Uponor Oyj — M&A Activity 2023

Jul 25, 2023

THE FIRST SUPPLEMENT DOCUMENT TO GEORG FISCHER LTD.'S TENDER OFFER DOCUMENT DATED JUNE 22, 2023, RELATING TO THE VOLUNTARY PUBLIC TENDER OFFER FOR ALL ISSUED AND OUTSTANDING SHARES IN UPONOR CORPORATION

July 25, 2023

THE TENDER OFFER IS NOT BEING MADE, DIRECTLY OR INDIRECTLY, IN OR INTO AUSTRALIA, CANADA, HONG KONG, JAPAN, NEW ZEALAND OR SOUTH AFRICA AND THE TENDER OFFER DOCUMENT AND THIS SUPPLEMENT DOCUMENT AND ANY AND ALL MATERIALS RELATED THERETO SHOULD NOT BE SENT IN OR INTO AUSTRALIA, CANADA, HONG KONG, JAPAN, NEW ZEALAND OR SOUTH AFRICA (INCLUDING BY USE OF, OR BY ANY MEANS OR INSTRUMENTALITY, FOR EXAMPLE, E-MAIL, POST, FACSIMILE TRANSMISSION, TELEPHONE OR INTERNET, OF INTERSTATE OR FOREIGN COMMERCE, OR ANY FACILITIES OF A NATIONAL SECURITIES EXCHANGE), AND THE TENDER OFFER CANNOT BE ACCEPTED, DIRECTLY OR INDIRECTLY, OR BY ANY SUCH USE, MEANS OR INSTRUMENTALITY, IN OR FROM WITHIN AUSTRALIA, CANADA, HONG KONG, JAPAN, NEW ZEALAND OR SOUTH AFRICA.

On June 12, 2023, Georg Fischer Ltd. (the "Offeror" or "GF") announced a voluntary recommended public cash tender offer to purchase all issued and outstanding shares in Uponor Corporation ("Uponor") that are not owned by Uponor or any of its subsidiaries (the "Tender Offer"). The Offeror has published a tender offer document dated June 22, 2023, concerning the Tender Offer (the "Tender Offer Document").

Supplements to the Tender Offer Document

The Offeror supplements the Tender Offer Document, in accordance with Chapter 11, Section 11, Subsection 4 of the Finnish Securities Markets Act (746/2012, as amended, Fi: arvopaperimarkkinalaki), with the following information in this document (the "Supplement Document"):

Uponor published a profit warning on July 19, 2023, according to which Uponor increases its 2023 guidance for comparable operating profit margin and adjusts downwards its guidance for net sales due to structural changes. In addition, Uponor published a half-year financial report for the first half-year of 2023 (the "Half-Year Financial Report") on July 20, 2023, including the updated guidance for 2023. The Offeror supplements the Tender Offer Document with the Half-Year Financial Report, which is added to the Tender Offer Document as Annex E.

In addition, as a result of the above, the Offeror supplements the section "Presentation of Uponor—Future Prospects Published by Uponor" of the Tender Offer Document by replacing the following strikethrough passages with the passages that are underlined and set in bold:

The unaudited interim report published by Uponor as at and for the three months ended March 31, 2023, and the audited consolidated financial statements and the report of the Board of Directors published by Uponor as at and for the year ended December 31, 2022. The future prospects of Uponor have been described in the unaudited half-year financial report published by Uponor as at and for the six months ended June 30, 2023. See "Annex A: Financial Information of Uponor." "Annex E: The unaudited Half-Year Financial Report for the First Half-Year of 2023 published by Uponor on July 20, 2023."

Availability of Documents

The Finnish language version of the Tender Offer Document is available, and the Finnish language version of this Supplement Document is available as of July 25, 2023, on the internet at goingforward-movingwater.georgfischer.com/fi. The English language translation of the Tender Offer Document is available, and the English language translation of this Supplement Document is available as of July 25, 2023, on the internet at goingforward-movingwater.georgfischer.com/en.

The Finnish Financial Supervisory Authority has approved the Finnish language version of this Supplement Document but is not responsible for the accuracy of the information presented therein. The journal number of such approval is FIVA/2023/1357.

Information for Shareholders of Uponor in the United States

The Tender Offer is made for the issued and outstanding Shares in Uponor, which is domiciled in Finland, and is subject to Finnish disclosure and procedural requirements. The Tender Offer is made in the United States in compliance with Section 14(e) of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and the applicable rules and regulations promulgated thereunder, including Section 14(e) and Regulation 14E under the Exchange Act, subject to any exemptions or relief therefrom, if applicable, including the exemption provided by Rule 14d-1(d) under the Exchange Act applicable to "Tier II" tender offers, and otherwise in accordance with the disclosure and procedural requirements of Finnish law, including with respect to the Tender Offer timetable, settlement procedures, withdrawal, waiver of conditions and timing of payments, which are different from those of the United States. In particular, the financial statements and financial information included in this Tender Offer Document have been prepared in accordance with the applicable accounting standards in Finland and Switzerland, which may not be comparable to the financial statements or financial information of U.S. companies. Shareholders in the United States are advised that the Shares are not listed on a U.S. securities exchange and that Uponor is not subject to the periodic reporting requirements of the Exchange Act and is not required to, and does not, file any reports with the U.S. Securities and Exchange Commission (the "SEC") thereunder.

The Tender Offer is made to Uponor's shareholders resident in the United States on the same terms and conditions as those made to all other shareholders of Uponor to whom an offer is made. Any information documents, including this Tender Offer Document, are being disseminated to U.S. shareholders on a basis comparable to the method that such documents are provided to Uponor's other shareholders.

To the extent permissible under applicable law or regulations, the Offeror and its affiliates or its brokers and its broker's affiliates (acting as agents for the Offeror or its affiliates, as applicable) may from time to time and during the pendency of the Tender Offer, and other than pursuant to the Tender Offer and combination, directly or indirectly, purchase or arrange to purchase, the Shares or any securities that are convertible into, exchangeable for or exercisable for such Shares, outside the United States. These purchases may occur either in the open market at prevailing prices or in private transactions at negotiated prices. To the extent information about such purchases or arrangements to purchase is made public in Finland, such information will be disclosed by means of a stock exchange or press release or other means reasonably calculated to inform U.S. shareholders of Uponor of such information. In addition, the financial advisers to the Offeror may also engage in ordinary course trading activities in securities of Uponor, which may include purchases or arrangements to purchase such securities. To the extent required in Finland, any information about such purchases will be made public in Finland in the manner required by Finnish law. The consideration in the Tender Offer must be increased to match any consideration paid outside of the Tender Offer.

Neither the SEC nor any U.S. state securities commission has approved or disapproved the Tender Offer, passed upon the merits or fairness of the Tender Offer, or passed any comment upon the adequacy, accuracy or completeness of this Tender Offer Document. Any representation to the contrary is a criminal offence in the United States.

The receipt of cash pursuant to the Tender Offer by a U.S. holder of Shares may be a taxable transaction for U.S. federal income tax purposes and under applicable U.S. state and local, as well as foreign and other, tax laws. Each holder of Shares is urged to consult its independent professional adviser immediately regarding the tax consequences of accepting the Tender Offer.

It may be difficult for Uponor's shareholders to enforce their rights and any claims they may have arising under the U.S. federal securities laws since the Offeror and Uponor are located in non-U.S. jurisdictions and some or all of their respective officers and directors may be residents of non-U.S. jurisdictions. Uponor's shareholders may not be able to sue the Offeror or Uponor or their respective officers or directors in a non-U.S. court for violations of the U.S. federal securities laws. It may be difficult to compel the Offeror and Uponor and their respective affiliates to subject themselves to a U.S. court's judgment.

The unaudited Half-Year Financial Report for the First Half-Year of 2023 published by Uponor on July 20, 2023

Strong margin in a volatile environment

E-2

Uponor Corporation Half-Year Financial Report January–June 2023

UPONOR CORPORATION HALF-YEAR FINANCIAL REPORT 2023

Strong margin in a volatile environment

April–June 2023 in brief

• Net sales were €315.6 (396.2) million, a decrease of -20.4% or -19.1% in constant currency terms.
• Operating profit was €35.5 (42.8) million or 11.2% (10.8) of net sales.
• Comparable operating profit was €41.4 (50.5) million or 13.1% (12.7) of net sales.
• Earnings per share were €0.29 (0.34).
• After the reporting period, Uponor revised its guidance statement for 2023.

January–June 2023 in brief

• Net sales were €644.9 (745.7) million, a decrease of -13.5% or -12.3% in constant currency terms.
• Operating profit was €85.0 (89.6) million or 13.2% (12.0) of net sales.
• Comparable operating profit was €86.9 (97.7) million or 13.5% (13.1) of net sales.
• Earnings per share were €0.71 (0.79).

Guidance statement for 2023 (updated on 19 July 2023)

Due to structural changes, Uponor expects its net sales, excluding the impacts of currencies, to be between €1,250 and €1,350 million in 2023, and its comparable operating profit margin to be at or above 11%.

Short-term market outlook

Uponor expects that construction markets will remain soft overall, especially in the new housing segment, in the second half of the year 2023. While key indicators in some markets have shown early, tentative signs of stabilisation, the construction market continues to experience significant headwinds. Elevated mortgage interest rates, the effects of inflation combined with high levels of uncertainty amongst consumers and businesses, are expected to continue to constrain the initiation of new construction projects and, to a lesser extent, investments in renovation.

Michael Rauterkus, President and CEO, comments:

"Our second quarter performance demonstrates we are delivering on our ambition to maintain strong margins also in a tough operating environment. The second quarter saw us achieve a strong comparable operating profit margin of 13.1% (12.7%) exceeding previous year's level. Our net sales adjusted for structural changes decreased by 16.7% due to soft overall market demand. We are already seeing the benefits of our ongoing transformation and new operating model which helped us to deliver such a strong profitability.

I have been impressed by our personnel's ability to

quickly adapt to change, taking decisive actions when needed and their commitment to Uponor's long-term success. I would like to extend my sincere thanks to all Uponorians for their excellent work in driving our transformation and financial performance.

Building Solutions – North America achieved a great result exceeding previous year's comparable operating margin level. Net sales were at the same level as previous year supported by strong demand generation activities, price discipline and wholesalers normalising stock levels. Our North American team's robust operational performance proves the divisions' sustainable ability to generate profits.

Uponor Infra's net sales were impacted by lower market demand and structural changes, including the divestment of the District Energy business and closure of the Middelfart factory in Denmark. However, in line with our strategy to focus on the profitable core, the comparable operating profit margin improved supported by a favourable product mix and execution of the ongoing Group-wide transformation programme. In the quarter, Uponor signed an agreement to gain full ownership of the Uponor Infra business that has been a joint venture with KWH Group. As sole owners of the business, we will be able to fully execute our profitable growth strategy and capture all benefits of investments made into the business. The transaction is expected to close in the third quarter of 2023.

In Building Solutions – Europe, net sales decreased compared to a strong comparison period driven by pricing and due to low demand in our key European markets, especially in the Nordic countries. The comparable operating margin was negatively impacted by lower volumes and a loss-making unit for which corrective measures are being taken. The transformation towards a leaner and more customer-centric organisation in Europe is progressing at fast pace.

Our strategy execution progressed as planned. In line with our strategy to Maximize the Core, the concept of global product category management (Water systems, Energy systems, Installation systems and Infra systems) was introduced to further support our global growth strategy and ensure we are running the company through a systematic 4 C approach (Customers, Channels, Categories, Countries) in all geographies. The new category structure will not affect our external financial reporting structure. To drive our company's innovation engine, Uponor's R&D organization will now be aligned to the key product categories to better respond to customer needs and market opportunities, while at the same time driving efficiencies and product cost savings. This model will keep customer needs and market requirements at the centre of our innovation work and enable us to develop differentiated offerings, new platforms and disruptive breakthroughs.

In line with our People First agenda. I was also pleased to see that the positive development in our safety performance continued. Our lost time injury frequency rate, LTIF, for the first half of the year improved to 3.6 (8.0).

We maintained strong momentum in the execution of our Transformation programme. Big steps have been taken towards improving our operational excellence transforming Uponor into a leaner and more resilient company. The actions implemented so far within the programme are expected to generate annualised savings of €16.7 million of the total targeted €30 million cost savings by the end of 2024. I am confident that this transformation will strengthen our customer focus and competitiveness in a changing operating environment.

Uponor is in pole position to benefit from the strong megatrends driving mid-and long-term demand for sustainable and energy-efficient heating and cooling systems as well as systems for safe and clean water in our markets. However, in the second half of 2023, we are prepared for continued high market volatility and a soft demand picture. While some U.S. indicators are gradually turning promising, European indicators remain decidedly negative impacted by the subdued short-to-mid-term economic outlook driven by volatile interest rates and the effects of inflation.

Considering our robust profit performance in the first half of 2023, we are revising our full-year guidance. We now expect the comparable operating profit margin for 2023 to be at or above 11%, compared to our previous guidance of above 10%. Furthermore, due to the divestment of our District Energy business (approximately €40 million in annual net sales) and closure of factory in Denmark, we have adjusted downwards our full-year net sales guidance range to €1,250-1,350 million, compared to our previous guidance range of €1,300-1,400 million.

Looking ahead, backed by our robust strategic plan, the agility of our business model and healthy balance sheet, we are well equipped to achieve our strategic targets. We focus firmly on our profitable core, executing our transformation and delivering value to our customers through leading the change in sustainable water solutions."

Key figures

M€	4–6/2023	4–6/2022	Change	1–6/2023	1–6/2022	Change	1–12/2022
Net sales	315.6	396.2	-20.4%	644.9	745.7	-13.5%	1,386.2
Operating expenses	270.1	340.5	-20.7%	548.6	630.3	-13.0%	1,197.8
Depreciation and impairments	12.9	13.1	-1.3%	25.9	26.0	-0.6%	54.5
Operating profit	35.5	42.8	-17.1%	85.0	89.6	-5.2%	135.5
Operating profit, %	11.2	10.8	+4.1%	13.2	12.0	+9.6%	9.8
Comparable operating profit	41.4	50.5	-18.0%	86.9	97.7	-11.1%	153.7
Comparable operating profit, %	13.1	12.7	+3.0%	13.5	13.1	+2.8%	11.1
Financial income and expenses	-2.0	0.3	-688.5%	-3.9	-0.6	+533.7%	-1.0
Profit before taxes	33.6	43.2	-22.2%	81.1	89.1	-8.9%	134.9
Profit for the period	23.5	29.6	-20.6%	57.6	62.9	-8.4%	97.5
Earnings per share	0.29	0.34	-14.2%	0.71	0.79	-9.2%	1.21

	30 Jun	30 Jun		31 Dec
	2023	2022	Change	2022
Net working capital, M€	150.5	165.3	-9.0%	164.5
Net-interest bearing debt, M€	20.4	77.0	-73.6%	48.5
Solvency, %	51.9	49.2	+5.5%	55.2
Gearing, %	3.8	15.1	-74.8%	9.1
Return on investment, %	25.3	29.8	-15.0%	22.2

Results briefing and live webcast

A live webcast for analysts, institutional investors and the media will be broadcast on Thursday, 20 July at 14:00 EEST. The briefing is in English. Uponor's President and CEO Michael Rauterkus, CFO Markus Melkko, CTO Thomas Fuhr and President of Building Solutions-North America Andres Caballero will be present at the webcast. The webcast and its recording can be viewed via our website at uponorgroup.com > Investors > Reports and presentations or via the Uponor IR mobile app along with all presentation materials.

Uponor Corporation's financial calendar for 2023–2024

• 25 Oct 2023 Interim report 1–9/2023
• 16 Feb 2024 Financial Statements 2023 Bulletin
• 13 Mar 2024 Annual General Meeting 2024
• 19 Apr 2024 Interim report 1–3/2024
• 18 July 2024 Half-Year Financial report 1-6/2024
• 23 Oct 2024 Interim report 1–9/2024

For further information, please contact:

Markus Melkko, CFO, tel. +358 20 129 2038 Franciska Janzon, Senior Vice President, Communications and IR, tel. +358 20 129 2821

DISTRIBUTION:

Nasdaq Helsinki Media

UPONOR CORPORATION HALF-YEAR FINANCIAL REPORT 2023

Financial review April–June 2023

Market development

Demand remained soft overall on both sides of the Atlantic during the second quarter, as elevated interest rates and weak economic growth continued to limit the initiation of new projects, especially in housing. Late in the quarter, signs of a possible divergence in the demand environment became evident, with U.S. indicators gradually turning promising while European indicators remained decidedly negative.

In North America, the construction market continued to be challenged by the effects of high mortgage rates. However, pent-up demand for housing and a significant lack of housing inventory in the market appeared to positively impact the construction market as the quarter came to an end. Housing starts rose significantly, reaching a level last seen in spring of 2022 and homebuilder confidence rose for the sixth month in a row in June 2023, reaching expansionary levels for the first time in a year. Construction spending also increased in key non-residential segments, such as lodging, offices, and commercial space. In Canada, housing starts moderated from the high levels seen earlier in the year.

In Europe, the German construction market weakened further, as declining home prices and rising mortgage rates dampened demand. Builders reported a significant deterioration in construction activity and order books, while residential building permits dropped by roughly a third compared to the same period in 2022. In the Netherlands, softening in the new build market continued. In the Nordic region, construction activity slowed further, with the significant scaling back of new residential projects witnessed in previous quarters persisting. Meanwhile civil engineering activity softened in the Nordic region as a whole, but especially in Finland. Markets in Southwest Europe also softened.

Net sales

Uponor Group's net sales for the second quarter of the year reached €315.6 (396.2) million, a decrease of - 20.4% or –16.7% adjusted for structural changes in Uponor Infra. Lower overall market activity impacted net sales negatively. Negative net currency impact was €4.8 million, bringing the growth without currency impact to -19.1%. Biggest currency impact came from SEK, NOK and CAD. The organic net sales growth was -16.1%. Net sales remained close to last year's level in Building Solutions – North America but decreased in Building Solutions – Europe and Uponor Infra.

Breakdown of net sales by division (April–June):

M€	4–6/2023	4–6/2022	Change
Building Solutions - Europe	131.6	175.9	-25.2%
Building Solutions - North America	121.4	125.3	-3.1%
(Building Solutions - North America (M\$))	131.7	132.2	-0.4%
Uponor Infra	63.5	96.3	-34.0%
Eliminations	-1.0	-1.3
Total	315.6	396.2	-20.4%

Measured in terms of reported net sales, and their respective share of Group net sales, the 10 largest countries were as follows: the U.S. 33.8% (27.8), Germany 11.4% (10.6), Sweden 11.0% (9.6), Finland 8.6% (11.9), Canada 4.7% (4.1), the Netherlands 4.4% (4.9), Spain 3.1% (3.0), Poland 3.0% (3.9), Denmark 3.0% (4.3), and Austria 2.2% (2.8).

Results and profitability

Uponor's gross profit in the second quarter of the year was €125.8 (145.7) million. The gross profit margin was 39.9% (36.8).

The operating profit in the second quarter of 2023 was €35.5 (42.8) million with an operating profit margin of 11.2% (10.8). The comparable operating profit was €41.4 (50.5) million. The total negative net effect of items affecting comparability was €-5.9 (-7.7) million of which €-4.3 million related to Uponor's ongoing transformation programme and €-2.1 million related to strategic projects. The comparable operating profit margin improved to 13.1% (12.7). Pricing discipline and effective cost management as well as a favourable product mix contributed positively to the profitability development.

Operating profit by division (April–June):

M€	4–6/2023	4–6/2022	Change
Building Solutions - Europe	9.6	16.9	-43.2%
Building Solutions - North America	23.8	23.2	+2.8%
(Building Solutions - North America (M\$))	25.8	24.4	+5.9%
Uponor Infra	6.5	7.5	-14.0%
Others	-3.5	-3.3
Eliminations	-0.9	-1.5
Total	35.5	42.8	-17.1%

Comparable operating profit by division (April–June):

M€	4–6/2023	4–6/2022	Change
Building Solutions - Europe	12.9	24.2	-46.6%
Building Solutions - North America	24.0	23.2	+3.7%
(Building Solutions - North America (M\$))	26.0	24.4	+6.7%
Uponor Infra	6.4	7.7	-15.9%
Others	-1.4	-3.0
Eliminations	-0.6	-1.5
Total	41.4	50.5	-18.0%

Uponor's net financial income and expenses were €-2.0 (0.3) million. In the second quarter of 2023, net currency exchange differences totalled €-1.6 (1.1) million.

The share of the result in associated companies was €0.1 (0.0) million.

Uponor's profit before taxes for April–June was €33.6 (43.2) million. The tax expense was €10.1 (13.6) million.

Profit for the period in the second quarter of 2023 was €23.5 (29.6) million.

Return on equity was 17.9% (24.2). Return on investment was 21.6% (29.3). Return on investment, adjusted for items affecting comparability, was 25.3% (34.4).

Earnings per share were €0.29 (0.34). Equity per share was €6.28 (6.05). For other share-specific information, please see the Tables section.

Cash flow

Cash flow from operations was €23.7 (28.7) million in April-June 2023. Cash flow decrease from comparison period was mainly due to lower profit. Cash flow before financing was €19.6(14.4) million.

Capital expenditure

Gross investment in fixed assets totalled €7.1 (14.5) million. Depreciation and impairments were €12.9 (13.1) million. Net investments totalled €4.9 (14.4) million. Uponor's investments in the second quarter of 2023 were related to maintenance and efficiency improvements.

Innovations, research and development

In April–June 2023, total research and development expenses were €6.5 (5.8) million, representing 2.1% (1.5) of the Group's net sales.

Financial review January–June 2023

Net sales

Uponor Group's net sales for the first half year of 2023 reached €644.9 (745.7) million, a decrease of -13.5% or – 11.0% adjusted for structural changes in Uponor Infra. Negative net currency impact was €9.2 million, bringing the growth without currency impact to -12.3%. Biggest currency impact came from SEK, NOK and CAD. The organic net sales growth was -10.3%. Net sales remained close to last year's level in Building Solutions – North America but decreased in Building Solutions – Europe and Uponor Infra.

Breakdown of net sales by division (January–June):

M€	1–6/2023	1–6/2022	Change
Building Solutions - Europe	281.4	338.3	-16.8%
Building Solutions - North America	246.1	248.7	-1.0%
(Building Solutions - North America (M\$))	266.0	269.8	-1.4%
Uponor Infra	119.7	161.7	-26.0%
Eliminations	-2.3	-3.0
Total	644.9	745.7	-13.5%

Measured in terms of reported net sales, and their respective share of Group net sales, the 10 largest countries were as follows: the U.S. 33.4% (29.1), Germany 11.7% (11.1), Sweden 9.9% (9.3), Finland 8.3% (10.1), Canada 4.8% (4.4), the Netherlands 4.8% (4.7), Spain 3.3% (3.1) Denmark 3.1% (4.4), Poland 3.0% (4.0), and Austria 2.3% (2.5).

Results and profitability

Uponor's gross profit in January–June was €256.0 (279.4) million. The gross profit margin was 39.7% (37.5).

The operating profit in January–June of 2023 was €85.0 (89.6) million with an operating profit margin of 13.2% (12.0). The comparable operating profit was €86.9 (97.7) million. The total net effect of items affecting comparability was €-1.9 (-8.1) million, of which €12.4 million is related to the divestment of Uponor Infra's district energy business, €-3.7 million related to the sale of the Russian operation, €-7.6 million related to Uponor's ongoing transformation programme and €-2.1 million related to strategic projects. The comparable operating profit margin was 13.5% (13.1). Lower sales volumes weighed on the profitability. Price discipline and cost efficiency measures supported profitability.

Operating profit by division (January–June):

M€	1–6/2023	1–6/2022	Change
Building Solutions - Europe	23.3	37.2	-37.4%
Building Solutions - North America	46.3	47.5	-2.5%
(Building Solutions - North America (M\$))	50.0	51.5	-2.9%
Uponor Infra	18.6	9.1	+103.5%
Others	-5.0	-5.1
Eliminations	1.8	0.9
Total	85.0	89.6	-5.2%

Comparable operating profit by division (January–June):

M€	1–6/2023	1–6/2022	Change
Building Solutions - Europe	31.9	44.8	-28.8%
Building Solutions - North America	47.0	47.5	-1.0%
(Building Solutions - North America (M\$))	50.8	51.5	-1.3%
Uponor Infra	7.5	9.3	-18.6%
Others	-2.7	-4.7
Eliminations	3.1	0.9
Total	86.9	97.7	-11.1%

Uponor's net financial income and expenses were €-3.9 (-0.6) million. In January–June 2023, net currency exchange differences totalled €-2.7 (1.1) million.

The share of the result in associated companies and joint ventures was €0.1 (0.1) million.

Uponor's profit before taxes for January–June was €81.1 (89.1) million. The tax expense was €23.5 (26.2) million.

Profit for the period in the first half year of 2023 was €57.6 (62.9) million.

Return on equity was 21.5% (25.3). Return on investment was 25.3% (29.8). Return on investment, adjusted for items affecting comparability, was 26.1% (32.5).

Earnings per share were €0.71 (0.79). Equity per share was €6.28 (6.05). For other share-specific information, please see the Tables section.

Cash flow

Cash flow from operations increased from comparison period and was €46.7 (1.5) million. Cash flow increase was mainly driven by lower change in net working capital. The increase of net working capital in comparison period was due to increased raw material prices impacting inventory levels. Cash flow before financing was €61.7 (-22.5) million.

Cash flow from financing and thus cash flow for the January–June period 2023 included the first of the two instalments of the dividend payment, €0.34 per share, totalling €24.8 million. The second of the two instalments of the dividend payment, €0.35 per share, is planned to be paid in the third quarter. The total dividend payment for 2023 will amount to €50.2 (48.7) million.

Capital expenditure

Gross investment in fixed assets totalled €12.3 (24.6) million. Depreciation and impairments were €25.9 (26.0) million. Net investments totalled €9.8 (24.2) million. Uponor's investments in January–June of 2023 were mainly related to maintenance and efficiency improvements.

Innovations, research and development

In January–June 2023, total research and development expenses were €13.5 million (11.3), representing 2.1% (1.5) of the Group's net sales.

During the first half of the year, Uponor produced the world's first circular Uponor PEX pipe based on 100% chemically recycled raw material derived from the company's own PEX pipe production waste, using an ISCC PLUS certified mass-balancing approach. This groundbreaking solution was enabled by a cooperation between Uponor, Wastewise, Neste and Borealis that have successfully managed to chemically recycle PEX pipe manufacturing waste on an industrial scale back to plastic raw material. The collaboration has given Uponor a head start on the transition to circular materials and in pursuing its long-term goal to use 100% of its PEX waste as raw material through closed loop recycling.

Financial position

Uponor has two bilateral long-term loans of €40 million and €30 million, both of which will mature in January 2026. As back-up funding arrangements, Uponor has three €50 million committed bilateral revolving credit facilities in force, totalling €150 million maturing in 2025–2027 none of which were used during the reporting period. The revolving credit facilities have success KPIs that are tied to Uponor's greenhouse gas reduction targets.

For short-term funding needs, Uponor's main source of funding is its domestic commercial paper programme, totalling €150 million, of which €25 million was outstanding at the end of the reporting period. Available cash pool limits granted by Uponor's key banks amounted to €34.8 million, none of which was in use on the balance sheet date. At the end of June 2023, Uponor had €120.7 (33.9) million in cash and cash equivalents.

Net interest-bearing liabilities were €20.4 (77.0) million. The solvency ratio was 51.9% (49.2) and gearing was 3.8% (15.1), with a four-quarter rolling gearing of 7.5% (8.0), below the range of 40–80% set in the company's financial targets.

Strategy execution

Uponor Group's profitable growth strategy centres around maximizing the core, a step-change in innovation, a People First agenda to drive an engaged, performance-based culture and leading the construction industry towards net zero while at the same time improving the resiliency of the company.

Our strategy execution progressed as planned during the second quarter. In line with our strategy to Maximize the Core, the concept of global product category management (Water systems, Energy systems, Installation systems and Infra systems) was introduced to further support our global growth strategy and ensure we are running the company through a systematic 4 C approach (Customers, Channels, Categories, Countries) in all geographies. The new category structure will not affect our external financial reporting structure. To drive our company's innovation engine, Uponor's R&D organization will now be aligned to the key product categories to better respond to customer needs and market opportunities, while at the same time driving efficiencies and product cost savings. This model will keep customer needs and market requirements at the centre of our innovation work and enable us to develop differentiated offerings, new platforms and disruptive breakthroughs.

Transformation programme 2023–2024

The transformation programme aims at creating a new Uponor operating model that will result in a leaner, more efficient and resilient organization, while also producing expected annual cost savings of around €30 million with an estimated net reduction of up to 400 jobs globally. The total items affecting comparability associated with the transformation programme are estimated to be around €25 million. The programme includes investing into future growth through innovation and R&D, simplifying organizational structures, rationalizing product portfolios, enhancing factory utilization, enhancing procurement partnerships, and driving globally harmonized processes and systems.

In the quarter, strong momentum was maintained in the execution of Uponor's Transformation programme. Big steps have been taken throughout the organisation to improve our operational excellence transforming Uponor into a leaner and more resilient company. In Finland, Uponor initiated change negotiations in its subsidiaries, Uponor Infra Oy and Uponor Suomi Oy in order to streamline joint operations in Finland and adjust the production capacity of the Nastola and Tuusula factories as well as negotiate concerning locations, especially in Tuusula and Tampere. The negotiations resulted in the reduction of 54 positions.

The actions implemented by the end of the second quarter of the year 2023 are expected to generate annualized savings of €16.7 million with a headcount reduction of 194.

Personnel and occupational safety

Uponor's safety performance improved and the accident frequency (LTIF, accidents per million working hours) for the first half year was 3.6 (2022: 8.0, according to harmonised LTIF calculation method across all divisions).

At the end of June, the Uponor Group had 3,750 (4,326) employees, in full-time-equivalent (FTE) terms. The decrease in the number of employees is related to the ongoing Uponor-wide transformation programme, the sale of Uponor Infra's district energy business as well as workforce reductions due to weakened market conditions. The average number of employees (FTE) for January–June was 3,824 (4,269).

Review by business division

Building Solutions – Europe

The Building Solutions – Europe division serves the European market with drinking water delivery, heating and cooling solutions, prefabricated solutions, control systems, pre-insulated pipes and manifolds. The division has production in Finland, Sweden, Germany and Poland.

M€	4–6/ 2023	4–6/ 2022	Change	1–6/ 2023	1–6/ 2022	Change	1–12/ 2022
Net sales	131.6	175.9	-25.2%	281.4	338.3	-16.8%	599.2
Operating profit	9.6	16.9	-43.2%	23.3	37.2	-37.4%	44.0
Operating profit margin, %	7.3	9.6		8.3	11.0		7.3
Comparable operating profit	12.9	24.2	-46.6%	31.9	44.8	-28.8%	58.3
Comparable operating profit margin, %	9.8	13.7		11.3	13.2		9.7
Personnel, average				2,040	2,215	-175	2,192

April–June

Building Solutions – Europe's net sales were €131.6 (175.9) million, a decrease of -25.2%. In Building Solutions – Europe, net sales decreased compared to a strong comparison period, driven by pricing, and due to low demand in our key European markets and especially in the Nordic countries.

The transformation of the division to become leaner and more customer-centric advanced fast during the quarter.

Building Solutions – Europe's operating profit was €9.6 (16.9) million. The comparable operating margin was negatively impacted by lower volumes and a loss-making unit for which corrective measures are being taken to turnaround the operation.

January–June

Building Solutions – Europe's net sales were €281.4 (338.3) million, a decrease of -16.8%. Overall market demand was soft during the first half of the year and activity levels were especially low in the Nordic countries.

Building Solutions – Europe's operating profit was €23.3 (37.2) million, a decrease of -37.4%. Comparable operating profit decreased to €31.9 (44.8) million impacted by a decrease in sales volumes. Execution of the ongoing Group-wide transformation programme had first positive impacts on comparable operating profit following the closure of the assembly factory in Ehingen, Germany and the move of the assembly operation to Poland.

Building Solutions – North America

The Building Solutions - North America division serves local markets with PEX plumbing, radiant heating and cooling, hydronic distribution, pre-insulated pipe and fire sprinkler systems. The division has production in the United States.

M€	4–6/ 2023	4–6/ 2022	Change	1–6 / 2023	1–6 / 2022	Change	1–12/ 2022
Net sales	121.4	125.3	-3.1%	246.1	248.7	-1.0%	479.8
Operating profit	23.8	23.2	+2.8%	46.3	47.5	-2.5%	77.5
Operating profit margin, %	19.6	18.5		18.8	19.1		16.2
Comparable operating profit	24.0	23.2	+3.7%	47.0	47.5	-1.0%	77.9
Comparable operating profit margin, %	19.8	18.5		19.1	19.1		16.2
Personnel, average				893	1,059	-166	1,036

April–June

Building Solutions – North America's net sales were €121.4 (125.3) million, a decrease of -3.1% in euro terms or a decrease of -0.4% in USD. Net sales benefitted from strong demand generation activities across USA and Canada and accelerated growth into commercial and non-residential markets. Ongoing price discipline and wholesaler inventory adjustments to residential markets contributed also positively to net sales.

Building Solutions – North America's operating profit was €23.8 (23.2) million, an increase of 2.8% in euro terms and 5.9% in USD. Robust operational performance, price discipline, execution of group-wide transformation programme and launch of lean operating model were key contributors to the strong operating profit performance.

January–June

Building Solutions – North America's net sales were €246.1 (248.7) million, a decrease of -1.0% in euro terms or a decrease of -1.4% in USD. Net sales benefitted from a strong order book at the end of 2022, strong demand generation activities and price discipline.

Building Solutions – North America's operating profit was €46.3 (47.5) million, a decrease of -2.5% in euro terms or a decrease of -2.9% in USD. Pricing discipline and strong operational performance contributed positively to the operating profit. Profitability was also supported by Building Solutions – North America's execution of the Group-wide transformation programme to achieve higher operational efficiency and right-size the operation.

Uponor Infra

Uponor Infra serves the Baltic Sea area with sewer and storm, pressure pipe systems, design solutions and project services for municipalities, utilities and industry. The division has production in Finland, Sweden, and Poland.

M€	4–6/ 2023	4–6/ 2022	Change	1–6 / 2023	1–6 / 2022	Change	1–12/ 2022
Net sales	63.5	96.3	-34.0%	119.7	161.7	-26.0%	312.8
Operating profit	6.5	7.5	-14.0%	18.6	9.1	+103.5%	23.1
Operating profit margin, %	10.2	7.8		15.5	5.7		7.4
Comparable operating profit	6.4	7.7	-15.9%	7.5	9.3	-18.6%	23.4
Comparable operating profit margin, %	10.1	8.0		6.3	5.7		7.5
Personnel, average				761	857	-96	850

April–June

Uponor Infra's net sales were €63.5 (96.3) million, a decrease of -34.0% or –19.3% adjusted for structural changes. The impact of structural changes on net sales was –€17.6 million and included the divestment of the District Energy business (annual net sales of €40 million) and the closure of the factory in Middelfart, Denmark. Lower overall market demand in the Nordic countries and Poland impacted also negatively on net sales.

In the quarter, Uponor signed an agreement to acquire the remaining 44.7% stake in Uponor Infra Oy from KWH Group. Following this transaction Uponor will increase its shareholding in Uponor Infra Oy from 55.3% to 100%. Subject to the receipt of relevant authority approvals, the transaction is expected to close in the third quarter of 2023. As a fully owned subsidiary, Uponor Infra will be able to fully execute its profitable growth strategy and capture all benefits of investments made into the business.

Uponor Infra's comparable operating profit was €6.5 (7.5) million. Despite the decrease in sales the comparable operating profit margin improved supported by a favourable sales mix including large, Designed Solutions projects and execution of the ongoing Group-wide transformation programme.

January–June

Uponor Infra's net sales were €119.7 (161.7) million, a decrease of -26.0% or –15.1% adjusted for structural changes. The impact of structural changes on net sales was –€20.7 million and included the divestment of the District Energy business (annual net sales of €40 million) and the closure of the factory in Middelfart, Denmark. At the end of March, Uponor Infra sold its district energy business to the ISOPLUS Group as the district energy operation had limited synergies with the core Uponor Infra business. The lower level of net sales is partly due to structural changes including the divestment of the District Energy business and the closure of the factory in Middelfart, Denmark. Lower overall market demand also impacted negatively on net sales. Uponor Infra's operating profit was €18.6 (9.1) million, an increase of 103.5%. Operating profit margin improved due to product mix improvement and pricing actions. The closure of the pressure pipe factory in Middelfart, Denmark at the end of 2022, as part of Uponor's ongoing Group-wide transformation programme, supported profitability.

Share capital and shareholders

In January-June 2023, Uponor's share turnover on Nasdaq Helsinki was 15.8 (11.1) million shares, totalling €361.8 (198.1) million. The share quotation at the end of June was €28.64 (13.17), and the market capitalisation of the shares was €2,097 (964) million.

At the end June, there were a total of 16,892 (21,137) shareholders. Foreign shareholding in Uponor accounted for 43.6 (28.2) per cent of all shareholdings in the company at the end of the reporting period.

Uponor Corporation's share capital amounts to €146,446,888 and the number of shares totals 73,206,944. There were no changes in the share capital and the number of shares during the reporting period.

Treasury shares

At the end of June, Uponor held 406,934 (541,152) of its own shares, representing approximately 0.6 (0.7) per cent of the company's shares and voting rights.

Flagging Notifications

On 17 April 2023, Uponor Corporation received a notification of a change in shareholding in accordance with Chapter 9, Section 5 of the Securities Market Act. According to the notification, holdings of Aliaxis Holdings SA in shares of Uponor Corporation had gone above the threshold of 5% on 14 April 2023 and were 3,664,526 shares representing 5.01% of the share capital and votes in the company.

On 24 April 2023, Uponor Corporation has received a notification of a change in shareholding in accordance with Chapter 9, Section 5 of the Securities Market Act. According to the notification, the shareholding of Aliaxis Holdings SA in Uponor Corporation had gone above the threshold of 10% on 21 April 2023 and were 7,733,966 shares representing 10.56% of the share capital and votes in the company.

On 12 May 2023, Uponor Corporation has received a notification of a change in shareholding in accordance with Chapter 9, Section 5 of the Securities Market Act. According to the notification, the shareholding of Aliaxis Holdings SA in Uponor Corporation had gone above the threshold of 20% on 12 May 2023 and is 14,677,424 shares representing 20.05% of the share capital and votes in the company.

Public tender offers for the shares in Uponor Corporation

On 17 April 2023, Uponor noted the announcement by Aliaxis S.A. regarding a non-binding intention to make a potential offer to acquire all shares in Uponor at an indicative price of €25.00 per share. On 26 April 2023, Uponor announced that the Board had unanimously decided to reject Aliaxis non-binding intention as the indicated offer price of €25.00 per share did not in the Board's opinion reflect the company's value and longterm prospects and was therefore not in the best interest of its shareholders. On 16 May 2023, Uponor announced that subsequent to the Board's rejection of Aliaxis non-binding Intention, the Board had received indications of interest from other parties in relation to potential strategic transactions and was assessing whether such approaches could result in outcomes that would be in the best interest of the shareholders of Uponor. On 22 May 2023 Aliaxis announced a public tender offer (through a subsidiary Unari Holding Oy) to acquire all shares in Uponor at an offer price of EUR 25.75 per share, which represented a 3.0% increase to their initial offer price. On the same day, the Board of Uponor unanimously decided to reject Aliaxis' public tender offer and concluded that the offer price included in the tender offer was insufficient.

On 12 June 2023, Georg Fischer Ltd. (GF) and Uponor Corporation announced entering into a combination agreement pursuant to which the GF would make a voluntary recommended public all-cash tender offer for all the issued and outstanding shares that are not held by Uponor or any of its subsidiaries at a price of EUR 28.85 per share. GF initiated the tender offer for all the shares in Uponor on 26 June 2023 and tender offer period will expire on September 1, 2023, at 4:00 p.m. (Finnish time).

Following GF's competing public tender offer, Aliaxis S.A. announced on 14 June 2023 withdrawing its public tender offer for Uponor.

Resolutions of the Annual General Meeting 2023

Uponor Corporation's Annual General Meeting was held in Helsinki on 17 March 2023. The general meeting approved the financial statements, considered the remuneration report, and discharged the members of the Board of Directors and the company's President & CEO from liability for the financial year 2022. The general meeting approved the Board of Directors proposal of €0.69 per share for the financial year 2022. The first instalment of €0.34 per share was paid on 28 March 2023. The second instalment of €0.35 per share shall be paid in September 2023.

The general meeting approved the authorisation for the Board of Directors to resolve on the repurchase of a maximum of 7,200,000 of the company's own shares amounting in total to approximately 9.8 per cent of the total number of shares in the company at the date of the general meeting. These shares will be bought back using funds from unrestricted equity. The general meeting further approved the authorisation for the Board of Directors to resolve on issuing a maximum of 7,200,000 new shares or transferring the company's own shares, amounting in total to approximately 9.8 per cent of the total number of shares in the company. The Board of Directors is authorised to resolve on all terms of the issuance of shares. These authorisations are valid until the end of the next annual general meeting, however, no longer than 18 months from the date of the general meeting.

The general meeting re-elected Annika Paasikivi, Johan Falk, Markus Lengauer, Michael G. Marchi and Susanne Skippari as Members of the Board. Hans Sohlström and Katja Keitaanniemi were elected as new members. Annika Paasikivi was elected as the Chair of the Board of Directors. In its organising meeting, the Board of Directors elected Markus Lengauer as Deputy Chair of the Board. Katja Keitaanniemi was elected as Chair and Michael G. Marchi and Hans Sohlström were elected as members of the Audit Committee. Paasikivi was elected as Chair and Susanne Skippari as member of the Personnel and Remuneration Committee. KPMG Oy Ab, a company of Authorised Public Accountants, was re-elected as the auditor of the company for the following term of office.

Further details about the Annual General Meeting are available at https://www.uponorgroup.com/enen/investors/governance/agm-2023.

Significant events during the period

On 17 April 2023, Uponor noted the announcement by Aliaxis S.A. regarding a non-binding intention to make a potential offer to acquire all shares in Uponor at an indicative price of €25.00 per share.

On 26 April 2023, Uponor announced that the Board has unanimously decided to reject Aliaxis non-binding intention. In the Board's opinion, the indicated offer price of €25.00 in cash per share did not reflect the company's value and long-term prospects and was therefore not in the best interest of its shareholders.

On 4 May 2023, as part of Uponor Corporation's global transformation programme, Uponor announced the initiation of change negotiations in its Finnish subsidiaries, Uponor Infra Oy and Uponor Suomi Oy. The aim being the streamlining of joint operations in Finland and adjusting the production capacity of the Nastola and Tuusula factories as well as negotiating concerning locations, especially in Tuusula and Tampere. The number of employees covered by the negotiations was 235. The negotiations resulted in the reduction of 54 positions.

On 15 May 2023, Uponor announced that it had signed an agreement to acquire the remaining 44.7% stake in Uponor Infra Oy from KWH Group. The acquisition price is approximately €60 million and Uponor will finance the acquisition with cash and new debt. Following this transaction Uponor will increase its shareholding in Uponor Infra Oy from 55.3% to 100%. The transaction will be closed after receipt of relevant authority approvals, with the closing expected to take place in the third quarter of 2023.

On 16 May 2023, Uponor announced that the Board, as part of its assessment of Aliaxis Non-binding Intention, investigated the feasibility of other strategic alternatives for Uponor. Uponor had received indications of

interest from other parties in relation to potential strategic transactions and the Board was assessing whether such approaches could result in outcomes that would be in the best interest of the shareholders of Uponor.

On 12 June 2023, Georg Fischer Ltd. (GF) and Uponor Corporation announced that they have entered into the combination agreement pursuant to which the GF will make a voluntary recommended public all-cash tender offer for all the issued and outstanding shares that are not held by Uponor or any of its subsidiaries at a price of EUR 28.85 per share for each share validly tendered in the Tender Offer.

On 14 June 2023, following GF's competing public tender offer, Aliaxis S.A. announced withdrawing its public tender offer for Uponor.

On 22 June 2023, Georg Fisher (GF) announced that the voluntary recommended public cash tender offer for all the shares in Uponor would commence on June 26, 2023, at 9:30 a.m. (Finnish time) and expire on September 1, 2023, at 4:00 p.m. (Finnish time). More information on the tender offers is presented under 'Share trading and shareholders' section in this report.

Significant events after the period

On 18 July 2023, Uponor Corporation received a notification of a change in shareholding in accordance with Chapter 9, Section 5 of the Securities Market Act. According to the notification, holdings of Georg Fischer AG (Schaffhausen, Switzerland) in shares of Uponor Corporation had gone above the threshold of 5% on 17 July 2023 and is 4,173,876 shares representing 5.70% of the share capital and votes in the company.

On 19 July 2023, Uponor noted that Georg Fischer announced that the expiration of the Hart-Scott-Rodino waiting period in the United States occurred at 11:59 p.m. ET on July 18, 2023. The expiration of the waiting period in the U.S. is an important milestone in the tender offer and, consequently, with respect to regulatory approvals, the tender offer is now conditional only on the merger control approval from the European Commission.

On 19 July 2023, due to structural changes and Uponor's robust financial performance in the first half of 2023, Uponor revised its full-year 2023 guidance. Uponor expects its comparable operating profit margin in 2023 to be at or above 11% (previously above 10%). Furthermore, due to the divestment of Uponor's District Energy business (approximately €40 million in annual net sales) and the closure of factory in Denmark, Uponor adjusted downwards its full-year 2023 net sales guidance range to €1,250-1,350 million (previously €1,300-1,400 million.)

Short-term risks and uncertainties

Uponor is exposed to risks and uncertainties which may have a negative impact on Uponor's operations, performance, financial position and sources of capital. For example, the following risks could potentially have an impact on Uponor's business:

The outlook for 2023 continues to be volatile with many uncertainties related to the general economic development with high inflation, labour shortages, rising mortgage rates notably in North America, the impacts of the geopolitical turmoil and current energy crisis in Europe.

The prices of raw materials used in the manufacture of Uponor's products are susceptible to change, driven by several market factors including petrochemical and metal product price fluctuations, supply capacity and market demand, among others. Uponor aims to pass most of the effects of such fluctuations onto its selling prices with a reasonable delay.

Uponor is subject to risks related to macroeconomic and geopolitical conditions. Political uncertainties may cause serious disruption and additional trade barriers to Uponor's operations or supply chain and thus affect e.g., the company's sales and credit risk. Economic downturns may increase trade customers' payment problems and Uponor may need to recognize impairment of trade receivables. The credit risk of customers is

mitigated by having well-developed practices for customer credit risk management including the use of credit insurance where applicable.

Demand for Uponor's products depends on business cycles in the construction sector. Uponor mitigates this risk by distributing its business to two main geographical areas: Europe and North America. In addition, Uponor has three business areas: water and plumbing solutions, indoor climate solutions and infrastructure solutions. Uponor's products are used in both new construction projects and renovation projects, and in the latter the demand is usually more stable than in the more cyclical new construction. Management uses scenario planning to identify and manage actions to handle potential economic downturns.

Compliance with laws and regulations is top priority within Uponor. Non-compliance with legislation and regulations may lead to fines as well as reputational and business risk to Uponor. Uponor can be exposed to different judicial proceedings. Two product-related lawsuits with class allegations filed in the autumn of 2021 remain pending against Uponor and a third lawsuit with similar class allegations was filed in Q2 2023 in the United States. Uponor has been successful thus far in its defence of the cases, which are essentially identical, but they remain in their early stages. As such, it remains uncertain what impact, if any, the cases will have on Uponor. In September 2022, the Finnish Competition and Consumer Authority (FCCA) proposed that the Market Court would impose competition infringement fines to its subsidiaries Uponor Infra Oy (€8.5 million) and Uponor Suomi Oy (€5 million) concerning alleged violations of the Competition Act. Market Court hearings were held during Q2, but no ruling has yet been issued. Uponor deems the claims to be without foundation, and no provisions have been made to the proposed fines.

Uponor has 14 manufacturing facilities in Europe and North America, which exposes the company to possible environmental risks. Uponor mitigates environmental risks by means of training and implementing ISO 14001, ISO 9001 and ISO 50001 processes and certifications in its manufacturing facilities. As Uponor's manufacturing facilities are located inland and further away from areas which are more exposed to extreme weather conditions, the company has no material physical risks related to climate change.

The international nature of its operations exposes the company to currency risks associated with various currencies. Approximately 60% of Uponor's net sales were generated in currencies other than the euro. Correspondingly, a major part of expenses associated with these net sales were also denominated in the same local currencies, markedly decreasing the associated currency risks.

Uponor's operations and services rely heavily on different software and data networks. Cybercrime, malfunctions or other security related breaches having an impact to Uponor's core systems or sensitive data may result adversely in Uponor's business and financial positions as well as lead to reputational damage.

A more detailed risk analysis can be found from www.uponorgroup.com > Investors > Uponor as an investment.

Long-term financial targets

Net sales: > 4% annual organic growth Profitability: > 12% comparable operating margin Capital structure: gearing 40–80% Dividend: growing

The financial targets are linked to managements' STI and LTI programs.

ESG targets by 2027

75% reduction in greenhouse gas emission in own operations compared to the 2019 level 20% reduction in greenhouse gas emissions in supply chain compared to the 2019 level Net-zero by 2040 A sustainable alternative for 50% of the portfolio 40% both male and female in Top 50 management positions Top tier engagement scores Zero accident ambition Collaboration with top 25 customers to strengthen impact Impactful social programs in all business divisions

The ESG targets are linked to managements' STI and LTI programs.

Helsinki, 20 July 2023

Uponor Corporation Board of Directors

19/33

Table part

This half-year financial report has been compiled in accordance with the IAS 34 reporting standard and it is unaudited. The figures in brackets are the reference figures for the equivalent period in 2022. All figures presented have been rounded and consequently, the sum of individual figures might differ from the presented total figure. The change percentages reported have been calculated from the exact figures and not from the rounded figures published in the half-year financial report.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

M€	1–6/2023	1–6/2022	4–6/2023	4–6/2022	1–12/2022
Net sales	644.9	745.7	315.6	396.2	1,386.2
Cost of goods sold	388.9	466.3	189.8	250.5	882.3
Gross profit	256.0	279.4	125.8	145.7	503.9
Other operating income	14.5	0.2	2.9	0.1	1.5
Dispatching and warehousing expenses	18.7	18.8	9.0	9.9	38.3
Sales and marketing expenses	108.2	111.2	53.3	57.6	213.2
Administration expenses	39.7	42.5	22.8	23.6	83.3
Other operating expenses	19.0	17.5	8.1	12.0	35.2
Operating profit	85.0	89.6	35.5	42.8	135.5
Financial expenses, net	3.9	0.6	2.0	-0.3	1.0
Share of results in associated companies and joint ventures	0.1	0.1	0.1	0.0	0.4
Profit before taxes	81.1	89.1	33.6	43.2	134.9
Income taxes	23.5	26.2	10.1	13.6	37.4
Profit for period	57.6	62.9	23.5	29.6	97.5
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Re-measurements on defined benefit pensions, net of taxes	-	-	-	-	2.4
Items that may be reclassified subsequently to profit or loss
Translation differences	-0.5	8.0	-0.6	7.4	-1.7
Cash flow hedges, net of taxes	-4.5	8.0	-0.5	5.8	4.3
Other comprehensive income for the period, net of taxes	-5.1	16.1	-1.1	13.3	5.0
Total comprehensive income for the period	52.5	79.0	22.4	42.8	102.5
Profit/loss for the period attributable to
- Equity holders of parent company	51.9	57.0	20.9	24.3	88.0
- Non-controlling interest	5.7	5.8	2.6	5.2	9.5
Total comprehensive income for the period attributable for
- Equity holders of parent company	47.7	73.7	20.4	38.1	94.6
- Non-controlling interest	4.9	5.3	2.0	4.7	7.9
Earnings per share, €	0.71	0.79	0.29	0.34	1.21
Diluted earnings per share, €	0.71	0.79	0.29	0.34	1.21

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

M€	30 Jun 2023	30 Jun 2022	31 Dec 2022
Assets
Non-current assets
Property, plant and equipment	294.2	301.7	304.7
Intangible assets	109.4	112.3	111.1
Investments in associates and joint ventures	0.4	0.4	0.5
Other securities and non-current receivables	3.1	10.1	4.0
Deferred tax assets	20.0	16.6	17.8
Total non-current assets	427.1	441.1	438.1
Current assets
Inventories	201.2	231.5	220.3
Accounts receivable	240.6	273.1	176.7
Other receivables	45.9	53.4	67.8
Cash and cash equivalents	120.7	33.9	65.5
Total current assets	608.4	591.9	530.3
Assets held for sale	-	7.8	1.5
Total assets	1,035.5	1,040.8	969.8
Equity and liabilities
Equity
Equity attributable to the owners of the parent company	457.2	439.6	460.7
Non-controlling interest	78.8	71.3	73.9
Total equity	536.0	510.9	534.7
Non-current liabilities
Interest-bearing liabilities	106.2	99.5	103.2
Deferred tax liability	5.6	11.2	7.4
Provisions	32.7	28.8	30.9
Employee benefits and other liabilities	14.5	19.1	14.8
Total non-current liabilities	158.9	158.7	156.3
Current liabilities
Interest-bearing liabilities	34.9	11.5	10.8
Provisions	23.1	20.8	21.0
Accounts payable	75.8	114.3	93.7
Other liabilities	206.7	223.0	152.2
Total current liabilities	340.5	369.6	277.7
Liabilities related to assets held for sale	-	1.7	1.1
Total equity and liabilities	1,035.5	1,040.8	969.8

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

M€	1–6/2023	1–6/2022	1–12/2022
Cash flow from operations
Net cash from operations	98.0	115.2	193.1
Change in net working capital	-35.1	-95.4	-54.5
Income taxes paid	-15.8	-17.0	-48.7
Interest paid	-1.7	-1.6	-2.8
Interest received	1.3	0.2	1.2
Cash flow from operations	46.7	1.5	88.4
Cash flow from investments
Disposals of subsidiaries and businesses	24.5	-	-
Purchase of fixed assets	-12.3	-24.6	-50.5
Proceeds from sale of fixed assets	2.4	0.4	0.9
Loans granted and repaid	-	-	0.1
Dividends received	0.2	0.3	0.5
Cash flow from investments	14.9	-24.0	-49.1
Cash flow from financing
Borrowings of debt	-	0.4	0.3
Repayment of debt	-0.0	-4.4	-4.3
Change in other short-term loan	24.8	0.1	-
Dividends paid	-24.8	-26.7	-51.4
Payment of lease liabilities	-6.5	-6.8	-13.2
Cash flow from financing	-6.5	-37.4	-68.6
Conversion differences for cash and cash equivalents	0.1	1.8	0.1
Change in cash and cash equivalents	55.2	-58.1	-29.2
Cash and cash equivalents at 1 January	65.5	98.1	98.1
Cash classified as assets held for sale	-	-6.1	-3.4
Cash and cash equivalents at end of period	120.7	33.9	65.5
Changes according to balance sheet	55.2	-58.1	-29.2

STATEMENT OF CHANGES IN EQUITY

M€	A	B	C	D	E	F	G	H	I
Balance at
1 Jan 2023	146.4	50.2	7.8	-6.7	-11.0	274.0	460.7	73.9	534.7
Profit for the period						51.9	51.9	5.7	57.6
Other comprehensive income for the period			-4.5	0.3			-4.2	-0.9	-5.1
Dividend (€0.69 per share)						-50.2	-50.2		-50.2
Dividend paid to non controlling interest								-	-
Share-based incentive plan					2.2	-3.2	-1.0		-1.0
Balance at 30 Jun 2023	146.4	50.2	3.3	-6.4	-8.8	272.5	457.2	78.8	536.0
Balance at
1 Jan 2022	146.4	50.2	3.5	-6.6	-12.0	233.2	414.6	68.7	483.4
Profit for the period						57.0	57.0	5.8	62.9
Other comprehensive income for the period			8.0	8.6			16.7	-0.6	16.1
Dividend (€0.67 per share)						-48.7	-48.7		-48.7
Dividend paid to non controlling interest								-2.7	-2.7
Share-based incentive plan					0.9	-0.9	0.0		0.0
Balance at 30 Jun 2022	146.4	50.2	11.5	2.0	-11.1	240.6	439.6	71.3	510.9

*) Includes a €-14.3 (-14.3) million effective part of net investment hedging at the end of period.

• A Share capital
• B Share premium
• C Other reserves
• D* Translation reserve
• E Treasury shares
• F Retained earnings
• G Equity attributable to owners of the parent company
• H Non-controlling interest
• I Total equity

NOTES TO THE CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS

ACCOUNTING PRINCIPLES

The half-year financial report report has been prepared in compliance with International Financial Reporting Standards (IFRS) as adopted by the EU and IAS 34 Interim Financial Reporting. In its half-year financial report reports, Uponor Group follows the same principles as in the annual financial statements for 2022.

PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS

M€	30 Jun 2023	30 Jun 2022	31 Dec 2022
Gross investment	12.3	24.6	50.5
- % of net sales	1.9	3.3	3.6
Book value of disposed fixed assets	2.4	0.4	1.0
Depreciation and impairments	25.9	26.0	54.5
PERSONNEL
Converted to full time employees	1–6/2023	1–6/2022	1–12/2022
Average	3,824	4,269	4,214
At the end of the period	3,750	4,326	4,055
OWN SHARES	30 Jun 2023	30 Jun 2022	31 Dec 2022
Own shares held by the company, pcs	406,934	541,152	530,950
- of share capital, %	0.6	0.7	0.7
- of voting rights, %	0.6	0.7	0.7
Accounted par value of own shares held by the company, M€	0.8	1.1	1.1

DIVISION INFORMATION		1–6/2023		1–6/2022
M€	External	Internal	Total	External	Internal	Total
Net sales by division
Building Solutions - Europe	280.2	1.2	281.4	336.7	1.7	338.3
Building Solutions - North America	246.1	-	246.1	248.7	-	248.7
Uponor Infra	118.7	1.0	119.7	160.4	1.4	161.7
Eliminations	-	-2.3	-2.3	-	-3.0	-3.0
Total	644.9	-	644.9	745.7	-	745.7

		4–6/2023			4–6/2022
M€	External	Internal	Total	External	Internal	Total
Net sales by division
Building Solutions - Europe	131.0	0.6	131.6	175.3	0.6	175.9
Building Solutions - North America	121.4	-	121.4	125.3	-	125.3
Uponor Infra	63.3	0.3	63.5	95.6	0.7	96.3
Eliminations	-	-1.0	-1.0	-	-1.3	-1.3
Total	315.7	-	315.6	396.2	-	396.2

		1–12/2022
M€	External	Internal	Total
Net sales by division
Building Solutions - Europe	596.2	3.0	599.2
Building Solutions - North America	479.8	-	479.8
Uponor Infra	310.2	2.6	312.8
Eliminations	-	-5.6	-5.6
Total	1,386.2	-	1,386.2

M€	1–6/2023	1–6/2022	4–6/2023	4–6/2022	1–12/2022
Operating profit by division
Building Solutions - Europe	23.3	37.2	9.6	16.9	44.0
Building Solutions - North America	46.3	47.5	23.8	23.2	77.5
Uponor Infra	18.6	9.1	6.5	7.5	23.1
Others	-5.0	-5.1	-3.5	-3.3	-8.2
Eliminations	1.8	0.9	-0.9	-1.5	-0.9
Total	85.0	89.6	35.5	42.8	135.5

M€	1–6/2023	1–6/2022	1–12/2022
Division depreciation and impairments
Building Solutions - Europe	10.5	10.8	22.7
Building Solutions - North America	10.0	9.2	19.5
Uponor Infra	4.7	5.2	10.7
Others	0.7	0.7	1.6
Eliminations	-	-	-
Total	25.9	26.0	54.5
Division investments
Building Solutions - Europe	3.9	7.0	13.4
Building Solutions - North America	4.6	13.5	25.7
Uponor Infra	2.5	2.9	8.3
Others	1.2	1.2	3.1
Eliminations	-	-	-
Total	12.3	24.6	50.5
M€	30 Jun 2023	30 Jun 2022	31 Dec 2022
Division assets
Building Solutions - Europe	535.4	531.1	514.5
Building Solutions - North America	398.7	381.7	355.0
Uponor Infra	223.1	234.0	205.1
Others	468.1	368.4	390.2
Eliminations	-589.8	-474.5	-494.9
Total	1,035.5	1,040.8	969.8
Division liabilities
Building Solutions - Europe	390.7	388.5	384.3
Building Solutions - North America	245.9	251.8	234.0
Uponor Infra	58.6	92.5	54.1
Others	412.3	280.4	279.6
Eliminations	-608.0	-484.8	-517.9
Total	499.5	528.3	434.0
Division personnel, average	1–6/2023	1–6/2022	1–12/2022
Building Solutions - Europe	2,040	2,215	2,192
Building Solutions - North America	893	1,059	1,036
Uponor Infra	761	857	850
Others	131	138	136
Total	3,824	4,269	4,214

Reconciliation
M€	1–6/2023	1–6/2022	1–12/2022
Operating profit by division
Total result for reportable divisions	88.1	93.8	144.6
Others	-5.0	-5.1	-8.2
Eliminations	1.8	0.9	-0.9
Operating profit	85.0	89.6	135.5
Financial expenses, net	3.9	0.6	1.0
Share of results in associated companies and joint ventures	0.1	0.1	0.4
Profit before taxes	81.1	89.1	134.9

REVENUE FROM CONTRACT WITH CUSTOMERS

The Group disaggregates revenue recognised from contracts with customers into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Set out below is the disaggregation of the Group's revenue from contract with customers, including reconciliation of the revenue:

		1–6/2023			1–6/2022
M€	Sale of goods	Rendering of services	Total	Sale of goods	Rendering of services	Total
Revenue from contract with customers by division
Building Solutions - Europe	277.8	2.4	280.2	332.8	3.9	336.7
Building Solutions - North America	246.1	-	246.1	248.7	-	248.7
Uponor Infra	113.3	5.3	118.7	151.7	8.7	160.4
External customer, total	637.2	7.7	644.9	733.2	12.6	745.7
Internal	2.3		2.3	3.0		3.0
Total	639.5	7.7	647.2	736.2	12.6	748.8
Eliminations	-2.3		-2.3	-3.0		-3.0
Total revenue from contracts with customer	637.2	7.7	644.9	733.2	12.6	745.7

		4–6/2023			4–6/2022
M€	Sale of goods	Rendering of services	Total	Sale of goods	Rendering of services	Total
Revenue from contract with customers by division
Building Solutions - Europe	130.0	0.9	131.0	173.1	2.2	175.3
Building Solutions - North America	121.4	-	121.4	125.3	-	125.3
Uponor Infra	59.7	3.4	63.2	90.1	5.5	95.6
External customer, total	311.2	4.4	315.6	388.5	7.8	396.2
Internal	0.9		0.9	1.3		1.3
Total	312.1	4.4	316.5	389.7	7.8	397.5
Eliminations	-1.0		-1.0	-1.3		-1.3
Total revenue from contracts with customer	311.1	4.4	315.5	388.5	7.8	396.2

		1–12/2022
M€	Sale of goods	Rendering of services	Total
Revenue from contract with customers by division
Building Solutions - Europe	588.8	7.4	596.2
Building Solutions - North America	479.8	-	479.8
Uponor Infra	289.3	20.9	310.2
External customer, total	1,357.8	28.3	1,386.2
Internal	5.6		5.6
Total	1,363.5	28.3	1,391.8
Eliminations	-5.6		-5.6
Total revenue from contracts with customer	1,357.8	28.3	1,386.2

COMMITMENTS

M€	30 Jun 2023	30 Jun 2022	31 Dec 2022
Commitments of purchase PPE (Property, plant, equipment)	7.4	15.5	4.0
- on own behalf
Mortgages issued	0.9	1.0	0.9
Guarantees issued	0.2	0.3	0.2
- on behalf of a subsidiary
Guarantees issued	11.4	16.5	12.7
Letter of Comfort commitments undertaken on behalf of subsidiaries
are not included in the above figures
Mortgages issued	0.9	1.0	0.9
Guarantees issued	11.6	16.8	12.8
Total	12.5	17.8	13.8

FINANCIAL ASSETS AND LIABILITIES BY MEASUREMENT CATEGORY

M€	IFRS 7 Fair value hierarchy level		30 Jun 2023	30 Jun 2022	31 Dec 2022
Non-current financial assets
Fair value through other comprehensive income
Electricity derivatives		1	0.7	3.8	1.6
Amortised cost
Other non-current receivables			0.8	4.8	0.8
Other shares and holdings			1.6	1.6	1.6
Current financial assets
Fair value through other comprehensive income
Electricity derivatives		1	1.6	7.9	6.3
Fair value through profit or loss
Other derivative contracts		2	3.9	3.0	5.9
Amortised cost
Accounts receivable and other receivables			267.2	300.5	219.5
Cash and cash equivalents			120.7	33.9	65.5
Financial assets total			396.6	355.5	301.1
Non-current financial liablities
Fair value through other comprehensive income
Electricity derivatives		1	0.0	-	-
Amortised cost
Interest bearing liabilities			106.2	99.5	103.2
Current financial liabilities
Fair value through other comprehensive income
Electricity derivatives		1	0.1	-	-
Other derivative contracts		2	-	0.3	0.0
Fair value through the profit or loss
Other derivative contracts		2	2.4	4.8	2.2
Amortised cost
Interest bearing liabilities			34.9	11.5	10.8
Accounts payable and other liabilities			158.2	193.3	147.3
Financial liabilities total			301.7	309.4	263.4

The carrying value of financial assets and liabilities is considered to correspond to their fair value. The Group's financial instruments are classified according to IFRS 7 fair value hierarchies. Uponor applies the hierarchy as follows:

• The fair value of electricity derivatives is measured based on Nord Pool power exchange prices. (Hierarchy 1)
• The fair value of currency forward agreements is measured based on price information from common markets and commonly used valuation methods. (Hierarchy 2)

KEY FIGURES

	1–6/2023	1–6/2022	1–12/2022
Earnings per share, €	0.71	0.79	1.21
Operating profit, %	13.2	12.0	9.8
Return on equity, % (p.a.)	21.5	25.3	19.1
Return on investment, % (p.a.)	25.3	29.8	22.2
Solvency ratio, %	51.9	49.2	55.2
Gearing, %	3.8	15.1	9.1
Gearing, % rolling 4 quarters	7.5	8.0	13.1
Net interest-bearing liabilities	20.4	77.0	48.5
Equity per share, €	6.28	6.05	6.34
- diluted	6.28	6.05	6.34
Trading price of shares
- low, €	15.85	12.72	12.29
- high, €	30.68	21.74	21.74
- average, €	22.86	17.82	16.25
Shares traded
- 1,000 pcs	15,830	11,139	20,549
- M€	361.8	198.1	333.2

QUARTERLY DATA

	4–6/ 2023	1–3/ 2023	10–12/ 2022	7–9/ 2022	4–6/ 2022	1–3/ 2022
Net sales, M€	315.6	329.4	276.5	364.0	396.2	349.5
- Building Solutions – Europe	131.6	149.8	119.7	141.2	175.9	162.4
- Building Solutions – North America	121.4	124.7	90.6	140.5	125.3	123.4
Building Solutions – North America, \$	131.7	134.3	92.7	141.2	132.2	137.6
- Uponor Infra	63.5	56.1	67.2	83.9	96.3	65.4
Gross profit, M€	125.8	130.2	92.0	132.5	145.7	133.7
- Gross profit, %	39.9	39.5	33.3	36.4	36.8	38.3
Operating profit, M€	35.5	49.5	1.4	44.4	42.8	46.8
- Building Solutions – Europe	9.6	13.7	-7.0	13.7	16.9	20.3
- Building Solutions – North America	23.8	22.4	6.8	23.2	23.2	24.3
Building Solutions – North America, \$	25.8	24.2	6.7	23.2	24.4	27.1
- Uponor Infra	6.5	12.1	5.1	8.9	7.5	1.6
- Others	-3.5	-1.5	-1.8	-1.3	-3.3	-1.7
Operating profit, % of net sales	11.2	15.0	0.5	12.2	10.8	13.4
- Building Solutions – Europe	7.3	9.1	-5.8	9.7	9.6	12.5
- Building Solutions – North America	19.6	18.0	7.2	16.4	18.5	19.7
- Uponor Infra	10.2	21.6	7.6	10.6	7.8	2.5
Profit for the period, M€	23.5	34.1	1.5	33.1	29.6	33.3
Balance sheet total, M€	1,035.5	990.3	969.8	1,040.5	1,040.8	967.2
Earnings per share, €	0.29	0.43	0.02	0.40	0.34	0.45
Equity per share, €	6.28	5.99	6.34	6.60	6.05	5.51
Market value of share capital, M€	2,096.6	1,246.7	1,216.0	986.8	964.1	1,343.3
Return on investment, % (p.a.)	25.3	30.7	22.2	29.1	29.8	31.8
Net interest-bearing liabilities
at the end of the period, M€	20.4	35.9	48.5	55.2	77.0	85.9
Gearing, %	3.8	7.0	9.1	9.9	15.1	18.4
Gearing, % rolling 4 quarters	7.5	10.3	13.1	11.9	8.0	4.0
Gross investment, M€	7.1	5.2	14.0	11.9	14.5	10.2
- % of net sales	2.2	1.6	5.1	3.3	3.6	2.9

ITEMS AFFECTING COMPARABILITY AND RECONCILIATIONS TO IFRS

Uponor provides comparable operating profit and comparable gross profit in order to provide useful and comparable information of its operative business performance. Comparable operating or gross profit excludes items affecting comparability (IAC). Items affecting comparability are exceptional transactions that are unrelated to normal business operations. Such items often include issues such as capital gains and losses, additional costs arising from site closures and other restructuring, additional write-downs, or reversals of writedowns, expenses due to accidents and disasters, environmental matters, legal proceedings and changes in regulation.

	4–6/	1–3/	10–12/	7–9/	4–6/	1–3/
	2023	2023	2022	2022	2022	2022
Items affecting comparability
Restructuring charges	-5.9	4.0	-9.6	-0.5	-7.7	-0.4
Capital gains and losses on sale of non-current assets	-	-	-	-	-	-
Total items affecting comparability in operating profit	-5.9	4.0	-9.6	-0.5	-7.7	-0.4
Items affecting comparability, total	-5.9	4.0	-9.6	-0.5	-7.7	-0.4
Comparable gross profit
Gross profit	125.8	130.2	92.0	132.5	145.7	133.7
Less: Items affecting comparability in gross profit	-1.5	-1.7	-1.0	0.0	-0.2	-0.1
Comparable gross profit	127.3	131.9	93.0	132.5	146.0	133.8
% of sales	40.3	40.1	33.6	36.4	36.8	38.3
Comparable operating profit
Operating profit	35.5	49.5	1.4	44.4	42.8	46.8
Less: Items affecting comparability in operating profit	-5.9	4.0	-9.6	-0.5	-7.7	-0.4
Comparable operating profit	41.4	45.5	11.0	44.9	50.5	47.2
% of sales	13.1	13.8	4.0	12.3	12.7	13.5
Comparable operating profit by division
Building Solutions – Europe
Operating profit	9.6	13.7	-7.0	13.7	16.9	20.3
Less: Items affecting comparability in operating profit	-3.3	-5.3	-6.3	-0.5	-7.2	-0.3
Comparable operating profit	12.9	19.0	-0.7	14.3	24.2	20.6
% of sales	9.8	12.6	-0.6	10.1	13.7	12.7
Building Solutions – North America
Operating profit	23.8	22.4	6.8	23.2	23.2	24.3
Less: Items affecting comparability in operating profit	-0.2	-0.5	-0.4	-	-	-
Comparable operating profit	24.0	23.0	7.2	23.2	23.2	24.3
% of sales	19.8	18.4	8.0	16.5	18.5	19.7
Uponor Infra
Operating profit	6.5	12.1	5.1	8.9	7.5	1.6
Less: Items affecting comparability in operating profit	0.0	11.0	-0.1	-	-0.1	-
Comparable operating profit	6.4	1.1	5.2	8.9	7.7	1.6
% of sales	10.1	2.0	7.8	10.6	8.0	2.5
Others
Operating profit	-3.5	-1.5	-1.8	-1.3	-3.3	-1.7
Less: Items affecting comparability in operating profit	-2.1	-0.2	-1.2	0.0	-0.3	-0.1
Comparable operating profit	-1.4	-1.3	-0.7	-1.3	-3.0	-1.7
% of sales	na	na	na	na	na	na

DEFINITIONS OF KEY RATIOS

Return on Equity (ROE), %	Profit before taxes – taxes
=	–––––––––––––––––––––––––––––––––––––––– Total equity, average	x 100
	Return on Investment (ROI), % Profit before taxes + interest and other financing costs
=		––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– x 100 Balance sheet total – non-interest-bearing liabilities, average
Solvency, % =	Total equity	–––––––––––––––––––––––––––––––––––––––––––––––––– x 100
	Balance sheet total – advance payments received
Gearing, %	Net interest-bearing liabilities
=	–––––––––––––––––––––––––––––––– Total equity	x 100
=	Net interest-bearing liabilities	Interest-bearing liabilities – cash and cash equivalents excluding restricted cash
Earnings per share (EPS)		Profit for the period attributable to equity holders of the parent company
=	excluding treasury shares	––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Average number of shares adjusted for share issue in financial period
Equity per share ratio Equity attributable to the owners of the parent company ––––––––––––––––––––––––––––––––––––––––––––––––––––––––
=	Number of shares adjusted for share issue at end of year
Average share price Total value of shares traded (€)
=	––––––––––––––––––––––––––––––– Total number of shares traded
Gross profit margin, % =	Gross profit
	––––––––––––––––––––––––––– Net sales	x 100
Operating profit margin, % =	Operating profit
	––––––––––––––––––––––––––– Net sales	x 100
Comparable gross profit = Gross profit – items affecting comparability

33/33

	Comparable gross profit margin
	Gross profit – items affecting comparability
=	––––––––––––––––––––––––––––––––––––––––––––– Net sales	x 100
=	Comparable operating profit Operating profit – items affecting comparability
	Comparable operating profit margin Operating profit – items affecting comparability
=	–––––––––––––––––––––––––––––––––––––––––––––––– Net sales	x 100