Raisio plc

Tervetuloa seuraamaan Raision ensimmäisen vuosipuoliskon tulosjulkaisua. Mun nimi on Pasi Flinkman, toimin toimitusjohtajana Raisiolla ja mukana kollegaani talousjohtajamme Mika Saarinen. Tervehdys. Ensimmäinen vuosipuolisko Raisiolle oli kokonaisuutena aika vakaa. The change in business has increased a bit, but the low return of the second quarter of the year weighed on the growth of the whole beginning of the year. In the background, there was a very different development of business operations and also planned investments in the growth of the future. Today we will go through the economic development of the Group, the situation of the business and the progress of the responsibility work, as well as a little bit about how we are building our future growth. In the first half of the year, the turnover was €113.5 million and the growth was a percentage of the comparison period. The turnover of the comparison period was 17.7 million euros and the turnover of the business was 13.1 million euros. The turnover of the business and the turnover of the business clearly remained strong from the level of the comparison period. Between the business activities, this development was twofold. Breakfast, Snacking and Food Solutions increased by 6.2% and improved the turnover significantly. At the same time, the sale of the HeartHealth business area dropped a bit and the result declined significantly. In addition to the results of the first half of the year, the divestment of the plant protein business and the renewal of the operating system in operation are also affecting the results of the first half of the year. The costs related to the renewal of this operating system have been 1.3 million euros per year. As a whole, the turnover has increased a bit. We cannot be satisfied with the results. We will continue to implement the investment strategy. If we look at the second quarter a bit more closely, the turnover increased significantly faster, 2.7% to 56 million euros. It is positive that we have gained more growth compared to what we have achieved in recent years. Of course, we have not yet reached the growth rate we are looking for and we are looking for a faster growth rate in the future. 7.9 million euros and 5.5 million euros, which were clearly lower by comparison. In the background, there are three factors in particular. Low-income development in the heart health sector, On the other hand, a higher level of investment in marketing has been planned and intended. In addition, in the third year, 700,000 euros were spent on the renewal of the business management system. Good development continued in the Breakfast Snacking Food Solutions area during the second quarter of the year. The operating environment is still difficult to predict. Consumers' confidence is low and price awareness is visible. In Finland, there is already some positive development and the latest updates have also supported this. The situation in the UK market has been worse. This is visible to us as a campaign lead and price lead as well as a question of change. With a little longer perspective, the consumer trends that support health, well-being and responsibility are in full swing and they are well aligned with Raisio's expertise and strategy. In this environment and in such a situation, our well-known strong brands and the expertise related to heart health and healthy food and our strong balance These are clear strengths for us.

Thank you, Pasi. I will continue with a few technical issues that touched upon in the final reporting period and then we will also go to our business units and their development a little more. First of all, In this quarter, we made an announcement regarding our Kauhova store. This is a property that has been left to us after the Versafood business deal. We have had a lot of it for a year now. In the last few months, this has been on sale throughout the year, but we have not yet found a broker or buyer for this target, and since the cash flow has changed significantly, This was a written value reduction of 4.3 million euros, which we see in our business results. Not in a comparable way, but in business results, it is a significant factor in the decline. This has been a very long and active search for a new possible owner or shareholder, and it still continues here, as before. Let's take a look at the flow of funds. There are about 3 million differences compared to last year's H1. Aika lailla tasaan selitettävissä sillä, että me on varauduttu tähän viljamarkkinassa kasvaneeseen epävarmuuteen ja käytännössä on haluttu turvata meille mahdollisuuksien mukaan olemassa olevaa niin sanottu vanhan sadon raaka-ainetta We are proud that we have a long-term agreement at the end of the current year in our main fields, where it is still evident that the quality, and so we have also had the availability, is sufficient. In practice, they are the main users. The agricultural market in the lowlands is not so bad, but at least in Vienna, the situation in the Black Sea is in a way very unstable, and the large material flows from there, which should go to the world through Russia or Ukraine, and of course under the ongoing risk and thus creating uncertainty and it is depicted and has been depicted somewhat in the grain market price in Europe. Then our business units, Brands and Industrial, which includes all of our operations and our business. Here we see that they are very balanced in terms of business. As Pasi said at the beginning, the growth in breakfast and snack has been quite pleasant. In Hathelt, the benchmark has been wrong as much as the forecast. These are both strategically very important things for us. There has been breakfast snacking, and it seems that there will be good growth momentum in the future as well. The same thing for Benecol, the megatrends are on our side. This has been the case during Q2, and there is a slight slump in the consumer side of H1. Here we have a little more of the segment, where our group grew by a little over 10% at the beginning of this Q2. This is a 3% comparable growth rate. and then the turnover, comparatively, fell by more than a million. This decline is explained quite straightforwardly by the fact that during this month we used a very precise million euros more in sales and marketing promotion investments than last year. So there is already a million of this so-called gap. The growth of Elovela has been powerful. and many more. We have also had volume challenges in our B2B industry, especially in the Finnish markets. But in this reporting period, volume has also turned up in the domestic markets. The supply has gone particularly well for a very long time and has continued to do so. But it is also exciting from the point of view of our certain industries' use, that domestic industrial agriculture is also have clearly turned in volumes. Benecol's sales have dropped in Finland by two numbers during the past month. In the UK, the development in the amount of euros is really in decline. Let's take a closer look at the percentages, but in the pound, this development has been quite neutral. The currency conversion was slightly opposite in terms of the amount of euros. as well as marketing investments in the HR department through comparison a little more. Here is breakfast and snacking first divided and we see that it works well for all sectors. Finland is also driving this bigger. The awards tell us well about the volumes and the amount of turnover. Suomi vetää hyvin voimakkaasti ja myös tämä Food Solutions keskellä varsin hyvässä kasvussa. Myös meidän pienemmät markkinat tai vasta avatut markkinat, niin matalahkoista lähtöluvuista kasvusuunta on kuitenkin positiivinen sielläkin. And this is a very important and wide-ranging trend, a positive trend, because as I said last year, there were still volume challenges on the industrial side. Then from Hothelt, as stated, H2, a small decline in trade, trade and volume fell close to hand-in-hand. In Finland, this fall was significant, and we will come to that a little later. But with the currency exchange, there was still a small negative impact on the result. We have now talked about a few hundred thousand, but all in all, the difference is negative. And then this Penecol brand update, which is ongoing now, it started in Finland, and our spread category was the first to see a new brand appearance. In the course of this brand renewal and in the course of the new product, there have been time-consuming challenges and also the construction of the brand identity takes a little time. These things have in practice been the first step in the challenge and naturally there have been planned procedures in place so that these Uusi ilmeiset tuotteet löytää kuluttajan arjen kuten ennenkin.

In addition to our commercial work, we have also continued our efforts in developing our responsibility. In the beginning of this year, we have achieved two important stages in this series. The Science-Based Target Initiative accepted RISE's short-term emissions targets for the year 2030. We have already done a lot of work to reduce our own emissions and now the next significant work area is this whole value chain, namely this Scope 3. And the second milestone is the connection to eco-wadding and the recognition of its fronzy level, which is one of the best 35% of our estimated companies. Both of these are tools for us to continuously improve and validate our work. We do the right things that are really important and lead us to a better future all the time. And we make sure that our responsibility is seen as concrete choices throughout the entire value chain. Where do we do the next big job in responsibility? In 2030, we want to reduce our emissions by about 20%, that is, 21,300 tons of CO2 equivalent. It is important to note that 96% of this reduction in needs and opportunities is in scope 3, that is, more broadly in our value chain. And most of this is related to agriculture and land use, and that is why, for example, the contracts for sustainable farming, which we have significantly increased this year, are an essential practice for us. I would like to raise the question of why only 4% of our own activity is part of it. This is partly due to the structure of the business, but also because for many years we have significantly reduced the amount of our own activity and systematically worked on it. That is why the focus is on the outside world and the whole chain. This success requires closer cooperation with the whole value chain. The strategy has not changed, it still leans towards the three cornerstones. The first important one is accelerating growth, and Elovena-Penagol still forms the central basis for organic growth, and the work is continued intensively. At the same time, we are looking for new sources of growth all the time and investing in them. It means research, product development, new business opportunities and also company organizations. Company purchases are actively on the agenda all the time. And the third cornerstone is that we want to bring strength to the growth of strong local traditional brands and then our agricultural and industrial solutions that bring us stable money flow and cover our high costs and help us support this growth. And this concretely guides both our capital and the use of resources. This strategy has progressed with many different Taho, Konkrettisina hankkeina, Nokialla, Kauramyllyn kapasiteetin nosto on valmis. Samaten myllyn yhteyteen on rakennettu uudet laboratoriotilat, jotka tehostaa meidän toimintaa. Viljojen sivuvirtojen arvonlisäystä tukeva pilottilaitos on tärkeä osa meidän tutkimustoimintaa. Tällä Raisionkaaren teollisuuspuiston tontilla tässä on parhaillaan ylösajovaiheessa. The modernization of our pasta factory and packaging lines is in progress. New research and development spaces are being built in Raisio, which will be launched during this month. This is actually already being launched and the workforce is being established at its best. Penecol has launched the brand to Spain and has strengthened the distribution of the yogurt products launched and launched the brand renewal, which is being prepared during this year and will be completed. Elovena international growth Let's continue naturally and carefully select the ones that have been strengthened and shared. Also, this project of a management-supported action management system is being planned. With the help of these, we are building skills that enable us to grow faster, more profitable and more efficient in the coming years. Our outlook for this year will remain the same, and we will guide the growth of the trade and comparison of the trade cycle compared to the last year. Also, the policy of shares is ahead of us, and we have a question of a very long balance. We want to provide our owners with a stable share of profit, but at the same time we want to maintain the necessary movement towards the implementation of the strategy and its growth. This was today's presentation and now we will gladly answer the questions that have come to us. Has Mika come to us?

There are a few here, let's read a little bit. Järjestyksessä täällä on kysymys, että onko kauhavan tehtaasti arvoa teidän taseessa? Onko sellaista, mihin voisi kohdistua lisää alaskirjauksia? Vastaus tässä on se, että tasearvoa ei ole. Mehän siellä osavuosikatsauksessa kerroimme, että meille jää tätä vuokravastuuta toisaalta itsellemme vielä. Olemme pitkässä vuokrasuhteessa käytännössä tähän kiinteistöön tällä hetkellä ja näin ollen, This is one of the reasons why we also want it in other hands, but from the point of view of TASE, it is not worth it. We still have more than 4 million euros in debt. The next question has been about the prize for winning the Lovena Stock Exchange in Spain. Is it a good answer to the number of business exchanges?

What the award was about, for those who don't know, was the year-round innovation competition of Karefour's largest retail operator, in which Elovena won the morning category with these pre-orders. In the background, there is an assessment by professionals and the voices given by consumers. So we have received very good feedback there. And we can see it positively in the speed of the cycle. The speed of the cycle is slowly rising all the time. People are trying and finding products, and there are also new purchases. Kehitys voisi olla nopeampaa, mutta on kuitenkin menossa ihan oikeaan suuntaan ja tehdyt toimenpiteet kyllä selvästi vaikuttavat ja rupeaa näkymään liikevaihdossa.

The next question is about the cost-benefit ratio, which has dropped by about 30%, on the other hand, the fourth question is how much of this deterioration is structural and how much of it is due to time constraints. There is a very marginal meaning to the change in the sales mix. I would say that the meaning is very limited. Then we have a certain amount of one-off costs that hit the cost of goods sold line in this quarter, but there is no such thing as significant, lasting or lasting that would structurally weaken the gross margin level when we move forward. And then there is the question of how the Penecol market share has developed in Great Britain.

I can comment on that. It has been quite stable. What has caused a little movement from it has now been seen in the second quarter. With one chain, the share of the competitor's competition was lost. Thank you very much. There has been more sharing and we have been able to get into the next area, especially on the discount side, which has also been our goal in our strategy. There has been an expansion of the distribution and it has been advanced during the summer and we have received products so that it can be seen positively again in the third quarter. Markkinaosuus ja kuluttajakysyntää on varsin vakaa. I can also comment on the Finnish market. There have been some categorical differences. In that sense, we have had some challenges with the spreads. In Finland, the market share has been lost temporarily, but similarly in yogurts and yoghurt drinks, the market share has been taken and the total there is also quite stable.

Thank you, Pasi. Now I see that there are no more questions. Thank you to the questions. and so we are at the end of our presentation. Pasi, this is the last part of your year-long review of Raisio and you are moving to new tasks, I wish you good luck and in this context I would also like to thank you for a couple of years of joint travel on behalf of your company. Thank you, it has been a pleasure to be part of Raisio's journey and we are actively working to get the transition managed.

and my follower Elli Siltala will be able to start the first nine and I have strong faith that Raisio will still succeed wonderfully under her leadership. Thank you very much and a wonderful end of the summer to everyone. Thank you everyone.