.5 92.7 97.4 Mortgages and other securities given as comprehensive security Real estate mortgages 87.5 77.6 83.6 Corporate mortgages 45.8 44.5 44.2 Other securities 53.0 42.7 52.6 Total 186.3 164.8 180.4 Guarantee engagements not included in the balance sheet Unused limits 44.3 97.6 104.7 Guarantees 28.0 13.7 27.8 For additional 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 The interim report will be mailed to you upon request and are also available on our website at www.atria.fi.