Uponor progresses in penetrating new segments despite difficult markets

Uponor Corporation     Interim report Q2/2008  12 August 2008  08.00 EET        


Uponor progresses in penetrating new segments despite difficult markets


- Continuing operations* net sales for January-June came to 501.2 (547.1)       
million euros, a change of -8.4%                                                
- January-June operating profit for continuing operations was 48.3 (72.4)       
million euros, a change of -33.3%                                               
- Earnings per share for the company came to 1.01 (0.74) euros                  
- Return on investment over the period was 43.8% (40.1%), with gearing at 42.7% 
(51.0%)                                                                         
- Guidance: Uponor repeats the guidance, issued on 11 June, for 2008: Net sales 
for continuing operations are not expected to quite 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 1 January 2008, the divested infrastructure business  
in the Republic of Ireland, which was sold in an asset deal, effective on 18    
June 2008, and the German divestment of Uponor Klärtechnik GmbH.                


CEO JAN LÅNG COMMENTS ON THE PERFORMANCE:                                       

- Despite the deteriorating market situation in many key market areas, we have  
made good progress in building on our new business opportunities. In particular,
our high-rise initiative has been successful in big markets like the USA and    
Spain.                                                                          

- The building and construction markets remain very difficult. The low demand   
has been affecting the new residential market especially, but it is being felt  
increasingly in other segments as well, while the impact is simultaneously      
expanding to previously untouched countries as well.                            

- The current low activity levels in the markets necessitate an adjustment to   
our cost base. We are starting a company-wide programme through which we target 
structural cost reductions in the range of 30 million euros, effective in 2009. 
The planned actions are likely to affect more than 200 employees.               


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 9:00am EET. You can access the webcast
via www.uponor.com. Questions for the webcast can be sent to ir@uponor.com.     




Interim report for January-June 2008                                            



Markets                                                                         

The building and construction market, especially that related to residential    
building, continued to be subdued in most of Uponor's key geographic areas in   
the second quarter of 2008. With the exception of Eastern Europe, where business
growth remained strong, and Germany, where demand was stable but on a low level,
other key markets exhibited further signs of weakness. New residential spending 
continued to decline in the USA and Spain, while in the Nordic countries, a     
softening was felt in Sweden and Norway in addition to Denmark and Finland,     
where demand had weakened earlier.                                              

New non-residential and public building markets in general continued to perform 
well in the second quarter, but with emerging indications of slower growth or   
stabilisation within the near term.                                             

In infrastructure, the slowing trend from Q1 that was especially tangible in    
Denmark, and to some extent in Finland, continued through Q2, now affecting also
Sweden and Norway.                                                              


Net sales                                                                       

Uponor's continuing operations' net sales for April-June declined by 7.4 per    
cent from their level for the comparison period and totalled 267.4 (288.8)      
million euros.                                                                  

Supported by the fairly stable markets, the net sales of Uponor Central Europe  
increased slightly from last year's figure, despite lower inter-company sales to
sister regions. A strong growth of local business was recorded in the eastern   
parts of the region. The main reasons for increased sales were initiatives to   
market the systems offering and stronger pushing of the multi-layer composite   
pipe system.                                                                    

In the Nordic region, net sales lagged behind the equivalent figures for 2007,  
reflecting a weaker local market for housing solutions - both residential and   
non‑residential - and infrastructure solutions, as well as lower exports to     
sister regions. Despite the decline in residential demand, Uponor was able to   
expand its housing solutions business in Sweden and Norway and partly compensate
for the decline in residential building by penetrating the high-rise and        
renovation sectors.                                                             

The net sales of Uponor Europe - West, East, South were also lower than in 2007.
The main reason for this was the weak demand from those Spanish and Portuguese  
customers hit by the continued contraction of building and construction spending
in Iberia. In other Southern and Western European markets, solid increases in   
net sales were recorded. Growth in Eastern Europe continued at nearly the same  
level as in the first quarter, except in the Baltic countries, where the        
slowdown indicated in Q1 materialised. The dramatic drop in Iberian market      
activity was partially offset by utilising market opportunities efficiently,    
actively continuing strategic marketing efforts for new customer groups, and    
focusing on sectors not hit by the market slowdown. In Eastern Europe, Uponor's 
harmonised sales proposition, along with ongoing customer programmes, received a
favourable response, supporting the sales growth.                               

The net sales of Uponor North America were clearly down from the levels seen in 
the equivalent period last year. Factors that influenced net sales development  
positively were, among other things, the sustained lively building market in    
Canada and the commercial high-rise business development that continued to grow 
in the USA.                                                                     

Net sales by segment, April-June:                                               

--------------------------------------------------------------------------------
| MEUR                            |     4-6/2008 |     4-6/2007 |       Change |
--------------------------------------------------------------------------------
| Central Europe                  |         96.8 |         95.6 |        +1.3% |
--------------------------------------------------------------------------------
| Nordic                          |        108.5 |        116.0 |        -6.5% |
--------------------------------------------------------------------------------
| Europe - West, East, South      |         65.3 |         70.3 |        -6.9% |
--------------------------------------------------------------------------------
| North America                   |         34.5 |         49.9 |       -30.9% |
--------------------------------------------------------------------------------
| (North America, MUSD            |         53.8 |         67.2 |      -20.1%) |
--------------------------------------------------------------------------------
| Eliminations                    |        -37.7 |        -43.0 |              |
--------------------------------------------------------------------------------
| Total                           |        267.4 |        288.8 |        -7.4% |
--------------------------------------------------------------------------------

January-June net sales totalled 501.2 (547.1) million euros, representing a     
decline of 8.4%. As anticipated, net sales development continued to be weak in  
the first two quarters and lagged clearly behind the strong level of the first  
six months of 2007. The impact of currency exchange rates on net sales during   
the January-June period was -10.7 million euros, of which the U.S. dollar       
contributed -7.5 million.                                                       


Net sales by segment, January-June:                                             

--------------------------------------------------------------------------------
| MEUR                            |     1-6/2008 |     1-6/2007 |       Change |
--------------------------------------------------------------------------------
| Central Europe                  |        180.5 |        189.7 |        -4.8% |
--------------------------------------------------------------------------------
| Nordic                          |        201.3 |        210.5 |        -4.4% |
--------------------------------------------------------------------------------
| Europe - West, East, South      |        129.4 |        144.1 |       -10.1% |
--------------------------------------------------------------------------------
| North America                   |         61.4 |         85.7 |       -28.4% |
--------------------------------------------------------------------------------
| (North America, MUSD            |         94.8 |        114.3 |      -17.1%) |
--------------------------------------------------------------------------------
| Eliminations                    |        -71.4 |        -82.9 |              |
--------------------------------------------------------------------------------
| Total                           |        501.2 |        547.1 |        -8.4% |
--------------------------------------------------------------------------------


Results and profitability                                                       

Continuing operations' operating profit for April-June totalled 29.0 (45.1)     
million euros, a drop of 35.7%, mostly driven by lower volumes. Continuing      
operations operating profit margin fell to 9.6% from 13.2% in the equivalent    
period for 2007. Gross profit margin was affected by increased costs of raw     
materials and components, energy, and transportation. Uponor implemented various
short-term initiatives to contain operating expenses and curbed investments.    

In Uponor Central Europe, operating profit reached the previous year's level,   
supported by the high-rise business demand and the strong contribution of the   
businesses outside Germany. Falling volumes in inter-company and external       
project business burdened profitability.                                        

In Uponor Nordic, profitability suffered from lower volumes in both the domestic
and export markets, where an unfavourable product mix made a significant impact.

Operating profit in Uponor Europe - West, East, South ended up clearly lower    
than in 2007, mainly driven by lack of volume in Iberia and the fairly high     
costs from ongoing growth initiatives.                                          

Also in North America, operating profit fell clearly below the 2007 level,      
reflective of the volume shortfall and the resources channelled to the strategic
high-rise initiatives and new customer acquisition programmes. Also actions to  
reduce inventory burdened profitability.                                        


Operating profit by segment, April-June:                                        

--------------------------------------------------------------------------------
| MEUR                            |     4-6/2008 |     4-6/2007 |       Change |
--------------------------------------------------------------------------------
| Central Europe                  |         12.5 |         12.5 |        -0.1% |
--------------------------------------------------------------------------------
| Nordic                          |         12.8 |         19.0 |       -33.0% |
--------------------------------------------------------------------------------
| Europe - West, East, South      |          4.9 |         11.8 |       -58.4% |
--------------------------------------------------------------------------------
| North America                   |          1.5 |          7.4 |       -80.2% |
--------------------------------------------------------------------------------
| (North America, MUSD            |          2.3 |          9.9 |      -77.2%) |
--------------------------------------------------------------------------------
| Other                           |         -2.1 |         -4.1 |              |
--------------------------------------------------------------------------------
| Eliminations                    |         -0.6 |         -1.5 |              |
--------------------------------------------------------------------------------
| Total                           |         29.0 |         45.1 |       -35.7% |
--------------------------------------------------------------------------------

Continuing operations' operating profit for January-June, excluding the sales   
gain of 43.5 million euros from the divested infrastructure business, came to   
48.3 (72.4) million euros, a change of -33.3%.                                  


Operating profit by segment, January-June:                                      

--------------------------------------------------------------------------------
| MEUR                            |     1-6/2008 |     1-6/2007 |       Change |
--------------------------------------------------------------------------------
| Central Europe                  |         20.7 |         23.4 |       -11.4% |
--------------------------------------------------------------------------------
| Nordic                          |         19.9 |         29.0 |       -31.4% |
--------------------------------------------------------------------------------
| Europe - West, East, South      |         12.8 |         21.0 |       -39.1% |
--------------------------------------------------------------------------------
| North America                   |          0.8 |          8.2 |       -90.8% |
--------------------------------------------------------------------------------
| (North America, MUSD            |          1.2 |         10.9 |      -89.4%) |
--------------------------------------------------------------------------------
| Other                           |         -5.6 |         -6.3 |              |
--------------------------------------------------------------------------------
| Eliminations                    |         -0.3 |         -2.9 |              |
--------------------------------------------------------------------------------
| Total                           |         48.3 |         72.4 |       -33.3% |
--------------------------------------------------------------------------------

Continuing operations' profit before taxes for January-June came to 45.4 (70.4) 
million euros, down 35.5% from the previous year's figure. Taxes amounted to    
13.9 (22.2) million euros, with a tax rate of 31.0 (31.5) per cent.             

The profit for the period was 74.0 (54.4) million euros, an increase of 19.6    
million euros, reflecting the sales gain from the divestment of the UK and Irish
infrastructure business. On the closing date, Uponor recorded a sales gain of   
43.7 million euros from the divestment instead of the anticipated nearly 50     
million euros that was communicated earlier. Further, an unrecognised actuarial 
loss amounting to 4.8 million euros was transferred with the sold entity. The   
divestment increased the parent company's distributable earnings by some 64     
million euros.                                                                  

The Group's earnings per share (basic and diluted) totalled 1.01 (0.74) euros,  
of which continuing operations represented 0.43 (0.66) euros. Equity per share  
was 4.06 (4.02) euros, basic and diluted.                                       


Investment and financing                                                        

Careful consideration was given to new investment launches as a result of the   
adverse business cycle. The amount of investment related to continuing          
operations therefore decreased in Q2, coming to 9.0 (9.4) million euros for     
April-June. Investment in process improvement was continued, especially in the  
Nordic countries and North America.                                             

Gross investment for January-June totalled 15.6 (17.0) million euros, or 3.1    
(2.7) per cent of net sales.                                                    

Gearing declined to 42.7 (51.0) per cent, mainly as a result of interest‑bearing
liabilities falling to 127.0 (150.1) million euros. Accordingly, the solvency   
ratio improved to 44.9 (38.7) per cent.                                         

The Group's return on investment (ROI) grew to 43.8 (40.1) per cent and return  
on equity (ROE) to 47.0 (34.1) per cent.                                        


Key events during the period                                                    

Uponor's strategic initiative to enter the high-rise building sector was        
actively promoted. In the USA, Uponor signed a contract to supply PEX plumbing  
for Ohio public schools and entered a partnership agreement with M/I Homes, a   
leading U.S. builder that will start using PEX pipe in all of its house lines.  
The value of these contracts is expected to exceed 2 million dollars annually.  

Another key initiative, the market entry for radiant heating/cooling, is        
progressing favourably, and customer interest in its potential continues to     
grow. Recently, radiant cooling has received additional support from a number of
pro-environment regulatory changes in various countries. In Iberia, Uponor's    
radiant heating and cooling solution had been approved for more development     
projects by the end of Q2/2008 than in the whole of 2007. Design demand has also
increased markedly in the USA. Reflecting growing customer interest, a major    
U.S. retail company is installing an Uponor radiant cooling system in one of its
new stores as a sustainable technology evaluation project.                      

In North America, Uponor has been successful in converting several large        
builders and developers to specifying Uponor systems. Uponor has launched a     
series of new strategic products there to complement its systems offering,      
aiming at further market share gains for the residential and commercial markets.
A decision to build a new distribution centre in North America was reached in   
May, with the aim of increasing operational efficiency levels and improving     
service levels.                                                                 

In Europe, the second quarter of 2008 witnessed the opening of an office in     
Istanbul, Turkey, and further market penetration in Eastern Europe is           
proceeding.                                                                     

In May, Uponor Corporation signed a contract to divest its UK and Irish         
infrastructure business to the European private equity company 3i and funds     
managed by 3i. The contract included sale of the share capital of the UK Uponor 
subsidiary Uponor Ltd. and the latter's subsidiary Radius Plastics Ltd. in      
Northern Ireland. The infrastructure business in Cork in the Republic of Ireland
was included in the deal also. The divested business had net sales of 169.1     
million euros in 2007, employing a staff of 470 persons. Uponor had earlier made
a separate sale of its factory premises in Cork to a third party, the closing of
which will take place in the first quarter of 2009.                             

In Germany, Uponor divested the last remaining continental European             
infrastructure business, Uponor Klärtechnik GmbH, with effect from 1 April. Its 
net sales, around 3 million euros in 2007, were part of the Uponor Europe -     
West, East, South region.                                                       

The Oracle ERP implementation in Europe continues according to plan. For the    
Finnish housing solutions unit, it successfully went live in May, and rollout   
preparations are underway in the UK and Ireland.                                


Human resources and organisation                                                

The reported number of Group full-time-equivalent employees averaged 4,505      
(4,417) during the period under review, while at the end of the period the Group
had 4,195 (4,562) full-time-equivalent employees. The divested UK/Irish         
infrastructure business employed 470 persons. Compared to year-end 2007, the    
end-of-June figures include more than 100 additional, temporary employees, to   
cover holiday-season needs.                                                     


Share capital and shares                                                        

The number of Uponor shares exchanged on the OMX Nordic Exchange Helsinki       
increased in the second quarter to 30.2 (16.6) million shares, and the monetary 
value of the shares exchanged totalled 382.9 (486.8) million euros. The market  
value of the share capital at the end of the period was 0.7 (2.1) billion euros,
and the number of shareholders was 16,321 (8,239).                              

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                                            

On 12 August, the Board of Directors authorised the management to proceed with a
company-wide cost reduction programme in order to align expenses with the low   
activity level in the building and construction industry. The programme targets 
structural cost reductions in the range of 30 million euros, effective in 2009. 
The planned actions are likely to affect more than 200 employees. The programme 
is preliminarily estimated to generate a one-time cost impact of about 10       
million euros, which will be split between the years 2008 and 2009.             


Risks                                                                           

Uponor's financial results are exposed to a number of strategic, operational,   
financial, and hazard risks. A detailed risk analysis can be found in Uponor    
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                                                              

In Europe, with the exception of some Eastern European countries, the pace of   
the decline in residential construction has accelerated since the end of 2007,  
and markets for new residential building are expected to contract or, at best,  
remain flat for the second half of 2008.                                        

In the USA, the residential market is expected to continue its 2008 decline,    
while non‑residential construction is forecast to be stable or decline only     
slightly. Canadian markets, which are on a healthy level, are expected to       
maintain their resilience.                                                      

Uponor continues to exploit the encouraging trends and opportunities that exist 
in some of its growth segments, but, overall, the general building market       
development is expected to deteriorate further. Therefore, Uponor repeats the   
guidance for 2008, issued on 11 June: Continuing operations' net sales are not  
expected to quite reach last year's level, and operating profit is expected to  
fall short of the 2007 level.                                                   

The Group's capital expenditure plans for the current year have been adjusted to
reflect the lower demand, bringing gross investment for the full year down to   
around 45 million euros.                                                        


Uponor Corporation                                                              
Board of Directors                                                              



For further information, please contact:                                        
President and CEO Jan Lång, at tel. +358 20 129 2822                            
CFO and Deputy CEO Jyri Luomakoski, at tel. +358 40 515 4498                    



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



DISTRIBUTION:                                                                   
OMX Nordic Exchange 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 1-6/2008                                                         

The figures in this interim report are unaudited.                               


CONSOLIDATED INCOME STATEMENT                                                   

--------------------------------------------------------------------------------
| MEUR                    |    1-6/ |    1-6/ |     4-6/ |    4-6/ |     1-12/ |
|                         |    2008 |    2007 |     2008 |    2007 |      2007 |
--------------------------------------------------------------------------------
| Continuing operations   |         |         |          |         |           |
--------------------------------------------------------------------------------
| Net sales               |   501.2 |   547.1 |    267.4 |   288.8 |   1,047.4 |
--------------------------------------------------------------------------------
| Cost of goods sold      |   312.3 |   333.1 |    166.5 |   171.9 |     640.4 |
--------------------------------------------------------------------------------
| Gross profit            |   188.9 |   214.0 |    100.9 |   116.9 |     407.0 |
--------------------------------------------------------------------------------
| Other operating income  |     0.6 |     1.0 |      0.3 |     0.5 |       5.9 |
--------------------------------------------------------------------------------
| Dispatching and         |    15.8 |    14.2 |      8.3 |     7.4 |      28.8 |
| warehousing expenses    |         |         |          |         |           |
--------------------------------------------------------------------------------
| Sales and marketing     |    90.1 |    92.7 |     46.1 |    46.4 |     178.5 |
| expenses                |         |         |          |         |           |
--------------------------------------------------------------------------------
| Administration expenses |    26.4 |    28.3 |     12.5 |    14.2 |      51.7 |
--------------------------------------------------------------------------------
| Other operating         |     8.9 |     7.4 |      5.3 |     4.3 |      18.2 |
| expenses                |         |         |          |         |           |
--------------------------------------------------------------------------------
| Operating profit        |    48.3 |    72.4 |     29.0 |    45.1 |     135.7 |
--------------------------------------------------------------------------------
| Financial expenses, net |     2.9 |     2.0 |      2.4 |     2.1 |       2.6 |
--------------------------------------------------------------------------------
| Profit before taxes     |    45.4 |    70.4 |     26.6 |    43.0 |     133.1 |
--------------------------------------------------------------------------------
| Income taxes            |    13.9 |    22.2 |      8.2 |    13.6 |      41.7 |
--------------------------------------------------------------------------------
| Profit for the period   |    31.5 |    48.2 |     18.4 |    29.4 |      91.4 |
| from continuing         |         |         |          |         |           |
| operations              |         |         |          |         |           |
--------------------------------------------------------------------------------
|                                                                              |
--------------------------------------------------------------------------------
| Discontinued operations |         |         |          |         |           |
--------------------------------------------------------------------------------
| Profit for the period   |    42.5 |     6.2 |     41.4 |     3.5 |      10.5 |
| from discontinued       |         |         |          |         |           |
| operations              |         |         |          |         |           |
--------------------------------------------------------------------------------
| Profit for the period   |    74.0 |    54.4 |     59.8 |    32.9 |     101.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR |    1.01 |    0.74 |     0.82 |    0.45 |      1.39 |
--------------------------------------------------------------------------------
| - Continuing operations |    0.43 |    0.66 |     0.25 |    0.40 |      1.25 |
--------------------------------------------------------------------------------
| - Discontinued          |    0.58 |    0.08 |     0.57 |    0.05 |      0.14 |
| operations              |         |         |          |         |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Diluted earnings per    |    1.01 |    0.74 |     0.82 |    0.45 |      1.39 |
| share, EUR              |         |         |          |         |           |
--------------------------------------------------------------------------------
| - Continuing operations |    0.43 |    0.66 |     0.25 |    0.40 |      1.25 |
--------------------------------------------------------------------------------
| - Discontinued          |    0.58 |    0.08 |     0.57 |    0.05 |      0.14 |
| operations              |         |         |          |         |           |
--------------------------------------------------------------------------------



CONSOLIDATED BALANCE SHEET                                                      

--------------------------------------------------------------------------------
| MEUR                                       |    30.6. |    30.6. |    31.12. |
|                                            |     2008 |     2007 |      2007 |
--------------------------------------------------------------------------------
| Assets                                     |          |          |           |
--------------------------------------------------------------------------------
| Non-current assets                         |          |          |           |
--------------------------------------------------------------------------------
| Property, plant and equipment              |    179.3 |    209.4 |     218.9 |
--------------------------------------------------------------------------------
| Intangible assets                          |    101.9 |     96.9 |     101.7 |
--------------------------------------------------------------------------------
| Securities and long-term investments       |      8.0 |      3.6 |       3.6 |
--------------------------------------------------------------------------------
| Deferred tax assets                        |     15.2 |     22.4 |      16.3 |
--------------------------------------------------------------------------------
| Total non-current assets                   |    304.4 |    332.3 |     340.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets                             |          |          |           |
--------------------------------------------------------------------------------
| Inventories                                |    135.2 |    158.5 |     150.6 |
--------------------------------------------------------------------------------
| Accounts receivable                        |    192.9 |    247.0 |     144.6 |
--------------------------------------------------------------------------------
| Other receivables                          |     22.2 |     13.7 |      22.3 |
--------------------------------------------------------------------------------
| Cash and cash equivalents                  |      8.5 |     10.1 |       6.3 |
--------------------------------------------------------------------------------
| Total current assets                       |    358.8 |    429.3 |     323.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets                               |    663.2 |    761.6 |     664.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity and liabilities       |          |          |           |
--------------------------------------------------------------------------------
| Shareholders' equity                       |    297.4 |    294.4 |     333.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities                    |          |          |           |
--------------------------------------------------------------------------------
| Interest-bearing liabilities               |     17.7 |     20.8 |      14.7 |
--------------------------------------------------------------------------------
| Deferred tax liability                     |     11.6 |     16.7 |      15.0 |
--------------------------------------------------------------------------------
| Provisions                                 |      7.6 |     10.4 |       8.8 |
--------------------------------------------------------------------------------
| Employee benefits and other liabilities    |     20.3 |     25.4 |      28.1 |
--------------------------------------------------------------------------------
| Total non-current liabilities              |     57.2 |     73.3 |      66.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Curren liabilities                         |          |          |           |
--------------------------------------------------------------------------------
| Interest-bearing liabilities               |    117.8 |    139.4 |      76.1 |
--------------------------------------------------------------------------------
| Provisions                                 |      5.8 |      6.5 |       7.4 |
--------------------------------------------------------------------------------
| Accounts payable                           |     79.4 |     97.0 |      75.2 |
--------------------------------------------------------------------------------
| Other liabilities                          |    105.6 |    151.0 |     106.0 |
--------------------------------------------------------------------------------
| Total current liabilities                  |    308.6 |    393.9 |     264.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total shareholders' equity and liabilities |    663.2 |    761.6 |     664.3 |
--------------------------------------------------------------------------------




CONSOLIDATED CASH FLOW STATEMENT                                                

--------------------------------------------------------------------------------
| MEUR                                       |     1-6/ |     1-6/ |     1-12/ |
|                                            |     2008 |     2007 |      2007 |
--------------------------------------------------------------------------------
| Net cash from operations                   |     64.4 |    100.6 |     186.0 |
--------------------------------------------------------------------------------
| Change in net working capital              |    -16.4 |    -79.3 |     -45.1 |
--------------------------------------------------------------------------------
| Income taxes paid                          |    -18.0 |    -23.9 |     -42.7 |
--------------------------------------------------------------------------------
| Interest paid                              |     -4.6 |     -3.1 |      -7.1 |
--------------------------------------------------------------------------------
| Interest received                          |      1.0 |      1.1 |       2.7 |
--------------------------------------------------------------------------------
| Cash flow from operations                  |     26.4 |     -4.6 |      93.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investments                 |          |          |           |
--------------------------------------------------------------------------------
| Proceeds from disposal of subsidiaries and |     76.4 |        - |         - |
| businesses                                 |          |          |           |
--------------------------------------------------------------------------------
| Purchase of fixed assets                   |    -15.6 |    -17.0 |     -58.1 |
--------------------------------------------------------------------------------
| Proceeds from sales of fixed assets        |      0.1 |      0.4 |       5.0 |
--------------------------------------------------------------------------------
| Received dividends                         |      0.0 |      0.0 |       0.2 |
--------------------------------------------------------------------------------
| Loan repayments                            |      0.1 |      0.1 |       0.2 |
--------------------------------------------------------------------------------
| Cash flow from investments                 |     61.0 |    -16.5 |     -52.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing                   |          |          |           |
--------------------------------------------------------------------------------
| Borrowings of debt                         |     18.3 |    122.6 |      58.9 |
--------------------------------------------------------------------------------
| Repayments of debt                         |        - |     -0.3 |      -1.7 |
--------------------------------------------------------------------------------
| Dividends paid                             |   -102.5 |   -102.5 |    -102.5 |
--------------------------------------------------------------------------------
| Payment of finance lease liabilities       |     -1.0 |     -1.0 |      -1.9 |
--------------------------------------------------------------------------------
| Cash flow from financing                   |    -85.2 |     18.8 |     -47.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Conversion differences for cash and cash   |      0.0 |      0.0 |       0.0 |
| equivalents                                |          |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and cash equivalents        |      2.2 |     -2.3 |      -6.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents at 1 January     |      6.3 |     12.4 |      12.4 |
--------------------------------------------------------------------------------
| Cash and cash equivalents at end of period |      8.5 |     10.1 |       6.3 |
--------------------------------------------------------------------------------
| Changes according to balance sheet         |      2.2 |     -2.3 |      -6.1 |
--------------------------------------------------------------------------------





STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY                                    

--------------------------------------------------------------------------------
| MEUR     |  Share |  Share |  Other | Treasury |   Trans |  Retain |   Total |
|          | capita | premiu | reserv |   shares |       l |      ed |         |
|          |      l |      m |     es |          |   ation |    earn |         |
|          |        |        |        |          | reserve |       i |         |
|          |        |        |        |          |         |     ngs |         |
--------------------------------------------------------------------------------
| Balance  |  146.4 |   35.6 |   14.3 |        - |   -21.6 |   158.3 |   333.0 |
| at 31    |        |        |        |          |         |         |         |
| Dec 2007 |        |        |        |          |         |         |         |
--------------------------------------------------------------------------------
| Translation       |        |        |          |    -7.8 |         |    -7.8 |
| differences       |        |        |          |         |         |         |
--------------------------------------------------------------------------------
| Cash flow hedges  |        |        |          |         |         |         |
--------------------------------------------------------------------------------
| - recorded in     |        |    0.7 |          |         |         |     0.7 |
| equity, net of    |        |        |          |         |         |         |
| taxes             |        |        |          |         |         |         |
--------------------------------------------------------------------------------
| Net profit for    |        |        |          |         |    74.0 |    74.0 |
| the period        |        |        |          |         |         |         |
--------------------------------------------------------------------------------
| Total recognised  |        |    0.7 |          |    -7.8 |    74.0 |    66.9 |
| income and        |        |        |          |         |         |         |
| expense for the   |        |        |          |         |         |         |
| period            |        |        |          |         |         |         |
--------------------------------------------------------------------------------
| Dividend paid     |        |        |          |         |  -102.5 |  -102.5 |
| (EUR 1.40 per     |        |        |          |         |         |         |
| share)            |        |        |          |         |         |         |
--------------------------------------------------------------------------------
| Other adjustments |        |    0.0 |          |         |    -0.0 |       - |
--------------------------------------------------------------------------------
| Balance  |  146.4 |   35.6 |   15.0 |        - |   -29.4 |   129.8 |   297.4 |
| at 30    |        |        |        |          |         |         |         |
| Jun 2008 |        |        |        |          |         |         |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance  |  146.4 |   42.5 |    6.7 |     -1.6 |   -10.2 |   160.6 |   344.4 |
| at 31    |        |        |        |          |         |         |         |
| Dec 2006 |        |        |        |          |         |         |         |
--------------------------------------------------------------------------------
| Translation       |        |        |          |    -2.0 |         |    -2.0 |
| differences       |        |        |          |         |         |         |
--------------------------------------------------------------------------------
| Net profit for    |        |        |          |         |    54.4 |    54.4 |
| the period        |        |        |          |         |         |         |
--------------------------------------------------------------------------------
| Total recognised  |        |        |          |    -2.0 |    54.4 |    52.4 |
| income and        |        |        |          |         |         |         |
| expense for the   |        |        |          |         |         |         |
| period            |        |        |          |         |         |         |
--------------------------------------------------------------------------------
| Cancelling of     |        |        |      0.3 |         |    -0.3 |       - |
| shares            |        |        |          |         |         |         |
--------------------------------------------------------------------------------
| Dividend paid     |        |        |          |         |  -102.5 |  -102.5 |
| (EUR 1.40 per     |        |        |          |         |         |         |
| share)            |        |        |          |         |         |         |
--------------------------------------------------------------------------------
| Share based       |        |        |      1.3 |         |    -1.3 |       - |
| incentive plan    |        |        |          |         |         |         |
|                   |        |        |          |         |         |         |
--------------------------------------------------------------------------------
| Other adjustments |        |    0.1 |          |         |         |     0.1 |
--------------------------------------------------------------------------------
| Balance  |  146.4 |   42.5 |    6.8 |        - |   -12.2 |   110.9 |   294.4 |
| at 30    |        |        |        |          |         |         |         |
| Jun 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                                       |     1-6/ |     1-6/ |     1-12/ |
|                                            |     2008 |     2007 |      2007 |
--------------------------------------------------------------------------------
| Gross investment                           |     15.6 |     17.0 |      58.1 |
--------------------------------------------------------------------------------
|  - % of net sales                          |      3.1 |      2.7 |       4.8 |
--------------------------------------------------------------------------------
| Depreciation                               |     15.8 |     18.6 |      37.2 |
--------------------------------------------------------------------------------
| Book value of disposed fixed assets        |      2.7 |      0.4 |       2.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| PERSONNEL                                  |          |          |           |
--------------------------------------------------------------------------------
| Converted to full time employees           |     1-6/ |     1-6/ |     1-12/ |
|                                            |     2008 |     2007 |      2007 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average                                    |    4,505 |    4,417 |     4,497 |
--------------------------------------------------------------------------------
| At the end of the period                   |    4,195 |    4,562 |     4,581 |
--------------------------------------------------------------------------------


SEGMENT INFORMATION                                                             

--------------------------------------------------------------------------------
|  | Geographical segments                                                     |
--------------------------------------------------------------------------------
|  |          | 1-6/2008                   | 1-6/2007                          |
--------------------------------------------------------------------------------
|  | MEUR     | Exter | Interna | Total    | External    | Internal   | Total  |
|  |          | nal   | l       |          |             |            |        |
--------------------------------------------------------------------------------
|  | Segment revenue, continuing           |             |            |        |
|  | operations                            |             |            |        |
--------------------------------------------------------------------------------
|  | Central  | 145.2 |    35.3 |    180.5 |       151.0 |       38.7 |  189.7 |
|  | Europe   |       |         |          |             |            |        |
--------------------------------------------------------------------------------
|  | Nordic   | 166.0 |    35.3 |    201.3 |       168.3 |       42.2 |  210.5 |
--------------------------------------------------------------------------------
|  | Europe - | 128.6 |     0.8 |    129.4 |       143.2 |        0.9 |  144.1 |
|  | West,    |       |         |          |             |            |        |
|  | East,    |       |         |          |             |            |        |
|  | South    |       |         |          |             |            |        |
--------------------------------------------------------------------------------
|  | North    |  61.4 |       - |     61.4 |        84.6 |        1.1 |   85.7 |
|  | America  |       |         |          |             |            |        |
--------------------------------------------------------------------------------
|  | Eliminat |     - |   -71.4 |    -71.4 |           - |      -82.9 |  -82.9 |
|  | ions     |       |         |          |             |            |        |
--------------------------------------------------------------------------------
|  | Total    | 501.2 |       - |    501.2 |       547.1 |          - |  547.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|  |          | 4-6/2008                   | 4-6/2007                          |
--------------------------------------------------------------------------------
|  |          | Exter | Interna | Total    | External    | Internal   | Total  |
|  |          | nal   | l       |          |             |            |        |
--------------------------------------------------------------------------------
|  | Segment revenue, continuing           |             |            |        |
|  | operations                            |             |            |        |
--------------------------------------------------------------------------------
|  | Central  |  77.9 |    18.9 |     96.8 |        75.5 |       20.1 |   95.6 |
|  | Europe   |       |         |          |             |            |        |
--------------------------------------------------------------------------------
|  | Nordic   |  90.2 |    18.3 |    108.5 |        94.5 |       21.5 |  116.0 |
--------------------------------------------------------------------------------
|  | Europe - |  64.8 |     0.5 |     65.3 |        69.9 |        0.4 |   70.3 |
|  | West,    |       |         |          |             |            |        |
|  | East,    |       |         |          |             |            |        |
|  | South    |       |         |          |             |            |        |
--------------------------------------------------------------------------------
|  | North    |  34.5 |       - |     34.5 |        48.9 |        1.0 |   49.9 |
|  | America  |       |         |          |             |            |        |
--------------------------------------------------------------------------------
|  | Eliminat |     - |   -37.7 |    -37.7 |           - |      -43.0 |  -43.0 |
|  | ions     |       |         |          |             |            |        |
--------------------------------------------------------------------------------
|  | Total    | 267.4 |       - |    267.4 |       288.8 |          - |  288.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|  |                                 | 1-12/2007                               |
--------------------------------------------------------------------------------
|  | MEUR                            | External    | Internal    | Total       |
--------------------------------------------------------------------------------
|  | 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 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|  |                  |    1-6/ |     1-6/ |        4-6/ |       4-6/ |  1-12/ |
|  |                  |    2008 |     2007 |        2008 |       2007 |   2007 |
--------------------------------------------------------------------------------
|  | Segment result, continuing |          |             |            |        |
|  | operations                 |          |             |            |        |
--------------------------------------------------------------------------------
|  | Central Europe   |    20.7 |     23.4 |        12.5 |       12.5 |   41.1 |
--------------------------------------------------------------------------------
|  | Nordic           |    19.9 |     29.0 |        12.8 |       19.0 |   49.7 |
--------------------------------------------------------------------------------
|  | Europe - West,   |    12.8 |     21.0 |         4.9 |       11.8 |   42.2 |
|  | East, South      |         |          |             |            |        |
--------------------------------------------------------------------------------
|  | North America    |     0.8 |      8.2 |         1.5 |        7.4 |   16.6 |
--------------------------------------------------------------------------------
|  | Others           |    -5.6 |     -6.3 |        -2.1 |       -4.1 |  -13.2 |
--------------------------------------------------------------------------------
|  | Eliminations     |    -0.3 |     -2.9 |        -0.6 |       -1.5 |   -0.7 |
--------------------------------------------------------------------------------
|  | Total            |    48.3 |     72.4 |        29.0 |       45.1 |  135.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|  | MEUR                                  |        1-6/ |       1-6/ |  1-12/ |
|  |                                       |        2008 |       2007 |   2007 |
--------------------------------------------------------------------------------
|  | Segment depreciation and impairments, continuing    |            |        |
|  | operations                                          |            |        |
--------------------------------------------------------------------------------
|  | Central Europe                        |         4.1 |        3.7 |    7.7 |
--------------------------------------------------------------------------------
|  | Nordic                                |         5.0 |        5.2 |   10.1 |
--------------------------------------------------------------------------------
|  | Europe - West, East, South            |         1.4 |        1.2 |    2.2 |
--------------------------------------------------------------------------------
|  | North America                         |         2.7 |        2.6 |    5.6 |
--------------------------------------------------------------------------------
|  | Others                                |         2.0 |        1.6 |    3.3 |
--------------------------------------------------------------------------------
|  | Eliminations                          |         0.3 |        0.2 |    0.6 |
--------------------------------------------------------------------------------
|  | Total                                 |        15.5 |       14.5 |   29.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|  | Segment investments, continuing       |             |            |        |
|  | operations                            |             |            |        |
--------------------------------------------------------------------------------
|  | Central Europe                        |         3.1 |        4.1 |   11.0 |
--------------------------------------------------------------------------------
|  | Nordic                                |         4.8 |        5.8 |   15.5 |
--------------------------------------------------------------------------------
|  | Europe - West, East, South            |         0.5 |        1.5 |    4.0 |
--------------------------------------------------------------------------------
|  | North America                         |         5.0 |        3.3 |   13.4 |
--------------------------------------------------------------------------------
|  | Others                                |         2.2 |        0.7 |    8.1 |
--------------------------------------------------------------------------------
|  | Total                                 |        15.6 |       15.4 |   52.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|  | MEUR                                  |        1-6/ |       1-6/ |  1-12/ |
|  |                                       |        2008 |       2007 |   2007 |
--------------------------------------------------------------------------------
|  | Segment assets                        |             |            |        |
--------------------------------------------------------------------------------
|  | Central Europe                        |       193.2 |      200.5 |  181.4 |
--------------------------------------------------------------------------------
|  | Nordic                                |       212.2 |      232.0 |  185.3 |
--------------------------------------------------------------------------------
|  | Europe - West, East, South            |       164.1 |      253.2 |  240.1 |
--------------------------------------------------------------------------------
|  | North America                         |       109.3 |      121.7 |  123.7 |
--------------------------------------------------------------------------------
|  | Others                                |       512.0 |      628.0 |  577.9 |
--------------------------------------------------------------------------------
|  | Eliminations                          |      -527.6 |     -673.8 | -644.1 |
--------------------------------------------------------------------------------
|  | Total                                 |       663.2 |      761.6 |  664.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|  | Segment liabilities                   |             |            |        |
--------------------------------------------------------------------------------
|  | Central Europe                        |       111.1 |      113.6 |  119.0 |
--------------------------------------------------------------------------------
|  | Nordic                                |       248.5 |      279.1 |  233.5 |
--------------------------------------------------------------------------------
|  | Europe - West, East, South            |        56.6 |      137.8 |  101.9 |
--------------------------------------------------------------------------------
|  | North America                         |        44.1 |       54.7 |   55.0 |
--------------------------------------------------------------------------------
|  | Others                                |       450.2 |      573.1 |  477.8 |
--------------------------------------------------------------------------------
|  | Eliminations                          |      -544.7 |     -691.1 | -655.9 |
--------------------------------------------------------------------------------
|  | Total                                 |       365.8 |      467.2 |  331.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|  |                                       |        1-6/ |       1-6/ |  1-12/ |
|  |                                       |        2008 |       2007 |   2007 |
--------------------------------------------------------------------------------
|  | Segment personnel, average            |             |            |        |
--------------------------------------------------------------------------------
|  | Central Europe                        |       1,245 |      1,246 |  1,261 |
--------------------------------------------------------------------------------
|  | Nordic                                |       1,380 |      1,367 |  1,380 |
--------------------------------------------------------------------------------
|  | Europe - West, East, South            |       1,233 |      1,189 |  1,224 |
--------------------------------------------------------------------------------
|  | North America                         |         581 |        558 |    573 |
--------------------------------------------------------------------------------
|  | Others                                |          66 |         57 |     59 |
--------------------------------------------------------------------------------
| Total                                    |       4,505 |      4,417 |  4,497 |
--------------------------------------------------------------------------------
| Continuing operations                    |       4,096 |      3,929 |  4,008 |
--------------------------------------------------------------------------------
| Discontinued operations                  |         409 |        488 |    489 |
--------------------------------------------------------------------------------
| Business segments                                                            |
--------------------------------------------------------------------------------
|  |                        | 1-6/2008                                         |
--------------------------------------------------------------------------------
|  | Segment external       | Housing          | Infra           | Total       |
|  | revenue, continuing    | solutions        | structure       |             |
|  | operations             |                  | solutions       |             |
--------------------------------------------------------------------------------
|  | Central Europe         |            145.2 |               - |       145.2 |
--------------------------------------------------------------------------------
|  | Nordic                 |             65.7 |           100.3 |       166.0 |
--------------------------------------------------------------------------------
|  | Europe - West, East,   |            122.7 |             5.9 |       128.6 |
|  | South                  |                  |                 |             |
--------------------------------------------------------------------------------
|  | North America          |             61.4 |               - |        61.4 |
--------------------------------------------------------------------------------
|  | Total                  |            395.0 |           106.2 |       501.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|                           | 1-6/2007                                         |
--------------------------------------------------------------------------------
|  | Segment external       | Housing          | Infra           | Total       |
|  | revenue, continuing    | solutions        | structure       |             |
|  | operations             |                  | solutions       |             |
--------------------------------------------------------------------------------
|  | Central Europe         |            151.0 |               - |       151.0 |
--------------------------------------------------------------------------------
|  | Nordic                 |             71.1 |            97.2 |       168.3 |
--------------------------------------------------------------------------------
|  | Europe West, East,     |            136.0 |             7.2 |       143.2 |
|  | South                  |                  |                 |             |
--------------------------------------------------------------------------------
|  | North America          |             84.6 |               - |        84.6 |
--------------------------------------------------------------------------------
|  | Total                  |            442.7 |           104.4 |       547.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|  |                        | 1-12/2007                                        |
--------------------------------------------------------------------------------
|  | Segment external       | Housing          | Infrastructure  | Total       |
|  | revenue, continuing    | solutions        | solutions       |             |
|  | operations             |                  |                 |             |
--------------------------------------------------------------------------------
|  | Central Europe         |            283.7 |               - |       283.7 |
--------------------------------------------------------------------------------
|  | Nordic                 |            133.8 |           191.6 |       325.4 |
--------------------------------------------------------------------------------
|  | Europe - West, East,   |            255.2 |            15.9 |       271.1 |
|  | South                  |                  |                 |             |
--------------------------------------------------------------------------------
|  | North America          |            167.2 |               - |       167.2 |
--------------------------------------------------------------------------------
|  | Total                  |            839.9 |           207.5 |     1,047.4 |
--------------------------------------------------------------------------------


CONTINGENT LIABILITIES                                                          

--------------------------------------------------------------------------------
| MEUR                                       | 30.6.    | 30.6.    | 31.12.    |
|                                            | 2008     | 2007     | 2007      |
--------------------------------------------------------------------------------
| Group:                                     |          |          |           |
--------------------------------------------------------------------------------
| Mortgages                                  |        - |        - |       0.0 |
| - on own behalf                            |          |          |           |
--------------------------------------------------------------------------------
| Guarantees                                 |          |          |           |
--------------------------------------------------------------------------------
| - on behalf of others                      |      1.6 |     12.7 |      11.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Parent company:                            |          |          |           |
--------------------------------------------------------------------------------
| Guarantees                                 |          |          |           |
--------------------------------------------------------------------------------
| - on behalf of a subsidiary                |      7.5 |     11.0 |      10.5 |
--------------------------------------------------------------------------------
| - on behalf of others                      |      7.2 |      9.5 |       9.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING LEASE COMMITMENTS                |     23.4 |     24.2 |      24.4 |
--------------------------------------------------------------------------------


DERIVATIVE CONTRACTS                                                            

--------------------------------------------------------------------------------
| MEUR        | Nominal | Fair   | Nominal  | Fair     | Nominal   | Fair      |
|             | value   |  value | value    | value    | value     | value     |
|             | 30.6.   | 30.6.  | 30.6.    | 30.6.    | 31.12.    | 31.12.    |
|             | 2008    | 2008   | 2007     | 2007     | 2007      | 2007      |
--------------------------------------------------------------------------------
| Currency    |   111.6 |    1.0 |     49.3 |     -0.2 |      85.9 |       1.7 |
| derivatives |         |        |          |          |           |           |
| - Forward   |         |        |          |          |           |           |
| agreements  |         |        |          |          |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Commodity   |     3.8 |    2.0 |      4.9 |      0.1 |       3.6 |       0.8 |
| derivatives |         |        |          |          |           |           |
| - Forward   |         |        |          |          |           |           |
| agreements  |         |        |          |          |           |           |
--------------------------------------------------------------------------------


DISCONTINUED OPERATIONS                                                         

Divested infrastructure businesses in 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 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 the Uponor Ltd's business in the   
Republic of Ireland. In April, Uponor Klärtechnik GmbH in Germany was sold.     

--------------------------------------------------------------------------------
| MEUR                                       |     1-6/ |     1-6/ |     1-12/ |
|                                            |     2008 |     2007 |      2007 |
--------------------------------------------------------------------------------
| Net sales                                  |      8.9 |     87.9 |     171.9 |
--------------------------------------------------------------------------------
| Expenses                                   |      9.9 |     78.9 |     156.5 |
--------------------------------------------------------------------------------
| Profit before taxes                        |     -1.0 |      9.0 |      15.4 |
--------------------------------------------------------------------------------
| Income taxes                               |      0.0 |      2.8 |       4.9 |
--------------------------------------------------------------------------------
| Profit after taxes                         |     -1.0 |      6.2 |      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 |      6.2 |      10.5 |
| operations                                 |          |          |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from discontinued operations     |          |          |           |
--------------------------------------------------------------------------------
| Cash flow from operations                  |     -3.6 |     14.5 |      19.1 |
--------------------------------------------------------------------------------
| Cash flow from investments                 |     76.4 |     -1.6 |      -6.1 |
--------------------------------------------------------------------------------


DISPOSAL OF BUSINESSES                                                          

Disposal of businesses includes the divestments of infrastructure business in   
UK, Ireland and Germany, classified as discontinued operations.                 

Book value of assets disposed                                                   
--------------------------------------------------------------------------------
| MEUR                                       |     1-6/ |     1-6/ |     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, 5.0 MEUR vendor loan note was      
issued at closing of the deal. Total sales price of the transactions was 82.5   
MEUR.                                                                           


RELATED-PARTY TRANSACTIONS                                                      

--------------------------------------------------------------------------------
| MEUR                                       |     1-6/ |     1-6/ |     1-12/ |
|                                            |     2008 |     2007 |      2007 |
--------------------------------------------------------------------------------
| Continuing operations                      |          |          |           |
--------------------------------------------------------------------------------
| Purchases from associated companies        |      1.1 |      1.0 |       2.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balances at the end of the period          |          |          |           |
--------------------------------------------------------------------------------
| Loan receivable from associated companies  |        - |      1.1 |       1.0 |
--------------------------------------------------------------------------------
| Accounts and other receivables             |        - |      1.7 |       1.1 |
--------------------------------------------------------------------------------
| Accounts payables and other liabilities    |      0.1 |      0.6 |       0.2 |
--------------------------------------------------------------------------------


KEY FIGURES                                                                     

--------------------------------------------------------------------------------
|                                            |     1-6/ |     1-6/ |     1-12/ |
|                                            |     2008 |     2007 |      2007 |
--------------------------------------------------------------------------------
| Earnings per share, EUR                    |     1.01 |     0.74 |      1.39 |
--------------------------------------------------------------------------------
| - continuing operations                    |     0.43 |     0.66 |      1.25 |
--------------------------------------------------------------------------------
| - discontinued operations                  |     0.58 |     0.08 |      0.14 |
--------------------------------------------------------------------------------
| Operating profit (continuing operations),  |      9.6 |     13.2 |      13.0 |
| %                                          |          |          |           |
--------------------------------------------------------------------------------
| Return on equity, %, cumulative            |     47.0 |     34.1 |      30.1 |
--------------------------------------------------------------------------------
| Return on investment, %, cumulative        |     43.8 |     40.1 |      39.2 |
--------------------------------------------------------------------------------
| Solvency ratio, %                          |     44.9 |     38.7 |      50.2 |
--------------------------------------------------------------------------------
| Gearing, %                                 |     42.7 |     51.0 |      25.4 |
--------------------------------------------------------------------------------
| Net interest-bearing liabilities           |    127.0 |    150.1 |      84.5 |
--------------------------------------------------------------------------------
| Equity per share, EUR                      |     4.06 |     4.02 |      4.55 |
--------------------------------------------------------------------------------
| - diluted                                  |     4.06 |     4.02 |      4.55 |
--------------------------------------------------------------------------------
| Trading price of shares                    |          |          |           |
--------------------------------------------------------------------------------
| - low, EUR                                 |     9.15 |    25.56 |     15.31 |
--------------------------------------------------------------------------------
| - high, EUR                                |    18.91 |    31.45 |     31.45 |
--------------------------------------------------------------------------------
| - average, EUR                             |    14.51 |    28.20 |     23.76 |
--------------------------------------------------------------------------------
| Shares traded                              |          |          |           |
--------------------------------------------------------------------------------
| - 1,000 pcs                                |   56,260 |   39,438 |    99,423 |
--------------------------------------------------------------------------------
| - MEUR                                     |      816 |    1,112 |     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