Uponor Oyj — Interim / Quarterly Report 2009

Aug 12, 2009

INTERIM REPORT 2009

INTERIM REPORT JANUARY-JUNE 2009

Uponor continues to face challenging markets

• Continuing operations Jan-June net sales at EUR 364.3m (501.2m), down 27.3%
• Continuing operations Jan-June operating profit at EUR 11.4m (48.3m), down 76.3%
• Earnings per share at EUR 0.04 (1.01)
• Return on investment ROI at 4.1% (43.8%) during the period, while gearing rose to 55.4 (42.7)
• Guidance: Uponor repeats its guidance from 10 February 2009: As a result of the difficult market situation, Uponor expects its net sales to remain below the 2008 level, and the profit for the year 2009 is expected to be positive.

(Figures for continuing operations unless otherwise stated.)

CEO Jyri Luomakoski comments on developments during the reporting period:

• The exceptionally challenging market situation continued across the world and demand for new housing continued to decline in most of our main markets, as we moved from the first into the second quarter. The fall in our net sales by slightly more than 25% can be viewed as satisfying, considering that the overall market contraction in the same period is estimated to be clearly higher.
• Uponor's short-term strategy has been to ensure its operational preconditions through strong cash flows and secured financing, among other measures. We have determinedly progressed in reducing costs while at the same time continuing to make investments in sales and new markets. These will remain our emphasis in the future.
• Despite the challenging first half, we will maintain our full-year guidance even though Uponor's business environment does not yet provide any firm signs of having passed through the trough of the economic cycle. Uponor's leadership position in the markets, our competitive products and the ability to operate successfully even during exceptional times reinforces our confidence in the future development of the company.

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 > News & downloads.

Uponor will hold a results briefing webcast in English on Tuesday 12 August at 9:00 am (EEST). Questions for the webcast can be sent to ir@uponor.com. The webcast can be viewed at www.uponor.com > Investors shortly after the briefing.

New segments

As of 1 January 2009, Uponor's segment structure has been based on three segments, determined by geographical region and business in line with the new organisational structure in effect from 1 October 2008. These reportable segments are Building Solutions - Europe; Building Solutions - North America; and Infrastructure Solutions - Nordic. The risks and returns of these segments vary in terms of their market and business environment, product and service offering and customer structure.

Markets

Demand for the products manufactured and marketed by Uponor remained weak as in the first quarter of the year, and clearly weaker than in the second quarter of 2008. The stand-still caused by the international financial crisis has led both industries and consumers to heavily constrain expenditure and investments. For many customer organisations, short term cash flow and inventory management has become a higher priority than growing sales. To uphold economic activity, several countries have taken measures to revitalise their economies. The impact of these measures will gradually begin to emerge in the markets, but volume-wise they will not be sufficient to compensate for the exceptional contraction of the overall market.

The difficulties faced by the building markets have simultaneously affected all of Uponor's key geographies. The Central European markets, especially the Germanic countries, have remained strongest, in relative terms, but even there developments are weaker than in the second quarter of 2008, when demand was still growing. The relative strength of the region has been supported, for instance, by efforts to catch up with delays caused by the harsh winter, as well as some customers replenishing their inventories ahead of the summer season.

In the Nordic countries, the residential building markets remained difficult, and demand for infrastructure systems slackened from the equivalent period in 2008, closely reflecting the reduction in new housing.

Contrasting the generally weak development in South and West Europe, the French market stood out in terms of a decline in demand which was clearly more moderate than in the neighbouring southwest European markets. In Spain, new building continues to be curbed by the large numbers of unsold homes and apartments.

In North America, the residential building market contracted rapidly both in the USA and Canada, while public and commercial construction also saw a clear drop in permits in both countries.

Net sales

Uponor's net sales for continuing operations in April-June came to EUR 193.3 (267.4) million, down 27.7% from the comparison period. The decline was slightly steeper than the 26.8% drop in the first quarter year-on-year.

The main reason for the decline in net sales is the drastic drop in new residential building in all countries in which Uponor is active. In Central Europe and in Germany in particular, the drop was offset by continued resiliency in the public and commercial building market.

Likewise, residential building in this region suffered less than in Europe in general. Uponor's German business also benefited positively from the regrouping of the sales organisation, enabling the more efficient utilisation of opportunities arising in the various market segments. There was a remarkable decline in deliveries to OEM clients in Central Europe, as markets contracted and clients increased their own manufacturing. In the Nordic countries, net sales for both building and infrastructure solutions fell heavily. Measured in local currency, the decline in Sweden was milder than in its neighbouring markets. The renovation and refurbishment markets picked up, both in Northern and Central Europe, somewhat offsetting the weaker new-build markets, and boosting sales of composite plumbing systems in particular, which are ideally suited to repair and remodelling. In addition, cooling systems sales grew from last year.

The decline of North American net sales was mainly attributable to the further weakening of the US business environment. In Canada, the decline in net sales was clearly less severe than that of its neighbour in local currency terms.

MEUR	4-6/2009	4-6/2008	Change
Building solutions – Europe	126.9	177.1	-28.3%
Building solutions - North-America	26.5	34.5	-23.1%
(Building solutions - North-America, USD	36.5	53.8	-32.0%)
Infrastructure solutions – Nordic	41.2	58.1	-29.2%
Eliminations	-1.3	-2.3
Total	193.3	267.4	-27.7%

Net sales by segment, April-June:

January-June net sales reached EUR 364.3m (501.2m), representing a decline of 27.3%. This development was mainly in line with the first quarter, except for North America, whose decline in net sales steepened somewhat.

The translation impact of currencies for January-June net sales was EUR -5.8m in comparison to the previous year.

Net sales by segment, January-June:

MEUR	1-6/2009	1-6/2008	Change
Building solutions – Europe	242.9	340.5	-28.6%
Building solutions - North-America	51.5	61.4	-16.1%
(Building solutions - North-America, USD	68.8	94.8	-27.4%)
Infrastructure solutions – Nordic	72.2	103.7	-30.4%
Eliminations	-2.3	-4.4
Total	364.3	501.2	-27.3%

Results and profitability

Due to the low utilisation of manufacturing capacity, production costs per unit rose during the second quarter and gross profit margin for continuing business weakened by 0.6 percentage points. The operating profit for continuing operations in April-June amounted to EUR 12.4m (29.0m), down 57.3%. This fall reflects the decline in net sales caused by the exceptional weakening of building activity. Operating profit margin for continuing operations nearly halved to 6.4%, from the equivalent of 10.9% in 2008.

In spite of the extensive savings and efficiency measures carried out, the adjustment of fixed and variable operations costs did not fully compensate for the continued rapid fall of the markets. Thanks to the supply chain organisation, implemented in October 2008 for Building Solutions – Europe, considerable improvements were realised. Capital tied up in inventory was successfully reduced through various measures. Furthermore, efficiency improvements were recorded within the transportation and warehousing functions.

The improvement achieved in operating profit for Infrastructure Solutions was largely a result of active expense management and rapid adjustments in response to the weakening market conditions.

The Group's discontinued operations recorded EUR 1.9m in post-divestment expenses in Ireland in the second quarter, relating to larger than expected environmental cleaning costs in premises used by the municipal infrastructure business, divested in the summer of 2008. This may also have an impact on the execution of the real estate divestment.

MEUR	4-6/2009	4-6/2008	Change
Building solutions – Europe	10.8	26.0	-58.7%
Building solutions - North-America	-0.3	1.5	-117.6%
(Building solutions - North-America, USD	-0.5	2.3	-121.6%)
Infrastructure solutions – Nordic	5.8	4.9	+19.1%
Others	-2.8	-3.0
Eliminations	-1.1	-0.4
Total	12.4	29.0	-57.3%

Operating profit by segment, April-June:

Operating profit for continuing operations for January-June reached EUR 11.4m (48.3m), a decline of 76.3%. Owing to higher volumes in the second quarter and ongoing initiatives to boost performance, the operating profit for the first half-year turned positive. Thanks to the cost reduction programme of August 2008, and subsequent similar initiatives, Uponor has succeeded in reducing overhead expenses to the value of EUR 20.8m compared to the first half of 2008.

Operating profit by segment, January-June:

MEUR	1-6/2009	1-6/2008	Change
Building solutions – Europe	13.9	46.1	-69.9%
Building solutions - North-America	-3.5	0.8	-562.7%
(Building solutions – North-America, USD	-4.6	1.2	-499.6%)
Infrastructure solutions – Nordic	6.5	7.2	-9.6%
Others	-5.2	-5.6
Eliminations	-0.3	-0.2
Total	11.4	48.3	-76.3%

Profit before taxes for continuing operations in January-June totalled EUR 6.2m (45.4m). Income taxes amounted to EUR 1.7m (13.9m), with a tax rate of 28.0% (31.0%).

Profit for the period for continuing operations came to EUR 4.5m (31.5m), while the total comprehensive income for the group was EUR 3.6m (66.9m).

Earnings per share for the Group were EUR 0.04 (1.01), of which continuing operations represented EUR 0.07 (0.43). Equity per share was EUR 3.38 (4.06), both diluted and undiluted.

Investment and financing

The amount of new investments during the second quarter stood at EUR 4.9 (7.4) million. These investments were mainly targeted at service and maintenance as well as the development of processes which will yield a quick return.

Gross investment during the first half totalled EUR 8.9 (15.6) million, or 2.4 (3.1) per cent of net sales. Remaining almost unchanged, depreciation stood at EUR 15.5 (15.8) million.

Despite the pronounced decline in cash flow financing, the Group's cash flow from business operations improved clearly from the first quarter, rising to EUR -2.8 (26.4) million. This is mostly attributable to the reduction in working capital and taxes. The period-end cash balance totalled EUR 3.0 (8.5) million.

Net interest-bearing liabilities increased to EUR 136.8 (127.0) million, bringing gearing to 55.4 (42.7). The solvency ratio remained almost the same at 44.6 (44.9) per cent.

During the report period, the Group's credit limit reserves were reorganised. The EUR 120 million revolving credit facility maturing in 2010 was cancelled and replaced by bilateral credit agreements with the Group's house banks. At the time of publishing the interim report, the Group had committed funding programmes to the amount of EUR 222 million, of which the pension insurance company's reborrowing loan, maturing in 2009-2013, represents EUR 72 million. The remaining amount consists of revolving credit facilities maturing in 2011-2012 that were not utilised at the end of the second quarter. In addition, the Group has a domestic commercial paper programme totalling EUR 150 million.

The Group's return on investment (ROI) plummeted to 4.1 (43.8) per cent, its return on equity (ROE) falling to 1.9 (47.0) per cent.

Key events during the period

With a view to improved customer service and the further development of Uponor's brand image, the company launched its new international web service in June. The new website will gradually replace existing country-specific sites. At the initial stage, the new site will mainly serve international sales customers and East European customers; during the second half, the service will be extended to the greater part of the geographies that Uponor's operations cover. The renewed site will provide an extended range of services and tools targeted at various professional groups.

Uponor concluded partnership agreements in both Europe and North America among others, with prefabricated house manufacturers and manufacturers of products that are closely associated with Uponor's offering. These agreements are expected to further strengthen Uponor's market position.

During the report period, the company introduced a variety of applications providing new features to both installers and end users. One of the most interesting new products presented in Europe is the self-adjusting indoor climate control system for cooling and heating. Dynamic Energy Management™ will thus facilitate the introduction and control of radiant underfloor heating systems and also bring about energy savings. The system is the first of its kind on the market.

In addition, second generation cooling elements with advanced thermal and sound insulation properties were introduced, mainly in the commercial and institutional building sector. The competitiveness of both tap water and indoor climate systems over metal pipe-based systems was boosted through the new modular riser system, which is particularly suitable for large buildings.

The North American market saw the introduction of several new products, including leadfree brass fittings, the nation's first US-manufactured flexible, large-diameter insulated pipe for district heating and energy transport, as well as the engineered plastic manifold for underfloor heating systems.

Among the most significant new products in the field of infrastructure solutions were the biological wastewater treatment units with wireless communication and the rainwater sewer system, available in a range of pipe diameters from 200 mm to 1 metre.

Utilisation of the Oracle enterprise resource planning system, with a view to the improved efficiency of the European supply chain, proceeded according to plan. During the period, system introduction was extended to two new offices.

Personnel and organisation

As full-time equivalents, the personnel employed by the Group's continuing operations stood at 3,515 (4,096) during the period, the corresponding number at the period end being 3,449 (4,195) employees. Proportionally, the heaviest personnel cutbacks took place in North America where the average number of employees fell by 25.8 per cent, i.e. 150 people.

On 1 June 2009, Riitta Palomäki M.Sc. (Econ.), 51, assumed her duties as Chief Financial Officer and member of the Executive Committee. In addition to financial administration, she is responsible for financing and risk management as well as information systems.

Share capital and shares

A total of approximately 10.8 (30.2) million Uponor shares were traded on the Helsinki Stock Exchange during the second quarter. The total value of shares traded stood at EUR 91.0 (382.9) million. At the end of the period, Uponor's market capitalisation totalled EUR 0.6 (0.7) billion, the number of shareholders being 19,879 (16,321).

Uponor Corporation's share capital remained unchanged. The share capital amounted to EUR 146,446,888 and the number of shares was 73,206,944.

At the end of the report period, the company held 160,000 own shares, representing 0.2 per cent of the share capital and votes.

Short-term outlook

As expected, the housing construction market has remained weak in all of Uponor's key markets. Despite occasional signs of demand picking up during the second quarter, for instance when the distribution channel was stocking up for the summer, some of the markets have continued to experience a downward trend, due to tighter requirements for the financing of investments, among other reasons. Furthermore, commercial and institutional construction, which has until recently been fairly resilient against the slowdown, is also expected to diminish as fewer new projects are launched. Publicly funded economic recovery projects and the increased activity in renovation and modernisation should have a slightly positive impact on demand in Uponor's product segments during the second half of the year.

As a whole, the business environment is likely to remain exceptionally challenging during the second half. Predicting demand in construction and housing is especially difficult under these circumstances, because much depends on the development of economies at macro level.

Uponor's financial performance may be affected by several strategic, operational, financial and hazard risks. A more detailed risk analysis is provided in the company's Annual Report. In addition, Uponor is involved in various judicial proceedings in several countries. Uponor's management does not anticipate that these events will have a significant impact on the company's business in the foreseeable future.

In these circumstances, Uponor maintains its full-year guidance: As a result of the difficult market situation, Uponor expects its net sales to remain below the 2008 level, and the profit for the year 2009 is expected to be positive.

The Group's capital expenditure will not exceed depreciation in 2009, and with tight net working capital management, Uponor expects its cash flow to remain at a reasonable level.

Uponor Corporation Board of Directors

For further information, please contact: Jyri Luomakoski, President and CEO, tel. +358 40 515 4498

Tarmo Anttila Vice President, Communications Tel. +358 20 129 2852

DISTRIBUTION: NASDAQ OMX - 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 2008. 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 1-6/2009

The figures in this interim report are unaudited.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

MEUR	1-6/2009	1-6/2008	4-6/2009	4-6/2008	1-12/2008
Continuing operations
Net sales	364.3	501.2	193.3	267.4	949.2
Cost of goods sold	232.7	312.3	121.6	166.5	607.4
Gross profit	131.6	188.9	71.7	100.9	341.8
Other operating income	0.3	0.6	0.3	0.3	1.4
Dispatching and warehousing expenses	15.3	15.8	7.5	8.3	30.2
Sales and marketing expenses	72.6	90.1	34.8	46.1	175.0
Administration expenses	24.6	26.4	13.3	12.5	50.8
Other operating expenses	8.0	8.9	4.0	5.3	36.0
Operating profit	11.4	48.3	12.4	29.0	51.2
Financial expenses, net	5.2	2.9	1.0	2.4	10.2
Profit before taxes	6.2	45.4	11.4	26.6	41.0
Income taxes	1.7	13.9	3.2	8.2	10.9
Profit for the period from continuing
operations	4.5	31.5	8.2	18.4	30.1
Discontinued operations
Profit for the period from discontinued operations	-1.9	42.5	-1.9	41.4	42.4
Profit for the period	2.6	74.0	6.3	59.8	72.5
Other comprehensive income
Translation differences	0.9	-7.8	-1.7	1.3	5.2
Cash flow hedges	0.1	0.7	0.5	0.9	-1.4
Other comprehensive income for the period	1.0	-7.1	-1.2	2.2	3.8
Total comprehensive income for the period	3.6	66.9	5.1	62.0	76.3
Earnings per share, EUR	0.04	1.01	0.09	0.82	0.99
- Continuing operations	0.07	0.43	0.12	0.25	0.41
- Discontinued operations	-0.03	0.58	-0.03	0.57	0.58
Diluted earnings per share, EUR	0.04	1.01	0.09	0.82	0.99
- Continuing operations	0.07	0.43	0.12	0.25	0.41
- Discontinued operations	-0.03	0.58	-0.03	0.57	0.58

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

MEUR	30.6.2009	30.6.2008	31.12.2008
Assets
Non-current assets
Property, plant and equipment	177.0	179.3	184.5
Intangible assets	100.1	101.9	101.3
Securities and long-term investments	7.8	8.0	6.3
Deferred tax assets	16.3	15.2	17.0
Total non-current assets	301.2	304.4	309.1
Current assets
Inventories	86.7	135.2	104.5
Accounts receivable	140.7	192.9	91.4
Other receivables	22.7	22.2	36.7
Cash and cash equivalents	3.0	8.5	53.2
Total current assets	253.1	358.8	285.8
Total assets	554.3	663.2	594.9
Shareholders' equity and liabilities
Shareholders' equity	247.1	297.4	305.6
Non-current liabilities
Interest-bearing liabilities	72.1	17.7	77.0
Deferred tax liability	9.5	11.6	8.1
Provisions	6.9	7.6	7.7
Employee benefits and other liabilities	18.4	20.3	21.3
Total non-current liabilities	106.9	57.2	114.1
Current liabilities
Interest-bearing liabilities	67.7	117.8	36.8
Provisions	12.0	5.8	22.3
Accounts payable	48.0	79.4	50.1
Other liabilities	72.6	105.6	66.0
Total current liabilities	200.3	308.6	175.2
Total shareholders' equity and liabilities	554.3	663.2	594.9

CONDENCED CONSOLIDATED STATEMENT OF CASH FLOW

MEUR	1-6/2009	1-6/2008	1-12/2008
Cash flow from operations
Net cash from operations	22.9	64.4	85.0
Change in net working capital	-9.3	-16.4	55.7
Income taxes paid	-14.3	-18.0	-39.8
Interest paid	-2.8	-4.6	-6.8
Interest received	0.7	1.0	1.3
Cash flow from operations	-2.8	26.4	95.4
Cash flow from investments
Proceeds from disposal of subsidiaries and businesses	-	76.4	76.4
Purchase of fixed assets	-8.9	-15.6	-39.0
Proceeds from sales of fixed assets	1.5	0.1	0.4
Received dividends	0.0	0.0	0.2
Loan repayments	0.0	0.1	0.2
Cash flow from investments	-7.4	61.0	38.2
Cash flow from financing
Borrowings of debt	23.0	18.3	19.1
Dividends paid	-62.1	-102.5	-102.5
Purchase of own shares	-	-	-1.2
Payment of finance lease liabilities	-1.0	-1.0	-2.0
Cash flow from financing	-40.1	-85.2	-86.6
Conversion differences for cash and cash equivalents
	0.1	0.0	-0.1
Change in cash and cash equivalents	-50.2	2.2	46.9
Cash and cash equivalents at 1 January	53.2	6.3	6.3
Cash and cash equivalents at end of period	3.0	8.5	53.2
Changes according to balance sheet	-50.2	2.2	46.9

MEUR	Share	Share	Other	Treasury	Trans	Retained	Total
	capital	premium	reserves	shares	lation	earnings
					reserve
Balance at 31 Dec 2008	146.4	50.2	0.8	-1.2	-16.4	125.8	305.6
Total comprehensive			0.1		0.9	2.6	3.6
income for the period
Dividend paid (EUR 0.85 per share)						-62.1	-62.1
Other adjustments			0.0			0.0	-
Balance at 30 June 2009	146.4	50.2	0.9	-1.2	-15.5	66.3	247.1
Balance at 31 Dec 2007	146.4	50.2	2.2	-	-24.1	158.3	333.0
Total comprehensive income for the period			0.7		-7.8	74.0	66.9
Dividend paid (EUR 1.40 per share)						-102.5	-102.5
Other adjustments			0.0			-0.0	-
Balance at 30 June 2008	146.4	50.2	2.9	-	-31.9	129.8	297.4

STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

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 2008 with the exception of changes listed below. Other adopted new and amended IFRS-standards and interpretations have not had material impact on reported figures.

IAS 1

The Group applies the IAS 1 (revised) presentation of financial statement standard as of 1 January 2009. IAS 1 standard has mainly changed the presentation of the income statement and the statement of changes in equity.

IFRS 8 Operating segments

IFRS 8 requires that reportable segment information, alongside the accounting principles observed therein, be based on internal reporting submitted to the corporate management.

As of 1 January 2009, Uponor's segment structure is based on three segments, determined on the basis of geographical regions and businesses in line with the new organisational structure announced on 1 September 2008. These reportable segments are Building Solutions – Europe, Building Solutions – North America and Infrastructure Solutions – Nordic. The risks and returns of these segments vary in terms of their market and business environment, product and service offering and customer structure.

Building Solutions – Europe is in charge of Uponor's building solutions businesses within Europe as well as exports to those non-European countries in which Uponor has neither production nor established sales offices. At Uponor, building solutions comprises mainly heating, cooling and plumbing systems for residential, commercial and public buildings. The related customer portfolio consists mainly of heating and plumbing contractors and construction companies.

Building Solutions – North America is responsible for Uponor's building solutions business in this region.

Infrastructure Solutions – Nordic is in charge of Uponor's infrastructure businesses in this region. Its products and services, such as municipal pressure-water pipe systems, sewer and wastewater systems, are sold to commercial and utility customers engaged in the new-building, renovation and modernisation of municipal infrastructure systems.

The "Others" segment comprises Uponor's corporate functions as well as those group companies which have no business operations.

The setting and monitoring of financial targets is mainly focused on the various business units' net sales and operating profit, the monitoring of cost factors affecting operating profit, and the amount of net working capital. Group resources are managed, among other things, by allocating investments on the basis of business needs and by dimensioning personnel resources and competencies in line with business process needs.

Segment consolidation is based on Uponor's consolidated accounting principles. Inter-segment business operations are market-based, and all inter-segment sales and internal profits are eliminated in consolidated financial statements.

Comparative data for 2008 has been changed to comply with the new segment structure. Income statement items include each segment's continuing operations while balance sheet items are formed in line with the Group structure on each balance sheet date. In 2008, continuing operations did not include Uponor's infrastructure solutions business in Germany, which was divested in April, nor the infrastructure solutions business in the British Isles, whose divestment was finalised in June.

"Segment assets" include those balance sheet items which can be allocated to the various business segments, either directly or on justifiable grounds. These assets mainly consist of non-interest bearing assets, such as property, plant and equipment, intangible assets, inventories, accruals related to operations, accounts receivable and other receivables. The Group's external non-current receivables, cash and cash equivalents and interest-bearing liabilities are mainly included in the "Others" segment.

PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS

MEUR	1-6/2009	1-6/2008	1-12/2008
Gross investment	8.9	15.6	39.0
- % of net sales	2.4	3.1	4.1
Depreciation	15.5	15.8	31.8
Book value of disposed fixed assets	1.6	2.7	5.2
PERSONNEL
Converted to full time employees	1-6/2009	1-6/2008	1-12/2008
Average	3,515	4,505	4,211
At the end of the period	3,449	4,195	3,678
OWN SHARES
	30.6.2009	30.6.2008	31.12.2008
Own shares held by the company, pcs	160,000	-	160,000
- of share capital, %	0.2%	-	0.2%
- of voting rights, %	0.2%	-	0.2%

SEGMENT INFORMATION

		1-6/2009			1-6/2008
MEUR	External	Internal	Total	External	Internal	Total
Segment revenue, continuing operations
Building Solutions - Europe	242.2	0.7	242.9	339.5	1.0	340.5
Building Solutions - North America	51.5	-	51.5	61.4	-	61.4
Infrastructure Solutions - Nordic	70.6	1.6	72.2	100.3	3.4	103.7
Eliminations	-	-2.3	-2.3	-	-4.4	-4.4
Total	364.3	-	364.3	501.2	-	501.2

		4-6/2009			4-6/2008
MEUR	External	Internal	Total	External	Internal	Total
Segment revenue, continuing operations
Building Solutions - Europe	126.6	0.3	126.9	176.8	0.3	177.1
Building Solutions - North America	26.5	-	26.5	34.5	-	34.5
Infrastructure Solutions - Nordic	40.2	1.0	41.2	56.1	2.0	58.1
Eliminations	-	-1.3	-1.3	-	-2.3	-2.3
Total	193.3	-	193.3	267.4	-	267.4

				1-12/2008
MEUR			External	Internal	Total
Segment revenue, continuing operations
Building Solutions – Europe			632.7	2.6	635.3
Building Solutions - North America			130.8	-	130.8
Infrastructure Solutions – Nordic			185.7	6.4	192.1
Eliminations			-	-9.0	-9.0
Total			949.2	-	949.2
MEUR	1-6/2009	1-6/2008	4-6/2009	4-6/2008	1-12/2008
Segment result, continuing operations
Building Solutions - Europe	13.9	46.1	10.8	26.0	65.6
Building Solutions - North America	-3.5	0.8	-0.3	1.5	-16.0
Infrastructure Solutions - Nordic	6.5	7.2	5.8	4.9	10.0
Others	-5.2	-5.6	-2.8	-3.0	-9.5
Eliminations	-0.3	-0.2	-1.1	-0.4	1.1
Total	11.4	48.3	12.4	29.0	51.2
MEUR			1-6/2009	1-6/2008	1-12/2008
Segment depreciation and impairments, continuing operations
Building Solutions – Europe			7.5	7.5	15.3
Building Solutions - North America			3.1	2.7	5.6
Infrastructure Solutions – Nordic			2.7	2.9	5.9
Others			2.0	2.0	4.1
Eliminations			0.2	0.4	0.5
Total			15.5	15.5	31.4

Segment investments, continuing operations Building Solutions – Europe 3.4 7.3 16.0 Building Solutions - North America 2.7 5.0 14.4 Infrastructure Solutions – Nordic 1.7 1.1 4.7 Others 1.1 2.2 3.9 Total 8.9 15.6 39.0 MEUR 30.6.2009 30.6.2008 31.12.2008 Segment assets Building Solutions - Europe 410.4 468.7 417.0 Building Solutions - North America 113.3 109.3 121.8 Infrastructure Solutions - Nordic 82.0 103.8 67.5 Others 493.3 521.0 611.9 Eliminations -544.7 -539.6 -623.3 Total 554.3 663.2 594.9 Segment liabilities Building Solutions - Europe 272.0 332.7 290.3 Building Solutions - North America 69.0 44.1 90.3 Infrastructure Solutions - Nordic 71.1 90.9 59.1 Others 461.7 454.5 490.9 Eliminations -566.6 -556.4 -641.4 Total 307.2 365.8 289.2 1-6/2009 1-6/2008 1-12/2008 Segment personnel, continuing operations, average Building Solutions - Europe 2,506 2,826 2,803 Building Solutions - North America 431 581 532 Infrastructure Solutions - Nordic 516 623 605 Others 62 66 66 Total 3,515 4,096 4,006 Reconciliation MEUR 1-6/2009 1-6/2008 1-12/2008 Segment result, continuing operations Segment results total 11.4 48.3 51.2 Financial expenses, net 5.2 2.9 10.2	MEUR	1-6/2009	1-6/2008	1-12/2008
	Group's profit before taxes	6.2	45.4	41.0

CONTINGENT LIABILITIES

MEUR	30.6.2009	30.6.2008	31.12.2008
Group:
Mortgages	-	-	0.0
- on own behalf
Guarantees
- on behalf of others	0.6	1.6	7.8
Parent company:
Guarantees
- on behalf of a subsidiary	9.0	7.5	9.0
- on behalf of others	6.9	7.2	7.0
OPERATING LEASE COMMITMENTS	31.0	23.4	31.9

DERIVATIVE CONTRACTS

	Nominal value	Fair value	Nominal value	Fair value	Nominal value	Fair value
MEUR	30.6.2009	30.6.2009	30.6.2008	30.6.2008	31.12.2008	31.12.2008
Currency derivatives - Forward agreements	90.0	0.5	111.6	1.0	128.9	7.7
Commodity derivatives - Forward agreements	7.2	-1.2	3.8	2.0	7.4	-1.5

DISCONTINUED OPERATIONS

In 2008, the Group divested infrastructure businesses in the UK, Ireland and Germany. These have been classified as discontinued operations according to IFRS 5 –standard.

In 2009, the Group's discontinued operations recorded EUR 1.9m in post-divestment expenses in Ireland in the second quarter, relating to larger than expected environmental cleaning costs in premises used by the municipal infrastructure business, divested in the summer of 2008.

MEUR	1-6/2009	1-6/2008	1-12/2008
Net sales	-	8.9	8.9
Expenses	1.9	9.9	10.0
Profit before taxes	-1.9	-1.0	-1.1
Income taxes	0.0	0.0	0.0
Profit after taxes	-1.9	-1.0	-1.1
Net profit from divestment of discontinued operations	-	43.5	43.5
Income taxes	-	-	-
Profit from divestment of discontinued operations	-	43.5	43.5
Profit for the period from discontinued operations	-1.9	42.5	42.4

Cash flow from discontinued operations
Cash flow from operations	-2.4	-3.6	-3.4
Cash flow from investments	-	76.4	76.4
Book value of assets disposed
MEUR	1-6/2009	1-6/2008	1-12/2008
Property, plant and equipment	-	33.7	33.7
Deferred tax asset	-	1.9	1.9
Inventories	-	17.8	17.8
Accounts receivable and other receivables		25.1	25.1
Cash and cash equivalent	-	1.1	1.1
Total assets	-	79.6	79.6
Deferred tax liability	-	3.1	3.1
Employee benefits and other liabilities	-	4.3	4.3
Accounts payable and other current liabilities	-	33.2	33.2
Total liabilities	-	40.6	40.6
Net assets	-	39.0	39.0
Cash received from sales	-	77.5	77.5
Cash and cash equivalent disposed of	-	1.1	1.1
Cash flow effect	-	76.4	76.4

In addition to the cash received from sales, a 5.0 MEUR vendor loan note was issued at closing of the deal. Total sales price of the transaction was 82.5 MEUR.

RELATED-PARTY TRANSACTIONS

MEUR	1-6/2009	1-6/2008	1-12/2008
Continuing operations
Purchases from associated companies	0.8	1.1	2.0
Balances at the end of the period
Accounts payables and other liabilities	0.1	0.1	-

KEY FIGURES

	1-6/2009	1-6/2008	1-12/2008
Earnings per share, EUR	0.04	1.01	0.99
- continuing operations	0.07	0.43	0.41
- discontinued operations	-0.03	0.58	0.58
Operating profit (continuing operations), %	3.1	9.6	5.4
Return on equity, %, cumulative	1.9	47.0	22.7
Return on investment, %, cumulative	4.1	43.8	22.2
Solvency ratio, %	44.6	44.9	51.4
Gearing, %	55.4	42.7	19.8
Net interest-bearing liabilities	136.8	127.0	60.6
Equity per share, EUR	3.38	4.06	4.18
- diluted	3.38	4.06	4.18
Trading price of shares
- low, EUR	6.80	9.15	6.10
- high, EUR	10.34	18.91	18.91
- average, EUR	8.13	14.51	12.04
Shares traded
- 1,000 pcs	23.743	56,260	99,227
- MEUR	193	816	1,195

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