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SOK CORPORATIONFinancial Statements Bulletin 1 January –31 December 2011

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EXECUTIVE BOARD REPORT ON OPERATIONS

Overall operating environment in retail in 2011

The operating environment in retail was clearly two-fold in 2011. At the beginning of the year, expectations concerning the devel-opment of Finnish national economy were positive. Growth in the national economy had been brisk the previous year. It was expected that the growth driven by exports would continue to be strong in 2011 as well, although the risk posed by the debt issues in the euro zone was acknowledged. However, the hopeful mood turned into exceptionally high uncertainty during the summer as the European debt crisis took over the headlines.

It is estimated that Finnish GNP grew at a rate of approximately 2.5 per cent last year. At the beginning of the year, economic growth was generally expected to exceed one percentage point. The rapid slowdown of growth at the end of the year has also made the retail operating environment more challenging.

Despite the increased challenges, the year 2011 was good for retail. The slowdown of economic growth was due to the de-creased activity in exports and industry. Household consumption increased strongly at least in the first three quarters of the year. Household consumption became a significant force in maintain-ing economic stability and employment last year, even if growth in the last quarter was slightly slower.

The increased economic uncertainty was reflected in consumers’ moods. Consumer confidence in future economic performance declined rapidly in the middle of the year and confidence was weak at the end of the year. Counterbalancing the bad news coming from the euro zone, employment in Finland developed favourably. The unemployment rate declined and the total amount of wages paid in the national economy, an important factor for consump-tion, grew. Consumer prices increased by an average of 3.4 per cent during the year. The increase in prices contributes to the increased revenue in many retail sectors.

According to Statistics Finland, the value of revenue in retail, excluding the automotive trade, increased by 5.5 per cent by the end of November. Viewed by business area though, the sales de-velopment was inconsistent. Revenue growth in the grocery trade was 6.8 per cent for the period, whereas in department store trade, it was 2.4 per cent.

Among the more specific retail areas, revenue in fashion in-creased by 3.4 per cent by the end of October. Revenue in house-hold appliance and consumer electronics trade decreased by 0.7 per cent due to the reduced price levels. Revenue in the hardware trade increased by 7.7 per cent. The strong growth in fuel sales, 9.7 per cent by the end of October, was due to increased price levels. The sales volume overall was slightly lower than in the previous year. Growth in automotive retail was 11.4 per cent. The number of new passenger cars registered during the year was nearly 13 per cent higher than the previous year.

In the agricultural trade, the operating environment continued to fluctuate. The business area has felt the impact of increased market prices for grain and oil. The grain crop volume recovered

from the dip it had experienced in the previous year. Market de-mand for machinery used in agricultural production grew from the previous year, but demand for feeds was lower.

Positive development continued in the tourism and restaurant business. Hotels in Finland recorded 14.8 million overnight stays by the end of November. The number of overnight stays increased by 4.2 per cent. Sales in off-licence restaurants increased by nearly 5 per cent by the end of September.

Changes in the Group structure

Changes during the periodBusiness acquisitions, establishments, and

reorganisationsIn February 2011, SOK established S-Yrityskortti Oy in order to develop sales to corporate customers. SS-Yrityskortti Oy started operations at the end of 2011.

SOK Autokauppa Oy acquired the business operations of ME-Auto in March, and ME-Auto’s personnel and operations were transferred to SOK Autokauppa Oy. The company’s three out-lets in Helsinki, Espoo and Vantaa continue their operations. No goodwill was recognised in the arrangement.

In May, SOK established RB Int. Oy for the financing activities for Russian subsidiaries.

In June, SOK established S-Polttonesteterminaalit Oy in order to improve the logistics of fuel sales.

In August, SOK acquired the Kiinteistö Oy Raision Nikkari real estate company.

In October, SOK established S-Yrityspalvelu Oy in order to develop the hardware trade.

In October, SOK acquired Yara Suomi Oy’s minority interest in Hankkija-Maatalous Oy, which means that SOK now owns all of the Hankkija-Maatalous Oy shares.

Business sales and discontinued operations In February 2011, Sokotel Oy sold the operations of the Radisson Blu Marina Palace hotel to the Turun Osuuskauppa cooperative enterprise.

In March, Sokotel Oy sold the business operations of the Saariselkä, Kuusamo, Vuokatin Katinkulta, and Tampere spa ho-tels to Holiday Club Resorts Oy.

SOK sold the Kiinteistö Oy Limingan Terminaali and Ki-inteistö Oy Lempäälän Terminaali real estate companies to S-Bank in April.

SOK sold the Kiinteistö Oy Joensuun Lemmikki and Kiinteistö Oy Siihtalanmäki real estate companies to the Pohjois-Karjalan Osuuskauppa cooperative enterprise in July.

Sokotel Oy sold the business operations of Sokos Hotel Lahden Seurahuone and Vaakuna in Hämeenlinna to the Osuuskauppa Hämeenmaa cooperative enterprise in December.

SOK Autokauppa sold the business operations of Lahden Au-tokauppa to the Osuuskauppa Hämeenmaa cooperative enterprise in December.

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SOK Corporation’s revenue by segment

SOK Corporation’s revenue in 2011 totalled EUR 11,280 million, up 21.6 per cent from the previous year. Growth in revenue, EUR 2,005 million, is mainly attributable to the growth in fuel sales, which is part of the procurement business, and the increase in EDI invoicing related to the cooperative enterprises’ goods procure-ment which is part of the services business.

International operations accounted for 3.2 per cent of the rev-enue, or EUR 359 million.

SOK Corporation’s operating revenue by segment

EUR million EUR million ± previous 1.1.–31.12. 1.1.–31.12. year 2011 2010 %Supermarket Trade 311 224 38.6Tourism and Hospitality Business 253 264 -4.0Automotive Trade and Accessories 214 203 5.0Agricultural Trade 996 889 12.0Procurement 8,213 5,847 40.5Services Business 7,105 6,613 7.4Elimination of internal items 1) -5,813 -4,764 22.0SOK Corporation total 11,277 9,276 21.6

1) The eliminations include the eliminations of business transactions between segments in the Retail and Wholesale Business. The eliminations between the segments include EUR 5,550 million of the Corporation’s internal EDI invoicing (EUR 4,495 million).

Supermarket TradeThe supermarket trade includes the operations in Estonia, Latvia, Lithuania, and Russia. In Estonia, there are five Prisma stores in Tallinn and stores in Narva and Tartu. There are three Prisma stores in Riga, Latvia. In Lithuania, there is one Prisma store in Vilnius and another one in Kaunas. Nine Prisma supermarkets are in operation in St. Petersburg. Revenue in the supermarket trade was EUR 311 million, showing an increase of 38.6 per cent from the previous year. The increase in revenue was due to both the expansion of the network and market recovery.

Tourism and Hospitality BusinessIn 2011, tourism and hospitality business in the SOK Corpora-tion was operated by Sokotel Oy in Finland, AS Sokotel in Esto-nia, and OOO Sokotel in Russia.

Sokotel Oy’s revenue in 2011 was EUR 212 million, showing a decrease of 6.4 per cent from the previous year. Sales decreased in 2011 since Sokotel Oy sold a total of five hotel units at the beginning of the year: four Holiday Club spa hotels to Holiday Club Resort Oy, and the Radisson Blu Marina Palace hotel to the Turun Osuuskauppa cooperative enterprise. The recovery of the sales volume and average price in the hotel business that had started at the end of 2010 continued at the beginning of 2011. This had a positive impact on sales development.

In Tallinn, revenue from AS Sokotel, operating the hotel and restaurant business for Sokos Hotel Viru, increased by 12.8 per cent from the previous year, to EUR 15 million.

SOK Corporation’s tourism and hospitality business is operated by OOO Sokotel in St. Petersburg. There are three Sokos Hotels in St. Petersburg. The company’s revenue totalled EUR 27 million,

representing growth of 8.9 per cent. The boost experienced in do-mestic tourism in Russia was responsible for the increased growth.

Automotive Trade and AccessoriesThe revenue of SOK Corporation’s automotive trade and acces-sories was EUR 214 million, showing an increase of 5.0 per cent from the previous year. Purchases by co-op members were at the same level as in the previous year. Approximately EUR 1.1 million was paid in bonuses to co-op members.

The total market in new passenger cars was 126,123 vehicles, showing an increase of 12.6 per cent compared to the previous year. The total market in vans in 2011 was 14,491 vehicles, an in-crease of 31.2 per cent compared to the previous year. The market in used cars in 2011 grew by 3.8 per cent.

During the year, there were considerable changes in car deal-erships. The Peugeot dealership agreements expired on 31 May, and at the same time, new agreements were signed with Simetron Group on the Hyundai, Renault, Suzuki, Dacia, and Isuzu dealer-ships in the Helsinki metro area.

Agricultural TradeRevenue from agricultural trade, including the retail and whole-sale of building supplies, increased by 12 per cent, to EUR 996 million, from the previous year. Revenue growth was consider-ably affected by the increase in the market prices of grain and oil. Revenue growth was reduced by the structural rearrangement completed in the hardware trade in the previous financial year, in which the use of the S-Rautamarket chain logos was discontin-ued and the assortment of hardware was reduced in 23 outlets. Demand for machinery used in agricultural production in the market grew from the previous year but demand for feeds was lower than before.

ProcurementThe procurement business comprises SOK’s procurement and logistics services for groceries and consumer goods and the lo-gistics services for speciality products by Inex Partners Oy, the procurement and logistics services for the HoReCa business by Meira Nova Oy, and fuel procurement by the North European Oil Trade Oy.

Inex Partners Oy’s revenue was EUR 4,424 million. The in-crease in comparable revenue from the previous year was 7.7 per cent. The increase in revenue is attributable to S Group’s successful retail operations. In terms of groceries, the increase in Inex’s com-parable revenue compared to the previous year was 6.6 per cent. In consumer goods, the increase in Inex’s sales was 8.8 per cent.

Meira Nova Oy’s revenue of EUR 336 million was better than planned, showing an increase of 5.5 per cent compared to the previous year. Sales to S Group amounted to 46.0 per cent of the total sales and showed an increase of 10.0 per cent compared to the previous year.

The fuel trade revenue of the fuel procurement company North European Oil Trade Oy came to EUR 3,462 million. Growth from the previous year was 70.5 per cent, primarily due to the increase in the litre volume sales as the company took over Shell’s procurement operations and due to the increased global market prices.

Services BusinessRevenue from the services business was EUR 7,105 million. The services business includes the EDI invoicing of the cooperative enterprises’ goods procurement as well as the revenue from services

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produced by SOK for S Group’s units. EDI invoicing amounted to EUR 6,826 million, showing an increase of EUR 489 million (7.7 per cent) over the previous year.

Associated companies’ performance

Among the associated companies engaging in business operations within SOK Corporation, the most significant is S Group’s own bank, S-Bank Ltd. At the beginning of the year, S-Bank had 2.319 million customers. The number of S-Bank’s customers increased by an average of 11,000 customers per month. At the end of the year, the number of customers was approximately 2.452 million.

S-Bank issued an average of 26,000 new S-Etukortti bonus cards with Visa per month. At the end of the year, the number of S-Etukortti bonus cards in use with Visa was approximately 948,000.

S-Bank signed approximately 133,000 new banking ID agree-ments for electronic services. At the end of the year, S-Bank’s electronic services had 1,066,000 users.

During the year, the amount of savings in S-Bank increased by EUR 21.1 million. The total funds on deposit at year-end were nearly EUR 2,473.1 million.

Deposits by private customers increased by EUR 81.8 million. At the end of the year, the share of private customers’ deposits of the total funds on deposit came to 95.9 per cent, or nearly EUR 2,371.7 million. The total funds of corporate deposit at year-end were nearly EUR 101.4 million.

The amount of credit granted by S-Bank increased by EUR 1.8 million. At the end of the year, the total amount of S-Bank’s outstanding credit was EUR 300.8 million, of which EUR 204.1 million were to private customers.

S-Bank’s financial performance was excellent in 2011. The profit of the bank Group was EUR 7.0 million, of which the profit corre-sponding to S Group’s holding (50 per cent) was EUR 3.5 million.

The associated companies’ combined effect on earnings in S Group’s consolidated financial statements in 2011 was EUR 5.7 million (EUR 7.7 million).

Financial performance

SOK Corporation’s result before taxes was EUR 19.5 million (EUR 32.1 million). The result of the continuous operations be-fore taxes was also EUR 19,5 million (EUR 41.2 million). The 2011 result was smaller than in the previous year due to the high sales gains included in the result of the comparison year, among other things.

The Corporation’s return on capital employed, including the central business operations related to financing and procurement operations and serving the cooperative enterprises, was 3.2 per cent (3.6 per cent).

Impairment losses recognised on property, plant and equipment were EUR 0.5 million (less than EUR 0.1 million). SOK Corpora-tion’s financial income and expenses (+/-) amounted to EUR +0.4 million (EUR -7.4 million).

Valuations in accordance with the Finnish accounting legisla-tion were applied in the calculation of SOK Corporation’s opera-tional result.

SOK Corporation’s operational result by segment

EUR million EUR million 1.1.–31.12. 1.1.–31.12. 2011 2010Supermarket Trade -21.9 -16.9Tourism and Hospitality Business 1.1 -6.1Automotive Trade and Accessories -13.0 -5.3Agricultural Trade 5.8 -8.7Procurement 9.2 18.3Services Business 34.4 10.9Elimination of internal items for the Retail and Wholesale Business 1) -28.0 -2.2Operational result from the Retail and Wholesale Business -12.4 -10.0Operational result from Banking 3.5 6.2SOK Corporation total -8.9 -3.7

1) The eliminations include the eliminations of business transactions between segments.

SOK Corporation’s operational result, EUR -8.9 million, is rec-onciled with SOK Corporation’s results before taxes, EUR +19.5 million. Items not included in the operational result include capi-tal gains and losses on fixed assets, other operating income and expenses, and impairment losses. In 2011, capital gains and losses on fixed assets amounted to EUR +14.7 million, other operating income and expenses amounted to EUR +0.5 million, reversals of impairment losses to EUR 1.9 million, capital gains on the sale of business operations to EUR 4.3 million, derivative valuation gains and losses to EUR +3.2 million, and other items were EUR +3.8 million.

Operational result from the Retail and Wholesale Business

Supermarket TradeThe supermarket trade includes trade in the Baltic countries and Russia. The operational result of supermarket trade was at the budgeted level. The establishment of new outlets continues to burdens the result.

Tourism and Hospitality BusinessThe operational result of Sokotel Oy, engaging in the tourism and hospitality business in Finland, was better than in the previous year and than targeted, due to the improved economic situation and the development and streamlining projects.

The operational result of AS Sokotel, in the tourism and hospi-tality business in Tallinn, was better than in the previous year and better than budgeted for. The operational result of OOO Sokotel, engaging in the tourism and hospitality business in St. Petersburg, fell slightly short of the budgeted result but was clearly better than in the previous year.

Automotive Trade and AccessoriesThe operational result of automotive trade and accessories contin-ued to show a loss and weakened compared to the previous year. This was particularly attributable to the reorganisation of opera-tions due to the changes in the vehicle dealerships.

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Agricultural TradeThe operational result of the Hankkija-Maatalous Group showed a profit and was as targeted. The result was considerably better than in the previous financial year. The structural rearrangements decided on and completed in the hardware trade in 2010 that generated non-recurring expenses were a significant factor in this success.

ProcurementInex Partners Oy’s operational result was better than planned and than in the previous year due to the increase in volume and the successful management of expenses. Due to the increase in sales and the effective management of fixed costs and net financing costs, Meira Nova Oy’s operational result was better than budg-eted for. The operational result of the fuel procurement company North European Oil Trade Oy was lower than budgeted and lower than in the previous year.

Services BusinessThe operational result of the services business was better than in the previous year and better than planned due to, among other things, the delay in the implementation of some of the planned projects and subsequently, expenses that were lower than planned.

Operational result from Banking

The operational result of Banking operations came to EUR 3.5 million (EUR 6.2 million). S-Bank’s result as an associated com-pany was reported as the operational result in Banking.

SOK’s operations

SOK is the parent company of SOK Corporation. In accordance with its statutes, SOK acts as the central organisation for S Group, promoting and developing the operations of the cooperative enter-prises and other organisations belonging to S Group, and manag-ing and supervising the Group’s overall resources for maximum efficiency while also monitoring the operations and seeing to the interests of S Group and its various segments.

SOK is in charge of S Group’s strategic management. Its tasks are to provide the S Group companies with services in chain management, co-op membership and marketing, as well as other group and corporate services and development activities related to these services and other activities of S Group. Services central to S Group’s operations also include procurement, rental services, and assortment and invoicing services for goods delivered directly from manufacturers to the chain units.

Through its nationwide and regional subsidiaries, SOK offers a wide spectrum of services to co-op members in S Group. Further-more, through its subsidiaries, SOK engages in the supermarket trade and tourism and hospitality business in the Baltic area and St. Petersburg.

SOK’s revenue was EUR 7,081 million, up 7.4 per cent from the previous year. The growth in revenue is mainly attributable to the increase in EDI invoicing related to the cooperative enter-prises’ goods procurement.

SOK’s operating profit was EUR 4.7 million; in the previous year, the operating surplus was EUR 9.5. SOK’ surplus before extraordinary items was EUR 49.2 million, compared to EUR 22.0 million in the previous year.

Investments and divestments

SOK Corporation’s non-current asset procurement totalled EUR 105.9 million in 2011 (EUR 98.8 million). SOK acquired Yara Suomi Oy’s minority interest in Hankkija-Maatalous Oy, which means that SOK now owns all of the Hankkija-Maatalous Oy shares. Significant investments included the supermarket trade investments in the St. Petersburg area and the Baltic countries. Real estate and information system investments were also made, as well as tourism and hospitality business investments in Finland.

The sales of non-current assets amounted to EUR 44.1 million (EUR 78.4 million ), the majority of which were real estate divest-ments. Among the properties sold were the Liminka and Lempäälä terminals as well as the Sokos Hotel Kimmel and Siihtalanmäki properties in Joensuu. In addition, Sokotel Oy sold the business operations of Holiday Club as well as the business operations of Sokos Hotel Lahti Seurahuone and Vaakuna in Hämeenlinna.

Financing

SOK Corporation’s liquidity remained good throughout the year. Liquid cash assets and money market investments amounted to EUR 166.2 million at the end of the year (EUR 268.3 million). In addition, the Corporation had EUR 290.0 million of undrawn binding credit facilities, all of which were long-term. SOK Corpo-ration’s interest-bearing net liabilities stood at EUR 195.9 million at the turn of the financial period (EUR 54.5 million). Gearing was 34.1 per cent on 31 December 2011 (9.3 per cent), and SOK Corporation’s equity ratio was 26.7 per cent (28.9 per cent).

Personnel

SOK Corporation’s average number of personnel, converted to full-time equivalents, came to 8,947 people during the review period (8,442).

At the end of 2011, SOK Corporation’s number of personnel was 9,934, of whom 1,280 (12,9 per cent) were employed by SOK and 8,654 (87.1 per cent) by the subsidiaries. The number of per-sonnel increased by 226 people (2.3 per cent) from the previous year. The number of employees working abroad was 2,794. Dur-ing the year, the increase in the number of personnel was mainly due to the expansion of the supermarket trade in neighbouring countries.

SOK management and auditors

Kuisma Niemelä was SOK’s chairman of the Board of Directors and CEO. Until the end of 2011, Taavi Heikkilä, Managing Di-rector of the Osuuskauppa Hämeenmaa cooperative enterprise was Vice Chairman of the Executive Board. As of the beginning of 2012, the position is held by Harri Koponen, Managing Director of the Turun Osuuskauppa cooperative enterprise.

In addition to the CEO, the Executive Board in 2011 consisted of the following members: Managing Director Taavi Heikkilä, Managing Director Esko Jääskeläinen, Managing Director Harri Koponen, Managing Director Arttu Laine, Managing Director Antti Määttä and Managing Director Matti Niemi.

The auditor in the 2011 financial year was KPMG Oy Ab, Authorised Public Accountants, with APA Raija-Leena Hankonen as the principal auditor.

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SOK’s Supervisory Board appointed the same members to SOK’s Executive Board for the term starting on 1 January 2012 as in 2011, with the exception of outgoing Taavi Heikkilä. Managing Director Tapio Kankaanpää was appointed as a new member of the Executive Board for 2012.

Assisting SOK’s CEO Kuisma Niemelä in the strategic man-agement of SOK Corporation and S Group was SOK’s Corpo-rate Management Team, which in 2011 comprised the following members: Antti Sippola, Senior Vice President and Deputy CEO; Jari Annala, Senior Vice President; Suso Kolesnik, Senior Vice President; Vesa Kyllönen, Senior Vice President; Leena Laitinen, Senior Vice President; Harri Miettinen, Senior Vice President; and Leena Olkkonen, Senior Vice President. Seppo Kuitunen, General Counsel, worked as secretary to the Corporate Manage-ment Team.

Risks and uncertainties

SOK Corporation has an SOK Corporation risk management policy in place, approved by the Executive Board and updated in the spring of 2011. The policy is based on S Group’s common risk management principles. SOK Corporation’s risk manage-ment policy describes the purpose, objectives, key implementation methods and responsibilities of the Group’s risk management. In SOK Corporation, risk management is continuous and is imple-mented in all stages of the management process, from strategic planning to execution. Risks are reviewed in a comprehensive manner, taking into consideration strategic, financial, operating, and hazard risks.

The most central uncertainties identified in terms of SOK Corporation’s operations relate to the growing operations in Rus-sia and the Baltic countries, among other things. The success of these investments relies on the frequent monitoring and effective management of country risks. Economic uncertainty reflected in consumer behaviour may also affect the profitability of SOK Corporation’s business operations. Implementing new business concepts such as online sales also includes uncertainties. From a responsibility perspective, long global procurement chains and ensuring their proper monitoring involve risk management issues that need to be considered.

SOK Corporation’s financing and management of financing risks is centralised within SOK’s Treasury unit. The Group has an economic and treasury policy confirmed by the SOK Executive Board that defines the principles of managing financial risk and the permissible maximum amounts for financial risks. In addi-tion, numerical targets have been set for the different sub-areas of financing in order to ensure that financing is sufficient, balanced, and affordable under all circumstances. The management of finan-cial risks and price risks for goods is described in greater detail in the Notes to the consolidated financial statements.

Environmental risks associated with SOK Corporation’s busi-ness operations have been identified and analysed by business area. The obligations related to mitigating climate change, improving energy efficiency, and increasing renewable sources of energy in-clude both risks and opportunities for S Group’s business op-erations. The most significant environmental considerations and related measures are described in S Group’s corporate responsi-bility report, which will be published on the S-Kanava website (www.s-kanava.fi) in the spring of 2012. The central key figures depicting SOK Corporation’s business operations as well as finan-cial position and result are presented in the key figure table in the Notes to the financial statements.

Outlook for the current year

The future economic performance of the euro zone continues to be uncertain in the current year. The debt crises of some European countries remain unresolved. The greatest near-term economic risk is related to the euro crisis and the stability of the global fi-nancing sector. The economic outlook for Finland weakened with the rest of the euro zone at the end of the year. Private consump-tion continues to be both a stabilising factor in the economy and a source of economic growth as export demand weakens. Based on the structure and direction of exports, it is estimated that Fin-land will fare better than the euro zone. However, growth may be weaker than previously forecast. The general operating environ-ment for retail in the current year will be more challenging than last year. It is estimated that the economic situation will become clearer by the summer.

SOK Corporation’s result will be significantly affected by the development of the overall economy, both in Finland and in neighbouring countries. Thanks to the economic development and the improvements implemented in SOK Corporation’s busi-ness operations, it is believed that the result of all operations in Finland will be better than last year.

The positive development in the economies of the neighbouring countries as well as in the Corporation’s supermarket trade and tourism and hospitality business is expected to continue in the neighbouring countries. The on-going extensive network expan-sion will continue to have a negative impact on the result of the supermarket trade in Russia and the Baltic countries. Due to this, the supermarket trade result may in total remain at last year’s level or slightly lower.

In all, it is forecast that SOK Corporation’s result will continue to show a loss due to the automotive trade and the powerful net-work expansion of the supermarket trade in the neighbouring countries, but it will develop favourably compared to the previ-ous year.

Helsinki, 17 February 2012

SUOMEN OSUUSKAUPPOJENKESKUSKUNTA

Executive Board

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Consolidated income statement, IFRS

EUR million

Continuing operations:RevenueOther operating income

Materials and servicesEmployee benefit expensesDepreciation and impairment losses

Other operating expensesShare of results of associated companies and joint ventures (+/-)

Operating profitFinancial income and expenses (+/-)Share of results of associated companies and joint ventures (+/-)

Profit before taxes

Income taxes (+/-)Result for the financial year from continuing operations

Result for the financial year from discontinued operations

Result for the financial year

Attributable to:Owners of the parentShare of non-controlling interests

Statement of other comprehensive income

EUR million

Result for the financial year Other comprehensive income:Exchange differences on translating foreign operationsAvailable-for-sale financial assets Fair value changes during the period Income tax relating to available-for-sale financial assetsCash flow hedges Fair value changes during the period Income tax relating to cash flow hedgesComprehensive income items of associated companies and joint venturesOther comprehensive income for the financial year, net of taxTotal comprehensive income for the financial year

Total comprehensive income for the financial year attributable to:Owners of the parentShare of non-controlling interests

1.1.–31.12.2011 1.1.–31.12.2010

11 280.2 9 257.7 21.2 33.3 -10 505.1 -8 524.4 -355.0 -335.1 -72.4 -64.6 -355.6 -326.0 5.4 7.9 18,8 48.8 0.4 -7.4 0.3 -0.2 19.5 41.2 -7.8 -6.9 11.7 34.3 -9.2 11.7 25.1 12.3 24.4 -0.5 0.7 11.7 25.1

1.1.–31.12.2011 1.1.–31.12.2010

11.7 25.1 -1.0 1.4 -3.3 0.0 0.8 0.0 5.4 -1.4 -13.2 -4.0 -16.7 1.4 -5.0 26.5 -4.4 25.8 -0.5 0.7 -5.0 26.5

CONSOLIDATED FINANCIAL STATEMENTS

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Consolidated statement of financial position, IFRS

EUR million

ASSETSNon-current assetsProperty, plant and equipmentInvestment propertiesIntangible assetsInterest in associated companies and joint venturesNon-current financial assetsDeferred tax assetsNon-current assets, total

Current assetsInventoriesTrade receivables and other current non-interest-bearing receivablesCurrent interest-bearing receivablesShort-term investmentsCash and cash equivalentsCurrent assets, totalAssets, total

EQUITY AND LIABILITIESEquityCooperative capitalRestricted reservesRetained earningsEquity attributable to the the owners of the parentNon-controlling interestsEquity, total

Non-current liabilitiesSupplementary cooperative capitalNon-current interest-bearing liabilitiesNon-current non-interest-bearing liabilitiesProvisionsDeferred tax liabilitiesNon-current liabilities, total

Current liabilitiesCurrent interest-bearing liabilitiesCurrent non-interest-bearing liabilitiesTrade payablesTax liabilities for the financial yearCurrent liabilities, totalEquity and liabilities, total

31.12.2011 31.12.2010 347.0 358.9 47.6 28.8 120.7 128.1 78.6 90.0 61.4 58.0 34.0 38.0 689.2 701.9 462.5 346.2 825.2 717.9 34.7 33.5 39.9 30.0 126.3 238.3 1 488.7 1 365.8 2 177.9 2 067.7 145.7 139.6 3.0 18.7 420.3 409.0 569,0 567.3 5.3 20.0 574.3 587.2 12.8 12.8 134.1 136.5 37.1 36.7 7.7 12.3 23.0 24.6 214.6 222.7 215.3 173.5 247.1 229.2 923.0 851.7 3.5 3.4 1 389.0 1 257.8 2 177.9 2 067.7

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Consolidated statement of cash flows, IFRS

EUR million Reference

BUSINESS OPERATIONSOperating profit from continuing operationsOperating profit from discontinued operationsAdjustments to operating profit (A)Change in working capital (B)Cash flow from business operations before financing and taxesIncrease (-) / decrease (+) in current receivablesInterest paid and other financial expensesInterest received and other financial incomeDividends received from business operationsIncome taxes paidCash flow from business operations

INVESTMENTSAcquired shares in subsidiaries Liquid assets of divested and acquired subsidiariesInvestments in tangible assetsInvestments in intangible assetsDisinvestments of tangible fixed assetsChange in other long-term investmentsDividends received from investmentsCash flow from investments

FINANCINGIncrease in long-term loans Decrease in long-term loans Increase in short-term liabilities Decrease in short-term liabilities Changes in bonds and notes and mutual fund sharesInvestment in minority interestIncrease in cooperative capital Interest paid on the cooperative capital Other decrease in equityCash flow from financing Increase / Decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the yearForeign exchange rate effect on cash and cash equivalentsIncrease / Decrease in cash and cash equivalentsCash and cash equivalents at the end of the year Adjustments to operating profit (A) Gains from the sale of fixed assets Depreciation and impairment losses Other non-cash income and expenses Change in working capital (B) Change in trade and other receivables Change in inventories Change in non-interest-bearing liabilities

Only short-term, under three month debt securities have been categorised as cash and cash equivalents in the consolidated cash flow statement.

1.1.–31.12.2011 1.1.–31.12.2010

18.8 48.8 -9.1 22.7 -3.2 -117.4 47.1 -75.9 83.6 -5.8 -0.4 -0.6 1.5 10.2 4.5 1.1 0.1 -4.4 -10.5 -75.5 78.8 19.9 51.1 -0.7 -4.9 -82.5 -92.4 -6.9 -6.5 0.7 27.3 1.1 0.2 0.1 0.2 -68.2 -24.9 392.1 162.0 -395.7 -192.8 56.3 26.7 -2.9 -28.9 -19.8 -20.0 -13.0 6.1 6.0 -0.6 -0.6 -0.3 22.2 -47.5 -121.5 6.4 248.2 241.4 -0.3 0.4 -121.5 6.4 126.4 248.2 -19.0 -33.3 72.2 64.9 -30.5 -34.8 22.7 -3.2 -99.4 -94.1 -115.2 -11.6 97.2 152.8 -117.4 47.1

– 10 –

Consolidated statement of changes in equity, IFRS

EUR millionEquity1 Jan 2010Total comprehensive incomeIncrease in cooperative capitalOther changesChange in the share of non-controlling interests31 Dec 2010Total comprehensive incomeIncrease in cooperative capitalOther changesChange in the share of non-controlling interests31 Dec 2011

133.4 0.1 18.5 0.0 -2.9 386.5 535.6 19.5 555.1 0.0 1.4 24.4 25.8 0.7 26.5 6.2 6.2 6.2 0.0 -0.4 -0.4 -0.4 0.0 -0.3 -0.3 139.6 0.1 18.5 0.1 -1.5 410.5 567.3 20.0 587.2 -15.7 -1.0 12.3 -4.4 -0.5 -5.0 6.1 6.1 6.1 -0.0 0.1 0.1 0.1 0.0 -14.2 -14.2 145.7 -15.5 18.5 0.0 -2.5 422.9 569.1 5.3 574.3

Coo

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Equity attributable to the owners of the parent Non-controlling

interests

Equity,total

– 11 –

Accounting policies applied to the income statement and balance sheet

This Financial Statements Bulletin has been prepared in compli-ance with the IAS 34 Interim Financial Reporting standard. The same accounting principles were adhered to in the preparation of the Financial Statements Bulletin as in the 2010 Financial State-ments, and, furthermore, the IAS/IFRS standard and interpreta-tion amendments that came into effect in the financial year 2011 were also adhered to. The implementation of these standard and interpretation amendments has not had a material effect on the Consolidated Financial Statements.

All figures in the tables of the Financial Statements have been rounded off, which is why the total of the individual figures may differ from the sum presented. The key ratios have been calculated with exact values.

SOK sold the entire share capital of Maan Auto Oy to Veho Group Oy Ab on 1 May 2010. Maan Auto Oy is presented in the comparison data of the Financial Statements Bulletin as discon-tinued operations. SOK Corporation did not have items classified as discontinued operations or assets held for sale on 31 December 2011.

This Financial Statements Bulletin is unaudited.

– 12 –

Segment information 31.12.2011

For reporting to top management, SOK Corporation’s operations are divided into seven business segments. The segments are based on business areas. In calculating the operational result, valuations in accordance with Finnish accounting legislation are used. In SOK Corporation’s management reporting, assets are not allocated or reported on, except for working capital.

2011 Milj. €

Revenue

Operating result

Operational result

InvestmentsDivestmentsWorking capital

Reconciliation of the revenueManagement accounting revenue to be reportedOther differencesRevenue from continuing operations IFRS

Reconciliation of the resultOperational result of the segments to be reportedItems excluded from the operational result within SOK Corporation: Gains and losses on the sale of property, plant and equipment Other operating income and expenses Impairment losses on non-current asset investments, reversal of inpairment Compensation for damages Valuation gains and losses on derivatives Gains on the sale of business operations Impairment losses Other adjustmentsProfit before taxes from continuing operations IFRS

Additional data at SOK Corporation level, external income

FinlandForeignRevenue, total

Supermarket TradeTourism and Hospitality BusinessAutomotive Trade and AccessoriesAgricultural TradeProcurementServices BusinessRevenue, total

310.8 253.1 213.7 995.6 8 212.6 7 104.5 -5 813.2 11 277.1 11 277.1 -18.0 3.9 -13.3 6.7 8.7 -4.3 -0.1 -16.4 3.5 -12.9 -21.9 1.1 -13.0 5.8 9.2 34.4 -28.0 -12.4 3.5 -8.9 20.4 7.0 0.9 5.1 9.0 63.4 105.9 0.1 8.7 0.3 0.2 0.0 34.7 44.1 -13.2 0.6 41.3 105.3 162.5 0.5 -1.3 295.7 295.7 11 277.1 3.0 11 280.2 -8.9 14.7 0.5 1.9 0.8 3.2 4.3 -0.5 3.5 19.5 10 921.2 359.0 11 280.2 310.6 255.5 213.6 909.0 2 596.0 6 995.5 11 280.2

Supe

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– 13 –

Segment information 31.12.2010

For reporting to top management, SOK Corporation’s operations are divided into seven business segments. The segments are based on business areas. In calculating the operational result, valuations in accordance with Finnish accounting legislation are used. In SOK Corporation’s management reporting, assets are not allocated or reported on, except for working capital. The Banking segment and Maan Auto Oy from the Automotive Trade and Accessories segment have been classified as discontinued operations.

2010 Milj. €

Revenue

Business result

Operational result

InvestmentsDivestmentsWorking capital

Reconciliation of the revenueManagement accounting revenue to be reportedRevenue from discontinued operationsOther differencesRevenue from continuing operations IFRS

Reconciliation of the resultOperational result of the segments to be reportedItems excluded from the operational result within SOK Corporation: Gains and losses on the sale of property, plant and equipment Other operating income and expenses Impairment losses Increase in compulsory provisions Valuation gains and losses on derivatives, and other items Profit before taxes from discontinued operations Other adjustmentsProfit before taxes from continuing operations IFRS

Additional data at SOK Corporation level, external income

FinlandForeignRevenue, total

Supermarket TradeTourism and Hospitality BusinessAutomotive Trade and AccessoriesAgricultural TradeProcurementServices BusinessRevenue, total

224.2 263.7 203.5 888.8 5 846.7 6 613.2 -4 764.4 9 275.7 9 275.7 -13.3 -2.2 -5.8 -7.6 19.0 2.1 -0.7 -8.4 6.2 -2.1 -16.9 -6.1 -5.3 -8.7 18.3 10.9 -2.2 -10.0 6.2 -3.7 18.3 6.7 0.2 3.7 35.9 33.9 98.8 0.1 0.2 22.6 0.1 0.0 55.5 78.4 -8.3 3.2 23.8 107.2 32.4 -7.4 6.6 157.3 157.3 9 275.7 -17.8 -0.2 9 257.7 -3.7 33.3 -0.1 0.0 -0.1 -0.9 9.0 3.7 41.2 9 008.0 267.5 9 275.5 224.1 263.1 203.4 782.6 1 306.0 6 496.2 9 275.5

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– 14 –

Discontinued operations, assets held for sale and acquisitions

Intra group transactions have been eliminated from the presented figures.

Discontinued operations:

The SOK Corporation did not have items classified as discontinued operations on 31 December 2011.

SOK sold the entire share capital of its subsidiary Maan Auto Oy to Veho Group Oy Ab on 1 May 2010. The sale included the import of Peugeot passenger cars and utility vehicles, spare part operations and vehicle PDI functions in Hanko. In this Interim Report, Maan Auto Oy, which is included in automotive trade and accessories segment, has been categorised as discontinued operations. The result of the discontinued operations included in the consolidated income statement was as follows:

EUR millionRevenueOther operating incomeMaterials and servicesEmployee benefits expensesDepreciation and impairment lossesOther operating expensesOperating profitFinancial income and expenses Result before taxesIncome taxes Result for the periodGain on disposal of Maan Auto OyResult for the period from discontinued operations

The result of the Maan Auto Oy unit at the time of the sale was EUR -0.9 million excluding the elimination of the Group’s internal items.

Cash flows of the discontinued operations were following:

Cash flowCash flow from business operations Cash flow from investmentsCash flow from financingCash flow, total

The effect of the disposal on the Group’s financial position

Tangible and intangible assetsNon-current financial assetsDeferred tax assetsInventoriesTrade receivables and other current non-interest-bearing receivablesCurrent interest-bearing receivablesCash and cash equivalentsNon-current interest-bearing liabilitiesProvisionsDeferred tax liabilitiesCurrent interest-bearing liabilitiesCurrent non-interest-bearing liabilitiesAssets and liabilities, total

Cash paymentNet cash disposed of with the discontinued operationCash flow effect

1.1.–31.12.2011 1.1.–31.12.2010 17.8 0.0 -25.5 -1.1 -0.3 -2.0 -11.1 -0.0 -11.1 -0.1 -11.2 2.2 -9.0 -11.1 -0.0 0.0 -11.1 31.12.2011 1.5.2010 1.7 2.6 0.1 11.2 8.5 2.8 4.2 -2.5 -0.5 -0.0 -3.9 -18.2 6.1 22.7 -4.2 18.6

– 15 –

Operations held for sale:

The SOK Corporation did not have items classified as assets held for sale on 31 December 2011 and 31 December 2010.

Acquisitions

Acquisitions during the financial year 2011

SOK Autokauppa Oy, a subsidiary of SOK Corporation, purchased the business of ME-Auto on 21 March 2011, whereupon the staff and business operations of ME-Auto were transferred to SOK Autokauppa Oy. The three offices (Helsinki, Espoo and Vantaa) of ME-Auto will continue their operations. No goodwill was registered for the reorganisation.

SOK acquired fuel terminals from St1 Energy, on behalf of its subsidiary S-Polttonesteterminaalit Oy, at purchase price of 22,0 million euros.

Acquisitions during the financial year 2010

SOK Corporation’s subsidiary North European Oil Trade Ltd. acquired the fuel procurement functions of Oy Shell Ab in an asset purchase made on 21 December 2010. The purchase price was EUR 30.0 million and it will be paid in cash. The acquisition increases North European Oil Trade Oy purchase volume. The acquisition created EUR 0.0 million goodwill. The assets and liabilities recorded on the acquisition are presented in the table below.

Acquisition contractAssets, total

Acquisition costsGoodwill

Purchase price paid in cashCash and cash equivalents of acquired businessCash flow effect

Fair values recorded on business combinations 30.0 30.0 30.0 0.0 30.0 0.0 30.0

– 16 –

Tangible and intangible assets

EUR million

Acquisition costAcquisition cost, 1 Jan 2011Translation differencesIncreasesDecreasesTransfers between itemsAcquisition cost, 31 Dec 2011

Accumulated depreciationAccumulated depreciation, 1 Jan 2011Translation differencesAccumulated depreciation on deducted and transferred itemsDepreciation for the periodImpairment lossesAccumulated depreciation, 31 Dec 2011

Carrying amount, 1 Jan 2011Carrying amount, 31 Dec 2011

Acquisition costAcquisition cost, 1 Jan 2010Translation differencesFrom business combinationAssets held for saleIncreasesDecreasesTransfers between itemsAcquisition cost, 31 Dec 2010

Accumulated depreciationAccumulated depreciation, 1 Jan 2010Translation differencesFrom business combinationAssets held for saleAccumulated depreciation on deducted and transferred itemsDepreciation for the periodImpairment lossesAccumulated depreciation, 31 Dec 2010

Carrying amount, 1 Jan 2010Carrying amount, 31 Dec 2010

Tangible Investment Intangible Assets properties Assets

643.1 53.5 309.0 -1.6 0.0 0.0 93.6 0.1 23.9 -74.1 -7.7 -43.0 -33.6 40.0 -6.1 627.5 85.9 283.7 -284.2 -24.7 -180.9 0.2 0.0 0.0 48.1 -10.2 42.2 -44.1 -3.4 -24.4 -0.5 0.0 0.0 -280.5 -38.3 -163.0 358.9 28.8 128.1 347.0 47.6 120.7 598.2 58.5 269.2 3.9 0.0 0.2 0.0 0.0 0.0 0.0 0.0 0.0 46.9 0.0 53.0 -12.3 -5.3 -6.6 6.4 0.3 -6.7 643.1 53.5 309.0 -249.7 -26.9 -166.3 -0.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 9.9 3.5 4.5 -44.0 -1.3 -19.1 0.0 0.0 0.0 -284.2 -24.7 -180.9 348.5 31.6 102.9 358.9 28.8 128.1

– 17 –

Related party transactions

Transactions and balances with associated companies:

EUR millionSalesPurchasesFinancial income and expensesTrade and other receivablesLoan receivablesLoansTrade payables and other liabilities

2011 2010 46.0 47.1 260.3 245.3 0.4 0.3 3.9 24.8 21.7 90.7 15.4 3.0 16.2 15.1

– 18 –

Pledges and contingent liabilities

Contingent liabilities, EUR million

Pledges given and contingent liabilities

Liabilities secured by pledgesLoans from financial institutionsCarrying amount of pledged goodsOther liabilitiesCarrying amount of pledged sharesPledges given as security, total

Others security givenPledgesMortgagesGuaranteesTotal

Security given on behalf of othersGuarantees for liabilities of partly owned enterpisesGuarantees for liabilities of cooperative enterprisesGuarantees for others’ liabilitiesTotal

Other contingent liabilitiesGuarantees for liabilities of cooperative enterprisesTotal

Other liabilitiesLetter of credit liabilitiesTotal

Operating leasesGroup as lesseeMinimum lease payments on non-cancellable operating leases:

EUR million

In one yearIn one to five yearsOver five yearsTotal

31.12.2011 31.12.2010 Change 61.4 41.3 20.2 67.4 41.8 25.7 2.0 2.0 0.0 2.2 2.2 0.0 69.7 44.0 25.7

0.4 0.1 0.3 0.4 0.4 0.0 13.4 12.0 1.4 14.2 12.5 1.7 46.6 47.5 -1.0 10.0 10.3 -0.3 0.2 0.2 0.0 56.7 58.0 -1.3 0.4 0.2 0.2 0.4 0.2 0.2 0.6 0.0 0.6 0.6 0.0 0.6

31.12.2011 31.12.2010 Change

109.6 105.3 4.3 463.0 356.4 106.4 622.5 539.6 82.9 1 195.1 1 001.3 193.8

– 19 –

The guarantees granted consist mainly of the guarantees on behalf of the associate company Kauppakeskus Mylly Oy on a loan of EUR 46.6 million and of counter-obligations on behalf of the Group companies on the total of EUR 11.1 million of bank guarantees granted to the National Board of Customs.

In addition, SOK has given letters of support for the guarantees granted by SOK-Takaus Oy. The amount of the letters of support is EUR 79,6 million on 31 December 2011 (EUR 76.5 million on 31 December 2010).

In addition, SOK has given a letter of support together with St1 Oy on behalf of North European Oil Trade Oy on a EUR 65.0 million (EUR 44.9 million / USD 60 million on 31 December 2010) overdraft facility.

Other financial liabilities:The Group is obligated to audit valued added tax depreciations it has made on a property investment if the taxable use of the property decreases during the auditing period. The maximum amount of the responsibility is EUR 5.6 million (EUR 5.9 million on 31 December 2010).

Other contingent liabilities:Commitments in accordance with the shareholder agreement to be responsible for the S-Voima Oy commitments and to finance its operations.In accordance with the so-called Mankala principle, the shareholders are responsible for S-Voima Oy’s commitments. This principle states that the liability for the company’s variable costs is determined based on the energy the shareholder uses. The liability for the company’s fixed costs, also including loan repayments and interests as well as depreciations, is distributed in proportion to the share series owned by the shareholder. The company’s series A shares are related to the acquisition of market electricity; series B shares to the acquisition of wind power electricity; and series C shares to the acquisition of nuclear power electricity.

Furthermore, the shareholders of S-Voima Oy have also agreed in the shareholder agreement on a mutual obligation to finance the company’s investments in production companies through equity, in which case the liability will by default be distributed by share series in the proportion of shareholding. The remaining portion of the equity financing liability based on decisions made by SOK’s accounts closing date is estimated at EUR 4.4 million in total (EUR 5.2 million on 31 December 2010). It is estimated that liabilities financing by the company’s shareholders is not needed.

– 20 –

Key ratios

SOK Corporation continuing operations:

Revenue, EUR million

Operating profit, EUR million% of revenue

Profit before taxes, EUR million% of revenue

SOK Corporation:

Equity ratio, %

Gearing, %

31.12.2011 31.12.2010

11 280.2 9 257.7 18.8 48.8 0.2 0.5 19.5 41.2 0.2 0.4

26.7 28.9 34.1 9.3

Calculation of key ratios

Equity ratio, % = Total equity x 100 % Total assets - advances received

Gearing, % = Interest-bearing liabilities - Cash and cash equivalents x 100 % Total equity

Capital adequacy ratio, % = Own funds, total x 8 % Minimum own funds requirement, total