Raisio - Company Announcement

Raisio’s cooperation negotiations ended

Raisio plc, Stock Exchange Release, 28 November 2012

RAISIO'S COOPERATION NEGOTIATIONS ENDED

Raisio is improving profitability by adjusting its Finnish operations to the
current market situation. In addition to improved profitability, the company
can also ensure long-term competitiveness with lighter cost structure and more
efficient operations model. 

Improved profitability through cost savings

Raisio has concluded most of the cooperation negotiations initiated in October.
With the now realising cost savings and restructuring of operations, Raisio
expects to improve its profitability by more than EUR 4 million. 

The cooperation negotiations concerned Finnish food operations, feed protein
business and the Group's support functions. During the negotiations, the
reduction need was confirmed to be a total of 56 persons, which means 40
employees made redundant. Other staff reductions will take place through
natural attrition. The reductions concern all personnel groups. 

Feed protein business more flexible through investments

Feed protein business performance will be improved by adjusting production to
better meet the availability of Finnish rapeseed. Finnish oil plant cultivation
covers clearly less than half of the Finnish oil plant industry's needs. By
reduced production, the company can also avoid unprofitable exports of rapeseed
oil, a process by-product crushed from imported seed. The company's diminishing
meal production will be replaced by imports. Raisio will make investments in
order to increase flexibility and efficiency in the Raisio-based feed protein
factory. During periodic production shutdowns, personnel are provided with
other process functions in Raisio's industrial area, for example in the
production of seasonal fish feeds. 

Improved competitiveness for Finnish food operations

As a result of the cooperation negotiations, the operations model and
organisation of Finnish food operations will be streamlined. Sales and
marketing organisations will be combined into a single commercial organisation
and the resources of supply chain, production and product development will be
adjusted to match the levels of current business. Part of the cooperation
negotiations is still continuing to identify alternatives and to adjust
production capacity to the market conditions. 

Furthermore, the operations of Ateriamestarit Oy, a joint venture of Raisio and
Lännen Tehtaat, will be closed down at the end of 2012. Sales of catering
products will be transferred to Raisio's own organisation as of 1 January 2013.
In Sweden, Raisio will replace its own organisation by a distributor
cooperation model and in the Baltic Countries, operations will be centralised
primarily to Estonia. 

RAISIO PLC

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

Further information:
Matti Rihko, CEO, tel. +358 400 830 727