HKScan Corporation STOCK EXCHANGE RELEASE 9 April 2010, at 4:15pm EARNINGS DEVELOPMENT IN HKSCAN GROUP'S FINNISH BUSINESS MORE MODEST THAN ANTICIPATED IN EARLY PART OF YEAR - LAUNCH OF BUSINESS CHAIN DEVELOPMENT PROJECTS THUS BROUGHT FORWARD According to preliminary estimates, HKScan Corporation's Finnish business operations will fall clearly short of the earnings performance seen in Q1 of last year. The market has proven even more challenging than anticipated. The greatest movements in the market have been seen in poultry meat, the underlying reason being stepped-up price competition in anticipation of the revised EU Poultry Directive which is to take effect in May. The demand for pork and beef as well has been flatter than expected. According to CEO Matti Perkonoja, the planned development measures in HK Ruokatalo's business chain must be brought forward markedly if long-term profitability targets are to be met. These plans extend throughout the business chain, the aim being to strengthen the company's position in its home market. The development programmes are envisioned to deliver annual earnings improvements of EUR 12 million. Programme-related investments are included in the ordinary annual investment programmes of the business. The programmes are estimated to give rise to some additional expenditure in the years 2010-2011. Preliminary plans have HK Ruokatalo centralizing its production activities and markedly scaling back production outsourced to subcontractors. The plans are intended to concern all of HK Ruokatalo's production plants as well as all its employees and subcontractors in Finland. Implementation of the programmes is tentatively estimated to translate into a reduction of roughly 200 person-years in HK Ruokatalo's business chain. The appropriate negotiations will be started with HK Ruokatalo employees once the specifics of the plans have been worked out. HKScan Corporation will release its Q1 interim report on 4 May 2010 at approximately 8:00 am. HKScan Corporation Matti Perkonoja CEO Further information is available from HKScan Corporation CEO Matti Perkonoja. Please leave any message for him to call with communications manager Marja Siltala, tel. +358 (0)10 570 2290. HKScan is one of the leading food companies in northern Europe with home markets in Finland, Sweden, the Baltics and Poland. HKScan manufactures, sells and markets pork and beef, poultry products, processed meats and convenience foods under several well-known local brand names. Its customers are retail, the HoReCa sector, industry and export customers. HKScan is active in nine countries and has some 10,000 employees. It had net sales of 2.1 billion euro in 2009. DISTRIBUTION: NASDAQ OMX Helsinki Main media www.hkscan.com
EARNINGS DEVELOPMENT IN HKSCAN GROUP'S FINNISH BUSINESS MORE MODEST THAN ANTICIPATED IN EARLY PART OF YEAR - LAUNCH OF BUSINESS CHAIN DEVELOPMENT PROJECTS THUS BROUGHT FORWARD
| Source: HKScan Oyj