INTERIM REPORT FOR JANUARY-SEPTEMBER 2008
Uponor continues cost management in slow markets
- Continuing operations* net sales for January-September came to 750.3 (809.2)
million euros, a change of -7.3%
- January-September operating profit for continuing operations was 71.1 (110.3)
million euros, a change of -35.5%
- Earnings per share for the company came to 1.21 (1.10) euros
- Return on investment over the period, including sales gain from divestment,
was
36.9% (41.0%), with gearing at 31.1% (37.3%)
- Guidance: In essence, Uponor repeats its guidance, issued on 11 June, for
2008:
Net sales for continuing operations are not expected to reach last year's level,
and operating profit is estimated to fall short of the 2007 level.
*) Discontinued operations contain the divested infrastructure business in the
United Kingdom, effective as of 1 January 2008, the divested infrastructure
business in the Republic of Ireland, which was sold in an asset deal, effective
as of 18 June 2008, and the German divestment of Uponor Klärtechnik GmbH.
CEO Jyri Luomakoski comments on the performance:
- The market outlook for new building has turned gloomier during the past 12
months, and the situation is not expected to improve in 2008 - 2009. The
slowdown in building activity will require determined efforts to adjust
operations to lower demand.
- The cost reduction programme that we announced earlier has begun according to
initial plans and we have several initiatives currently ongoing. I am positive
that we will reach the targets we set for the programme.
- Our strategic initiatives to invest in the cooling business and the commercial
high-rise sector are beginning to pay off. Customers are increasingly interested
to save money and are seeking indoor climate solutions that have attractive
pay-back times.
- Uponor has a strong balance sheet position and we have secured sufficient
funding to weather the uncertainties in the debt capital markets.
Webcast and presentation material
Following the release of this report, the presentation material for the interim
report will be available at www.uponor.com/investors, under 'IR material'.
Uponor will hold a webcast in English, at 14:00 EET. You can access the webcast
via www.uponor.com. Questions for the webcast can be sent to ir@uponor.com.
Markets
The building and construction markets, especially in residential building, have
continued to experience a slowdown in most of Uponor's key geographic areas in
the third quarter of 2008.
In Central Europe, the German market, which showed resilience in the beginning
of the year, is exhibiting signs of weakening, affected by increasing energy and
component costs as well as the impact of the faltering international financial
and real estate sectors. There has been negative growth in the number of
residential building permits issued in Germany, while in the non-residential
building segment the number of permits has experienced brisk growth. A similar
development, in many respects, was notable in other Central Europe region
markets.
In the Nordic countries, the downward tendency seems to have levelled out in
Denmark while a decrease can now be seen in other Nordic countries, particularly
affecting housing solutions demand in the single-family residential sector.
Increasingly, tighter financial markets are also curbing the start-ups of large
commercial projects. Although municipal infrastructure demand has remained quite
resilient, the building industry slowdown is hindering the part of the
infrastructure business that serves new residential development.
In the Europe - West, East, South region, building activity in Spain continues
its rapid decline, and the number of new building permits has dropped
significantly from the equivalent period last year. The contraction of the
markets has also accelerated somewhat in other southwest European markets. The
Eastern European markets, including Russia, have largely maintained sound market
growth, although somewhat more weakly than in the previous quarter.
In North America, US residential building activity remains subdued, with a
further decline in residential housing starts evident in Q3. Also,
non-residential construction activity in the US has begun to reflect the
expected slowing of growth. Compared to the previous year, the Canadian market
has performed strongly as a result of its relatively stable economy, while also
showing signs of softening more recently.
Net sales
Uponor's continuing operations' net sales for July-September declined by 5.0 per
cent from the comparison period and totalled 249.1 (262.1) million euros.
Despite the turmoil in the real estate market and the overall negative
development in the construction market, the net sales of Uponor Central Europe
increased slightly. This was mainly due to the positive development of the
business serving non-residential building markets in most Central European
countries. Sales to other Uponor regions suffered.
In the Nordic region, net sales declined, mainly as a result of lower demand for
housing solutions in the local markets as well as diminished exports to other
Uponor regions. Housing solutions sales dropped, especially in Sweden and
Norway. Infrastructure net sales developed positively in Norway and Denmark but
declined slightly in Finland and Sweden year-on-year. This mainly resulted from
the lack of larger residential developments.
In Uponor Europe - West, East, South, net sales lagged behind last year because
of the contracted Iberian markets. Despite faltering market demand, which also
affected other countries in Southern and Western Europe, the Region managed to
maintain growth in its net sales in those markets in the third quarter. In
Eastern Europe, net sales increased steadily. Residential building segment sales
continued at a brisk pace, especially in the single-family segment, and in
particular in Russia. In the Baltic countries, new building remained subdued but
positive signals were evident in the renovation sector.
In North America, net sales declined from 2007 despite the relative strength of
the Canadian housing market. The economic recession continued to impact on sales
for new residential building activity while growth in the commercial building
market remained steady.
Net sales by segment, July-September, continuing operations:
--------------------------------------------------------------------------------
| MEUR | 7-9/2008 | 7-9/2007 | Change |
--------------------------------------------------------------------------------
| Central Europe | 88.1 | 85.9 | +2.5% |
--------------------------------------------------------------------------------
| Nordic | 93.2 | 99.1 | -5.9% |
--------------------------------------------------------------------------------
| Europe - West, East, South | 58.6 | 64.9 | -9.8% |
--------------------------------------------------------------------------------
| North America | 38.2 | 44.8 | -14.7% |
--------------------------------------------------------------------------------
| (North America, MUSD | 57.0 | 62.0 | -8.0%) |
--------------------------------------------------------------------------------
| Eliminations | -29.0 | -32.6 | |
--------------------------------------------------------------------------------
| Total | 249.1 | 262.1 | -5.0% |
--------------------------------------------------------------------------------
January-September net sales for continuing operations totalled 750.3 (809.2)
million euros, representing a decline of 7.3%. The impact of currency changes on
net sales, mainly from the USD dollar, was -15.4 million euros. Housing
solutions net sales reached 590.6 million euros, a decline of 9.1%, while
Infrastructure solutions net sales remained static at 159.7 million euros, a
change of 0.0 per cent.
Net sales by segment, January-September, continuing operations:
--------------------------------------------------------------------------------
| MEUR | 1-9/2008 | 1-9/2007 | Change |
--------------------------------------------------------------------------------
| Central Europe | 268.6 | 275.6 | -2.5% |
--------------------------------------------------------------------------------
| Nordic | 294.5 | 309.6 | -4.9% |
--------------------------------------------------------------------------------
| Europe - West, East, South | 188.0 | 209.0 | -10.0% |
--------------------------------------------------------------------------------
| North America | 99.6 | 130.5 | -23.7% |
--------------------------------------------------------------------------------
| (North America, MUSD | 151.8 | 176.3 | -13.9%) |
--------------------------------------------------------------------------------
| Eliminations | -100.4 | -115.5 | |
--------------------------------------------------------------------------------
| Total | 750.3 | 809.2 | -7.3% |
--------------------------------------------------------------------------------
Results and profitability
Continuing operations' operating profit for July-September totalled 22.8 (37.9)
million euros, a drop of 39.8%. Gross profit margin continued to be affected by
higher raw material, component, energy, and transportation costs.
In August, Uponor announced a group-wide cost-reduction programme to align
expenses with the low activity level in the building and construction industry,
with targeted structural cost reductions in the range of 30 million euros,
taking effect from 2009. Operating profit for the report period is impacted by
costs related to this programme, amounting to 3.2 million euros.
In Uponor Central Europe, operating profit improved clearly, driven by the brisk
market activity. In Uponor Nordic, profitability fell, mainly due to decreased
volumes in the housing solutions and the infrastructure markets, both in
domestic and export business. Profitability in the Uponor Europe - West, East,
South region suffered from declining markets and increased material and
transportation costs, as well as investment in growth initiatives that continued
on a high level. Operating profit in Uponor North America fell from last year,
mainly due to initiatives aimed at promoting growth in new business segments,
such as the commercial high-rise market, as well as the costs related to the
closure of the St. John factory in Canada in September.
Operating profit by segment, July-September, continuing operations:
--------------------------------------------------------------------------------
| MEUR | 7-9/2008 | 7-9/2007 | Change |
--------------------------------------------------------------------------------
| Central Europe | 12.5 | 10.6 | 17.8% |
--------------------------------------------------------------------------------
| Nordic | 7.9 | 13.0 | -39.4% |
--------------------------------------------------------------------------------
| Europe - West, East, South | 4.1 | 12.4 | -67.4% |
--------------------------------------------------------------------------------
| North America | 1.6 | 4.4 | -62.8% |
--------------------------------------------------------------------------------
| (North America, MUSD | 2.4 | 6.1 | -59.4%) |
--------------------------------------------------------------------------------
| Other | -3.4 | -3.4 | |
--------------------------------------------------------------------------------
| Eliminations | 0.1 | 0.9 | |
--------------------------------------------------------------------------------
| Total | 22.8 | 37.9 | -39.8% |
--------------------------------------------------------------------------------
Continuing operations' operating profit for January-September declined by 35.5%,
totalling 71.1 (110.3) million euros. The operating profit margin fell to 9.5%
from 13.6% in the equivalent period for 2007.
Operating profit by segment, January-September, continuing operations:
--------------------------------------------------------------------------------
| MEUR | 1-9/2008 | 1-9/2007 | Change |
--------------------------------------------------------------------------------
| Central Europe | 33.2 | 34.0 | -2.3% |
--------------------------------------------------------------------------------
| Nordic | 27.8 | 42.0 | -33.9% |
--------------------------------------------------------------------------------
| Europe - West, East, South | 16.9 | 33.4 | -49.6% |
--------------------------------------------------------------------------------
| North America | 2.4 | 12.6 | -81.0% |
--------------------------------------------------------------------------------
| (North America, MUSD | 3.6 | 17.0 | -78.6%) |
--------------------------------------------------------------------------------
| Other | -9.0 | -9.7 | |
--------------------------------------------------------------------------------
| Eliminations | -0.2 | -2.0 | |
--------------------------------------------------------------------------------
| Total | 71.1 | 110.3 | -35.5% |
--------------------------------------------------------------------------------
Continuing operations' profit before taxes for January-September came to 66.5
(106.2) million euros, down 37.4% year-on-year. Taxes remained at 20.5 (34.7)
million euros, with a tax rate of 31.0 (32.5) per cent.
The profit for the period was 88.5 (80.6) million euros, an increase of 7.9
million euros, reflecting the sales gain from the divestment of the UK and Irish
infrastructure business.
The Group's earnings per share (basic and diluted) totalled 1.21 (1.10) euros,
of which continuing operations represented 0.63 (0.98) euros. Equity per share
was 4.36 (4.32) euros, basic and diluted.
Investment and financing
Due to the weakening business climate, Uponor curtailed investment into fixed
assets. As a result, most investments were geared towards process and efficiency
improvements. Altogether, investments in continuing operations totalled 8.2
(13.7) million euros in July-September.
Gross investment in continuing operations in January-September came to 23.8
(28.9) million euros, or 3.2 (3.6) per cent of net sales.
Gearing declined to 31.1 (37.3) per cent, as net interest-bearing liabilities
fell to 99.3 (118.0) million euros. The solvency ratio increased to 49.6 (43.0).
The Group's return on investment (ROI) was at 36.9% (41.0%) and return on equity
(ROE) 36.2% (32.5%).
Key events during the period
A positive development was recorded in the penetration of radiant heating and
cooling solutions in high-rise projects in several markets, where they are
beginning to win market share from traditional solutions. This penetration has
been supported by favourable regulatory changes and increased awareness and
demand for energy-efficient indoor climate solutions. As an example, an Uponor
heating and cooling solution is being installed in one of the biggest shopping
centres in Portugal. The selected solution has been developed to deliver
excellent energy-efficiency to the owners as well as indoor climate comfort for
those visiting the shopping-centre. In North America, Uponor has piloted heating
and cooling projects with large builders and retail chains and a major
hospitality chain, with potential for business opportunities in the longer-term.
An international Uponor Knowledge Days 2008 event was held in Hamburg, Germany,
hosting key decision-makers from the high-rise segment from the Eastern European
and international markets. Similarly, several partnerships were signed,
particularly in Eastern Europe, to enable further growth in the high-rise
segment.
The implementation of the European ERP system continued, with preparations for
the roll-out later in the year well under way in the UK and Ireland.
In the United States, a new regulation was passed requiring the installation of
approved automatic fire sprinkler systems in new one and two-family dwellings
and townhouses.
Uponor is poised to capitalise on this development with its patented domestic
fire sprinkler system offering.
Human resources and organisation
The reported number of Group full-time-equivalent employees averaged 4,353
(4,471) during the period under review, while at the end of the period the Group
had 3,934 (4,558) full-time-equivalent employees, a reduction of 624 persons,
including the divested infrastructure business in the UK that employed a staff
of 470.
The number of people employed was reduced in all Regions except Europe - WES,
where the organisation is being built to enable a growing presence in those
markets.
As a result of declining demand in key markets, it has become necessary to
adjust personnel numbers in all Uponor activities. In August, Uponor announced a
special cost reduction programme that was estimated to affect more than 200
jobs. A significant reduction, around 80 people, took place in Canada with the
closure of the St. John plant in New Brunswick in September. During the third
quarter, the number of employees in the continuing business was reduced by 206
persons, while at the same time hired agency employees were reduced by 52
persons.
There were two changes in the company's management. President and CEO Jan Lång
announced his resignation in August, while Bernhard Brinkmann, Executive Vice
President for Uponor Central Europe, left his position on 30 September 2008.
Share capital and shares
The number of Uponor shares traded on the NASDAQ OMX Helsinki stock exchange
increased in the third quarter to 30.8 (24.8) million shares, and the monetary
value of the shares exchanged totalled 287.4 (619.4) million euros. The market
value of the share capital at the end of the period was 0.6 (1.6) billion euros,
and the number of shareholders was 17,715 (9,564).
Uponor Corporation's share capital remained constant at 146,446,888 euros and
the number of shares at 73,206,944.
Events after the period under review
A new organisational structure for the European housing solutions business
became effective on 1 October 2008. It aims at improving the business focus by
enhancing the utilisation of growth opportunities and increasing operational
efficiency and transparency, especially in the supply chain and the sales and
marketing organisations.
With effect from 27 October 2008, the Board of Directors appointed Jyri
Luomakoski, CFO and Deputy CEO, as the company's CEO on an interim basis until
the Board has completed the search process for the CEO. Luomakoski will also
retain his position as CFO. President and CEO Jan Lång announced his resignation
in August and will leave the company In October.
Uponor has started codetermination negotiations with its employees in Finland
and Sweden during the autumn, with the purpose of reducing workforce by a
maximum of 70 persons.
Risks
Uponor's financial results are exposed to a number of strategic, operational,
financial, and hazard-related risks. A detailed risk analysis can be found in
Uponor's Annual Report 2007.
Uponor has various legal proceedings and litigation in progress in different
countries. The management does not expect these proceedings to have a material
impact on the company's performance in the foreseeable future.
Short-term outlook
The global building and construction market outlook has deteriorated clearly
since mid-2007 and no improvement is in sight. In Europe, the leading
residential construction indicators have continued to worsen and the
non-residential segment, which maintained its momentum in 2007 is likely to have
passed its peak. Most new residential construction markets in Western Europe are
expected to decline or at best remain flat in 2008 and 2009. In Eastern Europe,
market growth is expected to continue on a weaker basis.
In North America, the residential construction market continues to suffer from a
lack of activity, and the recovery that had generally been predicted for 2009 is
not expected to occur. Also, in the non-residential segment, the long-lasting
satisfactory trend may no longer be sustainable.
Despite the overall weaknesses of the markets, Uponor continues to exploit the
trends and opportunities that exist in some of its growth segments. Further,
Uponor aims at increasing its presence in Eastern Europe and growing its market
share in key European markets and North America, while at the same time
executing the cost reduction programme to adjust cost base to the expected low
market demand. Total expenditure in 2008 related to the cost reduction programme
is expected to slightly exceed 7 million euros.
In essence, Uponor repeats its guidance for 2008, issued on 11 June: continuing
operations' net sales are not expected to reach last year's level, and operating
profit is expected to fall short of the 2007 level.
Uponor Corporation
Board of Directors
For further information, please contact:
President and CEO Jyri Luomakoski, tel. +358 40 515 4498
Tarmo Anttila
Vice President, Communications
Tel. +358 20 129 2852
DISTRIBUTION:
NASDAQ OMX Helsinki
Media
www.uponor.com
Information on the interim report
The figures in brackets in this interim report are the refer figures for the
equivalent period in 2007. The change percentages reported in the interim report
have been calculated from exact figures not from rounded figures published in
the interim report.
INTERIM REPORT 1-9/2008
The figures in this interim report are unaudited.
CONSOLIDATED INCOME STATEMENT
--------------------------------------------------------------------------------
| MEUR | 1-9/ | 1-9/ | 7-9/ | 7-9/ | 1-12/ |
| | 2008 | 2007 | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| Continuing operations | | | | | |
--------------------------------------------------------------------------------
| Net sales | 750.3 | 809.2 | 249.1 | 262.1 | 1,047.4 |
--------------------------------------------------------------------------------
| Cost of goods sold | 470.8 | 494.4 | 158.5 | 161.3 | 640.4 |
--------------------------------------------------------------------------------
| Gross profit | 279.5 | 314.8 | 90.6 | 100.8 | 407.0 |
--------------------------------------------------------------------------------
| Other operating income | 0.6 | 5.0 | 0.0 | 4.0 | 5.9 |
--------------------------------------------------------------------------------
| Dispatching and | 23.1 | 21.1 | 7.3 | 6.9 | 28.8 |
| warehousing expenses | | | | | |
--------------------------------------------------------------------------------
| Sales and marketing | 131.0 | 136.9 | 40.9 | 44.2 | 178.5 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Administration expenses | 39.3 | 39.6 | 12.9 | 11.3 | 51.7 |
--------------------------------------------------------------------------------
| Other operating expenses | 15.6 | 11.9 | 6.7 | 4.5 | 18.2 |
--------------------------------------------------------------------------------
| Operating profit | 71.1 | 110.3 | 22.8 | 37.9 | 135.7 |
--------------------------------------------------------------------------------
| Financial expenses, net | 4.6 | 4.1 | 1.7 | 2.1 | 2.6 |
--------------------------------------------------------------------------------
| Profit before taxes | 66.5 | 106.2 | 21.1 | 35.8 | 133.1 |
--------------------------------------------------------------------------------
| Income taxes | 20.5 | 34.7 | 6.6 | 12.5 | 41.7 |
--------------------------------------------------------------------------------
| Profit for the period | 46.0 | 71.5 | 14.5 | 23.3 | 91.4 |
| from continuing | | | | | |
| operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinued operations | | | | | |
--------------------------------------------------------------------------------
| Profit for the period | 42.5 | 9.1 | 0.0 | 2.9 | 10.5 |
| from discontinued | | | | | |
| operations | | | | | |
--------------------------------------------------------------------------------
| Profit for the period | 88.5 | 80.6 | 14.5 | 26.2 | 101.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, | 1.21 | 1.10 | 0.20 | 0.36 | 1.39 |
| EUR | | | | | |
--------------------------------------------------------------------------------
| - Continuing operations | 0.63 | 0.98 | 0.20 | 0.32 | 1.25 |
--------------------------------------------------------------------------------
| - Discontinued | 0.58 | 0.12 | 0.00 | 0.04 | 0.14 |
| operations | | | | | |
--------------------------------------------------------------------------------
| Diluted earnings per | 1.21 | 1.10 | 0.20 | 0.36 | 1.39 |
| share, EUR | | | | | |
--------------------------------------------------------------------------------
| - Continuing operations | 0.63 | 0.98 | 0.20 | 0.32 | 1.25 |
--------------------------------------------------------------------------------
| - Discontinued | 0.58 | 0.12 | 0.00 | 0.04 | 0.14 |
| operations | | | | | |
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
--------------------------------------------------------------------------------
| MEUR | 30.9. | 30.9. | 31.12.200 |
| | 2008 | 2007 | 7 |
--------------------------------------------------------------------------------
| Assets | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | 180.3 | 210.0 | 218.9 |
--------------------------------------------------------------------------------
| Intangible assets | 101.1 | 98.7 | 101.7 |
--------------------------------------------------------------------------------
| Securities and long-term investments | 7.4 | 3.6 | 3.6 |
--------------------------------------------------------------------------------
| Deferred tax assets | 15.3 | 20.7 | 16.3 |
--------------------------------------------------------------------------------
| Total non-current assets | 304.1 | 333.0 | 340.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 128.0 | 160.4 | 150.6 |
--------------------------------------------------------------------------------
| Accounts receivable | 182.5 | 224.1 | 144.6 |
--------------------------------------------------------------------------------
| Other receivables | 23.6 | 12.7 | 22.3 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 5.1 | 7.4 | 6.3 |
--------------------------------------------------------------------------------
| Total current assets | 339.2 | 404.6 | 323.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets | 643.3 | 737.6 | 664.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity and liabilities | | | |
--------------------------------------------------------------------------------
| Shareholders' equity | 319.0 | 316.5 | 333.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 17.3 | 19.6 | 14.7 |
--------------------------------------------------------------------------------
| Deferred tax liability | 11.4 | 16.0 | 15.0 |
--------------------------------------------------------------------------------
| Provisions | 7.7 | 9.9 | 8.8 |
--------------------------------------------------------------------------------
| Employee benefits and other liabilities | 20.9 | 25.3 | 28.1 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 57.3 | 70.8 | 66.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 87.1 | 105.8 | 76.1 |
--------------------------------------------------------------------------------
| Provisions | 5.5 | 8.5 | 7.4 |
--------------------------------------------------------------------------------
| Accounts payable | 68.9 | 82.1 | 75.2 |
--------------------------------------------------------------------------------
| Other liabilities | 105.5 | 153.9 | 106.0 |
--------------------------------------------------------------------------------
| Total current liabilities | 267.0 | 350.3 | 264.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total shareholders' equity and liabilities | 643.3 | 737.6 | 664.3 |
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT
--------------------------------------------------------------------------------
| MEUR | 1-9/ | 1-9/ | 1-12/ |
| | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| Net cash from operations | 97.5 | 148.4 | 186.0 |
--------------------------------------------------------------------------------
| Change in net working capital | -4.4 | -74.3 | -45.1 |
--------------------------------------------------------------------------------
| Income taxes paid | -32.9 | -31.5 | -42.7 |
--------------------------------------------------------------------------------
| Interest paid | -6.2 | -5.4 | -7.1 |
--------------------------------------------------------------------------------
| Interest received | 1.1 | 1.7 | 2.7 |
--------------------------------------------------------------------------------
| Cash flow from operations | 55.1 | 38.9 | 93.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investments | | | |
--------------------------------------------------------------------------------
| Proceeds from disposal of subsidiaries and | 76.4 | - | - |
| businesses | | | |
--------------------------------------------------------------------------------
| Purchase of fixed assets | -23.8 | -32.0 | -58.1 |
--------------------------------------------------------------------------------
| Proceeds from sales of fixed assets | 0.1 | 4.5 | 5.0 |
--------------------------------------------------------------------------------
| Received dividends | 0.0 | 0.0 | 0.2 |
--------------------------------------------------------------------------------
| Loan repayments | 0.1 | 0.1 | 0.2 |
--------------------------------------------------------------------------------
| Cash flow from investments | 52.8 | -27.4 | -52.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing | | | |
--------------------------------------------------------------------------------
| Borrowings of debt | - | 89.0 | 58.9 |
--------------------------------------------------------------------------------
| Repayments of debt | -5.1 | -1.5 | -1.7 |
--------------------------------------------------------------------------------
| Dividends paid | -102.5 | -102.5 | -102.5 |
--------------------------------------------------------------------------------
| Payment of finance lease liabilities | -1.5 | -1.5 | -1.9 |
--------------------------------------------------------------------------------
| Cash flow from financing | -109.1 | -16.5 | -47.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Conversion differences for cash and cash | 0.0 | 0.0 | 0.0 |
| equivalents | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and cash equivalents | -1.2 | -5.0 | -6.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents at 1 January | 6.3 | 12.4 | 12.4 |
--------------------------------------------------------------------------------
| Cash and cash equivalents at end of period | 5.1 | 7.4 | 6.3 |
--------------------------------------------------------------------------------
| Changes according to balance sheet | -1.2 | -5.0 | -6.1 |
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
--------------------------------------------------------------------------------
| MEUR | Share | Share | Other | Treasur | Trans-l | Retained | Total |
| | capita | premiu | reserve | y | ation | earnings | |
| | l | m | s | shares | reserve | | |
--------------------------------------------------------------------------------
| Balance | 146.4 | 35.6 | 14.3 | - | -21.6 | 158.3 | 333.0 |
| at 31 Dec | | | | | | | |
| 2007 | | | | | | | |
--------------------------------------------------------------------------------
| Translation | | | | 0.0 | | 0.0 |
| differences | | | | | | |
--------------------------------------------------------------------------------
| Cash flow hedges | | | | | | |
--------------------------------------------------------------------------------
| - recorded in | | 0.0 | | | | 0.0 |
| equity, net of | | | | | | |
| taxes | | | | | | |
--------------------------------------------------------------------------------
| Net profit for the | | | | | 88.5 | 88.5 |
| period | | | | | | |
--------------------------------------------------------------------------------
| Total recognised | | 0.0 | | 0.0 | 88.5 | 88.5 |
| income and expense | | | | | | |
| for the period | | | | | | |
--------------------------------------------------------------------------------
| Dividend paid (EUR | | | | | -102.5 | -102. |
| 1.40 per share) | | | | | | 5 |
--------------------------------------------------------------------------------
| Other adjustments | | 0.1 | | -0.1 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Balance | 146.4 | 35.6 | 14.4 | - | -21.7 | 144.3 | 319.0 |
| at 30 Sep | | | | | | | |
| 2008 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance | 146.4 | 42.5 | 6.7 | -1.6 | -10.2 | 160.6 | 344.4 |
| at 31 Dec | | | | | | | |
| 2006 | | | | | | | |
--------------------------------------------------------------------------------
| Translation | | | | -6.3 | | -6.3 |
| differences | | | | | | |
--------------------------------------------------------------------------------
| Cash flow hedges | | | | | | |
--------------------------------------------------------------------------------
| - recorded in | | 0.2 | | | | 0.2 |
| equity, net of | | | | | | |
| taxes | | | | | | |
--------------------------------------------------------------------------------
| Net profit for the | | | | | 80.6 | 80.6 |
| period | | | | | | |
--------------------------------------------------------------------------------
| Total recognised | | 0.2 | | -6.3 | 80.6 | 74.5 |
| income and expense | | | | | | |
| for the period | | | | | | |
--------------------------------------------------------------------------------
| Cancelling of | | | 0.3 | | -0.3 | - |
| shares | | | | | | |
--------------------------------------------------------------------------------
| Dividend paid (EUR | | | | | -102.5 | -102. |
| 1.40 per share) | | | | | | 5 |
--------------------------------------------------------------------------------
| Share based | | | 1.3 | | -1.3 | - |
| incentive plan | | | | | | |
--------------------------------------------------------------------------------
| Other adjustments | | 0.1 | | | | 0.1 |
--------------------------------------------------------------------------------
| Balance | 146.4 | 42.5 | 7.0 | - | -16.5 | 137.1 | 316.5 |
| at 30 Sep | | | | | | | |
| 2007 | | | | | | | |
--------------------------------------------------------------------------------
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
ACCOUNTING PRINCIPLES
The interim report has been prepared in compliance with International Financial
Reporting Standards (IFRS) as adopted by EU and IAS 34 Interim Financial
Reporting. In interim reports Uponor Group follows the same principles as in the
annual financial statement 2007.
Divestments of infrastructure business in UK, Ireland and Germany have been
classified as discontinued operations.
--------------------------------------------------------------------------------
| PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS |
--------------------------------------------------------------------------------
| MEUR | 1-9/ | 1-9/ | 1-12/ |
| | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| Gross investment | 23.8 | 32.0 | 58.1 |
--------------------------------------------------------------------------------
| - % of net sales | 3.2 | 3.4 | 4.8 |
--------------------------------------------------------------------------------
| Depreciation | 23.6 | 27.8 | 37.2 |
--------------------------------------------------------------------------------
| Book value of disposed fixed assets | 5.3 | 1.5 | 2.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| PERSONNEL | | | |
--------------------------------------------------------------------------------
| Converted to full time employees | 1-9/ | 1-9/ | 1-12/ |
| | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average | 4,353 | 4,471 | 4,497 |
--------------------------------------------------------------------------------
| At the end of the period | 3,934 | 4,558 | 4,581 |
--------------------------------------------------------------------------------
SEGMENT INFORMATION
--------------------------------------------------------------------------------
| | Geographical segments |
--------------------------------------------------------------------------------
| | | 1-9/2008 | 1-9/2007 |
--------------------------------------------------------------------------------
| | MEUR | Exter | Inter | Total | External | Internal | Total |
| | | nal | nal | | | | |
--------------------------------------------------------------------------------
| | Segment revenue, continuing operations | | | |
--------------------------------------------------------------------------------
| | Central | 220.1 | 48.5 | 268.6 | 222.4 | 53.2 | 275.6 |
| | Europe | | | | | | |
--------------------------------------------------------------------------------
| | Nordic | 243.8 | 50.7 | 294.5 | 250.8 | 58.8 | 309.6 |
--------------------------------------------------------------------------------
| | Europe - | 186.8 | 1.2 | 188.0 | 207.5 | 1.5 | 209.0 |
| | West, | | | | | | |
| | East, | | | | | | |
| | South | | | | | | |
--------------------------------------------------------------------------------
| | North | 99.6 | - | 99.6 | 128.5 | 2.0 | 130.5 |
| | America | | | | | | |
--------------------------------------------------------------------------------
| | Eliminati | - | -100. | -100.4 | - | -115.5 | -115.5 |
| | ons | | 4 | | | | |
--------------------------------------------------------------------------------
| | Total | 750.3 | - | 750.3 | 809.2 | - | 809.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | 7-9/2008 | 7-9/2007 |
--------------------------------------------------------------------------------
| | | Exter | Inter | Total | External | Internal | Total |
| | | nal | nal | | | | |
--------------------------------------------------------------------------------
| | Segment revenue, continuing operations | | | |
--------------------------------------------------------------------------------
| | Central | 74.9 | 13.2 | 88.1 | 71.4 | 14.5 | 85.9 |
| | Europe | | | | | | |
--------------------------------------------------------------------------------
| | Nordic | 77.8 | 15.4 | 93.2 | 82.5 | 16.6 | 99.1 |
--------------------------------------------------------------------------------
| | Europe - | 58.2 | 0.4 | 58.6 | 64.3 | 0.6 | 64.9 |
| | West, | | | | | | |
| | East, | | | | | | |
| | South | | | | | | |
--------------------------------------------------------------------------------
| | North | 38.2 | - | 38.2 | 43.9 | 0.9 | 44.8 |
| | America | | | | | | |
--------------------------------------------------------------------------------
| | Eliminati | - | -29.0 | -29.0 | - | -32.6 | -32.6 |
| | ons | | | | | | |
--------------------------------------------------------------------------------
| | Total | 249.1 | - | 249.1 | 262.1 | - | 262.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | 1-12/2007 |
--------------------------------------------------------------------------------
| | MEUR | Exter | Inter | Total |
| | | nal | nal | |
--------------------------------------------------------------------------------
| | Segment revenue, continuing operations | | | |
--------------------------------------------------------------------------------
| | Central Europe | 283.7 | 67.6 | 351.3 |
--------------------------------------------------------------------------------
| | Nordic | 325.4 | 72.3 | 397.7 |
--------------------------------------------------------------------------------
| | Europe - West, East, South | 271.1 | 1.8 | 272.9 |
--------------------------------------------------------------------------------
| | North America | 167.2 | 2.0 | 169.2 |
--------------------------------------------------------------------------------
| | Eliminations | - | -143.7 | -143.7 |
--------------------------------------------------------------------------------
| | Total | 1,047.4 | - | 1,047. |
| | | | | 4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | 1-9/ | 1-9/ | 7-9/ | 7-9/ | 1-12/ |
| | | 2008 | 2007 | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| | Segment result, | | | | |
| | continuing operations | | | | |
--------------------------------------------------------------------------------
| | Central Europe | 33.2 | 34.0 | 12.5 | 10.6 | 41.1 |
--------------------------------------------------------------------------------
| | Nordic | 27.8 | 42.0 | 7.9 | 13.0 | 49.7 |
--------------------------------------------------------------------------------
| | Europe - West, | 16.9 | 33.4 | 4.1 | 12.4 | 42.2 |
| | East, South | | | | | |
--------------------------------------------------------------------------------
| | North America | 2.4 | 12.6 | 1.6 | 4.4 | 16.6 |
--------------------------------------------------------------------------------
| | Others | -9.0 | -9.7 | -3.4 | -3.4 | -13.2 |
--------------------------------------------------------------------------------
| | Eliminations | -0.2 | -2.0 | 0.1 | 0.9 | -0.7 |
--------------------------------------------------------------------------------
| | Total | 71.1 | 110.3 | 22.8 | 37.9 | 135.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | MEUR | 1-9/ | 1-9/ | 1-12/ |
| | | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| | Segment depreciation and impairments, continuing | | |
| | operations | | |
--------------------------------------------------------------------------------
| | Central Europe | 6.1 | 5.7 | 7.7 |
--------------------------------------------------------------------------------
| | Nordic | 7.4 | 7.6 | 10.1 |
--------------------------------------------------------------------------------
| | Europe - West, East, South | 2.2 | 1.6 | 2.2 |
--------------------------------------------------------------------------------
| | North America | 4.1 | 4.1 | 5.6 |
--------------------------------------------------------------------------------
| | Others | 3.0 | 2.4 | 3.3 |
--------------------------------------------------------------------------------
| | Eliminations | 0.4 | 0.5 | 0.6 |
--------------------------------------------------------------------------------
| | Total | 23.2 | 21.9 | 29.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Segment investments, continuing | | | |
| | operations | | | |
--------------------------------------------------------------------------------
| | Central Europe | 5.9 | 8.0 | 11.0 |
--------------------------------------------------------------------------------
| | Nordic | 6.5 | 9.7 | 15.5 |
--------------------------------------------------------------------------------
| | Europe - West, East, South | 0.7 | 2.9 | 4.0 |
--------------------------------------------------------------------------------
| | North America | 8.2 | 5.3 | 13.4 |
--------------------------------------------------------------------------------
| | Others | 2.5 | 3.0 | 8.1 |
--------------------------------------------------------------------------------
| | Total | 23.8 | 28.9 | 52.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | MEUR | 1-9/ | 1-9/ | 1-12/ |
| | | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| | Segment assets | | | |
--------------------------------------------------------------------------------
| | Central Europe | 201.5 | 201.4 | 181.4 |
--------------------------------------------------------------------------------
| | Nordic | 200.1 | 232.3 | 185.3 |
--------------------------------------------------------------------------------
| | Europe - West, East, South | 158.7 | 245.8 | 240.1 |
--------------------------------------------------------------------------------
| | North America | 120.3 | 122.0 | 123.7 |
--------------------------------------------------------------------------------
| | Others | 509.3 | 634.8 | 577.9 |
--------------------------------------------------------------------------------
| | Eliminations | -546.6 | -698.7 | -644.1 |
--------------------------------------------------------------------------------
| | Total | 643.3 | 737.6 | 664.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Segment liabilities | | | |
--------------------------------------------------------------------------------
| | Central Europe | 107.9 | 105.1 | 119.0 |
--------------------------------------------------------------------------------
| | Nordic | 229.8 | 271.9 | 233.5 |
--------------------------------------------------------------------------------
| | Europe - West, East, South | 49.1 | 119.9 | 101.9 |
--------------------------------------------------------------------------------
| | North America | 75.9 | 54.8 | 55.0 |
--------------------------------------------------------------------------------
| | Others | 425.6 | 584.2 | 477.8 |
--------------------------------------------------------------------------------
| | Eliminations | -564.0 | -714.8 | -655.9 |
--------------------------------------------------------------------------------
| | Total | 324.3 | 421.1 | 331.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | 1-9/ | 1-9/ | 1-12/ |
| | | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| | Segment personnel, average | | | |
--------------------------------------------------------------------------------
| | Central Europe | 1,242 | 1,255 | 1,261 |
--------------------------------------------------------------------------------
| | Nordic | 1,384 | 1,386 | 1,380 |
--------------------------------------------------------------------------------
| | Europe - West, East, South | 1,100 | 1,208 | 1,224 |
--------------------------------------------------------------------------------
| | North America | 560 | 564 | 573 |
--------------------------------------------------------------------------------
| | Others | 67 | 58 | 59 |
--------------------------------------------------------------------------------
| Total | 4,353 | 4,471 | 4,497 |
--------------------------------------------------------------------------------
| Continuing operations | 4,080 | 3,982 | 4,008 |
--------------------------------------------------------------------------------
| Discontinued operations | 273 | 489 | 489 |
--------------------------------------------------------------------------------
| Business segments |
--------------------------------------------------------------------------------
| | | 1-9/2008 |
--------------------------------------------------------------------------------
| | Segment external revenue, | Housing | Infra | Total |
| | continuing operations | solutions | structue | |
| | | | solutions | |
--------------------------------------------------------------------------------
| | Central Europe | 220.1 | - | 220.1 |
--------------------------------------------------------------------------------
| | Nordic | 94.2 | 149.6 | 243.8 |
--------------------------------------------------------------------------------
| | Europe - West, East, South | 176.7 | 10.1 | 186.8 |
--------------------------------------------------------------------------------
| | North America | 99.6 | - | 99.6 |
--------------------------------------------------------------------------------
| | Total | 590.6 | 159.7 | 750.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 1-9/2007 |
--------------------------------------------------------------------------------
| | Segment external revenue, | Housing | Infrastruct | Total |
| | continuing operations | solutions | ure | |
| | | | solutions | |
--------------------------------------------------------------------------------
| | Central Europe | 222.4 | - | 222.4 |
--------------------------------------------------------------------------------
| | Nordic | 103.7 | 147.1 | 250.8 |
--------------------------------------------------------------------------------
| | Europe West, East, South | 195.0 | 12.5 | 207.5 |
--------------------------------------------------------------------------------
| | North America | 128.5 | - | 128.5 |
--------------------------------------------------------------------------------
| | Total | 649.6 | 159.6 | 809.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | 1-12/2007 |
--------------------------------------------------------------------------------
| | Segment external revenue, | Housing | Infrastruct | Total |
| | continuing operations | solutions | ure | |
| | | | solutions | |
--------------------------------------------------------------------------------
| | Central Europe | 283.7 | - | 283.7 |
--------------------------------------------------------------------------------
| | Nordic | 133.8 | 191.6 | 325.4 |
--------------------------------------------------------------------------------
| | Europe - West, East, South | 255.2 | 15.9 | 271.1 |
--------------------------------------------------------------------------------
| | North America | 167.2 | - | 167.2 |
--------------------------------------------------------------------------------
| | Total | 839.9 | 207.5 | 1,047.4 |
--------------------------------------------------------------------------------
CONTINGENT LIABILITIES
--------------------------------------------------------------------------------
| MEUR | 30.9. | 30.9. | 31.12.200 |
| | 2008 | 2007 | 7 |
--------------------------------------------------------------------------------
| Group: | | | |
--------------------------------------------------------------------------------
| Mortgages | - | - | 0.0 |
| - on own behalf | | | |
--------------------------------------------------------------------------------
| Guarantees | | | |
--------------------------------------------------------------------------------
| - on behalf of others | 8.6 | 12.0 | 11.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Parent company: | | | |
--------------------------------------------------------------------------------
| Guarantees | | | |
--------------------------------------------------------------------------------
| - on behalf of a subsidiary | 7.6 | 10.2 | 10.5 |
--------------------------------------------------------------------------------
| - on behalf of others | 7.1 | 9.4 | 9.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING LEASE COMMITMENTS | 33.5 | 24.2 | 24.4 |
--------------------------------------------------------------------------------
DERIVATIVE CONTRACTS
--------------------------------------------------------------------------------
| MEUR | Nominal | Fair | Nominal | Fair | Nominal | Fair |
| | value | value | value | value | value | value |
| | 30.9. | 30.9. | 30.9. | 30.9. | 31.12.20 | 31.12.20 |
| | 2008 | 2008 | 2007 | 2007 | 07 | 07 |
--------------------------------------------------------------------------------
| Currency | 103.2 | 2.8 | 91.4 | 0.0 | 85.9 | 1.7 |
| derivatives | | | | | | |
| - Forward | | | | | | |
| agreements | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Commodity | 5.9 | 1.0 | 5.1 | 0.3 | 3.6 | 0.8 |
| derivatives | | | | | | |
| - Forward | | | | | | |
| agreements | | | | | | |
--------------------------------------------------------------------------------
DISCONTINUED OPERATIONS
Divested infrastructure businesses in the UK, Ireland and Germany have been
classified as discontinued operations according to IFRS 5 standard. In June,
Uponor closed the deal concerning the disposal of the infrastructure business in
UK and Ireland. The deal included the sale of Uponor Ltd. in the UK, its
subsidiary Radius Plastics Ltd. in Northern Ireland and Uponor Ltd's business in
the Republic of Ireland. In April, Uponor Klärtechnik GmbH in Germany was sold.
--------------------------------------------------------------------------------
| MEUR | 1-9/ | 1-9/ | 1-12/ |
| | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| Net sales | 8.9 | 134.1 | 171.9 |
--------------------------------------------------------------------------------
| Expenses | 9.9 | 120.9 | 156.5 |
--------------------------------------------------------------------------------
| Profit before taxes | -1.0 | 13.2 | 15.4 |
--------------------------------------------------------------------------------
| Income taxes | 0.0 | 4.1 | 4.9 |
--------------------------------------------------------------------------------
| Profit after taxes | -1.0 | 9.1 | 10.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net profit from divestment of discontinued | 43.5 | - | - |
| operations | | | |
--------------------------------------------------------------------------------
| Income taxes | - | - | - |
--------------------------------------------------------------------------------
| Profit from divestment of discontinued | 43.5 | - | - |
| operations | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period from discontinued | 42.5 | 9.1 | 10.5 |
| operations | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from discontinued operations | | | |
--------------------------------------------------------------------------------
| Cash flow from operations | -3.6 | 15.4 | 19.1 |
--------------------------------------------------------------------------------
| Cash flow from investments | 76.4 | -2.9 | -6.1 |
--------------------------------------------------------------------------------
DISPOSAL OF BUSINESSES
Disposal of businesses includes the divestment of the infrastructure business in
the UK, Ireland and Germany, classified as discontinued operations.
Book value of assets disposed
--------------------------------------------------------------------------------
| MEUR | 1-9/ | 1-9/ | 1-12/ |
| | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 33.7 | - | - |
--------------------------------------------------------------------------------
| Deferred tax asset | 1.9 | - | - |
--------------------------------------------------------------------------------
| Inventories | 17.8 | - | - |
--------------------------------------------------------------------------------
| Accounts receivable and other receivables | 25.1 | | |
--------------------------------------------------------------------------------
| Cash and cash equivalent | 1.1 | - | - |
--------------------------------------------------------------------------------
| Total assets | 79.6 | - | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Deferred tax liability | 3.1 | - | - |
--------------------------------------------------------------------------------
| Employee benefits and other liabilities | 4.3 | - | - |
--------------------------------------------------------------------------------
| Accounts payable and other current | 33.2 | - | - |
| liabilities | | | |
--------------------------------------------------------------------------------
| Total liabilities | 40.6 | - | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net assets | 39.0 | - | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash received from sales | 77.5 | - | - |
--------------------------------------------------------------------------------
| Cash and cash equivalent disposed of | 1.1 | - | - |
--------------------------------------------------------------------------------
| Cash flow effect | 76.4 | - | - |
--------------------------------------------------------------------------------
In addition to the cash received from sales, a 5.0 MEUR vendor loan note was
issued at closing of the deal. Total sales price of the transaction was 82.5
MEUR.
RELATED-PARTY TRANSACTIONS
--------------------------------------------------------------------------------
| MEUR | 1-9/ | 1-9/ | 1-12/ |
| | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| Continuing operations | | | |
--------------------------------------------------------------------------------
| Purchases from associated companies | 1.7 | 1.7 | 2.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balances at the end of the period | | | |
--------------------------------------------------------------------------------
| Loan receivable from associated companies | - | 1.1 | 1.0 |
--------------------------------------------------------------------------------
| Accounts and other receivables | - | 0.7 | 1.1 |
--------------------------------------------------------------------------------
| Accounts payables and other liabilities | 0.1 | 0.2 | 0.2 |
--------------------------------------------------------------------------------
KEY FIGURES
--------------------------------------------------------------------------------
| | 1-9/ | 1-9/ | 1-12/ |
| | 2008 | 2007 | 2007 |
--------------------------------------------------------------------------------
| Earnings per share, EUR | 1.21 | 1.10 | 1.39 |
--------------------------------------------------------------------------------
| - continuing operations | 0.63 | 0.98 | 1.25 |
--------------------------------------------------------------------------------
| - discontinued operations | 0.58 | 0.12 | 0.14 |
--------------------------------------------------------------------------------
| Operating profit (continuing operations), | 9.5 | 13.6 | 13.0 |
| % | | | |
--------------------------------------------------------------------------------
| Return on equity, %, cumulative | 36.2 | 32.5 | 30.1 |
--------------------------------------------------------------------------------
| Return on investment, %, cumulative | 36.9 | 41.0 | 39.2 |
--------------------------------------------------------------------------------
| Solvency ratio, % | 49.6 | 43.0 | 50.2 |
--------------------------------------------------------------------------------
| Gearing, % | 31.1 | 37.3 | 25.4 |
--------------------------------------------------------------------------------
| Net interest-bearing liabilities | 99.3 | 118.0 | 84.5 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 4.36 | 4.32 | 4.55 |
--------------------------------------------------------------------------------
| - diluted | 4.36 | 4.32 | 4.55 |
--------------------------------------------------------------------------------
| Trading price of shares | | | |
--------------------------------------------------------------------------------
| - low, EUR | 8.21 | 20.00 | 15.31 |
--------------------------------------------------------------------------------
| - high, EUR | 18.91 | 31.45 | 31.45 |
--------------------------------------------------------------------------------
| - average, EUR | 12.67 | 26.97 | 23.76 |
--------------------------------------------------------------------------------
| Shares traded | | | |
--------------------------------------------------------------------------------
| - 1,000 pcs | 87,076 | 64,213 | 99,423 |
--------------------------------------------------------------------------------
| - MEUR | 1,104 | 1,732 | 2,362 |
--------------------------------------------------------------------------------
DEFINITIONS OF KEY RATIOS
Return on Equity (ROE), %
Profit before taxes - taxes
= ---------------------------------------- x 100
Shareholders' equity + minority interest, average
Return on Investment (ROI), %
Profit before taxes + interest and other financing costs
= --------------------------------------------------- x 100
Balance sheet total - non-interest-bearing liabilities, average
Solvency, %
Shareholders' equity + minority interest
= ----------------------------------------- x 100
Balance sheet total - advance payments received
Gearing, %
Net interest-bearing liabilities
= ------------------------------------------ x 100
Shareholders' equity + minority interest
Net interest-bearing liabilities
= Interest-bearing liabilities - cash, bank receivables and financial assets
Earnings per share (EPS)
Profit for the period
= -------------------------------------------------
Number of shares adjusted for share issue in financial period
excluding treasury shares
Equity per share ratio
Shareholders' equity
= -------------------------------------------------------
Average number of shares adjusted for share issue at end of year
Average share price
Total value of shares traded (EUR)
= ---------------------------
Total number of shares traded