Raisio plc

Hyvää keskipäivää ja tervetuloa Raision ensimmäisen vuosin neljänneksen tulosinfoon. Terve Rys. Vuosi käynnistyi meille tuloksellisesti vahvasti. Liikevaihto jäi meidän tavoitetasosta ollen lähes vertailukauden tasolla, mutta kannattavuus parani selvästi. Tämä kertoo meille, että meidän tuloskunto on vahvistunut samalla kun me viedään meidän strategiaa eteenpäin. We will now move to the stage of increasing growth. Today we will go through the first part of the economic development, the business environment, the progress of the strategy, the situation of the business sector and also our responsibility to work. In the first quarter of the year, our turnover was 57.5 million euros, which is about In terms of profitability, the development was clearly stronger. The turnover rose to 9.8 million euros and the comparable turnover to 7.5 million euros. The turnover margin rose to 13.1% and we have succeeded in improving our performance performance. In the background, we have especially breakfast, snacking and food solutions, a good development in business. Our expectations for heart health remained a bit softer, but overall, the company's performance improvement was strong. There are three factors that significantly affect comparison efficiency in this quarter. Last year, there was a divestment of plant protein. dropped the turnover, but improved the results. At the same time, this year, our ERP renewal, i.e. the renewal of the business operations management system, brought us about one and a half million euros per year. In addition, there was a slight difference in the timing of marketing investments this year, which supported the development of the fourth quarter, but over time, The level of investments is, according to the plan, higher in previous years Small technical challenges, yes, the money flow was quite strong in the fourth After the funding series and taxes, it was 8.3 million euros, and we are quite satisfied with this, when at the same time we have invested in the protection of the availability of central raw materials and raised the stock level. Also, the income of the invested capital improved. The income of the invested capital increased by 11.3% when it was 10.1% in the comparison period. The balance is still strong, and 80% of the equity level gives us a good moving stock for our strategy implementation, investments and possible business purchases. After all, the operating environment continues to be difficult to predict. Trust is still in decline, and consumer price awareness consumption in use, yes. Inflation, interest rates and geopolitical uncertainty affect the entire food chain. These especially increase demand changes and create cost pressures, especially to energy, logistics and packaging materials. On the other hand, the effects on the food industry are very unclear and very manageable. There are quite few direct effects. We have some close-knit customers, but their importance is not financially significant. A clearly greater impact over a long period of time comes from these indirect cost pressures. This effect reduces the direct effect. For example, through reserve levels, long contract buildings and we also have the ability to bring the required price increases to the markets. It is also important to consider the uncertainty of this short period of time. However, in the long run, the long-term trends related to health and responsibility clearly support Raisio's strategy. The reliability and reliability of the supply chain and the reliability of the supply chain are key competitive factors for us. The profitability of the initial production has been under pressure for a long time, and when the profitability of the crop decreases, it is possible that it could affect the productivity of the crop over a long period of time. We have decided to speed up the payment time of our crop orders when we buy fresh crops. The change will be made by 1.6.2026. This is a concrete example of how we build long-term cooperation with farmers and strengthen the reliability of our chain of operations over a long period of time. The strategy is based on three cornerstones. The first is the acceleration of growth in our core business activities. that Elovena and Benecol form the central basis of our organic growth. Another important element is investments in new growth sources. This means research, product development, new business opportunities and also possible business purchases. And the third cornerstone is our strong local traditional brands and plant-based industry solutions. which gives us the strength to grow through a stable flow of money and by covering high costs. The strategy and its implementation have progressed in the first quarter. In terms of brand and international growth, Benegol's yogurt drinks were launched in Spain in March. This is a significant step in the development of Benegol. Elvenä is also continuing to grow and its products are available in eight countries in addition to Finland. We have also completed the capacity increase of Nokia's Kauramylli with this fourth one, which enables it to stay in the growth career. The pilot plant, which also supports the increase in the value of side circuits and research activities, is in the process of lifting. and the modernization and investment of the packaging lines of the pasta factory is in progress. We also have a very significant project, which is the business management management system, i.e. ERP's renewal. Here we are building a more uniform, scalable and better guided foundation for the company. We are in the planning and budget

Thank you Pasi, I will continue with our views first, so as we said, the first quarter of the sale was continuously on average and we are directing this year 26, both growth in traffic changes and then comparatively efficient traffic results and we are still firmly behind this guidance that here is the second quarter already almost half in between, so after this June 1, the appearance and the sales achieved are quite promising from this point of view, that from the spring and the end of the year we are hoping for good development, so to speak, also at this point. We also hope that the share of profits has been managed from last year's schedule and euro cent rose to 15 euro cent per share and this share was then paid to the owners of the share under the VAP. There is also no difference in share policy before it was communicated. Let's look at the Brands and Industrial entity and its two business units. So now this makes Raisio the core of the current consumer and also industrial B2B business. Both of these are equally strategically important, and here we see that they are also quite different in terms of sales. The sales split is shared in the same way, especially with Finland's domestic markets and also with industrial markets. The role of these partners is slightly different between these two units, but soon we will see more of it that this breakfast snacking food solutions increased by some in their long-term growth target KGR growth rate, which is now close to 5% in this final quarter, while at Heart Health we will soon go through its sales a little bit and sell snacks, but a bit from the CE comparison period, although of course the end-of-year outlook is quite bright. So here, first of all, the total number, i.e. an increase of more than a percentage of the euro to the entire segment of this branch and industrial, and a fairly noticeable increase in the turnover of more than 20% of the comparison ratio. Marginal growth is quite good, so the margin is close to 20%, in fact, already at this point. Well, what drove the development in breakfast and snacking? The development was supported by the extremely strong growth of Elovena, one could say that it has continued to grow very strongly for a long time, and also largely through the categories. Extremely exciting development still. So, good development in consumer business as well. improved volumes to increase the cost-effectiveness of our products, so then the dry ones under the line are also very effective, and also on the B2B side, where we had volume challenges for 25 years, so there also this volume development is starting to improve, if at the same time also due to the fact that raw material is also It means that the effect of the exchange rate on the exchange rate is marginal, but it is still there In Hathelt, the exchange rate dropped a bit there The exchange rate courses shook our Hathelt, i.e. the BNK market in Great Britain, so much so that there was about 2% local currency growth, but it was converted to euros went to about minus 2%. This kind of conversion change can be seen here. But overall, in the segment, the first quarter is also quite good. Then on a few more pages, I will first go to the markets, here on the Breakfast Snack side. So in Finland, the second pillar of the left-hand side is close to 7%. growth in terms of consumer consumption. And in the case of Eloveena, it was a growth of 19%. Then this Food Solutions, which I mentioned, has experienced volume pressures in recent history, so overall, 5.7% turnover growth with Q1, so extremely good return and direction in other markets. On the right, there are our new plans for the new export markets, and on the other hand, the foreign crop market and then the sale of side currents, which are the two most recent business operations in our minority position. The absolute number of them per year is already quite significant, but it is somewhat from last year. The internationalization is in the first place in Jalopena, so we are also suffering with it and we are seeing good development. Next, so just like that. And then finally, this mentioned heart health, where really in Finland it is extremely nice to think that we have a 30-year-old brand in Finland and Benecol has now grown by 12% in the reporting period. The distribution cover has improved and the marketing activities have succeeded. As I mentioned, from Great Britain, which is our largest individual market, this currency conversion explains this change in a very long time. In Ireland, a small decline in the market share during the comparison period, and then on the right you can see this industrial sale. There we have typically, the operations are rare, they do not always go exactly according to the calendar, so there are large operations of different changes over time, and then sometimes they cause positive and sometimes negative quarter changes, but overall this year's sales are quite good in terms of growth. Thank you, Mika.

Then a little update on our responsibility work. Last year, we have completed the previous responsibility program and our responsibility has never been any separate part of the strategy, but it is very much related to it. what products we develop and how we use raw materials, how we operate in the operating chain and how we build trust with our subsidiaries. In 2020-2025, we achieved many concrete results and a good foundation for the new responsibility program, which was launched this year. But in 2025, 90% of our products filled our supply chain. 100% of our packaging was recyclable, and we have managed to increase the use of our renewable and recycled materials. 98.6% of our energy was renewable, and in the personnel research, the ERPS was 45%. We are very satisfied. In the end, we achieved all the goals that the program had. Me raportoidaan meidän vastuullisuudesta vapaaehtoisesti ja läpinäkyvästi tämän uuden CSRD viitekehityksen pohjalta ja tosiaan juuri hiljattain julkaistiin meidän uusi vastuullisuusraportti, joka karsinkattavasti kertoo kaikesta sitä työstä, mitä ollaan tehty. Nyt uusi Vastuullisuusohjelma started with a new strategy. The name is Food Change Power. The core idea is to move from responsible practices towards strategic influence and value creation. Responsibility is not just risk management or reporting. It is a way to build competitiveness, strengthen brands, create innovations and respond to consumers. to the changing expectations. In fact, our food health and responsibility are naturally aligned. This new responsibility program is built around three main themes. The first is sustainable farming. We want to promote solutions that protect nature and food safety. The second focus area is resource wisdom. The goal is to reduce all losses, to strengthen our operations and also create business operations from the sidelines. And the third is health in food. We promote national health with food that reduces liver, liver and cholesterol, and develop innovations that respond to the health challenges that we have in this world. All of this is based on visible action, responsible procurement, development of contracts and sustainable growth culture. There is a lot more information, and it can be found in the release of the responsibility report. Finally, I would like to quote three things from the first quarter of the fourth century. The result was strong, profitability clearly improved and the flow of money was good. The second is that the implementation of the strategy is progressing. We are building growth in Elovena, Penecol, new business operations opportunities and a strong balance sheet. And third, sales remained. from the target level of this portal, but the procedures for fixing it are in place and we are looking ahead realistically, but also very reliably. The operating environment may be uncertain, but we have a clear direction in Raisio. Thank you for your interest and you are welcome and then we will continue the discussion with possible questions if we have any.

There have been a few Let's say that the questioner asks about this, that a business change was left at your target level, in what areas of development do you have your own expectations?

Especially Especially in this quarter, it remained in the heart health area due to two issues. The second is the exchange rate of the currency. The positive sale of the pound turned into a negative sale of the euro. And then the other one related to to industrial sales, which changes the quarters quite a lot, so this quarter left us with a negative impact.

Good, and the next question, I can at least start by repeating the first question, i.e. the impact of cost inflation on Iran in the course of the war, has there been a greater degree of cost inflation in the course of the crisis? What kind of plans do you have at the moment for possible price increases? I can start with this, that of course we have, as Pasi just mentioned, that we have the biggest impacts, the effects come straight through, and on the other hand, the packaging barriers, these are the clearest. We clearly have certain signs that in the barriers and in the packaging, prices for us and now the question is, of course, how long this crisis will last, we will start with the fact that probably over the summer it will at least unfortunately last either the crisis itself or then the sequelae, which would mean higher price for raw materials, this is an energy-intensive crisis in the last hand, so that's what we're planning now and basically the company's The company then tries to take these rising costs forward in their own prices.

And what about price increases? In the UK and Ireland, price increases have already been implemented during the spring and the domestic market is best assessed for their needs. However, we have quite long contracts and good storage levels, so we don't have any panic about the matter. Intermediate effects come with time. Intermittent effects are quite manageable and small, so there is no reason to panic.

Then we have a few more questions, and one of them is this, whether the elements of income improvement, i.e. there is a list of consumer sales, strong growth, production cost benefits and central raw material prices, share contribution, so what element was clearly significant in these, and now I understand that the income improvement in this, apparently, in practice, at raw material prices, no longer very dramatic year-on-year positive impact, it is perhaps the lowest of these in the end. The cost of production comes through, thus I just stated that as volumes grow, many of our facilities now benefit from it. At that time, clearly and also according to the strategy, it has been stated that there is still room for profitability to grow. And consumer sales in those branded, good products, in growing categories, these have been balanced in my opinion, these effects in the final quarter. Then there is the last one, if I repeat this here, that is, Nokia's Kauramylnö capacity increase investment is planned to be completed in July 2026. How much of this can be achieved in the future or increase its efficiency to the present level?

Capacity increases by about 15-20% approximately, so a significant increase in the level and enables growth for us in the coming years Exactly, and because Nokia has a lot of

what comes from there, in fact, in the last year, the product mix affects and determines what is the absolute growth of the business environment through the price of the product and also of course profitability, but it is quite a multi-functional institution nowadays, so this capacity is very welcome.

Thank you very much for the warm questions, it seems that these have been answered.

We went through, yes.

Kiitos paljon mielenkiinnosta ja erityisesti kysymysten esittäjille. Erinomaisen hyvää kevään jatkoa kaikille. Kiitoksia.