HONKARAKENNE OYJ’S HALF YEAR FINANCIAL REPORT, 1 JANUARY

HONKARAKENNE OYJ HALF YEAR FINANCIAL REPORT 10 August 2017 at 9:00 a.m.

HONKARAKENNE OYJ’S HALF YEAR FINANCIAL REPORT, 1 JANUARY – 30 JUNE 2017

SUMMARY

Net sales in the first half of the year saw significant year-on-year growth, amounting to MEUR 17.9, up 24 per cent on the previous year. Operating result improved by MEUR 2.0 to MEUR –0.1 (MEUR -2.1 a year earlier). At the end of June, the order book was 30 per cent higher than a year earlier.

January - June 2017

Honkarakenne Group's net sales January-June amounted to MEUR 17.9 (MEUR 14.5 in 2016), representing an increase over the same period the previous year of 24%.
The operating result was MEUR -0.1 (MEUR -2.1). Adjusted operating result was MEUR -0.2 (MEUR -1.9).
The loss before taxes was MEUR -0.1 (MEUR -2.5).
Earnings per share amounted to EUR -0.08 (EUR -0.52).

Honkarakenne reiterates its view that net sales in 2017 will be higher and the result before taxes will be better than in the previous year.

At the end of June, the Group's order book stood at MEUR 22.5, up 30% on the corresponding period of the previous year, when it amounted to MEUR 17.4. The order book refers to orders whose delivery date falls within the next 24 months. Some orders may include terms and conditions relating to financing or building permits.

KEY FIGURES	1-6/ 2017	1-6/ 2016	1-12/ 2016

Net sales, MEUR	17.9	14.5	36.1
Operating profit/loss, MEUR	-0.1	-2.1	-0.8
Adjusted operating profit/loss, MEUR	-0.2	-1.9	-0.4
Profit/loss before taxes, MEUR	-0.1	-2.5	-1.2
Adjusted profit/loss before taxes, MEUR	-0.3	-2.3	-0.8
Average number of personnel	135	138	136
Personnel in person-years, average	111	109	110
Earnings/share (EPS), EUR	-0.08	-0.52	-0.29
Equity ratio, %	38	31	41
Return on equity, %	-6	-38	-20
Shareholders' equity/share, EUR	1.31	1.17	1.42
Gearing, %	54	86	75

Marko Saarelainen, President and CEO of Honkarakenne Oyj, in connection with the half-year report:

”We succeeded in increasing net sales in all business areas. Net sales were substantially better than in the corresponding period of the previous year. The bulk of net sales growth is generated by Finland and Asia. Finland accounted for 63 per cent of net sales.

In the Finnish market, it is apparent that customers value healthy living and want to buy higher-quality houses that are even more complete upon delivery. At Honkarakenne, this is evident in both sales of detached houses and the higher demand for construction services. In addition, during the first half of the year, we made major new agreements for public and care home construction. Public and care home construction got off to a good start, accounting for the largest share of the growth in the order book. At the end of the review period, the order book was 30 per cent higher than a year earlier.

Operations in Russia were difficult in the first months of the year, but sales picked up slightly during the second quarter. However, we expect that this will be a difficult year in the Russian market. In Global Markets, we were particularly delighted by our performance in Asia, where the sales trend was positive. Project sales also picked up momentum towards the end of the period. Central Europe was a disappointment.

We’ve bolstered our sales resources, continue to develop our distribution networks and are making outlays on project sales in all markets.”

NET SALES

The Group’s first half year net sales in 2017 increased by 24% to MEUR 17.9 (MEUR 14.5).

Geographical distribution of net sales:

DEVELOPMENT OF NET SALES
Distribution of net sales, %	1-6/2017		1-6/2016
Finland	63 %		60 %
Russia & CIS	12 %		14 %
Global Markets	25 %		26 %
Total	100 %		100 %

Net sales, MEUR	1-6/2017	1-6/2016		change %
Finland	11.3	8.7		30 %
Russia & CIS	2.2	2.0		10 %
Global Markets	4.4	3.8		16 %
Total	17.9	14.5		24 %

Finland also includes billet sales and the sale of process waste for recycling.

Russia & CIS includes the following countries: Russia, Azerbaijan, Kazakhstan and other CIS countries excluding Ukraine.

Global Markets includes other countries than above-mentioned and CIS country Ukraine.

The Group’s order book at the end of June was MEUR 22.5. In the corresponding period of the previous year, it was MEUR 17.4. At the end of June, the order book was 30% better than a year earlier. The bulk of growth was generated by public and care home construction. Exclusive of such construction, the order book was 7% better than in the previous year.

TRENDS IN PROFIT AND PROFITABILITY

The adjusted operating loss for the January-June period was MEUR -0.2 (MEUR -1.9), the operating loss was MEUR -0.1 (MEUR -2.1) and the result before taxes was MEUR -0.1 (MEUR -2.5). Adjustment items include capital gains of MEUR 0.1 from the sale of properties included in fixed assets (adjustment items in the corresponding period of the previous year included expenses of MEUR 0.2).

The development of the operating result was impacted by the year-on-year increace in net sales.

FINANCING AND INVESTMENTS

On 3 March 2017, the Board of Directors of Honkarakenne carried out a directed share issue to reinforce the company’s financial and balance sheet position, based on a share issue authorisation granted by the Annual General Meeting on 15 April 2016. In the directed issue, AKR-Invest Oy subscribed for 1,000,000 new Honkarakenne B shares. The subscription price was EUR 1.50/share, i.e. EUR 1,500,000 in total. The subscription price was paid in full and entered in the company’s invested unrestricted equity fund.

The financial position of the Group remained satisfactory during the report period. The equity ratio stood at 38% (31%) and net financial liabilities at MEUR 4.2 (MEUR 4.9). In December 2016, the company negotiated new financing resolutions for 2017 with its financiers. Some of the new financing resolutions include EBITDA covenants. The EBITDA covenants apply to MEUR 3.6 in financial liabilities, of which MEUR 1.7 (1.2) already carried a 30 per cent equity ratio covenant term. Group liquid assets totalled MEUR 2.5 (MEUR 0.4). The Group also has a MEUR 7.8 (MEUR 7.8) bank overdraft facility, MEUR 2.9 of which had been drawn on at the end of the report period (MEUR 1.1). Gearing stood at 54% (86%). The company has agreed with its financiers that the repayments to be made next year will be negotiated towards the end of 2017.

The Group’s capital expenditure on fixed assets totalled MEUR 0.2 (MEUR 0.1).

PRODUCTS AND MARKETING

In Finland, sales development was positive. Healthy construction, high quality and design are important selling points in Finland. Outlays on public and care home construction started yielding results and Honka gained significant orders and framework agreements in this sector. Demand for construction services has also been on the rise, as customers want to buy houses that are even more complete upon delivery. During the first half of the year, the company prepared for this year’s main sales and marketing event, the Mikkeli Housing Fair. At the housing fair, Honka will present two different houses: Honka Ink is a small, modern and streamlined detached house, while Honka Ankkuri is an architecturally diverse creation that features a tower.

In Russia & CIS, sales got off to a sluggish start in the first months of the year, but picked up slightly in the second quarter. It is forecast that the Russian market will remain difficult until the end of the year. The company seeks to generate net sales in the latter half of the year by focusing on large projects and area development projects. Together with its local importer, Honka will participate in the Astana World’s Fair, which was opened in June.

In Global Markets, the best sales performance was seen in Asia, and deals were also made for international projects. Central Europe was a disappointment. Due to weak volume, functions in this region are being reorganised. Marketing efforts in Global Markets focused on overhauling the website and harnessing social media more effectively. In addition, local marketing campaigns were carried out.

RESEARCH AND DEVELOPMENT

In the January–June period, the Group's R&D expenditure totalled MEUR 0.1 (MEUR 0.2), representing 0.6% of net sales (1.1%). The Group did not capitalise any development expenditure during the report period.

PERSONNEL

During the first half of the year, the Group employed a total of 111 (109) employees on average in terms of person-years. The Group had an average of 135 (138) employees during the first half of the year.

In summer 2016, the company conducted negotiations under the act on co-operation within undertakings to prepare itself for the cyclical variations typical of its field of business. As a result, it was agreed that the company could lay off clerical and managerial employees for a maximum of 90 days. It was also agreed that blue-collar workers would have shorter workweeks. These arrangements were in force until 31 March 2017 for white-collars and until 31 May 2017 for blue-collar workers.

In June 2017, the company initiated negotiations under the act on co-operation within undertakings to prepare itself for the cyclical variations typical of its field of business with temporary lay-offs of no more than 90 days and/or shortened workweeks.

CHANGE IN MANAGEMENT

In April Honkarakenne strengthened its executive group and appointed three new members to the executive group: Leena Aalto was appointed as Vice President – Finance, CFO, Jari Fröberg was appointed as Vice President – Production and Jari Noppa was appointed as Vice President – Consumer Business, Finland.

Honkarakenne’s executive group and responsibility areas as of 6 April 2017:

Marko Saarelainen President, CEO – Sales & Marketing

Leena Aalto Vice President – Finance, CFO – finance and

Jari Fröberg Vice President – Production – production,

purchases, logistics

Jari Noppa Vice President – Consumer Business, Finland

Tanja Rytkönen Vice President – Design – collection, design

and R&D and public

construction

DIRECTED SHARE ISSUE

RESULT OF THE VOLUNTARY PUBLIC CASH TENDER OFFER FOR SHARES IN SISTEMA FINANCE S.A.

Sistema Finance S.A. announced the preliminary results of the voluntary public cash tender offer for all shares in Honkarakenne Oyj on 20 January 2017 and the final results on 24 January 2017. According to Sistema Finance S.A.’s announcement, 192,866 Series B shares were tendered in the offer, representing 3.7 per cent of Honka shares. Sistema Finance S.A. announced that it would not complete the tender offer in accordance with its terms and conditions, as it was contingent on the acquisition of at least 67 per cent or more of the Series A and Shares B shares in Honka.

MARKET MAKING AGREEMENT FOR SHARES IS TERMINATED

In April, Honkarakenne Oyj announced that S-Bank would cease offering liquidity providing services and that S-Bank had terminated the market making agreement for Honkarakenne Oyj’s shares effective 31 May 2017. At that time, the company also announced that in its view the liquidity of the share is sufficient without the liquidity provider.

HONKARAKENNE OYJ’S 2017 ANNUAL GENERAL MEETING, BOARD OF DIRECTORS, AND AUDITORS

The Annual General Meeting of Honkarakenne Oyj was held at Järvenpää-talo in Järvenpää on 7 April 2017. The AGM approved the parent company's and the consolidated Financial Statements, and discharged the members of the Board of Directors and the CEO from liability for 2016. The AGM decided not to pay a dividend for the 2016 financial year.

Anita Saarelainen was re-elected to the company's Board of Directors. Timo Kohtamäki, Arimo Ristola and Kyösti Saarimäki were elected as new members. At the Board's constituent meeting, Arimo Ristola was elected Chairman of the Board. At the same meeting, the Board decided not to establish any committees.

PricewaterhouseCoopers Oy, member of the Finnish Institute of Authorised Public Accountants, was re-appointed as auditor of the company, with Maria Grönroos, APA, as chief auditor.

AUTHORISATIONS OF THE BOARD OF DIRECTORS

On 7 April 2017, the AGM decided that the Board of Directors will be authorised to acquire a maximum of 400,000 of the company’s own B shares with assets included in the company’s unrestricted equity. In addition, the AGM authorised the Board to decide on a rights issue or bonus issue and on granting special rights to shares referred to in Section 1 of Chapter 10 of the Limited Liability Companies Act in one or more instalments. By virtue of the authorisation, the Board may issue a maximum total of 1,500,000 new shares and/or relinquish old B shares held by the company, including those shares that can be issued by virtue of special rights. Both authorisations will remain in force until the next Annual General Meeting, however expiring at the latest on June 30, 2018.

OWN SHARES

Honkarakenne has not acquired its own shares during the report period. At the end of the report period, the Group held 364,385 of its Honkarakenne B shares with a total purchase price of EUR 1,381,750.23. At the end of report period these shares represent 5.87% of the company's all shares and 3.05% of all votes. The purchase cost has been deducted from shareholders' equity in the consolidated financial statements.

CORPORATE GOVERNANCE

Honkarakenne Oyj observes the 2015 Corporate Governance Code for listed companies issued by the Finnish Securities Market Association. The company’s website, www.honka.com, provides more information on the corporate governance systems.

FORTHCOMING RISKS AND UNCERTAINTIES

Russia is one of Honkarakenne’s major business territories. The sanctions connected to the Ukrainian crisis and strong exchange rate fluctuations currently cause instability in the Russian market. This might also have significant effects on Honkarakenne’s business.

In December 2016, the company negotiated new financing resolutions for 2017 with its financiers. Some of the new financing resolutions include EBITDA covenants. The EBITDA covenants apply to MEUR 3.6 in financial liabilities, of which MEUR 1.7 (1.2) already carried a 30 per cent equity ratio covenant term. At the end of the first half of the year, the equity ratio was 38% (31% a year earlier). The company has agreed with its financiers that the repayments to be made next year will be negotiated towards the end of 2017.

Deferred tax assets include an item of MEUR 1.4 related to unused tax losses, of which MEUR 0.5 will expire in 2019 and MEUR 0.7 in 2021 - 2025. In Honkarakenne’s view, these deferred tax assets can be utilised by using the company’s estimated taxable income, which is based on Honkarakenne’s business plans. If earnings do not develop as expected in the long term, it is possible that the tax assets might not be utilised in time and must be impaired. New deferred tax assets were not recognised in the balance sheet for the first half of 2017.

The assessment of amounts in the balance sheet is based on current assessments by the management. If these assessments are changed, this may impact on the company’s result.

REPORTING

This report contains statements that relate to the future, and these statements are based on hypotheses that the company's management hold currently as well as on the decisions and plans that are currently in place. Although the management believes that the hypotheses relating to the future are well-founded, there is no guarantee that the said hypotheses will prove to be correct.

This half year financial report has been drafted in accordance with IAS 34. The principles adhered to in preparing the annual financial statements also apply to this half year financial report. The half year financial report should be read together with the annual financial statements for 2016. The new revised standards or interpretations effective as of 1 January 2017 have no bearing on the figures presented for the report period. The figures have not been examined by the auditor.

Share-related data and key figures for the comparative periods have been adjusted for the share issue carried out in March 2017.

As from the 2016 half-year financial report, Honkarakenne started complying with the Guidelines on Alternative Performance Measures (APM) issued by the European Securities and Markets Authority (ESMA). An APM is a financial measure of performance other than a financial measure defined or specified in IFRS. For this reason, the term “adjusted” is used instead of “without non-recurring items”. As adjustment items, the company classifies significant business transactions that are considered to affect comparisons between different reporting periods. Such transactions include significant reorganisation expenses, significant impairment losses or reversals thereof, significant capital gains and losses on assets, and other significant non-customary income or expenses.

EVENTS AFTER THE REVIEW PERIOD

Honkarakenne published on 7 March 2017 a listing prospectus approved by The Financial Supervisory Authority for the shares subscribed on directed share issue carried out on March. These shares were added on 11 July 2017 for trading to the Nasdaq OMX Helsinki Oy’s Stock Exchange’s list, together with the Company’s old B shares under the ticker symbol HONBS.

THE OUTLOOK FOR 2017

Honkarakenne reiterates its view that net sales in 2017 will be higher and the result before taxes will be better than in the previous year.

HONKARAKENNE OYJ

Board of Directors

Further information:

Marko Saarelainen, President and CEO, tel. +358 (0)40 542 0254, marko.saarelainen@honka.com or

Leena Aalto, Vice President - Finance, CFO, tel. +358 (0)40 769 4590, leena.aalto@honka.com

This and previous releases are available for viewing on the company’s website at www.honka.com.

DISTRIBUTION

NASDAQ OMX Helsinki

Key media

Financial Supervisory Authority

www.honka.com

Under its Honka® brand, Honkarakenne manufactures high-quality, healthy and ecological detached houses, holiday homes and public buildings using Finnish solid wood. The company has delivered close to 85,000 buildings to more than 50 countries. House packages are made at the company’s own factory in Karstula, Finland. In 2016, the Honkarakenne Group had net sales of MEUR 36.1, of which exports accounted for 49%. www.honka.com

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited	1-6 /2017	1-6 /2016	1-12 /2016
MEUR

Net sales	17.9	14.5	36.1
Other operating income	0.2	0.2	0.4
Change in inventories	1.0	0.8	-0.2
Materials and services	-12.7	-10.5	-23.0
Employee benefit expenses	-3.4	-3.6	-6.7
Depreciations and amortisation	-0.8	-0.9	-1.8
Impairment	0.0	0.0	0.0
Other operating expenses	-2.4	-2.6	-5.5
Operating profit/loss	-0.1	-2.1	-0.8
Financial income	0.1	0.1	0.2
Financial expenses	-0.2	-0.5	-0.5
Share of associated companies' result	-0.0	-0.0	0.0
Profit/loss before taxes	-0.1	-2.5	-1.2
Taxes	-0.3	-0.1	-0.3
Profit/loss for the period	-0.5	-2.6	-1.4

Other comprehensive income
Translation differences	-0.0	0.3	0.1
Total comprehensive income for the period	-0.5	-2.3	-1.3

Result for the period attributable to
Equity holders of the parent	-0.5	-2.6	-1.4
Non-controlling interest	0.0	-0.0	-0.0
	-0.5	-2.6	-1.4
Comprehensive income attributable to
Equity holders of the parent	-0.5	-2.3	-1.3
Non-controlling interest	0.0	-0.0	-0.0
	-0.5	-2.3	-1.3
Calculated from the result for the period attributable to equity holders of parent Earnings/share (EPS), EUR
Basic	-0.08	-0.52	-0.29
Diluted	-0.08	-0.52	-0.29

Honkarakenne Oyj has two series of shares: A shares and B shares, which have different right to dividend. Profit distribution of 0.20 EUR per share will be paid first for B shares, then 0.20 EUR per share for A shares, followed by equal distribution of remaining profit distribution between all shares.

CONSOLIDATED BALANCE SHEET Unaudited	30.6.2017	30.6.2016	31.12.2016
MEUR

Assets
Non-current assets
Property, plant and equipment	9.0	10.4	9.6
Goodwill	0.1	0.1	0.1
Other intangible assets	0.1	0.2	0.1
Investments in associated companies	0.2	0.2	0.2
Receivables	0.1	0.2	0.1
Deferred tax assets	2.5	2.7	2.6
	12.0	13.8	12.7
Current assets
Inventories	5.1	5.1	4.0
Trade and other receivables	4.1	4.6	2.8
Tax receivable, income tax	0.1	0.2	0.0
Cash and bank receivables	2.5	0.4	0.4
	11.9	10.2	7.2
Total assets	23.9	24.0	19.9

Shareholders' equity and liabilities	30.6.2017	30.6.2016	31.12.2016

Equity attributable to equity holders of the parent company
Share capital	9.9	9.9	9.9
Share premium account	0.5	0.5	0.5
Fund for invested unrestricted equity	8.0	6.5	6.5
Own shares	-1.4	-1.4	-1.4
Translation differences	0.0	0.3	0.1
Retained earnings	-9.4	-10.3	-9.0
	7.7	5.5	6.7
Non-controlling interests	0.0	0.2	0.0
Total equity	7.7	5.7	6.7

Non-current liabilities
Provisions	0.2	0.2	0.2
Financial liabilities	3.0	2.4	4.5
	3.2	2.6	4.6
Current liabilities
Trade and other payables	8.7	12.1	7.5
Current tax liabilities	0.4	0.2	0.0
Provisions	0.2	0.5	0.2
Current financial liabilities	3.7	2.9	0.9
	13.0	15.7	8.6
Total liabilities	16.2	18.3	13.3
Total equity and liabilities	23.9	24.0	19.9

STATEMENT OF CHANGES IN EQUITY abridged Unaudited
EUR thousand	Equity attributable to equity holders of the parent

	a)	b)	c)	d)	e)	f)	Total	g)	Total equity
Total equity 1.1.2016	9898	520	6534	-27	-1382	-7757	7786	204	7990
Profit/loss for the period						-2578	-2578	-1	-2579
Translation difference				281			281		281
Total equity 30.6.2016	9898	520	6534	254	-1382	-10334	5490	203	5694

EUR thousand

Equity attributable to equity holders of the parent

	a)	b)	c)	d)	e)	f)	Total	g)	Total equity
Total equity 1.1.2017	9898	520	6534	97	-1382	-8993	6674	4	6678
Profit/loss for the period						-453	-453	0	-453
Translation difference				-48			-48		-48
Directed issue			1500				1500		1500
Total equity 30.6.2017	9898	520	8034	49	-1382	-9447	7673	4	7677

a) Share capital

b) Share premium account

c) Fund for invested unrestricted equity

d) Translation difference

e) Own shares

f) Retained earnings

g) Non-controlling interests

CONSOLIDATED STATEMENT OF CASH FLOWS abridged Unaudited	1.1.- 30.6.2017	1.1.- 30.6.2016	1.1.- 31.12.2016
MEUR
Cash flow from operating activities	-0.7	0.7	0.5
Cash flow from investing activities, net	0.0	0.9	1.1
Total cash flows from financing activities	2.8	-2.3	-2.2
Proceeds from share issue	1.5	0.0	0.0
Proceeds from borrowings	1.6	0.0	0.3
Repayment of borrowings	-0.3	-2.3	-2.5
Other financial items	-0.0	-0.0	-0.0

Change in cash and cash equivalents	2.1	-0.7	-0.7
Cash and cash equivalents at the beginning of period	0.4	1.1	1.1
Cash and cash equivalents at the close of period	2.5	0.4	0.4

NOTES TO THE REPORT

Accounting policies

Share-related data and key figures for the comparative periods have been adjusted for the share issue carried out in March 2017.

In Honkarakenne’s view, Alternative Performance Measures provide significant additional information to management, investors, securities analysts and other parties on Honkarakenne’s result of operations, financial position and cash flows, and are frequently used by analysts, investors and other parties. Return on equity, equity ratio, net financial liabilities and gearing are presented as supplementary key figures, as in the company’s view they are useful indicators for assessing Honkarakenne’s ability to acquire financing and pay its debts. In addition, gross investments and R&D expenditure provide additional information on needs related to Honkarakenne’s cash flow from operating activities.

Honkarakenne has three geographical operating segments that have been combined into one segment for reporting purposes. Geographically, sales are divided as follows: Finland, Russia & CIS and Global Markets. The internal reporting of the management is in line with IFRS reporting. For this reason, separate reconciliations are not presented.

PROPERTY, PLANT AND EQUIPMENT
Unaudited	Property,
MEUR	plant and equipment

Cost 1.1.2017	48.3
Increase	0.2
Cost 30.6.2017	48.5

Accumulated depreciation 1.1.2017	-38.7
Depreciation for the period	-0.8
Accumulated depreciation 30.6.2017	-39.4

Carrying amount 1.1.2017	9.6
Carrying amount 30.6.2017	9.0

Own shares

Contingent liabilities

Unaudited	30.6.2017	30.6.2016	31.12.2016
MEUR
For own loans
- Mortgages	17.4	17.4	17.4
- Other quarantees	2.0	2.0	2.3
Rental liabilities	0.1	0.2	0.1
Leasing liabilities	0.1	0.1	0.1
Derivative contracts	0.1	0.2	0.1
Nominal values of forward exchange contracts	1.0	0.9	2.2

Events with related parties

The Group’s related parties consist of subsidiaries and associated companies; the company's management and any companies in which they exert influence; and those involved in the Saarelainen shareholder agreement and any companies controlled by them. The management personnel considered to be related parties comprise the Board of Directors, President & CEO, and the company's Executive Group. The pricing of goods and services in transactions with related parties conforms to market-based pricing.

During the report period, ordinary business transactions with related parties were made as follows: sales of goods and services to related parties amounted to EUR 132 thousand and purchases from related parties amounted to EUR 381 thousand.

As part of Honkarakenne’s financial arrangements Honkarakenne’s main owner Saarelainen Oy granted Honkarakenne in November 2016 an unsecured junior loan amounting MEUR 0.3. The junior loan is subordinated to bank loans.

In 2010 and 2011 the parent company Honkarakenne Oyj has granted a long-term loan totalling MEUR 0.9 to Honka Management Oy. Impairments were recognised in 2014 and in 2015 for this loan in the parent company; the total amount of these impairments is MEUR 0.4.

Key figures
		1-6/	1-6/	1-12
Unaudited		2017	2016	2016

Earnings/share (EPS)	euro	-0.08	-0.52	-0.29

Return on equity	%	-6	-38	-20

Equity ratio	%	38	31	41

Shareholders equity/share	euro	1.31	1.17	1.42

Net financial liabilities	MEUR	4.2	4.9	5.0

Gearing	%	54	86	75

Gross investments	MEUR	0.1	0.1	0.1
	% of net sales	1	0	2

Order book	MEUR	22.5	17.4	16.3

Average number of personnel	Clerical	69	67	67
	Workers	66	70	69
	Total	135	138	136

Personnel in person-years, average	Clerical	65	63	62
	Workers	46	46	48
	Total	111	109	110

Adjusted number of shares (’000)	At period-end	5847	4989	4989
	Average during period	5553	4989	4989

Share-related data and key figures for the comparative periods have been adjusted for the share issue carried out in March 2017.

Own shares held by the Group are excluded from the number of shares.

Calculation of key figures

	Profit / loss for the period attributable to equity holders of parent
Earnings/share (EPS):	----------------------------------------------
	Average number of outstanding shares

	Profit / loss before taxes – taxes
Return on equity %:	----------------------------------------------	x 100
	Total equity, average

	Total equity
Equity ratio, %:	----------------------------------------------	x 100
	Balance sheet total - advances received

Net financial liabilities:	Financial liabilities – cash and cash equivalents

	Financial liabilities – cash and cash equivalents
Gearing, %:	----------------------------------------------	x 100
	Total equity

	Shareholders’ equity
Shareholders equity/share:	----------------------------------------------
	Number of outstanding shares at the close of period