RESULTS RELEASE: Uponor achieves its targets for 2006

Uponor Corporation    Stock exchange release  8 February 2007  13:00

RESULTS RELEASE: Uponor achieves its targets for 2006

- Net sales: EUR 1,157.0m (2005: 1,031.4m), a change of +12.2%
- Operating profit: EUR 143.7m (123.0m), growth of +16.8%
- Profit before taxes: EUR 141.5m (120.5m)
- Cash flow before financing: EUR 118.5m (139,8m) and gearing of 6.3 (-6.4)
- Board’s dividend proposal: a total of EUR 1.40 (0.90) per share
- Expectations for 2007: organic growth exceeding 6% and an increase
  in profit margin from 2006 levels

Uponor adopted the International Financial Reporting Standards (IFRS)
as of 1 January 2005. Consequently, the accounts for 2006, with the
relevant comparable figures, have been compiled in accordance with

Comparable figures have been adjusted to take account of the impact of
exchange rate fluctuations and divestments.

Last quarter of 2006

For the last quarter of 2006, net sales totalled EUR 285.9 (261.5)
million, up 9.3% year on year. Operating profit came to EUR 29.9
(32.3) million.

The net sales of Uponor’s European regional organisations continued to
develop favourably in the last quarter of 2006, showing a growth of
close to, or over, 20% on a year earlier. In addition to strong
demand, the growth in net sales was supported by sales prices that
were higher than in the previous year. In North America, net sales
decreased by almost 30% due to a substantial decline in building
activities toward the end of the year and the distribution channel
reducing its inventory levels. 

The last quarter’s profit margin fell short of the 2005 figure. 
A significant factor affecting this comparison is the disposal gain 
of EUR 2.3 million reported in the Others segment in the last quarter 
of 2005 arising from the sale of the last investment property. 
Further, the negative development was attributable to the mathematical 
marginal erosion caused by price increases as well as the additional 
costs arising from the demand exceeding our capacity, requiring us to 
implement exceptional arrangements in the form of overtime work and 
subcontracting to external parties. Measures aimed at compensating for 
the fall in profitability caused by the substantially reduced demand in 
North America did not generate savings for the last quarter of 2006.

CEO Jan Lång commented on the 2006 financial statements as follows:

“We achieved our long-term financial targets, published in 2003,
during the 2006 financial year and made good progress in implementing
our strategic agenda. We were particularly delighted by the fact that
we were able to take advantage of our strong market position as
construction sector demand continued to be at a high level in our main
markets. In the Europe – West, East, South region, we were able to
generate strong organic growth, in addition to which the recovery of
the German building market in the latter part of the year after
several years’ slump was a positive sign for the future.

The successful implementations of our new enterprise resource planning
system in Germany provided concrete proof of our progress toward a
unified Uponor that operates as an integrated whole across national
and organisational boundaries.

For 2007, we expect overall construction activity to slow down
slightly in our main markets from the 2006 levels. In order to meet
our organic growth targets, we need to make successful use of our new
market segments, in particular by achieving a strong position in our
present regional markets’ high-rise segment while strengthening our
position in those markets in both Western and Eastern Europe, where
our presence is not yet that prominent.”

Dividend proposal

The Board proposes to the AGM that a dividend of EUR 1.40 (EUR 0.90)
per share be paid for the 2006 financial year. The Board bases its
proposal on the company’s dividend distribution policy published in
November, on the basis of which an ordinary dividend of EUR 1.15 per
share is proposed. In order to achieve a capital structure meeting the
company’s long-term financial goals published in the same connection,
the Board proposes an extra dividend of EUR 0.25.

Presentation material and teleconference

Following the release of this report, the presentation material
for the interim report will be available at under IR material.

Uponor will hold a teleconference in English for equity analysts
today, at 6:00pm Finnish time (London 4:00pm and New York 11:00am)
and those who would like to participate should call (using a DTMF
telephone) +44 20 7019 0812, participant code: Uponor. Presentation
will be shown on the Internet. Instructions to join the web-meeting
are available at

Uponor Corporation
Board of Directors

Contact for further information:
Jan Lång, President and CEO; tel. +358 20 129 2822
Jyri Luomakoski, CFO and Deputy CEO; tel. +358 40 515 4498

Review by the Board of Directors

Helsinki Stock Exchange

Financial statements for 1 Jan.– 31 Dec. 2006

Review by the Board of Directors


For Uponor, 2006 was one of the most successful years in the company’s
history. Uponor carried out restructuring measures according to plan,
allowing the company to concentrate on its strategic priorities:
growth, brand development and enhancing operational efficiency. Work
on these priorities progressed as planned.

Overall, there was a positive sentiment in Uponor’s principal markets.
The company’s largest market, the United States, showed a markedly
weaker demand towards the end of the financial year. The German market
was flat in the first half until it picked up clearly during the
second half. Spain showed favourable sales development while market
demand elsewhere in Europe varied from satisfactory to brisk.

Net sales

In 2006, Uponor posted consolidated net sales of EUR 1,157.0 million
(2005: EUR 1,031.4), up 12.2 per cent year on year.

Uponor Central Europe (18.6 per cent) and Uponor Europe – WES (19.0
per cent) reported the strongest growth in net sales, while Uponor
Nordic’s 13.6 per cent growth markedly exceeded the Group’s growth
targets. Uponor North America’s net sales growth (1.8 per cent)
remained modest due to a considerably weakening demand in housing
construction during the second half, as a result of a contraction of
12.9 per cent in housing starts.

Net sales by segment for 1 Jan. –31 Dec. 2006:

                              2006      2005      Reported
                              1-12      1-12      change, %
Central Europe               345.1     291.1        +18.6
Nordic                       377.8     332.6        +13.6
Europe – West, East, South   387.9     325.9        +19.0
North America, EUR           183.0     179.8         +1.8
(North America, USD          230.9     222.2         +3.9)
Others, EUR                    -         3.9
Eliminations                -136.8    -101.9

Total                      1,157.0   1,031.4         12.2

Demand in the largest Central European market, Germany, recovered
during 2006 after several sluggish years, Uponor’s housing solutions
in Germany recording a net sales increase of 17.0 per cent. Demand for
housing solutions in other Central European markets also showed
favourable development. Moreover, growth in the plastic system’s
market share contributed to Uponor’s growth, since price increases of
competing raw materials, mainly copper, boosted the competitiveness of
plastic pipe systems.

Demand for housing solutions in Uponor Nordic remained strong,
reflected in net sales growth of 23.5 per cent, which was also partly
supported by brisk demand in other Uponor regions. In Uponor Nordic,
infrastructure solutions posted 4.9 per cent growth in net sales, a
significant proportion of this growth being due to product price
increases offsetting higher material costs.

The Uponor Europe – WES housing solutions business expanded rapidly,
with annual organic growth at slightly over 32 per cent. In certain,
large markets, such as Spain, Uponor’s strong market position paved
the way for growth, involving targeted measures to enhance customer
loyalty. In geographical terms, Uponor expanded and strengthened its presence
in a few markets, such as the U.K., France, Russia and the Baltic
countries. In the U.K. in particular, the infrastructure business
showed favourable development amidst difficult market conditions
characterised by occasional challenges presented by higher raw
material costs and the availability of raw materials. Extensive supply
contracts concluded in late 2005 and during 2006 guaranteed high
capacity utilisation rates and net sales growth of 25 per cent.

Secondary segment net sales for housing solutions rose to EUR 804.4
million (697.5), with organic growth at 15.3 per cent. Infrastructure
solutions posted net sales of EUR 352.6 million (332.7), representing
organic growth of 12.3 per cent, excluding divestments. This net sales
growth by housing solutions stemmed from a combination of higher
volumes and prices, while the growth in infrastructure solutions’ net
sales came mostly from higher sales prices resulting from higher raw
material costs.

The largest geographical markets and their share of consolidated net
sales in 2006 were as follows: USA 14.0% (15.4), Germany 13.9% (14.7),
U.K. 11.2% (9.8), Finland 9.1% (9.7), Spain 8.1% (6.4), Sweden 7.4%
(7.2) and Denmark 6.3% (6.2).


Consolidated operating profit came to EUR 143.7 million (123.0),
accounting for 12.4 per cent (11.9) of net sales. Like-for-like
operating profit improved by 16.8 per cent on a year earlier. This
improvement was mainly due to the leverage effect of increased sales,
higher sales prices compensating for higher raw material costs and the
improved production cost structure resulting from the restructuring
programme. Operating profit was affected by major expenditure on the
further development of the company’s operations, such as the
development of a common enterprise resource planning (ERP) system and
the brand strategy.

Operating profit by segment for 1 Jan. –31 Dec. 2006:

                              2006      2005      Reported
                              1-12      1-12      change, %
Central Europe                49.3      34.5         43.0
Nordic                        56.6      45.4         24.5
Europe – West, East, South    38.2      30.0         27.3
North America, EUR            14.5      22.7        -36.2
(North America, USD           18.3      28.1        -34.8)
Others, EUR                  -12.0      -8.3
Eliminations                  -2.9      -1.3

Total                        143.7     123.0         16.8

All of the European regional organisations posted improved results and
profitability. Uponor Central Europe showed the greatest improvement
in profitability, with EUR 4.5 million of restructuring expenses
recorded in 2005 affecting year-on-year comparability. The leverage
effect resulting from growth and streamlining measures also
contributed to improved profitability in Uponor Central Europe and
Uponor Nordic.

Although Uponor Europe – WES recorded the fastest net sales growth, it
did not enjoy the same kind of leverage effect on profitability as
Uponor Central Europe and Uponor Nordic, due to its business
structure. A significant share of the region’s growth came from sales
units, which purchase their products from other regional
organisations. Operating profit reported by Uponor Europe – WES was
also affected by EUR 3.0 million in capital losses on the divestment
of the German and Czech infrastructure operations in the spring of

Uponor North America’s results and profitability fell significantly
due to declining construction, resulting in the distribution channel
lowering inventories. At the same time, price competition toughened in
the housing solutions market. North America’s results at the beginning
of the year were also eroded by disproportionate increases in distribution

Consolidated operating profit reported for 2006 was in line with the
forecasts announced at the beginning of the financial year and updated
in subsequent interim reports, according to which operating profit for
2006 would exceed that recorded for 2005 and profit margin would meet
the long-term target of a minimum of 12 per cent of net sales.

Consolidated profit before taxes from continuing operations rose by
17.4 per cent, to EUR 141.5 (120.5) million. At a tax rate of 31.8
(31.4) per cent, income taxes totalled EUR 45.0 (37.8) million. Profit
for the financial year totalled EUR 96.5 million (82.7).

Thanks to the stronger balance sheet, net financial expenses decreased
to EUR 2.2 million (2.5), despite higher interest rates.

Return on equity stood at 25.3 (20.3) per cent and return on
investment rose to 35.8 (28.1) per cent.

Earnings per share (diluted and undiluted) were EUR 1.32 (1.12).
Equity per share (undiluted) was EUR 4.71 (5.72) and (diluted) 
EUR 4.70 (5.72).

Cash flow from operations was EUR 147.3 million, which is EUR 11.3
million below the 2005 level due mainly to taxes paid in 2006 that
were EUR 21.1 million higher than the year before.

Investments, research and development, and financing

Investments in 2006 were mainly allocated to the development of an
enterprise resource planning (ERP) system and common processes, as
well as the enhancement of the production network. The largest single
investment, EUR 13.8 million, was the pan-European ERP system. Gross
investments totalled EUR 54.2 million (49.0), up EUR 5.2 million,
while net investments came to EUR 47.4 million (20.7).

R&D expenditure showed a slight decrease, totalling EUR 16.5 million
(17.4), accounting for 1.4 per cent (1.7) of net sales.

Uponor Group already achieved a very strong financial position in 2005
due to finalised divestments of non-core assets and strong cash flow
from business operations. In 2006, cash flow from operations remained
strong. Dividends paid out during the financial year, a total of EUR
166.0 million (ordinary dividends of EUR 65.8 million and extra
dividends of EUR 100.2 million), returned the balance sheet to a net
debt position. Net interest-bearing liabilities increased to EUR 21.7
(-26.9). The solvency ratio stood at 53.6 per cent (63.2) and gearing
was 6.3 per cent (-6.4).

Key events

Uponor underwent a major change in its history in early 2006 when all
of its various system brands assumed the Uponor brand and the company
adopted a new visual identity. These measures also enabled the
combination of four German sales organisations to form one of the
market’s strongest, unified Uponor organisation.

In February, Uponor announced that it would place a stronger focus on
the high-rise segment, which, in addition to the single-family home
segment, provides a firmer basis for organic growth in Uponor’s
housing solutions products. The financial year saw the launch of
targeted measures for the new market segment.

Uponor’s pan-European enterprise resource planning (ERP) system
project is progressing as planned. In July, a sales office in Germany
was the first to adopt the related limited functionality. In early
December, the rest of the German system sales and production
operations adopted the new ERP system successfully.

In the U.K., Uponor won several multi-year contracts for the supply of
municipal pipe systems with local utilities. At a total value of
around EUR 25 million per year, the largest single contract has a
duration of seven years with a one-year extension option.

The summer saw the completion in North America of the extension of the
office and production facilities, initiated in the preceding year,
making it again possible to combine the functions previously housed in
several buildings in the area under the same roof.

In early September, Uponor confirmed a new organisation aimed at
further unifying Uponor by rotating and redistributing top management
duties. At the same time, Europe – WES underwent changes in its
management system, supporting the further development of this most
vigorously growing regional organisation.

In early November, Uponor’s Board of Directors set new long-term Group
targets for 2007–09. For example, the profit margin target increased
from the previous minimum of 12 per cent to the current minimum of 15
per cent. On the Capital Markets Day held at the same time, Uponor
presented its cooling application, which is expected to become a
product line of long-term significance similar to the radiant floor
heating business.


The Group had a staff of 4,325 (4,126) at the end of the year, while
the reported number of employees in 2006 averaged 4,260 (2005: 4,169
and 2004: 4,684). The increase in staff numbers largely reflects
organic growth in business. Wages and salaries for the financial year
totalled EUR 181.3 million (2005: 164.4 and 2004: 182.5).

The geographical breakdown of personnel was as follows: Germany 1,207
(27.9%), Sweden 681 (15.7%), U.K. 502 (11.6%), Finland 478 (11.1%),
USA 392 (9.1%), Spain 281 (6.5%) and other countries 784 (18.1%).

Risks associated with business

Strategic risks
Uponor’s business is concentrated in Europe and North America, where
exposure to political risks is perceived as low. Since Uponor’s net
sales are divided among a large number of customers, the majority of
which are distributors (wholesalers), demand for the company’s
products are evenly spread among end users. The largest single
customer generates less than 10 per cent of Uponor’s net sales.

With respect to suppliers, Uponor aims to use supplies and raw
materials provided by a large number of suppliers. In the event of a
sole supplier, it must have at least two production plants
manufacturing goods used by Uponor.

Operational risks
The prices of raw materials used in the manufacture of plastic pipe
systems are susceptible to other petrochemical product price
fluctuations. In recent years, Uponor has been capable of passing the
effects of such fluctuations onto its selling prices with a reasonable
delay in such a way that this has not resulted in any major income
losses. Demand for Uponor’s end products depends on business cycles in
the construction sector. These business cycles are somewhat offset by
demand for renovation projects, which is not always based on
discretion to the same extent as new housing projects.

Financial risks
Since Uponor has strengthened its balance sheet in the last few years,
financial risks plays a considerably smaller role in the company’s
risk management. A substantial share of Uponor’s net sales are created
in currencies other than the euro, but for the most part expenses
allocated to these net sales are also denominated in the local
currencies in question. Consequently, the translation risk is the most
significant currency risk, reflected in translating non-euro area
results into the euro.

Hazard risks
Uponor runs 17 production plants in 11 countries and products
manufactured in these plants generate a major proportion of the
company’s net sales. Uponor co-ordinates indemnity and business
interruption insurance at Group-level on a centralised basis, in order
to achieve an extensive insurance coverage neutralising financial
damage caused by any risks associated with machine breakdowns, fire
etc.  Another major hazard risk is associated with product liability
related to products manufactured and sold by Uponor. Product liability
is also insured at Group level.

The year 2006 saw no materialised risks, pending litigations or other
legal proceedings or measures by the authorities that could have had a
material significance to the Group.

Administration and audit

The Annual General Meeting (AGM) of 16 March 2006 re-elected the
following Board members for a term of one year: Anne-Christine
Silfverstolpe Nordin, Jorma Eloranta, Pekka Paasikivi, Aimo Rajahalme
and Rainer S. Simon. The Board re-elected Pekka Paasikivi Chairman of
the Board and Aimo Rajahalme Deputy Chairman. The AGM elected KPMG Oy
Ab, Authorised Public Accountants, the company’s auditor, with Sixten
Nyman, Authorised Public Accountant, acting as the principal auditor.

Share capital and shares

At the beginning of 2006, Uponor Corporation’s share capital totalled
EUR 148,766,888 and the number of shares 74,383,444, while the year-
end share capital was worth EUR 146,446,888 with the number of shares
totalling 73,233,444. This decrease resulted from the invalidation of
1,160,000 shares as decided by the Annual General Meeting of 16 March.
At a nominal value of EUR 2, each share entitles its holder to one
vote at the shareholders’ meeting.

Board authorisations
The AGM of 16 March 2006 authorised the Board of Directors to decide,
by 16 March 2007, on the buyback of the company’s own shares using
distributable earnings from unrestricted equity. The combined par
value of the shares to be bought back, together with the par value of
own shares already held by the corporation, may not exceed five per
cent of the company’ share capital and voting rights held at the time
of the buyback.

The Extraordinary General Meeting of 27 October 2006 authorised the
Board of Directors to decide on transferring, without payment, a
maximum of 88,000 of treasury shares at a per-share par value of two
(2) euros to the company’s Executive Committee members, under the
terms of the 2004 share-based incentive scheme, and on other issues
related to the transfer.

Treasury shares
During the financial year, Uponor Oyj’s Board of Directors did not
exercise the AGM’s authorisation to buy back own shares.

Management shareholding
The members of the Board of Directors, CEO and his deputy, as well as
corporations known to the company, in which they exercise control,
held a total of 458,515 Uponor shares on 31 December 2006. These
shares accounted for 0.6 per cent of all company shares and total

Share-based incentive programme
In April 2004, Uponor Corporation’s Board of Directors decided to
launch a new incentive programme aimed at Executive Committee members,
who would have the opportunity to receive a share-based reward in
2007, based on the attainment of a pre-determined cumulative EBITA
target set for the period of three years from 2004 to 2006,
corresponding to a maximum net value of 80,000 Uponor shares. The CEO
and CFO are not entitled to dispose of the shares earned under this
programme during their term of employment, without the consent of the
Board of Directors. For other Executive Committee members, half of the
shares earned are subject to the same restriction. The Board of
Directors has the possibility to raise or reduce the number of shares
by ten per cent, depending on whether the company’s other long-term
objectives are achieved.

Events after the financial year

At its meeting on 8 February 2007, the Board of Directors decided on
granting bonuses based on the 2004–2006 incentive programme.
Cumulative EBITA for the financial year achieved the maximum target
under the programme and the Board of Directors decided to transfer
71,500 shares to seven Executive Committee members. In addition, the
company will pay a cash bonus equalling taxes and similar charges
resulting from the share transfer.

Outlook for 2007

Construction in Europe is expected to remain active although the
growth rate is anticipated to slow down from the previous year’s
level. In Germany, construction is expected to continue to recover. In
Eastern Europe, construction is projected to grow, but this market
does not yet account for a substantial share of Uponor’s net sales.

In North America, especially the U.S.A, general market expectations
look unfavourable.  However, there are wide variations between these
expectations, which is why anticipating demand proves challenging. On
average, housing starts are expected to decline by around 15 per cent.

The expected increase in the market share of plastic plumbing systems
and investments in the high-rise segment will support Uponor’s growth.
In addition, growth will be supported by those European market areas
where Uponor has not yet achieved a satisfactory position. For these
reasons, organic growth in net sales is expected to reach the long-
term target of minimum 6 per cent.

Supported by organic growth and as a result of recent years’
development efforts, the profit margin is expected to improve from the
2006 level. Operating profit in euro is also projected to exceed the
level recorded in 2006.

FINAL QUARTER 2006                                           
CONSOLIDATED INCOME STATEMENT                                 
                             10-12    10-12                  
                              2006     2005
Net sales                    285.9    261.5                  
Cost of goods sold           186.3    168.6                  
Gross profit                  99.6     92.9                  
Other operating income         1.6      2.2                  
Dispatching and                7.0      6.1                  
warehousing expenses
Sales and marketing           46.4     40.3                  
Administration expenses       13.4     12.9                  
Other operating expenses       4.5      3.5                  
Operating profit              29.9     32.3                  
Financial expenses, net        0.9      1.3                  
Profit before taxes           29.0     31.0                  
Income taxes                   9.6      9.2                  
Profit for the period         19.4     21.8                  
Earnings per share            0.27     0.30                  
Diluted earnings per          0.27     0.30                  
SEGMENT INFORMATION                                          
                             10-12    10-12                  
                              2006     2005
Primary segments                                             
Segment revenue                                              
Central Europe                88.7     70.2                  
Nordic                        98.0     80.3                  
Europe - West, East,          93.9     80.6                  
North America                 38.8     54.9                  
Others                           -      0.1                  
Eliminations                 -33.5    -24.6                  
Uponor Group                 285.9    261.5                  
Segment result                                               
Central Europe                10.6      7.2                  
Nordic                        12.9     10.5                  
Europe - West, East,           9.8     10.2                  
North America                  3.4      6.3                  
Others                        -4.9     -2.2                  
Eliminations                  -1.9      0.3                  
Uponor Group                  29.9     32.3                  
ANNUAL ACCOUNTS                                              
CONSOLIDATED INCOME STATEMENT                                
                              2006     2005                  
Net sales                  1,157.0  1,031.4                  
Cost of goods sold           743.8    667.6                  
Gross profit                 413.2    363.8                  
Other operating income         3.7      6.2                  
Dispatching and               25.7     23.6                  
warehousing expenses
Sales and marketing          176.6    158.2                  
Administration expenses       51.0     47.7                  
Other operating expenses      19.9     17.5                  
Operating profit             143.7    123.0                  
Financial expenses, net        2.2      2.5                  
Profit before taxes          141.5    120.5                  
Income taxes                  45.0     37.8                  
Profit for the period         96.5     82.7                  
Earnings per share            1.32     1.12                  
Diluted earnings per          1.32     1.12                  
CONSOLIDATED BALANCE SHEET                                    
                            31 Dec   31 Dec                  
                              2006     2005
Intangible assets             97.6     85.1                  
Tangible assets              211.8    214.9                  
Securities and long-term       3.6     19.4                  
Deferred tax assets           20.9     18.3                  
Total fixed assets           333.9    337.7                  
Inventories                  128.1    111.4                  
Current receivables          169.5    165.3                  
Cash and cash equivalent      12.4     48.9                  
Total current assets         310.0    325.6                  
Total Assets                 643.9    663.3                  
Shareholders' equity and liabilities                          
Shareholders' equity         344.4    418.4                  
Non-current interest          17.2     19.4                  
bearing liabilities
Provisions                    15.5     14.8                  
Current interest-bearing      16.9      2.6                  
Non-interest-bearing         249.9    208.1                  
Total liabilities            299.5    244.9                  
Total shareholders'          643.9    663.3                  
equity and liabilities
CONSOLIDATED CASH FLOW                                       
                           1 Jan –      1 Jan –              
                        31 Dec 2006  31 Dec 2005
Net cash from operations                                     
Profit for the period         96.5     82.7                  
Adjustment for non-cash       84.2     70.8                  
Net cash from operations     180.7    153.5                  
Change in net working          5.2     22.8                  
Paid income taxes            -37.9    -16.8                  
Paid interest                 -3.9     -4.2                  
Received interest              3.2      3.3                  
Cash flow from operations    147.3    158.6                  
Cash flow from investments                                   
Proceeds from share              -      0.5                  
Proceeds from disposal of      0.3     19.4                  
Purchase of fixed assets     -54.2    -49.0                  
Proceeds from sale of          6.5      8.4                  
fixed assets
Granted loans                    -        -                  
Loan repayments               18.6      1.9                  
Cash flow from               -28.8    -18.8                  
Cash flow before             118.5    139.8                  
Cash flow from financing                                     
Borrowings of debt            14.7        -                  
Repayments of debt            -1.7    -46.1                  
Share issue                      -        -                  
Dividends paid              -166.0    -52.0                  
Purchase of own shares           -    -20.0                  
Payment of finance lease      -2.0     -2.2                  
Cash flow from financing    -155.0   -120.3                  
Conversion differences for       -     -0.1                  
cash and cash equivalents
Change in cash and cash      -36.5     19.4                  
Cash and cash equivalents     48.9     29.5                  
at 1 January
Cash and cash equivalents     12.4     48.9                  
at 31 December
Changes according to         -36.5     19.4                  
balance sheet
                             Share    Share    Other Treasury
                           capital  premium reserves   shares
Balance at 1 January 2005    149.6     33.0      7.7     -6.7
Translation adjustments          -        -        -        -
Net profit for the period        -        -        -        -
Total recognised income          -        -        -        -
and expense for the
Cancelling of shares          -0.8      0.8        -      5.5
Purchase of own shares           -        -        -    -20.0
Dividend paid                    -        -        -        -
Other adjustments                -      6.3     -4.4        -
Share based incentive plan       -        -        -        -
Balance at 31 December 2005  148.8     40.1      3.3    -21.2
Balance at 1 January 2006    148.8     40.1      3.3    -21.2
Translation adjustments          -        -        -        -
Net profit for the period        -        -        -        -
Total recognised income          -        -        -        -
and expense for the period
Cancelling of shares          -2.3      2.3        -     19.6
Dividend paid                    -        -        -        -
Other adjustments             -0.1      0.1      3.4        -
Share based incentive plan       -        -        -        -
Balance at 31 December 2006  146.4     42.5      6.7     -1.6
                            Accumu Retained    Total         
                             lated earnings
Balance at 1 January 2005    -15.5    228.9    397.0         
Translation adjustments       10.1        -     10.1         
Net profit for the period        -     82.7     82.7         
Total recognised income       10.1     82.7     92.8         
and expense for the period
Cancelling of shares             -     -5.5        -         
Purchase of own shares           -        -    -20.0         
Dividend paid                    -    -52.0    -52.0         
Other adjustments                -     -1.8      0.1         
Share based incentive plan       -      0.5      0.5         
Balance at 31 December 2005   -5.4    252.8    418.4         
Balance at 1 January 2006     -5.4    252.8    418.4         
Translation adjustments       -4.8        -     -4.8         
Net profit for the period        -     96.5     96.5         
Total recognised income       -4.8     96.5     91.7         
and expense for the period
Cancelling of shares             -    -19.6        -         
Dividend paid                    -   -166.0   -166.0         
Other adjustments                -     -3.4        -         
Share based incentive plan       -      0.3      0.3         
Balance at 31 December 2006  -10.2    160.6    344.4         
                              2006     2005                  
KEY FIGURES                                                  
Earnings per share, EUR       1.32     1.12                  
- fully diluted               1.32     1.12                  
Return on Equity (ROE),%      25.3     20.3                  
Return on Investment (ROI),%  35.8     28.1                  
Solvency, %                   53.6     63.2                  
Gearing, %                     6.3     -6.4                  
Equity per share, EUR         4.71     5.72                  
- fully diluted               4.70     5.72                  
Issue-adjusted share prices, 
- highest                    29.35    19.78                  
- lowest                     18.00    13.72                  
- average                    22.73    16.39                  
Share trading, MEUR          964.0    477.7                  
Share trading,              42,417   29,090                  
in thousands
INVESTMENTS, MEUR                                            
Gross investments             54.2     49.0                  
 - % of net sales              4.7      4.8                  
Depreciation                  35.6     31.8                  
Average                      4,260    4,169                  
At the end of period         4,325    4,126                  
OWN SHARES                                                   
Own shares held by the      88,000 1,248,000                  
 - combined nominal        176,000 2,496,000                  
value, EUR                               
 - of share capital, %         0.1      1.7                  
SEGMENT INFORMATION                                          
Primary segments                                             
Segment revenue                                              
Central Europe               345.1    291.1                  
Nordic                       377.8    332.6                  
Europe - West, East,South    387.9    325.9                  
North America                183.0    179.8                  
Others                           -      3.9                  
Eliminations                -136.8   -101.9                  
Uponor Group               1,157.0  1,031.4                  
Segment result                                               
Central Europe                49.3     34.5                  
Nordic                        56.6     45.4                  
Europe - West, East,South     38.2     30.0                  
North America                 14.5     22.7                  
Others                       -12.0     -8.3                  
Eliminations                  -2.9     -1.3                  
Uponor Group                 143.7    123.0                  
Secondary segments                                           
Segment external revenue   Housing     Infra  Others    Total
                         solutions structure
Central Europe               283.5        -        -    283.5
Nordic                       127.7    177.5        -    305.2
Europe - West, East,South    210.2    175.1        -    385.3
North America                183.0        -        -    183.0
Others                           -        -        -        -
Total                        804.4    352.6        -   1157.0
Segment external revenue   Housing     Infra  Others    Total
                         solutions structure
Central Europe               248.0        -        -      248
Nordic                       110.7    166.7        -    277.4
Europe - West, East,South    159.0    163.3        -    322.3
North America                179.8        -        -    179.8
Others                           -      2.7      1.2      3.9
Total                        697.5    332.7      1.2   1031.4
CONTINGENT LIABILITIES        2006     2005                  
- on own behalf                                              
Mortgages issued               0.0      2.6                  
- on behalf of others                                        
Guarantees issued             12.6     13.0                  
Operating lease               24.4     22.2                  
Parent company:                                              
Guarantees issued                                            
- on behalf of a              11.4     10.1                  
- on behalf of others          9.7     10.2                  
DERIVATIVE CONTRACTS                                         
Foreign currency derivatives                                 
Forward agreements             6.4     26.9                  
Currency swaps                 6.6        -                  
Commodity derivatives                                        
Forward agreements             5.6      3.2