GLASTON CORPORATION STOCK EXCHANGE RELEASE 16 August 2007 15.00 GLASTON'S ORDER BOOK AND SALES AT RECORD HIGH LEVELS Glaston Corporation's Interim Report January-June 2007 Key figures for January-June - The Group's net sales were EUR 123.7 (98.6) million, up by 25.6% - Operating profit grew and was EUR 5.5 (1.9) million, excluding non-recurring items - New orders rising strongly: order book grew 49% and on 30 June 2007 was EUR 121.6 million (EUR 81.8 million on 30 June 2006) - OSP, i.e. total solutions, sales totalled EUR 47.8 (18.8 for whole of 2006) million, a new record - In non-recurring items, post-delivery costs incurred in projects delivered during 2006, and operational restructuring expenses, totalled EUR 7.3 million - Non operational land property; decision to dispose. Upcoming capital gains estimated at EUR 4 million - New organisation structure and segmentation introduced following the completion of sales of the Energy business - The business segments to be reported are Pre-processing, Heat Treatment and, as of Q3 onwards, Software Solutions PRESIDENT & CEO MIKA SEITOVIRTA:"Glaston's January-June and second quarter were better than the previous year. Development of new orders was good and the order book reached a record high. This development was particularly positive in the EMEA area and in China. The number and value of OSP deals grew significantly and represented a larger proportion of growth in new orders. The newly formed Pre-processing and Heat Treatment business areas improved their comparable operating profit, and development is in the right direction, if not yet satisfactory. Measures to improve profitability continue. Added-value-generating OSP sales, price rises and the improvement of delivery processes are having a positive impact on margin development," says Seitovirta."Operating profit is burdened by non-recurring items resulting from post-delivery costs incurred in projects delivered in 2006 and from the restructuring of operations. Most of the post-delivery costs came in deliveries of new models, in which the level of customer-tailoring has been significantly higher than expected. Measures to improve the quality of the entire delivery process are under way. Restructuring in Brazil, where we are combining two factories, and in Switzerland, from where product development will be transferred to Finland, will bring efficiencies and savings in future.""The new organisation and management team have started up well. The acquisition of Albat+Wirsam, a leading glass industry software company, will bring us significant glass processing expertise and added value to the OSP concept," says Seitovirta. NEW ORGANISATION STRUCTURE AND SEGMENTATION In this report, Glaston's figures are divided into Continuing Operations and Discontinued Operations. Continuing Operations include the Glaston business, to which new business and geographical areas have been assigned as described below. Discontinued Operations include the Energy business, which was sold to M-real after the end of the reporting period, on 1 July 2007, and in connection with which Glaston's business areas have been reorganised. The business areas of Continuing Operations, i.e. the reporting segments, are Pre-processing and Heat Treatment, as well as Software Solutions as of the third quarter onwards. The Pre-processing Business Area includes glass pre-processing machines sold under the Bavelloni brand, maintenance and service operations, as well as tool manufacturing. The Heat Treatment Business Area includes tempering, bending and laminating machines sold under the Tamglass and Uniglass brands, maintenance and service operations, as well as the glass processing operations of Tamglass Glass Processing. The future Software Solutions Business Area will consist of the operations of the A+W Software Group, which became part of the Group in July. Group costs unallocated to the segments will be reported separately. The geographical segments to be reported quarterly for Continuing Operations are EMEA (Europe, Middle East and Africa), America (North, Central and South America) and Asia (China and the rest of the Asia-Pacific area). The Discontinued Operations' Energy business area figures are published in accordance with the reporting practice of the IFRS 5 standard Discontinued Operations. Energy's result is presented in a single line in the consolidated income statement. Energy's non-current assets held for sale and liabilities relating to non-current assets held for sale have been presented separately in the balance sheet. Both income statement and balance sheet items have been presented in more detail in the table to be found at the end of this release. NET SALES, OPERATING PROFIT AND ORDER BOOK In January-June, Continuing Operations' net sales grew by EUR 25.2 million, 25.6 per cent, compared with the previous year and totalled EUR 123.7 (98.6) million. Comparable operating profit grew by EUR 3.6 million and was EUR 5.5 (1.9) million, representing 4.4 (1.9) per cent of net sales. Net financial items for Continuing Operations totalled EUR 0.4 (0.0) million. This includes interest, dividend and other financial income of EUR 1.6 (0.9) million, and interest and other financial expenses of EUR -1.3 (-1.0) million. The result before taxes was EUR -1.5 (1.2) million. The result of Discontinued Operations in January-June was EUR 3.0 (2.1) million. Glaston's result for the reporting period was EUR 0.2 (4.3) million. Return on invested capital was 4.0 (6.1) per cent. Earnings per share were EUR 0.00 (0.06) and equity per share was EUR 1.65 (1.69). In June, Glaston's Board of Directors decided on the sale of non-operational assets, including land property and some real estate as part of restructuring arrangements and their financing. Glaston estimates that a capital gain of around four million euros will arise from the property sales, which will be recognised in 2007 and 2008. New orders received by Glaston in January-June totalled EUR 130.9 (83.1) million. The order book of Continuing Operations was EUR 121.6 million on 30 June 2007. Glaston's (Continuing Operations') net sales, operating profit and order book, EUR million Net Operating Order sales profit book 1-6/2007 1-6/2006 1-6/2007 1-6/2006 6/2007 6/2006 Pre-processing 45.0 41.6 0.9 -0.5 25.9 22.1 Heat Treatment 79.3 57.1 8.7 4.5 95.7 59.7 Parent company and elim. -0.6 -0.2 -4.2 -2.1 Total 123.7 98.6 5.5 1.9 121.6 81.8 Non-recurring items -7.3 -0.7 Total 123.7 98.6 -1.9 1.2 121.6 81.8 MARKETS AND SALES Glass processors' investments are supported by growth in the building industry throughout the world, except for North America, where construction of residential buildings is rather subdued. Public construction is growing in all market areas. Glaston's unique OSP concept is becoming increasingly popular as customers' capacity and efficiency requirements keep on growing. PRE-PROCESSING In January-June, net sales of Pre-processing operations grew by EUR 3.5 million compared to previous year and totalled EUR 45.0 (41.6) million. Profit before non-recurring items was EUR 0.9 (-0.5) million. Non-recurring items amounting to EUR 1.4 million were recognised for the restructuring of Brazilian operations. The market situation of the Pre-processing business area was good, and sales exceeded the previous year's figures in both the first and second quarter. The most active market areas for Pre-processing have been North Asia and, in contrast with Heat Treatment, North America. HEAT TREATMENT In January-June, net sales of Heat Treatment operations grew by EUR 22.1 million compared to previous year and totalled EUR 79.3 (57.2) million. Profit before non-recurring items was EUR 8.7 (4.5) million. Non-recurring items amounting to EUR 5.9 million were recognised, relating to post-delivery costs incurred in projects delivered in 2006 as well as to costs associated with the closure of the Cattin unit in Switzerland. The market situation of Heat Treatment business area as a whole was very good. Sales of safety glass machines grew in the second quarter, particularly driven by the Middle East in the EMEA area, and in South America as economic growth picks up. Led by China, North Asia continues to grow strongly, boosted by construction and energy efficiency requirements. The solar panel industry is also increasing, as a strengthening trend, demand for safety glass machines and pre-processing machines in the area. Glaston has reinforced its position in China by initiating safety glass machine, pre-processing machine and tool production at its OSP factory in Tianjin. Tamglass Glass Processing's market, i.e. the domestic and North European architectural and special automotive glass industries, developed positively during the entire early part of the year. It was possible to compensate with price increases for a rise in the price of raw glass. Renewing the business model, for example by clarifying the customer portfolio and expanding series sizes, has raised the unit's productivity, and its profit development during the early part of the year was in line with the goals of a rehabilitation programme initiated in 2006. JOINT SALES OF THE SEGMENTS One-Stop Partner Sales of One-Stop-Partner deliveries, i.e. joint deliveries and combinations of safety glass and pre-processing machines, significantly exceeded both expectations and the previous year's figures in the first and second quarters. The biggest growth over the previous year in percentage terms has been in China, whereas growth in euros terms was highest in the EMEA area. In Europe, OSP sales are mainly replacement investments. In the Middle East, on the other hand, additional capacity is needed, and customers want whole glass processing lines for new production plants. In June, Glaston received its biggest (EUR 15.5 million) and second biggest (EUR 11.0 million) OSP orders ever from the Middle East. In China the conclusion of OSP deals is being promoted not only by favourable economic conditions but also by energy efficiency requirements. Manufacturing of solar panels used for heating of both buildings and water creates a need for increased capacity among glass processors and growing demand for Glaston's OSP solutions. The acquisition of the A+W Software company will complement the OSP concept significantly in future. In January-June, OSP sales reached a new record, EUR 47.8 million (18.8 for the whole of 2006). Maintenance and service operations Activity in maintenance and service operations was good, and sales grew clearly in both the first and second quarters. Sales of maintenance contracts developed positively. With Heat Treatment service products, there was particular demand in the EMEA, with Pre-processing service products grow was best in Asia. Sales of all service products grew in North America. Sales of services were also increased by high demand for spare parts and accessories such as software updates, which indicates the high utilisation and increased capacity needs of customers' machines. Geographical distribution of new orders received by Glaston, EUR million New orders New orders Change, % 1-6/07 1-6/06 EMEA 82.3 49.2 + 67 America 26.3 21.8 + 20 Asia 22.3 12.1 + 84 Total 130.9 83.1 + 57 FINANCING The Group's financial position is good. On 30 June 2007, the equity ratio was 52.6 (on 31 December 2006 61.9) per cent. Glaston Continuing Operations' cash flow from business operations was EUR 0.5 (-5.6) million and cash flow from investments was EUR -24.8 (-3.9) million. Cash flow from financing was EUR 17.9 (-11.1) million, which includes dividends paid in the period EUR 7.1 (13.4) million, acquisition of own shares EUR 3.9 million, and an increase in short-term loans EUR 29.0 million. The growth in borrowing was connected to the financing of new operations acquired in the beginning of July. Cash flow from Discontinued Operations totalled EUR 4.1 (-0.2) million. The Group's liquid funds on 30 June 2007 totalled EUR 8.2 (on 31 December 2006 10.5) million. Interest-bearing net liabilities amounted to EUR 30.2 (-0.2) million. Gearing stood at 23.4 (-0.1) per cent. CAPITAL EXPENDITURE The Group's investments in fixed assets in January-June totalled EUR 6.2 (4.6) million. This includes a EUR 1.4 million extension to Tamglass Glass Processing's Lempäälä factory and a EUR 2.4 million acquisition of production machines. EUR 0.9 million in capitalized R&D were recognised. ORGANISATION AND PERSONNEL The Glaston Group's organisation changed in line with formation of new business areas (see New organisation structure and segmentation) at the beginning of June. During the summer, both the parent company Kyro Corporation and most of the Group's subsidiaries, including Tamglass companies and Bavelloni, changed their legal names to Glaston. In June, Glaston decided to centralise its safety glass machine product development into Finland and discontinue the Swiss Cattin unit. By the end of the review period, there had been 12 job cuts at the unit, which is still partly operating. In an efficiency programme initiated in Brazil in March, Glaston will combine the machine-manufacturing units of Tamglass and Bavelloni by the end of the year. This process will involve an estimated 15 job cuts. The Glaston Group had 1,247 (1,265) employees on 30 June 2007. The number of Group employees working in Finland was 463 (469), while the number working abroad was 784 (796). The average number of employees was 1,215 (1,245). SHARES AND SHARE PRICES A total of 5,020,024 (4,770,722) Glaston Corporation (GLA1V) shares were traded in the period January-June, representing 6.3 (6.0) per cent of the total number of shares. The lowest price paid for a share on the Helsinki Exchanges was EUR 3.90 and the highest price EUR 4.53. The average price during the period was EUR 4.07. GROUP LEVEL INCENTIVE SCHEME On 9 May 2007, Glaston's Board of Directors decided on a new share-based incentive scheme for the Glaston Group's key personnel The scheme has three one-year performance periods, namely the calendar years 2007, 2008 and 2009. Bonuses will be paid in 2008, 2009 and 2010 in company shares and cash. The proportion to be paid in cash will cover taxes and tax-related costs arising to key personnel from the bonus. Shares cannot be disposed of within two years of the bonus being awarded. The potential bonus from the scheme for the 2007 performance period will be based on the Group's profit and growth in net sales. If the targets established for the earnings criteria of the plan for years 2007-2009 are attained in full, the rewards to be paid on the basis of the plan will correspond to the gross value (including also the cash payment) of approximately 1,305,000 Glaston Corporation shares. ACQUISITION OF OWN SHARES Glaston's Annual General Meeting on 13 March 2007 authorised the Board of Directors to acquire the company's own shares up to a maximum of 7,605,096 shares. Glaston acquired 913,500 of its own shares in January-June for the price of 4.30 euros per share, totalling 3.9 million euros. The shares were purchased for hedging the share-based incentive scheme. The authorisation therefore remains unexercised in respect of 6,691,596 shares. At the end of the review period, Glaston held a total of 1,243,404 of treasury shares, which corresponds to 1.56% of the companies' total share capital and the book-entry counter value of which is 3.93 euros per share. EVENTS AFTER THE REVIEW PERIOD Glaston's Energy business area officially separated from the Group on 1 July 2007. At the same time, the company acquisition of the A+W Software Group was completed, at a purchase price of EUR 20.3 million. A separate release was issued about both events on the date in question. With the acquisition of A+W, the Group got 217 new employees at the beginning of July. The company's managing director, Günter Befort, joined Glaston's Executive Management Group; the other members of this team have been presented in a separate release on 9 May 2007. After the review period, as part of the A+W purchase, Glaston sold 329,904 of the treasury shares it owned to Bernd Wirsam, Chairman of the A+W Software Group's Supervisory Board, for EUR 3.99 per share. UNCERTAINTIES IN THE NEAR FUTURE Glaston's general, long-term risks have been extensively discussed in the 2006 financial statements. The Group considers the uncertainties in the near future to include: -The development of the US market and the US dollar exchange rate -The price trend and availability of raw materials and components -The completion of the operational restructuring according to plan FUTURE OUTLOOK Glaston's result for 2007 will be burdened by non-recurring items recognised in the second quarter. In the summer of 2007, the level of Glaston's order book is good. Based on current market prospects, Glaston considers that it will increase its net sales and operating profit in 2007. Helsinki, 16 August 2007 GLASTON CORPORATION BOARD OF DIRECTORS Additional information about the interim report can be obtained from Glaston Group's President & CEO Mika Seitovirta and Chief Financial Officer Kimmo Lautanen, tel. +358 9 5422 3300. Investor Relations IR and Communications Manager Emmi Watkins, tel. +358 400 903 260 / emmi.berlin@glaston.net, IR pages at the Internet address www.glaston.net. Glaston Corporation Glaston Corporation (formerly Kyro) is a growing, financial sound andinternational glass technology company. Glaston is the global market leader in glass processing machines, and a comprehensive One-Stop-Partner supplier to its customers. Its product range and service network are the most extensive in the industry. Glaston's well-known brands are Bavelloni, in pre-processing machines and tools, and Tamglass and Uniglass, in safety glass machines. Glaston's own glass processing unit, Tamglass Glass Processing, is a manufacturer of high quality safety glass products operating in Finland. Glaston's share (GLA1V) is listed on the Helsinki Stock Exchange (OMX) Mid Cap List. www.glaston.net Distribution: Helsinki Stock Exchange, key media Consolidated Income Ad Ad Ad Statement, EUR million -justed -justed -justed 4-6-07 4-6-06 1-6/07 1-6/06 1-12/06 Continuing Operations Net sales 65.6 52.7 123.7 98.6 218.9 Other operating income 0.2 0.2 0.4 1.0 2.4 Operating expenses 60.6 48.3 115.9 94.8 205.0 Non-recurring items 7.3 7.3 0.7 5.2 Depreciation 1.4 1.5 2.8 2.9 5.4 Operating result -3.6 3.2 -1.9 1.2 5.6 % of net sales -5.4 6.0 -1.5 1.3 2.6 Operating result excluding non-recurring items 3.8 3.2 5.5 1.9 10.9 % of net sales 5.8 6.0 4.4 1.9 5.0 Financial income and expenses 0.1 -0.2 0.4 0.0 0.3 Result before taxes -3.4 2.9 -1.5 1.2 5.9 Income tax 0.0 0.7 -1.3 1.0 -1.7 Result for the reporting period from Continuing Operations -3.4 3.6 -2.8 2.2 4.2 Discontinued Operations Profit for the reporting period from Discontinued Operations 1.5 0.9 3.0 2.1 4.8 Result for the reporting period -1.9 4.5 0.2 4.3 8.9 Distribution of result for the period To parent company shareholders -3.4 4.5 0.2 4.3 8.9 To minority Earnings per share, EUR Continuing Operations -0.04 0.05 -0.04 0.03 0.05 Earnings per share, EUR Discontinued Operations 0.02 0.01 0.04 0.03 0.06 Earnings per share, EUR total -0.02 0.06 0.00 0.06 0.12 Consolidated Balance Sheet, EUR million 30.6.2007 30.6.2006 31.12.2006 Assets Non-current assets 118.9 123.8 123.2 Inventories 46.7 55.6 49.5 Trade and other receivables 83.9 65.3 66.9 Assets recognised at fair value through profit and loss 0.0 0.0 0.1 Cash and cash equivalents 8.2 5.6 10.5 Non-current assets held-for-sale 15.1 Assets, total 272.9 250.4 250.2 Shareholders' equity and liabilities Shareholders' equity attributable to parent company shareholders 129.2 133.9 140.1 Minority interest 0.0 0.0 0.0 Shareholders' equity, total 129.2 133.9 140.1 Non-current interest-bearing liabilities 2.0 0.7 0.6 Non-current non-interest-bearing liabilities 14.3 15.7 14.9 Current interest-bearing liabilities 36.6 4.8 7.4 Current non-interest-bearing liabilities 90.5 95.3 87.1 Liabilities related to non-current assets held for sale 0.4 Shareholders' equity and liabilities, total 272.9 250.4 250.2 Consolidated cash flow statement, EUR million Ad Ad justed justed 1.1.- 1.1.- 1.1.- 30.6.07 30.6.06 31.12.06 Cash flow from business operations, Continuing Operations Profit for the financial period -2.8 2.2 4.2 Adjustments 1.4 -5.3 1.2 Cash flow before change in working capital -1.4 -3.1 5.5 Change in working capital 5.4 2.8 -3.1 Cash flow from operations before financial items and taxes 4.0 -0.3 2.4 Interest received 0.3 0.3 0.8 Dividends received 0.0 0.0 0.0 Interest paid -0.7 -0.1 -1.0 Taxes paid -3.1 -5.4 -7.5 Cash flow from business operations 0.5 -5.6 -5.2 Cash flow from investments, Continuing Operations Advanced payments made of subsidiaries purchase -21.3 Investments in tangible and intangible assets -3.7 -4.0 -10.9 Proceeds from the sale of tangible and intangible assets 0.2 2.0 2.8 Proceeds from the sale of available-for-sale equity investments 3.2 Change in long-term loan receivables 1.1 1.1 Taxes on proceeds of sale of energy business operations in 2005 -2.9 -2.9 Cash flow from investments -24.8 -3.9 -6.9 Cash flow from financing, Continuing Operations Acquisition of own shares -3.9 Drawings of short-term loans 29.0 2.9 5.6 Repayments of long-term loans 0.0 -0.5 -0.6 Dividends paid -7.1 -13.4 -13.4 Cash flow from financing 17.9 -11.1 -8.4 Discontinued Operations Cash flow from business operations 4.1 -0.2 4.7 Cash flow from investments 0.0 0.0 0.1 Cash flow from financing Cash flow from Discontinued Operations 4.1 -0.2 4.8 Change in cash and cash equiv. -2.3 -20.7 -15.7 Cash and cash equiv. at beginning of period 10.5 26.3 26.3 Cash and cash equiv. at end of financial period 8.2 5.6 10.5 The change in short-term loans in the period 1-6/2007 includes a change in issued commercial paper to a nominal value of EUR 28.5 million. Statement of change in consolidated shareholders' equity Shareholders' equity attributable to parent company shareholders Share Trans- Share prem- la- Ret- Minor- Share- capi- ium tion Fair Own ained ity holders' tal fund differe value Shar- earn- inter- equity, EUR million nces fund es ings Total est total Sharehold- ers' equity 1.1.2007 12.7 25.3 0.4 -0.2 -1.0 102.8 140.1 0.0 140.1 Cash flow hedgings, less taxes: Profits or losses recognised in shareholders' equity 0.2 0.2 0.2 Translation differences -0.3 -0.3 -0.3 Profits or losses from hedging of net investments made in foreign units, less taxes Profit for the financial period 0.2 0.2 0,0 0.2 Income and expenses recognised in the period, total -0.2 0.2 0.2 0.2 0.0 0,2 Dividend distribution -7.1 -7.1 -7,1 Acquisition of own shares -3.9 -3.9 -3.9 Shareholders' equity 30.6.2007 12.7 25.3 0.2 0.1 -4.9 95.9 129.2 0.0 129.2 Share Trans- Fair Ret- Share- Share prem- la- value Own ained Minor- holders' cap- ium tion fund Shares earn- ity equity, EUR million ital fund differences ings Total inter-est total Shareholders' equity 1.1.2006 12.7 25.3 1.5 -1.6 -1.0 102.0 139.0 0.0 139.0 Adjustment 5.3 5.3 5.3 Adjusted shareholders' equity 1.1.2006 12.7 25.3 1.5 -1.6 -1.0 107.3 144.3 0.0 144.3 Cash flow hedgings, less taxes: Profits or losses recognised in shareholders' equity -0.5 -0.5 -0.5 Translation differences -1.0 -1.0 -1.0 Profits or losses from hedging of net investments made in foreign units, less taxes 0.1 0.1 0.1 Profit for the financial period 4.4 4.4 0.0 4.4 Income and expenses recognised in the period, total -0.9 -0.5 4.4 3.0 3.0 Dividend distribution -13.4 -13.4 -13.4 Adjusted shareholders' equity 30.6.2006 12.7 25.3 0.6 -2.0 -1.0 98.3 133.9 0.0 133.9 Segment-specific data Net sales, EUR million 1-6/07 1-6/06 1-12/06 Pre-processing 45.0 41.6 89.1 Heat treatment 79.3 57.1 131.3 Parent company and eliminations -0.6 -0.2 -1.5 Total 123.7 98.6 218.9 Operating result, excluding non-recurring items, EUR million 1-6/07 1-6/06 1-12/06 Pre-processing 0.9 -0.5 0.3 Heat treatment 8.7 4.5 13.5 Parent company and eliminations -4.2 -2.1 -3.0 Total 5.5 1.9 10.9 Operating result, excluding non-recurring items, % 1-6/07 1-6/06 1-12/06 Pre-processing 2.1 -1.2 0.3 Heat treatment 11.0 7.8 10.3 Glaston, total 4.4 1.9 5.0 Net sales by market area 1-6/07 1-6/06 1-12/06 EMEA 64.8 57.6 126.1 America 41.0 27.3 65.4 Asia 18.0 13.8 27.5 Total 123.7 98.6 218.9 Net sales by market area, % 1-6/07 1-6/06 1-12/06 EMEA 52.4 58.4 57.6 America 33.1 27.7 29.9 Asia 14.5 14.0 12.6 Total 100.0 100.0 100.0 Order received, EUR million 1-6/07 1-6/06 1-12/06 Pre-processing 36.6 32.4 64.1 Heat treatment 94.3 50.7 131.4 Total 130.9 83.1 195.5 Order book, EUR million 30.6.07 30.6.06 30.12.06 Pre-processing 25.9 22.1 19.9 Heat treatment 95.7 59.7 77.9 Total 121.6 81.8 97.8 Personnel at end of period, Continuing Operations 30.6.07 30.6.06 30.12.06 Pre-processing 582 607 590 Heat treatment 629 626 590 Parent company 12 8 9 Total 1223 1241 1189 Personnel, Discontinued Operations 25 25 22 Personnel, average, Continuing Operations 1-6/07 1-6/06 1-12/06 Pre-processing 581 607 626 Heat treatment 599 607 606 Parent company 11 8 8 Total 1192 1222 1241 Personnel, Discontinued Operations 23 23 23 Calculation of key figures Equity ratio, % = Shareholders' equity x 100 Balance sheet total - advances received Gearing, % = Net interest-bearing liabilities x 100 Shareholders' equity Net interest-bearing liabilities = Interest-bearing liabilities - interest-bearing receivables - cash and cash equivalents and other short-term investments Return on equity (ROE), % = Profit or loss for the period x 100 Shareholders' equity Return on invested capital (ROI), % = Profit before taxes + interest and other financial expenses x 100 Balance sheet total - non-interest bearing liabilities (average) Earnings per share (EPS) = Profit for period attributable to parent company's shareholders Average number of shares for period excluding treasury shares Equity per share (EPS) = Shareholders' equity Number of shares outstanding at end of period Key figures 30.6.07 30.6.06 31.12.06 Number of shares, 1,000 79350 79350 79350 - of which outstanding 78107 79020 79020 Return on invested capital, % 4.0 6.1 8.8 Return on equity, % 0.3 6.3 6.3 Equity ratio, % 52.6 62.2 61.9 Gearing, % 23.4 -0.1 -1.9 Equity per share, EUR 1.65 1.69 1.77 Investments in fixed assets, EUR million. 6.2 4.6 12.0 Personnel at end of year 1247.0 1265.0 1211.0 Personnel (average) 1215.0 1245.0 1264.0 Order book, Continuing Operations, EUR million. 121.6 81.8 97.8 Contingent liabilities, EUR million 30.6.2007 30.6.2006 31.12.2006 Company mortgages 0.2 0.2 0.2 Other own liabilities 5.6 5.3 5.6 Discontinued Operations in notes Income statement notes Discontinued Operations 1-6/07 1-6/06 1-12/06 Result of Energy operations Income 16.0 16.8 38.8 Expenses 11.9 13.9 32.4 Profit before taxes 4.1 2.9 6.4 Income taxes -1.1 -0.8 -1.7 Profit after taxes 3.0 2.1 4.8 Balance sheet notes Energy operations' assets classified as being held for sale 30.6.07 Intangible rights 0.5 Tangible assets 14.0 Inventories 0.2 Assets, total 14.6 Energy operations' liabilities classified as being held for sale 30.6.07 Accrued expenses and deferred income 0.4 Assets, total 0.4 Other available-for-sale assets 0.5 Quarterly data Adjusted net sales, operating result and order book for Continuing Operations, EUR million 1-3 4-6 7-9 10-12 1-3 4-6 Net sales /06 /06 /06 /06 /07 /07 Pre-processing 20.3 21.2 20.9 26.6 21.7 23.4 Heat treatment 25.6 31.6 35.5 38.6 36.6 42.7 Parent company and eliminations 0.0 -0.1 -0.1 -1.2 -0.1 -0.5 Total 45.9 52.7 56.3 64.0 58.2 65.6 Operating result excluding 1-3 4-6 7-9 10-12 1-3 4-6 non-recurring items /06 /06 /06 /06 /07 /07 Pre-processing -0.8 0.3 0.4 0.4 1.2 -0.2 Operating result, % -4.0 1.5 1.8 1.5 5.3 -0.9 Heat treatment 0.6 3.9 4.0 5.1 3.0 5.7 Operating result, % 2.3 12.3 11.4 13.1 8.1 13.4 Parent company and eliminations -1.0 -1.1 -0.9 0.0 -2.4 -1.7 Total -1.2 3.1 3.5 5.5 1.7 3.8 Operating result, % -2.7 5.9 6.3 8.6 2.9 5.8 1-3 4-6 7-9 10-12 1-3 4-6 Operating result /06 /06 /06 /06 /07 /07 Pre-processing -0.8 0.3 -0.5 -2.7 1.2 -1.6 Operating result, % -4.0 1.5 -2.2 -10.1 5.3 -7.0 Heat treatment -0.1 3.9 3.8 4.6 3.0 -0.2 Operating result, % -0.3 12.3 10.8 12.0 8.1 -0.4 Parent company and eliminations -1.0 -1.1 -0.9 0.0 -2.4 -1.8 Total -1.9 3.1 2.5 1.9 1.7 -3.6 Operating result, % -4.1 5.9 4.4 3.0 2.9 -5.4 Order book 03/06 06/06 09/06 12/06 03/07 06/07 Pre-processing 17.8 22.1 20.2 19.9 20.2 25.9 Heat treatment 51.6 59.7 73.6 77.9 72.3 95.7 Total 69.4 81.8 93.8 97.8 92.5 121.6 Accounting principles The interim report has been prepared in accordance with the principles of recognition and valuation of the IFRS-standards. The interim report applies the same accounting principles as the financial statements of 31 December 2006, except for the following changes: 1. On 1 January 2007, the Group introduced the IFRS 7 Standard Financial instruments: Disclosures in the Financial Statements as well as an amendment to the IAS 1 Standard relating to Presentation of Financial Statements - Capital Disclosures. The introduction of both standards will chiefly impact on information disclosed in the Group's future financial statements. 2. 2. The proportion of the Group's net sales accounted for by glass processing machines tailored to customers' wishes and sold as comprehensive deliveries has grown significantly, and for this reason the Group as of 1 January 2007 recognises their delivery on the basis of degree of completion of the delivery in accordance with IAS 11 Standard Construction Contracts. Comparison data have been adjusted to correspond with the new recognition practice. The impacts of the adjustment by quarter have been presented in a stock exchange release published on 9 May 2007. Data presented in the interim report are unaudited.