Uponor Corporation Interim report Q2/2008 12 August 2008 08.00 EET Uponor progresses in penetrating new segments despite difficult markets - Continuing operations* net sales for January-June came to 501.2 (547.1) million euros, a change of -8.4% - January-June operating profit for continuing operations was 48.3 (72.4) million euros, a change of -33.3% - Earnings per share for the company came to 1.01 (0.74) euros - Return on investment over the period was 43.8% (40.1%), with gearing at 42.7% (51.0%) - Guidance: Uponor repeats the guidance, issued on 11 June, for 2008: Net sales for continuing operations are not expected to quite reach last year's level, and operating profit is estimated to fall short of the 2007 level. *) Discontinued operations contain the divested infrastructure business in the United Kingdom, effective 1 January 2008, the divested infrastructure business in the Republic of Ireland, which was sold in an asset deal, effective on 18 June 2008, and the German divestment of Uponor Klärtechnik GmbH. CEO JAN LÅNG COMMENTS ON THE PERFORMANCE: - Despite the deteriorating market situation in many key market areas, we have made good progress in building on our new business opportunities. In particular, our high-rise initiative has been successful in big markets like the USA and Spain. - The building and construction markets remain very difficult. The low demand has been affecting the new residential market especially, but it is being felt increasingly in other segments as well, while the impact is simultaneously expanding to previously untouched countries as well. - The current low activity levels in the markets necessitate an adjustment to our cost base. We are starting a company-wide programme through which we target structural cost reductions in the range of 30 million euros, effective in 2009. The planned actions are likely to affect more than 200 employees. Webcast and presentation material Following the release of this report, the presentation material for the interim report will be available at www.uponor.com/investors, under 'IR material'. Uponor will hold a webcast in English, at 9:00am EET. You can access the webcast via www.uponor.com. Questions for the webcast can be sent to ir@uponor.com. Interim report for January-June 2008 Markets The building and construction market, especially that related to residential building, continued to be subdued in most of Uponor's key geographic areas in the second quarter of 2008. With the exception of Eastern Europe, where business growth remained strong, and Germany, where demand was stable but on a low level, other key markets exhibited further signs of weakness. New residential spending continued to decline in the USA and Spain, while in the Nordic countries, a softening was felt in Sweden and Norway in addition to Denmark and Finland, where demand had weakened earlier. New non-residential and public building markets in general continued to perform well in the second quarter, but with emerging indications of slower growth or stabilisation within the near term. In infrastructure, the slowing trend from Q1 that was especially tangible in Denmark, and to some extent in Finland, continued through Q2, now affecting also Sweden and Norway. Net sales Uponor's continuing operations' net sales for April-June declined by 7.4 per cent from their level for the comparison period and totalled 267.4 (288.8) million euros. Supported by the fairly stable markets, the net sales of Uponor Central Europe increased slightly from last year's figure, despite lower inter-company sales to sister regions. A strong growth of local business was recorded in the eastern parts of the region. The main reasons for increased sales were initiatives to market the systems offering and stronger pushing of the multi-layer composite pipe system. In the Nordic region, net sales lagged behind the equivalent figures for 2007, reflecting a weaker local market for housing solutions - both residential and non‑residential - and infrastructure solutions, as well as lower exports to sister regions. Despite the decline in residential demand, Uponor was able to expand its housing solutions business in Sweden and Norway and partly compensate for the decline in residential building by penetrating the high-rise and renovation sectors. The net sales of Uponor Europe - West, East, South were also lower than in 2007. The main reason for this was the weak demand from those Spanish and Portuguese customers hit by the continued contraction of building and construction spending in Iberia. In other Southern and Western European markets, solid increases in net sales were recorded. Growth in Eastern Europe continued at nearly the same level as in the first quarter, except in the Baltic countries, where the slowdown indicated in Q1 materialised. The dramatic drop in Iberian market activity was partially offset by utilising market opportunities efficiently, actively continuing strategic marketing efforts for new customer groups, and focusing on sectors not hit by the market slowdown. In Eastern Europe, Uponor's harmonised sales proposition, along with ongoing customer programmes, received a favourable response, supporting the sales growth. The net sales of Uponor North America were clearly down from the levels seen in the equivalent period last year. Factors that influenced net sales development positively were, among other things, the sustained lively building market in Canada and the commercial high-rise business development that continued to grow in the USA. Net sales by segment, April-June: -------------------------------------------------------------------------------- | MEUR | 4-6/2008 | 4-6/2007 | Change | -------------------------------------------------------------------------------- | Central Europe | 96.8 | 95.6 | +1.3% | -------------------------------------------------------------------------------- | Nordic | 108.5 | 116.0 | -6.5% | -------------------------------------------------------------------------------- | Europe - West, East, South | 65.3 | 70.3 | -6.9% | -------------------------------------------------------------------------------- | North America | 34.5 | 49.9 | -30.9% | -------------------------------------------------------------------------------- | (North America, MUSD | 53.8 | 67.2 | -20.1%) | -------------------------------------------------------------------------------- | Eliminations | -37.7 | -43.0 | | -------------------------------------------------------------------------------- | Total | 267.4 | 288.8 | -7.4% | -------------------------------------------------------------------------------- January-June net sales totalled 501.2 (547.1) million euros, representing a decline of 8.4%. As anticipated, net sales development continued to be weak in the first two quarters and lagged clearly behind the strong level of the first six months of 2007. The impact of currency exchange rates on net sales during the January-June period was -10.7 million euros, of which the U.S. dollar contributed -7.5 million. Net sales by segment, January-June: -------------------------------------------------------------------------------- | MEUR | 1-6/2008 | 1-6/2007 | Change | -------------------------------------------------------------------------------- | Central Europe | 180.5 | 189.7 | -4.8% | -------------------------------------------------------------------------------- | Nordic | 201.3 | 210.5 | -4.4% | -------------------------------------------------------------------------------- | Europe - West, East, South | 129.4 | 144.1 | -10.1% | -------------------------------------------------------------------------------- | North America | 61.4 | 85.7 | -28.4% | -------------------------------------------------------------------------------- | (North America, MUSD | 94.8 | 114.3 | -17.1%) | -------------------------------------------------------------------------------- | Eliminations | -71.4 | -82.9 | | -------------------------------------------------------------------------------- | Total | 501.2 | 547.1 | -8.4% | -------------------------------------------------------------------------------- Results and profitability Continuing operations' operating profit for April-June totalled 29.0 (45.1) million euros, a drop of 35.7%, mostly driven by lower volumes. Continuing operations operating profit margin fell to 9.6% from 13.2% in the equivalent period for 2007. Gross profit margin was affected by increased costs of raw materials and components, energy, and transportation. Uponor implemented various short-term initiatives to contain operating expenses and curbed investments. In Uponor Central Europe, operating profit reached the previous year's level, supported by the high-rise business demand and the strong contribution of the businesses outside Germany. Falling volumes in inter-company and external project business burdened profitability. In Uponor Nordic, profitability suffered from lower volumes in both the domestic and export markets, where an unfavourable product mix made a significant impact. Operating profit in Uponor Europe - West, East, South ended up clearly lower than in 2007, mainly driven by lack of volume in Iberia and the fairly high costs from ongoing growth initiatives. Also in North America, operating profit fell clearly below the 2007 level, reflective of the volume shortfall and the resources channelled to the strategic high-rise initiatives and new customer acquisition programmes. Also actions to reduce inventory burdened profitability. Operating profit by segment, April-June: -------------------------------------------------------------------------------- | MEUR | 4-6/2008 | 4-6/2007 | Change | -------------------------------------------------------------------------------- | Central Europe | 12.5 | 12.5 | -0.1% | -------------------------------------------------------------------------------- | Nordic | 12.8 | 19.0 | -33.0% | -------------------------------------------------------------------------------- | Europe - West, East, South | 4.9 | 11.8 | -58.4% | -------------------------------------------------------------------------------- | North America | 1.5 | 7.4 | -80.2% | -------------------------------------------------------------------------------- | (North America, MUSD | 2.3 | 9.9 | -77.2%) | -------------------------------------------------------------------------------- | Other | -2.1 | -4.1 | | -------------------------------------------------------------------------------- | Eliminations | -0.6 | -1.5 | | -------------------------------------------------------------------------------- | Total | 29.0 | 45.1 | -35.7% | -------------------------------------------------------------------------------- Continuing operations' operating profit for January-June, excluding the sales gain of 43.5 million euros from the divested infrastructure business, came to 48.3 (72.4) million euros, a change of -33.3%. Operating profit by segment, January-June: -------------------------------------------------------------------------------- | MEUR | 1-6/2008 | 1-6/2007 | Change | -------------------------------------------------------------------------------- | Central Europe | 20.7 | 23.4 | -11.4% | -------------------------------------------------------------------------------- | Nordic | 19.9 | 29.0 | -31.4% | -------------------------------------------------------------------------------- | Europe - West, East, South | 12.8 | 21.0 | -39.1% | -------------------------------------------------------------------------------- | North America | 0.8 | 8.2 | -90.8% | -------------------------------------------------------------------------------- | (North America, MUSD | 1.2 | 10.9 | -89.4%) | -------------------------------------------------------------------------------- | Other | -5.6 | -6.3 | | -------------------------------------------------------------------------------- | Eliminations | -0.3 | -2.9 | | -------------------------------------------------------------------------------- | Total | 48.3 | 72.4 | -33.3% | -------------------------------------------------------------------------------- Continuing operations' profit before taxes for January-June came to 45.4 (70.4) million euros, down 35.5% from the previous year's figure. Taxes amounted to 13.9 (22.2) million euros, with a tax rate of 31.0 (31.5) per cent. The profit for the period was 74.0 (54.4) million euros, an increase of 19.6 million euros, reflecting the sales gain from the divestment of the UK and Irish infrastructure business. On the closing date, Uponor recorded a sales gain of 43.7 million euros from the divestment instead of the anticipated nearly 50 million euros that was communicated earlier. Further, an unrecognised actuarial loss amounting to 4.8 million euros was transferred with the sold entity. The divestment increased the parent company's distributable earnings by some 64 million euros. The Group's earnings per share (basic and diluted) totalled 1.01 (0.74) euros, of which continuing operations represented 0.43 (0.66) euros. Equity per share was 4.06 (4.02) euros, basic and diluted. Investment and financing Careful consideration was given to new investment launches as a result of the adverse business cycle. The amount of investment related to continuing operations therefore decreased in Q2, coming to 9.0 (9.4) million euros for April-June. Investment in process improvement was continued, especially in the Nordic countries and North America. Gross investment for January-June totalled 15.6 (17.0) million euros, or 3.1 (2.7) per cent of net sales. Gearing declined to 42.7 (51.0) per cent, mainly as a result of interest‑bearing liabilities falling to 127.0 (150.1) million euros. Accordingly, the solvency ratio improved to 44.9 (38.7) per cent. The Group's return on investment (ROI) grew to 43.8 (40.1) per cent and return on equity (ROE) to 47.0 (34.1) per cent. Key events during the period Uponor's strategic initiative to enter the high-rise building sector was actively promoted. In the USA, Uponor signed a contract to supply PEX plumbing for Ohio public schools and entered a partnership agreement with M/I Homes, a leading U.S. builder that will start using PEX pipe in all of its house lines. The value of these contracts is expected to exceed 2 million dollars annually. Another key initiative, the market entry for radiant heating/cooling, is progressing favourably, and customer interest in its potential continues to grow. Recently, radiant cooling has received additional support from a number of pro-environment regulatory changes in various countries. In Iberia, Uponor's radiant heating and cooling solution had been approved for more development projects by the end of Q2/2008 than in the whole of 2007. Design demand has also increased markedly in the USA. Reflecting growing customer interest, a major U.S. retail company is installing an Uponor radiant cooling system in one of its new stores as a sustainable technology evaluation project. In North America, Uponor has been successful in converting several large builders and developers to specifying Uponor systems. Uponor has launched a series of new strategic products there to complement its systems offering, aiming at further market share gains for the residential and commercial markets. A decision to build a new distribution centre in North America was reached in May, with the aim of increasing operational efficiency levels and improving service levels. In Europe, the second quarter of 2008 witnessed the opening of an office in Istanbul, Turkey, and further market penetration in Eastern Europe is proceeding. In May, Uponor Corporation signed a contract to divest its UK and Irish infrastructure business to the European private equity company 3i and funds managed by 3i. The contract included sale of the share capital of the UK Uponor subsidiary Uponor Ltd. and the latter's subsidiary Radius Plastics Ltd. in Northern Ireland. The infrastructure business in Cork in the Republic of Ireland was included in the deal also. The divested business had net sales of 169.1 million euros in 2007, employing a staff of 470 persons. Uponor had earlier made a separate sale of its factory premises in Cork to a third party, the closing of which will take place in the first quarter of 2009. In Germany, Uponor divested the last remaining continental European infrastructure business, Uponor Klärtechnik GmbH, with effect from 1 April. Its net sales, around 3 million euros in 2007, were part of the Uponor Europe - West, East, South region. The Oracle ERP implementation in Europe continues according to plan. For the Finnish housing solutions unit, it successfully went live in May, and rollout preparations are underway in the UK and Ireland. Human resources and organisation The reported number of Group full-time-equivalent employees averaged 4,505 (4,417) during the period under review, while at the end of the period the Group had 4,195 (4,562) full-time-equivalent employees. The divested UK/Irish infrastructure business employed 470 persons. Compared to year-end 2007, the end-of-June figures include more than 100 additional, temporary employees, to cover holiday-season needs. Share capital and shares The number of Uponor shares exchanged on the OMX Nordic Exchange Helsinki increased in the second quarter to 30.2 (16.6) million shares, and the monetary value of the shares exchanged totalled 382.9 (486.8) million euros. The market value of the share capital at the end of the period was 0.7 (2.1) billion euros, and the number of shareholders was 16,321 (8,239). Uponor Corporation's share capital remained constant at 146,446,888 euros and the number of shares at 73,206,944. Events after the period under review On 12 August, the Board of Directors authorised the management to proceed with a company-wide cost reduction programme in order to align expenses with the low activity level in the building and construction industry. The programme targets structural cost reductions in the range of 30 million euros, effective in 2009. The planned actions are likely to affect more than 200 employees. The programme is preliminarily estimated to generate a one-time cost impact of about 10 million euros, which will be split between the years 2008 and 2009. Risks Uponor's financial results are exposed to a number of strategic, operational, financial, and hazard risks. A detailed risk analysis can be found in Uponor Annual Report 2007. Uponor has various legal proceedings and litigation in progress in different countries. The management does not expect these proceedings to have a material impact on the company's performance in the foreseeable future. Short-term outlook In Europe, with the exception of some Eastern European countries, the pace of the decline in residential construction has accelerated since the end of 2007, and markets for new residential building are expected to contract or, at best, remain flat for the second half of 2008. In the USA, the residential market is expected to continue its 2008 decline, while non‑residential construction is forecast to be stable or decline only slightly. Canadian markets, which are on a healthy level, are expected to maintain their resilience. Uponor continues to exploit the encouraging trends and opportunities that exist in some of its growth segments, but, overall, the general building market development is expected to deteriorate further. Therefore, Uponor repeats the guidance for 2008, issued on 11 June: Continuing operations' net sales are not expected to quite reach last year's level, and operating profit is expected to fall short of the 2007 level. The Group's capital expenditure plans for the current year have been adjusted to reflect the lower demand, bringing gross investment for the full year down to around 45 million euros. Uponor Corporation Board of Directors For further information, please contact: President and CEO Jan Lång, at tel. +358 20 129 2822 CFO and Deputy CEO Jyri Luomakoski, at tel. +358 40 515 4498 Tarmo Anttila Vice President, Communications Tel. +358 20 129 2852 DISTRIBUTION: OMX Nordic Exchange Helsinki Media www.uponor.com Information on the interim report The figures in brackets in this interim report are the refer figures for the equivalent period in 2007. The change percentages reported in the interim report have been calculated from exact figures not from rounded figures published in the interim report. INTERIM REPORT 1-6/2008 The figures in this interim report are unaudited. CONSOLIDATED INCOME STATEMENT -------------------------------------------------------------------------------- | MEUR | 1-6/ | 1-6/ | 4-6/ | 4-6/ | 1-12/ | | | 2008 | 2007 | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- | Continuing operations | | | | | | -------------------------------------------------------------------------------- | Net sales | 501.2 | 547.1 | 267.4 | 288.8 | 1,047.4 | -------------------------------------------------------------------------------- | Cost of goods sold | 312.3 | 333.1 | 166.5 | 171.9 | 640.4 | -------------------------------------------------------------------------------- | Gross profit | 188.9 | 214.0 | 100.9 | 116.9 | 407.0 | -------------------------------------------------------------------------------- | Other operating income | 0.6 | 1.0 | 0.3 | 0.5 | 5.9 | -------------------------------------------------------------------------------- | Dispatching and | 15.8 | 14.2 | 8.3 | 7.4 | 28.8 | | warehousing expenses | | | | | | -------------------------------------------------------------------------------- | Sales and marketing | 90.1 | 92.7 | 46.1 | 46.4 | 178.5 | | expenses | | | | | | -------------------------------------------------------------------------------- | Administration expenses | 26.4 | 28.3 | 12.5 | 14.2 | 51.7 | -------------------------------------------------------------------------------- | Other operating | 8.9 | 7.4 | 5.3 | 4.3 | 18.2 | | expenses | | | | | | -------------------------------------------------------------------------------- | Operating profit | 48.3 | 72.4 | 29.0 | 45.1 | 135.7 | -------------------------------------------------------------------------------- | Financial expenses, net | 2.9 | 2.0 | 2.4 | 2.1 | 2.6 | -------------------------------------------------------------------------------- | Profit before taxes | 45.4 | 70.4 | 26.6 | 43.0 | 133.1 | -------------------------------------------------------------------------------- | Income taxes | 13.9 | 22.2 | 8.2 | 13.6 | 41.7 | -------------------------------------------------------------------------------- | Profit for the period | 31.5 | 48.2 | 18.4 | 29.4 | 91.4 | | from continuing | | | | | | | operations | | | | | | -------------------------------------------------------------------------------- | | -------------------------------------------------------------------------------- | Discontinued operations | | | | | | -------------------------------------------------------------------------------- | Profit for the period | 42.5 | 6.2 | 41.4 | 3.5 | 10.5 | | from discontinued | | | | | | | operations | | | | | | -------------------------------------------------------------------------------- | Profit for the period | 74.0 | 54.4 | 59.8 | 32.9 | 101.9 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share, EUR | 1.01 | 0.74 | 0.82 | 0.45 | 1.39 | -------------------------------------------------------------------------------- | - Continuing operations | 0.43 | 0.66 | 0.25 | 0.40 | 1.25 | -------------------------------------------------------------------------------- | - Discontinued | 0.58 | 0.08 | 0.57 | 0.05 | 0.14 | | operations | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Diluted earnings per | 1.01 | 0.74 | 0.82 | 0.45 | 1.39 | | share, EUR | | | | | | -------------------------------------------------------------------------------- | - Continuing operations | 0.43 | 0.66 | 0.25 | 0.40 | 1.25 | -------------------------------------------------------------------------------- | - Discontinued | 0.58 | 0.08 | 0.57 | 0.05 | 0.14 | | operations | | | | | | -------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEET -------------------------------------------------------------------------------- | MEUR | 30.6. | 30.6. | 31.12. | | | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- | Assets | | | | -------------------------------------------------------------------------------- | Non-current assets | | | | -------------------------------------------------------------------------------- | Property, plant and equipment | 179.3 | 209.4 | 218.9 | -------------------------------------------------------------------------------- | Intangible assets | 101.9 | 96.9 | 101.7 | -------------------------------------------------------------------------------- | Securities and long-term investments | 8.0 | 3.6 | 3.6 | -------------------------------------------------------------------------------- | Deferred tax assets | 15.2 | 22.4 | 16.3 | -------------------------------------------------------------------------------- | Total non-current assets | 304.4 | 332.3 | 340.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Current assets | | | | -------------------------------------------------------------------------------- | Inventories | 135.2 | 158.5 | 150.6 | -------------------------------------------------------------------------------- | Accounts receivable | 192.9 | 247.0 | 144.6 | -------------------------------------------------------------------------------- | Other receivables | 22.2 | 13.7 | 22.3 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 8.5 | 10.1 | 6.3 | -------------------------------------------------------------------------------- | Total current assets | 358.8 | 429.3 | 323.8 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total assets | 663.2 | 761.6 | 664.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Shareholders' equity and liabilities | | | | -------------------------------------------------------------------------------- | Shareholders' equity | 297.4 | 294.4 | 333.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current liabilities | | | | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 17.7 | 20.8 | 14.7 | -------------------------------------------------------------------------------- | Deferred tax liability | 11.6 | 16.7 | 15.0 | -------------------------------------------------------------------------------- | Provisions | 7.6 | 10.4 | 8.8 | -------------------------------------------------------------------------------- | Employee benefits and other liabilities | 20.3 | 25.4 | 28.1 | -------------------------------------------------------------------------------- | Total non-current liabilities | 57.2 | 73.3 | 66.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Curren liabilities | | | | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 117.8 | 139.4 | 76.1 | -------------------------------------------------------------------------------- | Provisions | 5.8 | 6.5 | 7.4 | -------------------------------------------------------------------------------- | Accounts payable | 79.4 | 97.0 | 75.2 | -------------------------------------------------------------------------------- | Other liabilities | 105.6 | 151.0 | 106.0 | -------------------------------------------------------------------------------- | Total current liabilities | 308.6 | 393.9 | 264.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total shareholders' equity and liabilities | 663.2 | 761.6 | 664.3 | -------------------------------------------------------------------------------- CONSOLIDATED CASH FLOW STATEMENT -------------------------------------------------------------------------------- | MEUR | 1-6/ | 1-6/ | 1-12/ | | | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- | Net cash from operations | 64.4 | 100.6 | 186.0 | -------------------------------------------------------------------------------- | Change in net working capital | -16.4 | -79.3 | -45.1 | -------------------------------------------------------------------------------- | Income taxes paid | -18.0 | -23.9 | -42.7 | -------------------------------------------------------------------------------- | Interest paid | -4.6 | -3.1 | -7.1 | -------------------------------------------------------------------------------- | Interest received | 1.0 | 1.1 | 2.7 | -------------------------------------------------------------------------------- | Cash flow from operations | 26.4 | -4.6 | 93.8 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow from investments | | | | -------------------------------------------------------------------------------- | Proceeds from disposal of subsidiaries and | 76.4 | - | - | | businesses | | | | -------------------------------------------------------------------------------- | Purchase of fixed assets | -15.6 | -17.0 | -58.1 | -------------------------------------------------------------------------------- | Proceeds from sales of fixed assets | 0.1 | 0.4 | 5.0 | -------------------------------------------------------------------------------- | Received dividends | 0.0 | 0.0 | 0.2 | -------------------------------------------------------------------------------- | Loan repayments | 0.1 | 0.1 | 0.2 | -------------------------------------------------------------------------------- | Cash flow from investments | 61.0 | -16.5 | -52.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow from financing | | | | -------------------------------------------------------------------------------- | Borrowings of debt | 18.3 | 122.6 | 58.9 | -------------------------------------------------------------------------------- | Repayments of debt | - | -0.3 | -1.7 | -------------------------------------------------------------------------------- | Dividends paid | -102.5 | -102.5 | -102.5 | -------------------------------------------------------------------------------- | Payment of finance lease liabilities | -1.0 | -1.0 | -1.9 | -------------------------------------------------------------------------------- | Cash flow from financing | -85.2 | 18.8 | -47.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Conversion differences for cash and cash | 0.0 | 0.0 | 0.0 | | equivalents | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Change in cash and cash equivalents | 2.2 | -2.3 | -6.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash and cash equivalents at 1 January | 6.3 | 12.4 | 12.4 | -------------------------------------------------------------------------------- | Cash and cash equivalents at end of period | 8.5 | 10.1 | 6.3 | -------------------------------------------------------------------------------- | Changes according to balance sheet | 2.2 | -2.3 | -6.1 | -------------------------------------------------------------------------------- STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY -------------------------------------------------------------------------------- | MEUR | Share | Share | Other | Treasury | Trans | Retain | Total | | | capita | premiu | reserv | shares | l | ed | | | | l | m | es | | ation | earn | | | | | | | | reserve | i | | | | | | | | | ngs | | -------------------------------------------------------------------------------- | Balance | 146.4 | 35.6 | 14.3 | - | -21.6 | 158.3 | 333.0 | | at 31 | | | | | | | | | Dec 2007 | | | | | | | | -------------------------------------------------------------------------------- | Translation | | | | -7.8 | | -7.8 | | differences | | | | | | | -------------------------------------------------------------------------------- | Cash flow hedges | | | | | | | -------------------------------------------------------------------------------- | - recorded in | | 0.7 | | | | 0.7 | | equity, net of | | | | | | | | taxes | | | | | | | -------------------------------------------------------------------------------- | Net profit for | | | | | 74.0 | 74.0 | | the period | | | | | | | -------------------------------------------------------------------------------- | Total recognised | | 0.7 | | -7.8 | 74.0 | 66.9 | | income and | | | | | | | | expense for the | | | | | | | | period | | | | | | | -------------------------------------------------------------------------------- | Dividend paid | | | | | -102.5 | -102.5 | | (EUR 1.40 per | | | | | | | | share) | | | | | | | -------------------------------------------------------------------------------- | Other adjustments | | 0.0 | | | -0.0 | - | -------------------------------------------------------------------------------- | Balance | 146.4 | 35.6 | 15.0 | - | -29.4 | 129.8 | 297.4 | | at 30 | | | | | | | | | Jun 2008 | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Balance | 146.4 | 42.5 | 6.7 | -1.6 | -10.2 | 160.6 | 344.4 | | at 31 | | | | | | | | | Dec 2006 | | | | | | | | -------------------------------------------------------------------------------- | Translation | | | | -2.0 | | -2.0 | | differences | | | | | | | -------------------------------------------------------------------------------- | Net profit for | | | | | 54.4 | 54.4 | | the period | | | | | | | -------------------------------------------------------------------------------- | Total recognised | | | | -2.0 | 54.4 | 52.4 | | income and | | | | | | | | expense for the | | | | | | | | period | | | | | | | -------------------------------------------------------------------------------- | Cancelling of | | | 0.3 | | -0.3 | - | | shares | | | | | | | -------------------------------------------------------------------------------- | Dividend paid | | | | | -102.5 | -102.5 | | (EUR 1.40 per | | | | | | | | share) | | | | | | | -------------------------------------------------------------------------------- | Share based | | | 1.3 | | -1.3 | - | | incentive plan | | | | | | | | | | | | | | | -------------------------------------------------------------------------------- | Other adjustments | | 0.1 | | | | 0.1 | -------------------------------------------------------------------------------- | Balance | 146.4 | 42.5 | 6.8 | - | -12.2 | 110.9 | 294.4 | | at 30 | | | | | | | | | Jun 2007 | | | | | | | | -------------------------------------------------------------------------------- NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS ACCOUNTING PRINCIPLES The interim report has been prepared in compliance with International Financial Reporting Standards (IFRS) as adopted by EU and IAS 34 Interim Financial Reporting. In interim reports Uponor Group follows the same principles as in the annual financial statement 2007. Divestments of infrastructure business in UK, Ireland and Germany have been classified as discontinued operations. -------------------------------------------------------------------------------- | PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS | -------------------------------------------------------------------------------- | MEUR | 1-6/ | 1-6/ | 1-12/ | | | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- | Gross investment | 15.6 | 17.0 | 58.1 | -------------------------------------------------------------------------------- | - % of net sales | 3.1 | 2.7 | 4.8 | -------------------------------------------------------------------------------- | Depreciation | 15.8 | 18.6 | 37.2 | -------------------------------------------------------------------------------- | Book value of disposed fixed assets | 2.7 | 0.4 | 2.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | PERSONNEL | | | | -------------------------------------------------------------------------------- | Converted to full time employees | 1-6/ | 1-6/ | 1-12/ | | | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Average | 4,505 | 4,417 | 4,497 | -------------------------------------------------------------------------------- | At the end of the period | 4,195 | 4,562 | 4,581 | -------------------------------------------------------------------------------- SEGMENT INFORMATION -------------------------------------------------------------------------------- | | Geographical segments | -------------------------------------------------------------------------------- | | | 1-6/2008 | 1-6/2007 | -------------------------------------------------------------------------------- | | MEUR | Exter | Interna | Total | External | Internal | Total | | | | nal | l | | | | | -------------------------------------------------------------------------------- | | Segment revenue, continuing | | | | | | operations | | | | -------------------------------------------------------------------------------- | | Central | 145.2 | 35.3 | 180.5 | 151.0 | 38.7 | 189.7 | | | Europe | | | | | | | -------------------------------------------------------------------------------- | | Nordic | 166.0 | 35.3 | 201.3 | 168.3 | 42.2 | 210.5 | -------------------------------------------------------------------------------- | | Europe - | 128.6 | 0.8 | 129.4 | 143.2 | 0.9 | 144.1 | | | West, | | | | | | | | | East, | | | | | | | | | South | | | | | | | -------------------------------------------------------------------------------- | | North | 61.4 | - | 61.4 | 84.6 | 1.1 | 85.7 | | | America | | | | | | | -------------------------------------------------------------------------------- | | Eliminat | - | -71.4 | -71.4 | - | -82.9 | -82.9 | | | ions | | | | | | | -------------------------------------------------------------------------------- | | Total | 501.2 | - | 501.2 | 547.1 | - | 547.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | | 4-6/2008 | 4-6/2007 | -------------------------------------------------------------------------------- | | | Exter | Interna | Total | External | Internal | Total | | | | nal | l | | | | | -------------------------------------------------------------------------------- | | Segment revenue, continuing | | | | | | operations | | | | -------------------------------------------------------------------------------- | | Central | 77.9 | 18.9 | 96.8 | 75.5 | 20.1 | 95.6 | | | Europe | | | | | | | -------------------------------------------------------------------------------- | | Nordic | 90.2 | 18.3 | 108.5 | 94.5 | 21.5 | 116.0 | -------------------------------------------------------------------------------- | | Europe - | 64.8 | 0.5 | 65.3 | 69.9 | 0.4 | 70.3 | | | West, | | | | | | | | | East, | | | | | | | | | South | | | | | | | -------------------------------------------------------------------------------- | | North | 34.5 | - | 34.5 | 48.9 | 1.0 | 49.9 | | | America | | | | | | | -------------------------------------------------------------------------------- | | Eliminat | - | -37.7 | -37.7 | - | -43.0 | -43.0 | | | ions | | | | | | | -------------------------------------------------------------------------------- | | Total | 267.4 | - | 267.4 | 288.8 | - | 288.8 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | | 1-12/2007 | -------------------------------------------------------------------------------- | | MEUR | External | Internal | Total | -------------------------------------------------------------------------------- | | Segment revenue, continuing | | | | | | operations | | | | -------------------------------------------------------------------------------- | | Central Europe | 283.7 | 67.6 | 351.3 | -------------------------------------------------------------------------------- | | Nordic | 325.4 | 72.3 | 397.7 | -------------------------------------------------------------------------------- | | Europe - West, East, South | 271.1 | 1.8 | 272.9 | -------------------------------------------------------------------------------- | | North America | 167.2 | 2.0 | 169.2 | -------------------------------------------------------------------------------- | | Eliminations | - | -143.7 | -143.7 | -------------------------------------------------------------------------------- | | Total | 1,047.4 | - | 1,047.4 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | | 1-6/ | 1-6/ | 4-6/ | 4-6/ | 1-12/ | | | | 2008 | 2007 | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- | | Segment result, continuing | | | | | | | operations | | | | | -------------------------------------------------------------------------------- | | Central Europe | 20.7 | 23.4 | 12.5 | 12.5 | 41.1 | -------------------------------------------------------------------------------- | | Nordic | 19.9 | 29.0 | 12.8 | 19.0 | 49.7 | -------------------------------------------------------------------------------- | | Europe - West, | 12.8 | 21.0 | 4.9 | 11.8 | 42.2 | | | East, South | | | | | | -------------------------------------------------------------------------------- | | North America | 0.8 | 8.2 | 1.5 | 7.4 | 16.6 | -------------------------------------------------------------------------------- | | Others | -5.6 | -6.3 | -2.1 | -4.1 | -13.2 | -------------------------------------------------------------------------------- | | Eliminations | -0.3 | -2.9 | -0.6 | -1.5 | -0.7 | -------------------------------------------------------------------------------- | | Total | 48.3 | 72.4 | 29.0 | 45.1 | 135.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | MEUR | 1-6/ | 1-6/ | 1-12/ | | | | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- | | Segment depreciation and impairments, continuing | | | | | operations | | | -------------------------------------------------------------------------------- | | Central Europe | 4.1 | 3.7 | 7.7 | -------------------------------------------------------------------------------- | | Nordic | 5.0 | 5.2 | 10.1 | -------------------------------------------------------------------------------- | | Europe - West, East, South | 1.4 | 1.2 | 2.2 | -------------------------------------------------------------------------------- | | North America | 2.7 | 2.6 | 5.6 | -------------------------------------------------------------------------------- | | Others | 2.0 | 1.6 | 3.3 | -------------------------------------------------------------------------------- | | Eliminations | 0.3 | 0.2 | 0.6 | -------------------------------------------------------------------------------- | | Total | 15.5 | 14.5 | 29.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Segment investments, continuing | | | | | | operations | | | | -------------------------------------------------------------------------------- | | Central Europe | 3.1 | 4.1 | 11.0 | -------------------------------------------------------------------------------- | | Nordic | 4.8 | 5.8 | 15.5 | -------------------------------------------------------------------------------- | | Europe - West, East, South | 0.5 | 1.5 | 4.0 | -------------------------------------------------------------------------------- | | North America | 5.0 | 3.3 | 13.4 | -------------------------------------------------------------------------------- | | Others | 2.2 | 0.7 | 8.1 | -------------------------------------------------------------------------------- | | Total | 15.6 | 15.4 | 52.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | MEUR | 1-6/ | 1-6/ | 1-12/ | | | | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- | | Segment assets | | | | -------------------------------------------------------------------------------- | | Central Europe | 193.2 | 200.5 | 181.4 | -------------------------------------------------------------------------------- | | Nordic | 212.2 | 232.0 | 185.3 | -------------------------------------------------------------------------------- | | Europe - West, East, South | 164.1 | 253.2 | 240.1 | -------------------------------------------------------------------------------- | | North America | 109.3 | 121.7 | 123.7 | -------------------------------------------------------------------------------- | | Others | 512.0 | 628.0 | 577.9 | -------------------------------------------------------------------------------- | | Eliminations | -527.6 | -673.8 | -644.1 | -------------------------------------------------------------------------------- | | Total | 663.2 | 761.6 | 664.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | Segment liabilities | | | | -------------------------------------------------------------------------------- | | Central Europe | 111.1 | 113.6 | 119.0 | -------------------------------------------------------------------------------- | | Nordic | 248.5 | 279.1 | 233.5 | -------------------------------------------------------------------------------- | | Europe - West, East, South | 56.6 | 137.8 | 101.9 | -------------------------------------------------------------------------------- | | North America | 44.1 | 54.7 | 55.0 | -------------------------------------------------------------------------------- | | Others | 450.2 | 573.1 | 477.8 | -------------------------------------------------------------------------------- | | Eliminations | -544.7 | -691.1 | -655.9 | -------------------------------------------------------------------------------- | | Total | 365.8 | 467.2 | 331.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | | 1-6/ | 1-6/ | 1-12/ | | | | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- | | Segment personnel, average | | | | -------------------------------------------------------------------------------- | | Central Europe | 1,245 | 1,246 | 1,261 | -------------------------------------------------------------------------------- | | Nordic | 1,380 | 1,367 | 1,380 | -------------------------------------------------------------------------------- | | Europe - West, East, South | 1,233 | 1,189 | 1,224 | -------------------------------------------------------------------------------- | | North America | 581 | 558 | 573 | -------------------------------------------------------------------------------- | | Others | 66 | 57 | 59 | -------------------------------------------------------------------------------- | Total | 4,505 | 4,417 | 4,497 | -------------------------------------------------------------------------------- | Continuing operations | 4,096 | 3,929 | 4,008 | -------------------------------------------------------------------------------- | Discontinued operations | 409 | 488 | 489 | -------------------------------------------------------------------------------- | Business segments | -------------------------------------------------------------------------------- | | | 1-6/2008 | -------------------------------------------------------------------------------- | | Segment external | Housing | Infra | Total | | | revenue, continuing | solutions | structure | | | | operations | | solutions | | -------------------------------------------------------------------------------- | | Central Europe | 145.2 | - | 145.2 | -------------------------------------------------------------------------------- | | Nordic | 65.7 | 100.3 | 166.0 | -------------------------------------------------------------------------------- | | Europe - West, East, | 122.7 | 5.9 | 128.6 | | | South | | | | -------------------------------------------------------------------------------- | | North America | 61.4 | - | 61.4 | -------------------------------------------------------------------------------- | | Total | 395.0 | 106.2 | 501.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | 1-6/2007 | -------------------------------------------------------------------------------- | | Segment external | Housing | Infra | Total | | | revenue, continuing | solutions | structure | | | | operations | | solutions | | -------------------------------------------------------------------------------- | | Central Europe | 151.0 | - | 151.0 | -------------------------------------------------------------------------------- | | Nordic | 71.1 | 97.2 | 168.3 | -------------------------------------------------------------------------------- | | Europe West, East, | 136.0 | 7.2 | 143.2 | | | South | | | | -------------------------------------------------------------------------------- | | North America | 84.6 | - | 84.6 | -------------------------------------------------------------------------------- | | Total | 442.7 | 104.4 | 547.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | | | 1-12/2007 | -------------------------------------------------------------------------------- | | Segment external | Housing | Infrastructure | Total | | | revenue, continuing | solutions | solutions | | | | operations | | | | -------------------------------------------------------------------------------- | | Central Europe | 283.7 | - | 283.7 | -------------------------------------------------------------------------------- | | Nordic | 133.8 | 191.6 | 325.4 | -------------------------------------------------------------------------------- | | Europe - West, East, | 255.2 | 15.9 | 271.1 | | | South | | | | -------------------------------------------------------------------------------- | | North America | 167.2 | - | 167.2 | -------------------------------------------------------------------------------- | | Total | 839.9 | 207.5 | 1,047.4 | -------------------------------------------------------------------------------- CONTINGENT LIABILITIES -------------------------------------------------------------------------------- | MEUR | 30.6. | 30.6. | 31.12. | | | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- | Group: | | | | -------------------------------------------------------------------------------- | Mortgages | - | - | 0.0 | | - on own behalf | | | | -------------------------------------------------------------------------------- | Guarantees | | | | -------------------------------------------------------------------------------- | - on behalf of others | 1.6 | 12.7 | 11.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Parent company: | | | | -------------------------------------------------------------------------------- | Guarantees | | | | -------------------------------------------------------------------------------- | - on behalf of a subsidiary | 7.5 | 11.0 | 10.5 | -------------------------------------------------------------------------------- | - on behalf of others | 7.2 | 9.5 | 9.3 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | OPERATING LEASE COMMITMENTS | 23.4 | 24.2 | 24.4 | -------------------------------------------------------------------------------- DERIVATIVE CONTRACTS -------------------------------------------------------------------------------- | MEUR | Nominal | Fair | Nominal | Fair | Nominal | Fair | | | value | value | value | value | value | value | | | 30.6. | 30.6. | 30.6. | 30.6. | 31.12. | 31.12. | | | 2008 | 2008 | 2007 | 2007 | 2007 | 2007 | -------------------------------------------------------------------------------- | Currency | 111.6 | 1.0 | 49.3 | -0.2 | 85.9 | 1.7 | | derivatives | | | | | | | | - Forward | | | | | | | | agreements | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Commodity | 3.8 | 2.0 | 4.9 | 0.1 | 3.6 | 0.8 | | derivatives | | | | | | | | - Forward | | | | | | | | agreements | | | | | | | -------------------------------------------------------------------------------- DISCONTINUED OPERATIONS Divested infrastructure businesses in UK, Ireland and Germany have been classified as discontinued operations according to IFRS 5 -standard. In June Uponor closed the deal concerning the disposal of infrastructure business in UK and Ireland. The deal included the sale of Uponor Ltd. in the UK, its subsidiary Radius Plastics Ltd. in Northern Ireland and the Uponor Ltd's business in the Republic of Ireland. In April, Uponor Klärtechnik GmbH in Germany was sold. -------------------------------------------------------------------------------- | MEUR | 1-6/ | 1-6/ | 1-12/ | | | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- | Net sales | 8.9 | 87.9 | 171.9 | -------------------------------------------------------------------------------- | Expenses | 9.9 | 78.9 | 156.5 | -------------------------------------------------------------------------------- | Profit before taxes | -1.0 | 9.0 | 15.4 | -------------------------------------------------------------------------------- | Income taxes | 0.0 | 2.8 | 4.9 | -------------------------------------------------------------------------------- | Profit after taxes | -1.0 | 6.2 | 10.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net profit from divestment of discontinued | 43.5 | - | - | | operations | | | | -------------------------------------------------------------------------------- | Income taxes | - | - | - | -------------------------------------------------------------------------------- | Profit from divestment of discontinued | 43.5 | - | - | | operations | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Profit for the period from discontinued | 42.5 | 6.2 | 10.5 | | operations | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash flow from discontinued operations | | | | -------------------------------------------------------------------------------- | Cash flow from operations | -3.6 | 14.5 | 19.1 | -------------------------------------------------------------------------------- | Cash flow from investments | 76.4 | -1.6 | -6.1 | -------------------------------------------------------------------------------- DISPOSAL OF BUSINESSES Disposal of businesses includes the divestments of infrastructure business in UK, Ireland and Germany, classified as discontinued operations. Book value of assets disposed -------------------------------------------------------------------------------- | MEUR | 1-6/ | 1-6/ | 1-12/ | | | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- | Property, plant and equipment | 33.7 | - | - | -------------------------------------------------------------------------------- | Deferred tax asset | 1.9 | - | - | -------------------------------------------------------------------------------- | Inventories | 17.8 | - | - | -------------------------------------------------------------------------------- | Accounts receivable and other receivables | 25.1 | | | -------------------------------------------------------------------------------- | Cash and cash equivalent | 1.1 | - | - | -------------------------------------------------------------------------------- | Total assets | 79.6 | - | - | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Deferred tax liability | 3.1 | - | - | -------------------------------------------------------------------------------- | Employee benefits and other liabilities | 4.3 | - | - | -------------------------------------------------------------------------------- | Accounts payable and other current | 33.2 | - | - | | liabilities | | | | -------------------------------------------------------------------------------- | Total liabilities | 40.6 | - | - | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Net assets | 39.0 | - | - | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Cash received from sales | 77.5 | - | - | -------------------------------------------------------------------------------- | Cash and cash equivalent disposed of | 1.1 | - | - | -------------------------------------------------------------------------------- | Cash flow effect | 76.4 | - | - | -------------------------------------------------------------------------------- In addition to the cash received from sales, 5.0 MEUR vendor loan note was issued at closing of the deal. Total sales price of the transactions was 82.5 MEUR. RELATED-PARTY TRANSACTIONS -------------------------------------------------------------------------------- | MEUR | 1-6/ | 1-6/ | 1-12/ | | | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- | Continuing operations | | | | -------------------------------------------------------------------------------- | Purchases from associated companies | 1.1 | 1.0 | 2.1 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Balances at the end of the period | | | | -------------------------------------------------------------------------------- | Loan receivable from associated companies | - | 1.1 | 1.0 | -------------------------------------------------------------------------------- | Accounts and other receivables | - | 1.7 | 1.1 | -------------------------------------------------------------------------------- | Accounts payables and other liabilities | 0.1 | 0.6 | 0.2 | -------------------------------------------------------------------------------- KEY FIGURES -------------------------------------------------------------------------------- | | 1-6/ | 1-6/ | 1-12/ | | | 2008 | 2007 | 2007 | -------------------------------------------------------------------------------- | Earnings per share, EUR | 1.01 | 0.74 | 1.39 | -------------------------------------------------------------------------------- | - continuing operations | 0.43 | 0.66 | 1.25 | -------------------------------------------------------------------------------- | - discontinued operations | 0.58 | 0.08 | 0.14 | -------------------------------------------------------------------------------- | Operating profit (continuing operations), | 9.6 | 13.2 | 13.0 | | % | | | | -------------------------------------------------------------------------------- | Return on equity, %, cumulative | 47.0 | 34.1 | 30.1 | -------------------------------------------------------------------------------- | Return on investment, %, cumulative | 43.8 | 40.1 | 39.2 | -------------------------------------------------------------------------------- | Solvency ratio, % | 44.9 | 38.7 | 50.2 | -------------------------------------------------------------------------------- | Gearing, % | 42.7 | 51.0 | 25.4 | -------------------------------------------------------------------------------- | Net interest-bearing liabilities | 127.0 | 150.1 | 84.5 | -------------------------------------------------------------------------------- | Equity per share, EUR | 4.06 | 4.02 | 4.55 | -------------------------------------------------------------------------------- | - diluted | 4.06 | 4.02 | 4.55 | -------------------------------------------------------------------------------- | Trading price of shares | | | | -------------------------------------------------------------------------------- | - low, EUR | 9.15 | 25.56 | 15.31 | -------------------------------------------------------------------------------- | - high, EUR | 18.91 | 31.45 | 31.45 | -------------------------------------------------------------------------------- | - average, EUR | 14.51 | 28.20 | 23.76 | -------------------------------------------------------------------------------- | Shares traded | | | | -------------------------------------------------------------------------------- | - 1,000 pcs | 56,260 | 39,438 | 99,423 | -------------------------------------------------------------------------------- | - MEUR | 816 | 1,112 | 2,362 | -------------------------------------------------------------------------------- DEFINITIONS OF KEY RATIOS Return on Equity (ROE), % Profit before taxes - taxes = -------------------------------------------------- x 100 Shareholders' equity + minority interest, average Return on Investment (ROI), % Profit before taxes + interest and other financing costs = ------------------------------------------- x 100 Balance sheet total - non-interest-bearing liabilities, average Solvency, % Shareholders' equity + minority interest = ------------------------------------------------ x 100 Balance sheet total - advance payments received Gearing, % Net interest-bearing liabilities = ------------------------------------------ x 100 Shareholders' equity + minority interest Net interest-bearing liabilities = Interest-bearing liabilities - cash, bank receivables and financial assets Earnings per share (EPS) Profit for the period = ---------------------------------------------------------- Number of shares adjusted for share issue in financial period excluding treasury shares Equity per share ratio Shareholders' equity = ----------------------------------- Average number of shares adjusted for share issue at end of year Average share price Total value of shares traded (EUR) = ----------------------------------- Total number of shares traded