HKScan Oyj - Company Announcement

HKScan reshapes its strategy, the Group’s management and operating model and organisation

HKScan Corporation               Stock Exchange Release 10 August 2012 at 7:45am


HKScan reshapes its strategy, the Group's management and operating model and
organisation 


HKScan has redefined its strategy. According to the new strategy, the Group
will concentrate in particular on improving profitability by building up brand
value and demand, by improving operational efficiency, by actively managing the
dynamics of future business and by developing its capital structure and Group
reporting. 

As part of the strategy, HKScan will reform the Group's management and
operating model in order to harmonise, simplify and enhance internal processes
and cultures. The need for simplifying the structure occurred over the last few
years as the Group has undergone a period of strong expansion and
internationalisation. 

By removing current overlapping, HKScan will clarify and speed up its main
processes that are of key importance to customers and consumers. This will
improve the efficiency of operations and make information more readily
available for decision-making. 

“It is of particular importance that HKScan continues to manage and secure the
availability, quality and price of raw materials and other production factors
required for customer deliveries in a responsible manner throughout the long
value chain,” says CEO Hannu Kottonen. 


HARMONISATION OF BUSINESS OPERATIONS AND BUILDING UP GROUP FUNCTIONS

With the new Group-wide operating model, HKScan will reform and harmonise the
Group's business operations based on customer segments and distribution
channels. In addition, the Group will build up new Group functions for its
current market areas. The company will also reform the Group reporting to
better support the businesses, the new operating model, the organisation and
Group management. 

HKScan will introduce the operating model gradually by the end of 2013. The
work for building up unified Group functions has already begun. The reform will
not affect the Group's external reporting. 

The businesses involved in the new operating model are responsible for sales
and marketing, product development, in addition to the order-supply chain and
production. They are: 
1. Consumer, operating in the Group's main markets in Finland, the Baltics,
Sweden and Denmark 
2. Away from Home (AFH), looking after Business-to-Business (B2B), Food
Service, industrial, export and import businesses on all HKScan markets 
3. Sokolów and other joint ventures

The other Group functions supporting the businesses are:
1. Technology and Operations Development, a new function in the Group. It is
responsible for raw material and other material purchases, quality processes,
development of the order-supply chain and production technology, investments,
IT systems and responsibility issues. 
2. HR
3. Legal & Administration
4. Finance
5. Treasury
6. Communications
7. Strategy and Strategic Projects, another new function for the Group. It is
responsible for strategy projects and continuous development projects as well
as for refining the information that supports the business. 


APPOINTMENTS IN THE MANAGEMENT OF HKSCAN GROUP

The following appointments have been made in the Management Team and other
management of the HKScan Group in conjunction with the strategy update and
change of operating model. 

M.Sc.(Tech.) Aki Laiho (39) has been appointed Chief Operating Officer
responsible for the development of HKScan's technology and production, deputy
to the CEO and member of the management team. He has previously worked at the
Aalto University, as an independent entrepreneur, at Sauer-Danfoss Aps and
Nokia Corporation. Aki Laiho reports to CEO Hannu Kottonen. 

M.Sc.(Econ.) Tuomo Valkonen (45) has been appointed Chief Financial Officer of
HKScan and member of the management team. Tuomo Valkonem moves to his position
from the post of CFO at CPS Color Group. Tuomo Valkonen has previously worked
for Rautaruukki, Savcor, Kyrö and Metsäliitto. Tuomo Valkonen reports to CEO
Hannu Kottonen. 

The current CFO Irma Kiilunen will continue as Group Treasurer of HKScan,
reporting to Hannu Kottonen. 

M.Sc.(Econ.) Jukka Nikkinen (49) has been appointed Executive Vice President of
the Away from Home Business and member of the management team. He joins HKScan
from the position of Rautakirja Oy's director responsible for strategy and
business development. Prior to that, in 2002-2004, he was the director of
R-kiosk's international operations. Before Rautakirja, Nikkinen has held
several positions in the Leaf Group during 1988-2001, as export and marketing
director and other positions. Jukka Nikkinen reports to CEO Hannu Kottonen. 

M.Sc.(Econ.) Samuli Eskola (38) has been appointed Senior Vice President
responsible for HKScan's strategy and strategic projects. He moves to this
position from within the HKScan organisation where he has held several
managerial positions since 2007. Samuli Eskola reports to CEO Hannu Kottonen. 

M.Sc.(Econ.) Pekka Kuokka (55) has been appointed Senior Vice President
responsible for ICT at HKScan's Technology & Operations Development. Pekka
Kuokka will also act as the Group's Purchasing Director (in addition to his
main position) responsible for purchasing categories other than primary
production and meat raw materials. He joins HKScan from the West-South European
regional operations of Kone Corporation where he was responsible for business
planning from the beginning of 2011. Prior to that, he worked for Kone
Corporation in several international positions, responsible for the financial
and IT functions of Kone Iberica and Giant Kone China. Pekka Kuokka reports to
Aki Laiho. 


FROM 1 SEPTEMBER 2012, THE MANAGEMENT TEAM OF HKSCAN WILL BE COMPRISED AS
FOLLOWS: 



Hannu Kottonen, CEO; Aki Laiho, COO; Tuomo Valkonen, CFO; Anne Mere (EVP),
Executive vice president of Finland and the Baltics; Denis Mattsson, (EVP),
Executive vice president of Sweden and Denmark; Jukka Nikkinen, EVP, Away from
Home Business; Sirpa Laakso, EVP, HR; and Markku Suvanto, EVP, Legal &
Administration, who also acts as the Secretary of the Management Team. 

More detailed introductions of the Management Team Members will be available
from 1 September 2012 at www.hkscan.com. 


HKScan Corporation

Hannu Kottonen
CEO


Further information:
CEO Hannu Kottonen, HKScan Corporation. You can ask him to call you back by
contacting Marjukka Hujanen, tel. +358 10 570 6218. 


HKScan is one of the leading food companies in northern Europe with home
markets in Finland, Sweden, Denmark, the Baltic countries and Poland. HKScan
manufactures, sells and markets pork and beef, poultry products, processed
meats and convenience foods under strong brand names. Its customers are the
retail, Food Services, industry and export sectors. In 2011, it had net sales
of EUR 2.5 billion and some 11 400 employees. www.hkscan.com 


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