Raisio - Company Announcement

Raisioagro to focus on its core competencies and innovations

Raisio plc, Stock Exchange Release, 10 June 2014, at 8:45 a.m. Finnish time

RAISIOAGRO TO FOCUS ON ITS CORE COMPETENCIES AND INNOVATIONS

Raisio is focusing its activities on cattle and fish feeds and on plant
cultivation, which are the company's core competencies. Raisioagro aims to be
the leading operator in the agricultural sectors where success is based on
feeding and plant cultivation expertise and on innovations. Through expertise
and innovations, Raisioagro improves its customers' possibilities to produce
healthy food effectively while taking environmental issues and sustainable
development into consideration as well as ensuring animal welfare. 

Raisioagro's Managing Director Jarmo Puputti says: “In Ylivieska, Raisioagro
has the most modern cattle feed factory in Finland and the cattle feed
production in Kouvola will be enhanced through investments. Raisioagro provides
its customers with optimised feeding concepts as well as feeds and farming
supplies that meet their specific needs. Some dairy farms are already now
testing our new feeding concepts particularly suitable for component feeding,
and through Raisioagro's plant cultivation expertise, it is possible to also
improve the quality of the farm's own silage. Raisio will continue to be a
major Finnish grain buyer that purchases grain for its own use and to be resold
both in Finland and abroad.” 

The employee cooperation negotiations, which started at Raisioagro in April
2014, have now ended. As a result of the negotiation process, the production of
pig and poultry feeds will be stopped at the Raisio-based factory by the end of
September 2014. In recent years, new capacity has been built in Finland for the
production of pig and poultry feeds and the business model has become more
slaughterhouse-driven. As a result, Raisioagro, as an independent operator, has
now less opportunities for profitable business. Raisio's feed factory will
continue to produce fish feeds and feed premixes. Fish feed production employs
15 persons, with the exception of midwinter when employees are laid off. 

The cooperation negotiations resulted in the termination of 43 employments, of
which 27 through redundancies. Some of the ending employments are temporary and
some cuts are made through natural attrition. The redundancies concern all
personnel groups. The negotiations concerned all Raisioagro's activities except
the feed factory in Ylivieska and sales of fish feeds and feed export.
Approximately 150 employees were in scope of the negotiations. The number of
personnel reductions was lower than expected. 

Raisioagro estimates that these staff reductions will result in annual savings
of approximately 2.5 million euros. Associated with the cessation of the pig
and poultry feed production, Raisioagro will record some 10 million euros in
one-off costs, which are expected to focus on the third quarter of the year.
Net working capital of about 11 million euros is estimated to be released
compared to the situation at the beginning of the year. 

RAISIO PLC

Heidi Hirvonen
Communications and IR Manager
tel. +358 50 567 3060

Further information:
Jarmo Puputti, Managing Director, Raisioagro, tel. +358 50 352 8740