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A positive arbitration award for Raisio for the partial suspension of Raisioaqua’s business in 2018

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Raisio plc, Stock Exchange Release on December 17, 2020

In 2018, Raisio suffered a significant loss of income due to the interruption of the business for Raisioaqua's fish feed business. Russia imposed an export ban on Raisioaqua’s fish feed business from August 2018 until December 2018. The ban was due to a raw material supplied by Raisio's supplier that contained genetically modified (GMO) material.

The quality defect affected only a small part of the deliveries but despite this the Russian authorities ordered the deliveries to be suspended altogether at that time. This resulted in a significant loss of revenue for the financial year 2018. Since the beginning of 2019, Raisioaqua’s deliveries to Russia have continued as normal. Already in 2018, Raisio announced that it would enter into negotiations with the supplier for compensation for damages.

Based on the final ruling just received from the arbitral tribunal, the supplier is obliged to compensate Raisio for damages in the amount of approximately EUR 3 million. The income recognition is significant and, if realized, will have a positive effect on comparable operating profit. Raisio will immediately start the enforcement process to obtain compensation. However, due to the uncertainty related to the receivable, Raisio does not yet recognize the amount to be reimbursed in full or in part in its income statement.

RAISIO PLC
Board of Directors

Further information:
Toni Rannikko, CFO, tel. +358 (0) 400 788 812

Mika Saarinen, Director, Treasury, Communications and Investor Relations
tel. +358 (0) 400 726 808

Raisio is an international company specialized in healthy, responsibly produced food, ingredients and fish feeds. Our well-known brands include, for example, Benecol, Elovena, Sunnuntai, Torino and Benella. In Raisio’s products, the focus is on well-being, health, good taste and sustainable development. Profitable growth is ensured through our strong expertise and passion for creating new. Raisio’s shares are listed on Nasdaq Helsinki Ltd. In 2019, the Group’s net sales totaled EUR 236 million and EBIT was EUR 27 million. Raisio employs about 350 people. Our food is good for Health, Heart and Earth. For more information on Raisio go to www.raisio.com.

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