Uponor Corporation Interim report January-June 2010 12 August 2010
Revived demand boosted Uponor's profitability
- In building solutions, revived demand boosted profitability - infrastructure
solutions' performance continued to be weak
- Net sales in April-June totalled EUR 204.6 million, up by 5.9%; operating
profit EUR 18.8 million, up by 51.4%
- Net sales in January-June totalled EUR 362.0 (364.3) million; a change of
-0.6%
- Operating profit in January-June totalled EUR 20.3 (11.4) million; a change
of +77.3%
- Earnings per share for January-June were EUR 0.12 (0.07)
- Return on investment was 9.0% (4.1%), and gearing 54.3% (55.4%)
- Cash flow from business operations amounted to EUR -19.0 (-2.8) million.
- Full-year guidance remains unchanged
(Figures for continuing operations unless otherwise stated.)
President and CEO Jyri Luomakoski comments on Uponor's performance:
- Our building solutions business continued its strong progress in Europe. Due
to the reforms and restructurings implemented earlier, our profitability
returned close to pre-recession levels, despite lower net sales.
- Overall, demand in the second quarter did not meet the expectations generated
by market sentiment that had improved after the winter. The modest number of
infrastructure projects was disappointing.
- Although many countries have seen numerous signs of recovery in residential
construction, we are not yet expecting a sustained steady growth in demand.
Staying alert and prepared for a wide range of challenges continues to be
justified.
Webcast and presentation material:
Following the release of this report, the presentation material for the interim
report will be available at www.uponor.com > Investors > News & downloads.
The webcast from the release briefing will be broadcast in English on Thursday,
12 August at 10:00 am. Questions for the webcast can be sent in advance to
ir@uponor.com.
The webcast can also be viewed at www.uponor.com>Investors shortly after the
financial information is published.
Uponor Corporation will publish its interim report January-September on Tuesday,
26 October 2010. During the silent period, 1 to 26 October, Uponor will not
comment on market prospects or factors affecting business and performance.
Markets
Confidence in the recovery of the building sector, signs of which were already
visible in the first quarter, somewhat strengthened in April-June. However, this
improvement has been subject to major fluctuations and differences between
countries. Unexpected disturbances in the global financial markets during spring
and early summer, combined with withdrawals of public revitalisation measures,
have weakened business and consumer confidence in the future, affecting, for
instance, building sector demand in some markets.
This trend was most evident in North America where the abolition of the tax
deduction for homebuyers in April spurred housing sales before the deadline.
Meanwhile, however, the distribution channel began to downsize inventories in
anticipation of weakening demand. The pick-up of the building sector was further
delayed by the US economy's slower than expected recovery from recession. In
Canada, demand continued to be relatively strong, as was the case in the first
quarter.
In Central Europe and its largest market, Germany, the demand for residential
construction developed favourably, offsetting most of the net sales lost in
early 2010 due to the severe winter. However, order book in the public and
commercial building sector, a key business area for Uponor, developed modestly.
The Nordic countries have seen continued recovery in demand for building
solutions since the first quarter, reflected in strong growth in Finland and
Sweden. Market sentiment was significantly improved compared to a year ago in
some Eastern European countries, such as Russia and Poland, whereas in the
Baltic countries and South East Europe, the construction sector has not yet
revived. Elsewhere in Europe, demand remained relatively unchanged year on year.
In Spain, demand continued to fall in most sectors and, for example, the number
of building permits continued to decline from last year's already low levels. On
the other hand, home sales figures achieved a reasonable level, like in the
first quarter. Furthermore, some public and commercial building projects have
already been launched in large cities.
Demand for infrastructure solutions rebounded from the decline caused by the
harsh winter but was weaker than expected as projects driven by central and
local government decreased.
Net sales
Consolidated net sales in April-June totalled EUR 204.6 (193.3) million, up by
5.9 per cent on a year earlier. Net sales improved in the building solutions
segments, with the North American segment experiencing the fastest relative
growth.
Improvement in the market situation in the second quarter was reflected in net
sales in all of Uponor's largest markets, outperforming Q1 year on year. The
greatest growth (in euros) was reported by the United States, Canada, Norway and
Sweden. Also on a positive note, the new country units and sales offices opened
over the last couple of years clearly improved their net sales from last year.
This creates further confidence for future growth.
In Europe, net sales in building solutions saw substantial growth in the Nordic
countries, whereas net sales in Central Europe declined, mainly due to weakened
demand in the Netherlands and lower OEM sales, in particular, in Germany. In
other markets, housing solutions' sales were broadly at the previous year's
levels.
In addition to market recovery, net sales in building solutions were boosted by
the pick-up in demand attributable to new products introduced over the last
couple of years. In particular, this applies to Uponor's indoor climate
solutions, the energy-efficient and environmentally-friendly features of which
stimulated interest among customers. As regards plumbing systems, Uponor's
solutions for renovation projects progressed well, especially in the Nordic
countries. In North America, the share of net sales from plumbing systems
increased since most new apartments built, particularly in the United States,
were entry-level homes in which underfloor heating is not as common as in larger
and more sophisticated houses.
Due to the weaker demand for infrastructure solutions, our efforts to catch up
with the decline in net sales caused by the severe winter produced only modest
results. Since the decline in demand also intensified price competition, Uponor
decided not to participate in some projects whose profitability had been eroded.
This further accelerated the decline in net sales in the infrastructure
solutions business.
The translation impact of currencies for April-June net sales was EUR 7.4
million in comparison to the previous year.
Breakdown of net sales (April-June):
--------------------------------------------------------------------------------
| MEUR | 4-6/2010 | 4-6/2009 | Change |
--------------------------------------------------------------------------------
| Building Solutions - Europe | 130.9 | 125.3 | 4.4% |
--------------------------------------------------------------------------------
| Building Solutions - North | 33.5 | 26.5 | 25.9% |
| America | | | |
--------------------------------------------------------------------------------
| (Building Solutions - North | 42.5 | 36.5 | 16.3%) |
| America, USD | | | |
--------------------------------------------------------------------------------
| Infrastructure Solutions | 42.6 | 42.8 | -0.3% |
--------------------------------------------------------------------------------
| Eliminations | -2.4 | -1.3 | |
--------------------------------------------------------------------------------
| Total | 204.6 | 193.3 | 5.9% |
--------------------------------------------------------------------------------
Thanks to the higher growth rate in building solutions' net sales in April-June,
the Group's first-half net sales almost reached the previous year's level. This
trend was mostly hampered by the lower-than-expected net sales in infrastructure
solutions in January-June.
The translation impact of currencies for January-June net sales was EUR 10.2
million in comparison to the previous year.
Breakdown of net sales (January-June):
--------------------------------------------------------------------------------
| MEUR | 1-6/2010 | 1-6/2009 | Change |
--------------------------------------------------------------------------------
| Building solutions - Europe | 242.9 | 240.9 | 0.8% |
--------------------------------------------------------------------------------
| Building Solutions - North | 58.0 | 51.5 | 12.5% |
| America | | | |
--------------------------------------------------------------------------------
| (Building Solutions - North | 76.1 | 68.8 | 10.5%) |
| America, USD | | | |
--------------------------------------------------------------------------------
| Infrastructure Solutions | 64.5 | 74.2 | -13.1% |
--------------------------------------------------------------------------------
| Eliminations | -3.4 | -2.3 | |
--------------------------------------------------------------------------------
| Total | 362.0 | 364.3 | -0.6% |
--------------------------------------------------------------------------------
Results and profitability
The measures implemented in recent years, such as restructuring programmes and
initiatives enhancing supply chain efficiency, clearly strengthened Uponor's
profitability as fixed costs remained mainly unchanged while net sales
increased. This trend is most evident in our building solutions business in
Europe, the profitability of which improved clearly.
Uponor's consolidated gross profit for April-June totalled EUR 80.7 (71.7)
million. This slight improvement was attributable to the price increases
implemented as well as the reduction in material costs in relation to net sales.
The weak performance in infrastructure solutions business was mainly
attributable to lower sales and the delay in passing on the increase in raw
material prices through to sales prices. In Europe, building solutions'
profitability was pressured by costs arising from the closure of two warehouses.
Meanwhile, in North America, higher net sales and a favourable cost development
yielded a positive operating result.
The impact of currency fluctuations on operating profit was insignificant in
April-June.
Breakdown of operating profit (April-June):
--------------------------------------------------------------------------------
| MEUR | 4-6/2010 | 4-6/2009 | Change |
--------------------------------------------------------------------------------
| Building Solutions - Europe | 16.4 | 10.7 | 52.4% |
--------------------------------------------------------------------------------
| Building Solutions - North | 2.0 | -0.3 | 876.4% |
| America | | | |
--------------------------------------------------------------------------------
| (Building Solutions - North | 2.7 | -0.5 | 661.3%) |
| America, USD | | | |
--------------------------------------------------------------------------------
| Infrastructure Solutions | 3.1 | 5.9 | -47.7% |
--------------------------------------------------------------------------------
| Other | -2.7 | -2.8 | |
--------------------------------------------------------------------------------
| Eliminations | 0.0 | -1.1 | |
--------------------------------------------------------------------------------
| Total | 18.8 | 12.4 | 51.4% |
--------------------------------------------------------------------------------
Uponor's operating profit for January-June totalled EUR 20.3 (11.4) million, up
by 77.3 per cent year on year. Profitability or operating profit margin improved
to 5.6 per cent from the 3.1 per cent reported a year ago. Expenses for
January-June remained at the previous year's level despite an impact of EUR 3.4
million from currency fluctuations.
Despite the favourable development during the second quarter, the first
quarter's weak performance caused by the recession and the harsh winter clearly
weakened the first half's operating profit.
In January-June, the impact of currency fluctuations on operating profit was
insignificant.
Breakdown of operating profit (January-June):
--------------------------------------------------------------------------------
| MEUR | 1-6/2010 | 1-6/2009 | Change |
--------------------------------------------------------------------------------
| Building Solutions - Europe | 25.4 | 14.0 | 81.5% |
--------------------------------------------------------------------------------
| Building Solutions - North | 0.2 | -3.5 | 104.5% |
| America | | | |
--------------------------------------------------------------------------------
| (Building Solutions - North | 0.2 | -4.6 | 104.6%) |
| America, USD | | | |
--------------------------------------------------------------------------------
| Infrastructure Solutions | -0.9 | 6.4 | -114.5 % |
--------------------------------------------------------------------------------
| Other | -4.6 | -5.2 | |
--------------------------------------------------------------------------------
| Eliminations | 0.2 | -0.3 | |
--------------------------------------------------------------------------------
| Total | 20.3 | 11.4 | 77.3% |
--------------------------------------------------------------------------------
The Group's discontinued operations for the second quarter include expenses from
the soil decontamination measures associated with a factory property for sale.
These expenses totalled EUR 0.4 million. The cleaning up of the soil was
concluded during the reporting period.
For the period April-June, profit before taxes totalled EUR 15.5 (11.4) million.
Taxes for the period amounted to EUR 4.7 (3.2) million. The tax rate rose to
30.0 (28.0) per cent. Profit for the period amounted to EUR 10.8 (8.2) million.
Earnings per share were EUR 0.15 (0.12), both basic and diluted. Equity per
share was EUR 3.30 (3.38), basic and diluted.
Investment and financing
No significant new investment projects were initiated during the reporting
period. Gross investments came to EUR 5.4 (8.9) million, significantly less than
depreciation which amounted to EUR 15.0 (15.5) million. Cash flow from business
operations came to EUR -19.0 (-2.8) million. Cash flow was clearly weaker than
a year earlier due to the increase in inventories in anticipation of higher
summer demand, whereas in 2009 there was an exceptional reduction in
inventories due to the weak market situation. Moreover, measures enhancing
supply chain efficiency reduced capital tied up in inventories during the
comparison period.
The Group continues to pay particular attention to safeguarding its liquidity at
all times. Follow-up of accounts receivable and actions to avoid possible credit
risk realisations are being actively continued. In these respects, the period
under review showed a favourable development.
The Group's financial position continued to remain healthy. At the end of June,
EUR 56 million was left from the EUR 80 million of the company's pension
contribution borrowed back from a Finnish pension insurance company. At period
end, EUR 61 million was issued of the EUR 150 million domestic commercial paper
programme. Available bilateral credit limits amounted to EUR 190 million, none
of which was in use at the end of the reporting period. The maturity of these
bilateral credit limits was extended during the period so that EUR 70 million of
them will become due in 2015.
Uponor's gearing remained at a healthy level. Interest-bearing liabilities, a
total of EUR 130.8 million, decreased from EUR 136.8 million a year earlier, due
to, inter alia, the smaller dividends paid out compared to 2009. The period-end
cash balance totalled EUR 6.8 million (1 January 2010: EUR 13.2 million; 31
March 2010: EUR 6.3 million). Gearing decreased to 54.3 per cent (55.4 per
cent), and remains in line with the target.
Key events
Uponor continued its active marketing efforts initiated at the beginning of the
year and presented its new product and system solutions to customers at various
events. At the World Expo 2010 Shanghai, which opened on 1 May, Uponor's
solutions were used in the pavilions of Finland and the city of Madrid, and in
the Pavilion of Innovation built by the Germans. The theme of the Expo is
"Better City, Better Life". Uponor presented its indoor climate know-how and
solar energy-based cooling.
Furthermore, Uponor's solutions were showcased at Europe's first Solar Decathlon
competition organised in Spain. At this event, university teams competed to
construct a house with the lowest energy consumption, utilising solar power. The
house that utilised Uponor's indoor climate solutions won the 1st prize in the
categories industrialisation and market feasibility. In addition, it won most
votes from the 190,000 visitors.
In May, the European Union published the new energy efficiency directive for
buildings. In the longer term, the directive is expected to have a positive
impact on the demand for Uponor products, especially its indoor climate
offering, in whose marketing energy efficiency and environmental friendliness
are central.
In Spain, Uponor scored a promising new niche as it started co-operation with a
leading national grocery chain on delivering underfloor heating for the
refrigerated goods sections in their stores. The retailer considered that
customers tended to leave the refrigerated section too quickly. Thanks to
underfloor heating, the floors will radiate warmth where the customers walk. In
addition, this solution is environmentally friendly since the energy for the
underfloor heating comes from waste energy generated by the freezers' cooling
systems.
In Finland, Uponor was one of the founding members of Green Building Council
Finland that promotes sustainable practices related to the built environment.
Uponor participated for the first time in the international Carbon Disclosure
Project, thus reporting its first ever Group-level environmental data to
institutional investors. The aim of the CDP project is to curb climate change by
highlighting, for instance, industrial carbon dioxide emissions.
In an annual survey of small and medium-sized industrial enterprises carried out
by the University of Vienna, Uponor ranked among Germany's 100 most innovative
companies. One of the reasons for the ranking was Uponor's ability to further
develop its 20-year-old composite pipe system offering, continuously expanding
this product family and creating added value for customers year after year.
In Hamburg, Germany, Uponor organised the second series of high-level Uponor
Knowledge Days for its Eastern European and International Sales customers and
key decision-makers. The themes focused on sustainable development and Uponor's
cooling solutions.
Uponor continued to enhance its supply chain efficiency within building
solutions by closing two warehouses, one in Eastern Europe and the other in the
Nordic countries, and by moving to a new distribution centre in Spain. Despite
the increase in production volumes in all but one factory, delivery reliability
was according to plan during the reporting period.
Human resources and administration
In January-June, the number of Group full-time-equivalent employees in
continuing operations averaged 3,203 (3,515), a reduction of 312 employees from
the same period in 2009. At the end of the period, the Group had 3,272 (3,449)
employees, a reduction of 177 from the end of the comparison period and 44 from
the end of 2009.
Significant restructuring programmes affecting personnel were not implemented
during the reporting period.
Share capital and shares
Approximately 9.5 (10.8) million Uponor shares were traded on the Helsinki stock
exchange during the second quarter. The total value of shares traded stood at
EUR 119.0 (91.0) million. The market value of the share capital at the end of
the period was EUR 0.9 (0.6) billion, and the number of shareholders was 22,288
(19,879).
There were no changes in Uponor's share capital. The share capital amounted to
EUR 146,446,888 and the number of shares totalled 73,206,944.
On 30 June 2010, the company held 160,000 own shares, representing 0.2 per cent
of the share capital and votes. These shares were acquired in the final quarter
of 2008 for use in the company's share-based incentive programme.
The annual general meeting held on 17 March authorised the Board to resolve,
within one year from the date of the meeting, to buy back the company's own
shares using distributable earnings from unrestricted equity. The Board may buy
back a maximum of 3.5 million shares, amounting in total to approximately 4.8
per cent of the total number of the shares of the corporation.
Events after the reporting period
In July, Uponor sold the premises of the factory that was closed in Hadsund,
Denmark, last autumn. The transaction did not have a notable income impact.
Short-term outlook
The construction markets are expected to continue to grow during the second half
of 2010, but it is likely that the growth will not be steady nor rapid. In the
Nordic countries, the improvement in the infrastructure solutions market has
clearly decelerated from last year due to the withdrawal of public recovery
measures. This trend is expected to affect building solutions, too, as the
abolishment of incentives introduced during the recession will reduce the
willingness of consumers and businesses to invest.
Towards the end of 2010, growth in demand will be based mainly on the
strengthening of economies recovering from the recession as well as a gradual
revival in postponed housing demand. Meanwhile, the public and commercial
building sector is not yet expected to pick up during 2010. As stated in our
interim report for January-March, we expect this year to remain challenging.
Uponor's financial performance in the first half of 2010 demonstrates that the
extensive development and restructuring programmes have clearly improved the
company's profitability. Although the Group's main focus has shifted to
promoting growth, including measures to modernise product and service offering
and invest in marketing, Uponor will continue to implement a careful cost
management policy as well.
Uponor's financial performance may always be affected by a range of strategic,
operational, financial and hazard risks. A more detailed risk analysis is
provided in the company's Annual Report.
Under these circumstances, Uponor maintains its full-year guidance: Uponor's net
sales in 2010 are expected to remain level with 2009, and operating profit is
expected to improve from last year's reported operating profit. The Group's
fixed-asset investments are not expected to exceed depreciation, and efficient
net working capital management measures will help maintain the Group's cash flow
at a reasonable level.
Uponor Corporation
Board of Directors
For further information, please contact:
Jyri Luomakoski, President and CEO, tel. +358 (0)20 129 2824
Riitta Palomäki, CFO, tel. +358 (0)20 129 2822
Tarmo Anttila
Vice President, Communications
Tel. +358 (0)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 reference figures for the
equivalent period in 2009. The change percentages reported have been calculated
from the exact figures and not from the rounded figures published in the interim
report.
INTERIM REPORT JANUARY-JUNE 2010
The figures in this interim report are unaudited.
CONDENCED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
--------------------------------------------------------------------------------
| MEUR | 1-6/ | 1-6/ | 4-6/ | 4-6/ | 1-12/ |
| | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Continuing operations |
--------------------------------------------------------------------------------
| Net sales | 362.0 | 364.3 | 204.6 | 193.3 | 734.1 |
--------------------------------------------------------------------------------
| Cost of goods sold | 222.5 | 232.7 | 123.9 | 121.6 | 463.0 |
--------------------------------------------------------------------------------
| Gross profit | 139.5 | 131.6 | 80.7 | 71.7 | 271.1 |
--------------------------------------------------------------------------------
| Other operating income | 1.1 | 0.3 | 0.5 | 0.3 | 4.2 |
--------------------------------------------------------------------------------
| Dispatching and | 14.9 | 15.3 | 7.4 | 7.5 | 32.4 |
| warehousing expenses | | | | | |
--------------------------------------------------------------------------------
| Sales and marketing | 74.0 | 72.6 | 38.5 | 34.8 | 140.1 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Administration expenses | 23.6 | 24.6 | 12.3 | 13.3 | 45.0 |
--------------------------------------------------------------------------------
| Other operating expenses | 7.8 | 8.0 | 4.2 | 4.0 | 16.6 |
--------------------------------------------------------------------------------
| Operating profit | 20.3 | 11.4 | 18.8 | 12.4 | 41.2 |
--------------------------------------------------------------------------------
| Financial expenses, net | 7.4 | 5.2 | 3.3 | 1.0 | 12.7 |
--------------------------------------------------------------------------------
| Profit before taxes | 12.9 | 6.2 | 15.5 | 11.4 | 28.5 |
--------------------------------------------------------------------------------
| Income taxes | 3.9 | 1.7 | 4.7 | 3.2 | 11.3 |
--------------------------------------------------------------------------------
| Profit for the period | 9.0 | 4.5 | 10.8 | 8.2 | 17.2 |
| from continuing | | | | | |
| operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinued operations |
--------------------------------------------------------------------------------
| Profit for the period | -0.9 | -1.9 | -0.5 | -1.9 | -5.7 |
| from discontinued | | | | | |
| operations | | | | | |
--------------------------------------------------------------------------------
| Profit for the period | 8.1 | 2.6 | 10.3 | 6.3 | 11.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive income |
--------------------------------------------------------------------------------
| Translation differences | 17.1 | 0.9 | 8.7 | -1.7 | 2.4 |
--------------------------------------------------------------------------------
| Cash flow hedges | 0.4 | 0.1 | 0.8 | 0.5 | 0.5 |
--------------------------------------------------------------------------------
| Net investment hedges | -6.3 | - | -3.1 | - | - |
--------------------------------------------------------------------------------
| Other comprehensive | 11.2 | 1.0 | 6.4 | -1.2 | 2.9 |
| income for the period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive | 19.3 | 3.6 | 16.7 | 5.1 | 14.4 |
| income for the period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0.11 | 0.04 | 0.14 | 0.09 | 0.16 |
--------------------------------------------------------------------------------
| - Continuing operations | 0.12 | 0.07 | 0.15 | 0.12 | 0.24 |
--------------------------------------------------------------------------------
| - Discontinued | -0.01 | -0.03 | -0.01 | -0.03 | -0.08 |
| operations | | | | | |
--------------------------------------------------------------------------------
| Diluted earnings per | 0.11 | 0.04 | 0.14 | 0.09 | 0.16 |
| share, EUR | | | | | |
--------------------------------------------------------------------------------
| - Continuing operations | 0.12 | 0.07 | 0.15 | 0.12 | 0.24 |
--------------------------------------------------------------------------------
| - Discontinued | -0.01 | -0.03 | -0.01 | -0.03 | -0.08 |
| operations | | | | | |
--------------------------------------------------------------------------------
CONDENCED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
--------------------------------------------------------------------------------
| MEUR | 30.6. | 30.6. | 31.12. |
| | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Assets |
--------------------------------------------------------------------------------
| Non-current assets |
--------------------------------------------------------------------------------
| Property, plant and equipment | 175.3 | 177.0 | 175.1 |
--------------------------------------------------------------------------------
| Intangible assets | 99.7 | 100.1 | 101.5 |
--------------------------------------------------------------------------------
| Securities and long-term investments | 8.4 | 7.8 | 7.5 |
--------------------------------------------------------------------------------
| Deferred tax assets | 15.9 | 16.3 | 12.0 |
--------------------------------------------------------------------------------
| Total non-current assets | 299.3 | 301.2 | 296.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets |
--------------------------------------------------------------------------------
| Inventories | 90.4 | 86.7 | 74.3 |
--------------------------------------------------------------------------------
| Accounts receivable | 147.8 | 140.7 | 88.2 |
--------------------------------------------------------------------------------
| Other receivables | 13.8 | 22.7 | 26.8 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 6.8 | 3.0 | 13.2 |
--------------------------------------------------------------------------------
| Total current assets | 258.8 | 253.1 | 202.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total assets | 558.1 | 554.3 | 498.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity and liabilities |
--------------------------------------------------------------------------------
| Shareholders' equity | 240.8 | 247.1 | 258.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 59.6 | 72.1 | 60.2 |
--------------------------------------------------------------------------------
| Deferred tax liability | 10.1 | 9.5 | 9.7 |
--------------------------------------------------------------------------------
| Provisions | 5.7 | 6.9 | 5.7 |
--------------------------------------------------------------------------------
| Employee benefits and other liabilities | 15.4 | 18.4 | 22.1 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 90.8 | 106.9 | 97.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 78.0 | 67.7 | 17.6 |
--------------------------------------------------------------------------------
| Provisions | 7.1 | 12.0 | 12.7 |
--------------------------------------------------------------------------------
| Accounts payable | 58.7 | 48.0 | 45.0 |
--------------------------------------------------------------------------------
| Other liabilities | 82.7 | 72.6 | 67.6 |
--------------------------------------------------------------------------------
| Total current liabilities | 226.5 | 200.3 | 142.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total shareholders' equity and liabilities | 558.1 | 554.3 | 498.6 |
--------------------------------------------------------------------------------
CONDENCED CONSOLIDATED STATEMENT OF CASH FLOW
--------------------------------------------------------------------------------
| MEUR | 1-6/ | 1-6/ | 1-12/ |
| | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Cash flow from operations |
--------------------------------------------------------------------------------
| Net cash from operations | 28.2 | 22.9 | 65.7 |
--------------------------------------------------------------------------------
| Change in net working capital | -44.3 | -9.3 | 25.9 |
--------------------------------------------------------------------------------
| Income taxes paid | -1.4 | -14.3 | -8.5 |
--------------------------------------------------------------------------------
| Interest paid | -1.9 | -2.8 | -5.2 |
--------------------------------------------------------------------------------
| Interest received | 0.4 | 0.7 | 0.9 |
--------------------------------------------------------------------------------
| Cash flow from operations | -19.0 | -2.8 | 78.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investments |
--------------------------------------------------------------------------------
| Acquisition of subsidiary shares | - | - | -1.9 |
--------------------------------------------------------------------------------
| Purchase of fixed assets | -5.4 | -8.9 | -24.0 |
--------------------------------------------------------------------------------
| Proceeds from sales of fixed assets | 2.8 | 1.5 | 7.3 |
--------------------------------------------------------------------------------
| Received dividends | 0.0 | 0.0 | 0.2 |
--------------------------------------------------------------------------------
| Loan repayments | 0.0 | 0.0 | 0.2 |
--------------------------------------------------------------------------------
| Cash flow from investments | -2.6 | -7.4 | -18.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing |
--------------------------------------------------------------------------------
| Borrowings and repayments of debt | 52.6 | 23.0 | -36.4 |
--------------------------------------------------------------------------------
| Dividends paid | -36.5 | -62.1 | -62.1 |
--------------------------------------------------------------------------------
| Payment of finance lease liabilities | -0.9 | -1.0 | -2.0 |
--------------------------------------------------------------------------------
| Cash flow from financing | 15.2 | -40.1 | -100.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Conversion differences for cash and cash | 0.0 | 0.1 | -0.1 |
| equivalents | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and cash equivalents | -6.4 | -50.2 | -40.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents at 1 January | 13.2 | 53.2 | 53.2 |
--------------------------------------------------------------------------------
| Cash and cash equivalents at end of period | 6.8 | 3.0 | 13.2 |
--------------------------------------------------------------------------------
| Changes according to balance sheet | -6.4 | -50.2 | -40.0 |
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN EQUITY
--------------------------------------------------------------------------------
| MEUR | Share | Share | Other | Trans- | Treasury | Retained | Total |
| | capital| premium|reserves*| lation | shares | earnings | |
| | | | | reserve | | | |
--------------------------------------------------------------------------------
| Balance | 146.4 | 50.2 | 1.3 | -14.0 | -1.2 | 75.3 | 258.0 |
| at 31 | | | | | | | |
| Dec 2009| | | | | | | |
|-------------------------------------------------------------------------------
| Total | | -5.9 | 17.1 | | 8.1 | 19.3 |
| comprehensive | | | | | | |
| income for the | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| Dividend paid | | | | | -36.5 | -36.5 |
| (EUR 0.50 per | | | | | | |
| share) | | | | | | |
--------------------------------------------------------------------------------
| Other | | 0.0 | | | 0.0 | - |
| adjustments | | | | | | |
--------------------------------------------------------------------------------
| Balance | 146.4 | 50.2 | -4.6 | 3.1 | -1.2 | 46.9 | 240.8 |
| at 30 | | | | | | | |
|June 2010| | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance | 146.4 | 50.2 | 0.8 | -16.4 | -1.2 | 125.8 | 305.6 |
| at 31 | | | | | | | |
| Dec 2008| | | | | | | |
--------------------------------------------------------------------------------
| Total | | 0.1 | 0.9 | | 2.6 | 3.6 |
| comprehensive | | | | | | |
| income for the | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| Dividend paid | | | | | -62.1 | -62.1 |
| (EUR 0.85 per | | | | | | |
| share) | | | | | | |
--------------------------------------------------------------------------------
| Other | | 0.0 | | | 0.0 | - |
| adjustments | | | | | | |
--------------------------------------------------------------------------------
| Balance | 146.4 | 50.2 | 0.9 | -15.5 | -1.2 | 66.3 | 247.1 |
| at 30 | | | | | | | |
|June 2009| | | | | | | |
--------------------------------------------------------------------------------
*) Includes a EUR -6.3m effective portion of the net investment hedge.
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 the EU and IAS 34 Interim Financial
Reporting. In its interim reports Uponor Group follows the same principles as in
the annual financial statements for 2009, with the exception of the changes
listed below.
Hedge accounting
Hedges of net investments in foreign operations are accounted for from the
beginning of 2010 for certain designated internal loans as defined by Group
Treasury Committee. Any gain or loss on the hedging instrument relating to the
effective portion of the hedge is recognised in other comprehensive income and
accumulated in other reserves. The gain or loss relating to the ineffective
portion is recognised immediately in profit or loss. The application of net
investment hedges did not result in any one-time effects.
Operating segments
Since 1 January 2009, Uponor has applied three segments in its financial
reporting. These were defined based on geographic regions and businesses, in
accordance with the Group organisational structure effective from 1 October 2008
onwards, as follows:
Building Solutions - Europe
Building Solutions - North America
Infrastructure Solutions - Nordic.
On 1 Jan 2010, the following redefinitions were implemented: the reporting of
the Estonian and Latvian businesses was split between Building Solutions and
Infrastructure Solutions, in contrast to the earlier practice of including
everything within Building Solutions - Europe. In addition, the ventilation and
ground energy product groups that were part of Infrastructure Solutions are now
classified as belonging to Building Solutions - Europe.
The impact of these redefinitions on segment sizes is small.
The names of the reporting segments, since 1 Jan 2010, are:
Building Solutions - Europe
Building Solutions - North America
Infrastructure Solutions.
Despite the above, small sales volumes of infrastructure products in
north-eastern Europe will continue to be included in the segment Building
Solutions - Europe. The size of this business is marginal.
Comparative data for 2009 has been changed to comply with the new structure.
--------------------------------------------------------------------------------
| PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS |
--------------------------------------------------------------------------------
| MEUR | 1-6/ | 1-6/ | 1-12/ |
| | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Gross investment | 5.4 | 8.9 | 27.4 |
--------------------------------------------------------------------------------
| - % of net sales | 1.5 | 2.4 | 3.7 |
--------------------------------------------------------------------------------
| Depreciation | 15.0 | 15.5 | 32.0 |
--------------------------------------------------------------------------------
| Write downs | - | - | 0.5 |
--------------------------------------------------------------------------------
| Book value of disposed fixed assets | 2.4 | 1.6 | 4.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| PERSONNEL |
--------------------------------------------------------------------------------
| Converted to full time employees | 1-6/ | 1-6/ | 1-12/ |
| | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Average | 3,203 | 3,515 | 3,426 |
--------------------------------------------------------------------------------
| At the end of the period | 3,272 | 3,449 | 3,316 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OWN SHARES | 30.6. | 30.6. | 31.12. |
| | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Own shares held by the company, pcs | 160,000 | 160,000 | 160,000 |
--------------------------------------------------------------------------------
| - of share capital, % | 0.2 % | 0.2 % | 0.2 % |
--------------------------------------------------------------------------------
| - of voting rights, % | 0.2 % | 0.2 % | 0.2 % |
--------------------------------------------------------------------------------
| Accounted par value of own shares held by | 0.3 | 0.3 | 0.3 |
| the company, MEUR | | | |
--------------------------------------------------------------------------------
SEGMENT INFORMATION
--------------------------------------------------------------------------------
| | 1-6/2010 | 1-6/2009 |
--------------------------------------------------------------------------------
| MEUR | Exter-|Internal| Total | External| Internal| Total |
| | nal | | | | | |
--------------------------------------------------------------------------------
| Segment revenue, continuing operations |
--------------------------------------------------------------------------------
| Building Solutions | 242.5 | 0.4 | 242.9 | 240.4 | 0.5 | 240.9 |
| - Europe | | | | | | |
--------------------------------------------------------------------------------
| Building Solutions | 58.0 | - | 58.0 | 51.5 | - | 51.5 |
| - North America | | | | | | |
--------------------------------------------------------------------------------
| Infrastructure | 61.5 | 3.0 | 64.5 | 72.4 | 1.8 | 74.2 |
| Solutions | | | | | | |
--------------------------------------------------------------------------------
| Eliminations | - | -3.4 | -3.4 | - | -2.3 | -2.3 |
--------------------------------------------------------------------------------
| Total | 362.0 | - | 362.0 | 364.3 | - | 364.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 4-6/2010 | 4-6/2009 |
--------------------------------------------------------------------------------
| MEUR | Exter-|Internal| Total | External| Internal| Total |
| | nal | | | | | |
--------------------------------------------------------------------------------
| Segment revenue, continuing operations |
--------------------------------------------------------------------------------
| Building Solutions | 130.6 | 0.3 | 130.9 | 125.1 | 0.2 | 125.3 |
| - Europe | | | | | | |
--------------------------------------------------------------------------------
| Building Solutions | 33.5 | - | 33.5 | 26.5 | - | 26.5 |
| - North America | | | | | | |
--------------------------------------------------------------------------------
| Infrastructure | 40.5 | 2.1 | 42.6 | 41.7 | 1.1 | 42.8 |
| Solutions | | | | | | |
--------------------------------------------------------------------------------
| Eliminations | - | -2.4 | -2.4 | - | -1.3 | -1.3 |
--------------------------------------------------------------------------------
| Total | 204.6 | - | 204.6 | 193.3 | - | 193.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 1-12/2009 |
--------------------------------------------------------------------------------
| MEUR | External| Internal| Total |
--------------------------------------------------------------------------------
| Segment revenue, continuing operations |
--------------------------------------------------------------------------------
| Building Solutions - Europe | 481.1 | 1.1 | 482.2 |
--------------------------------------------------------------------------------
| Building Solutions - North America | 109.0 | - | 109.0 |
--------------------------------------------------------------------------------
| Infrastructure Solutions | 144.0 | 4.1 | 148.1 |
--------------------------------------------------------------------------------
| Eliminations | - | -5.2 | -5.2 |
--------------------------------------------------------------------------------
| Total | 734.1 | - | 734.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| MEUR | 1-6/ | 1-6/ | 4-6/ | 4-6/ | 1-12/ |
| | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Segment result, continuing operations |
--------------------------------------------------------------------------------
| Building Solutions - Europe | 25.4 | 14.0 | 16.4 | 10.7 | 32.6 |
--------------------------------------------------------------------------------
| Building Solutions - North | 0.2 | -3.5 | 2.0 | -0.3 | 3.9 |
| America | | | | | |
--------------------------------------------------------------------------------
| Infrastructure Solutions | -0.9 | 6.4 | 3.1 | 5.9 | 14.2 |
--------------------------------------------------------------------------------
| Others | -4.6 | -5.2 | -2.7 | -2.8 | -9.3 |
--------------------------------------------------------------------------------
| Eliminations | 0.2 | -0.3 | 0.0 | -1.1 | -0.2 |
--------------------------------------------------------------------------------
| Total | 20.3 | 11.4 | 18.8 | 12.4 | 41.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| MEUR | 1-6/ | 1-6/ | 1-12/ |
| | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Segment depreciation and impairments, continuing operations |
--------------------------------------------------------------------------------
| Building Solutions - Europe | 6.4 | 7.5 | 16.2 |
--------------------------------------------------------------------------------
| Building Solutions - North America | 3.3 | 3.1 | 6.1 |
--------------------------------------------------------------------------------
| Infrastructure Solutions | 2.8 | 2.7 | 5.5 |
--------------------------------------------------------------------------------
| Others | 2.2 | 2.0 | 4.1 |
--------------------------------------------------------------------------------
| Eliminations | 0.3 | 0.2 | 0.6 |
--------------------------------------------------------------------------------
| Total | 15.0 | 15.5 | 32.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment investments, continuing operations |
--------------------------------------------------------------------------------
| Building Solutions - Europe | 2.3 | 3.4 | 0.5 |
--------------------------------------------------------------------------------
| Building Solutions - North America | 1.7 | 2.7 | 5.1 |
--------------------------------------------------------------------------------
| Infrastructure Solutions | 1.3 | 1.7 | 20.1 |
--------------------------------------------------------------------------------
| Others | 0.1 | 1.1 | 1.7 |
--------------------------------------------------------------------------------
| Total | 5.4 | 8.9 | 27.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| MEUR | 30.6. | 30.6. | 31.12. |
| | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Segment assets |
--------------------------------------------------------------------------------
| Building Solutions - Europe | 407.9 | 406.1 | 393.0 |
--------------------------------------------------------------------------------
| Building Solutions - North America | 141.2 | 113.3 | 118.1 |
--------------------------------------------------------------------------------
| Infrastructure Solutions | 96.8 | 86.3 | 80.4 |
--------------------------------------------------------------------------------
| Others | 461.1 | 493.3 | 509.9 |
--------------------------------------------------------------------------------
| Eliminations | -548.9 | -544.7 | -602.8 |
--------------------------------------------------------------------------------
| Total | 558.1 | 554.3 | 498.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Segment liabilities |
--------------------------------------------------------------------------------
| Building Solutions - Europe | 285.0 | 271.3 | 281.3 |
--------------------------------------------------------------------------------
| Building Solutions - North America | 84.5 | 69.0 | 69.7 |
--------------------------------------------------------------------------------
| Infrastructure Solutions | 71.4 | 71.8 | 60.0 |
--------------------------------------------------------------------------------
| Others | 446.8 | 461.7 | 451.2 |
--------------------------------------------------------------------------------
| Eliminations | -570.4 | -566.6 | -621.6 |
--------------------------------------------------------------------------------
| Total | 317.3 | 307.2 | 240.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 1-6/ | 1-6/ | 1-12/ |
| | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Segment personnel, continuing operations, average |
--------------------------------------------------------------------------------
| Building Solutions - Europe | 2,222 | 2,483 | 2,416 |
--------------------------------------------------------------------------------
| Building Solutions - North America | 428 | 431 | 422 |
--------------------------------------------------------------------------------
| Infrastructure Solutions | 493 | 539 | 527 |
--------------------------------------------------------------------------------
| Others | 60 | 62 | 61 |
--------------------------------------------------------------------------------
| Total | 3,203 | 3,515 | 3,426 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Reconciliation |
--------------------------------------------------------------------------------
| MEUR | 1-6/ | 1-6/ | 1-12/ |
| | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Segment result, continuing operations |
--------------------------------------------------------------------------------
| Segment results total | 20.3 | 11.4 | 41.2 |
--------------------------------------------------------------------------------
| Financial expenses, net | -7.4 | -5.2 | -12.7 |
--------------------------------------------------------------------------------
| Group's profit before taxes | 12.9 | 6.2 | 28.5 |
--------------------------------------------------------------------------------
CONTINGENT LIABILITIES
--------------------------------------------------------------------------------
| MEUR | 30.6. | 30.6. | 31.12. |
| | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Group: |
--------------------------------------------------------------------------------
| Pledges |
--------------------------------------------------------------------------------
| - on own behalf | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Mortgages |
--------------------------------------------------------------------------------
| - on own behalf | - | - | 0.0 |
--------------------------------------------------------------------------------
| Guarantees |
--------------------------------------------------------------------------------
| - on own behalf | 0.1 | - | 0.1 |
--------------------------------------------------------------------------------
| - on behalf of others | 7.0 | 0.6 | 7.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Parent company: |
--------------------------------------------------------------------------------
| Guarantees |
--------------------------------------------------------------------------------
| - on behalf of a subsidiary | 10.6 | 9.0 | 10.0 |
--------------------------------------------------------------------------------
| - on behalf of others | 6.9 | 6.9 | 6.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING LEASE COMMITMENTS | 30.6 | 31.0 | 30.1 |
--------------------------------------------------------------------------------
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. |
| | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Currency | 154.4 | -5.4 | 90.0 | 0.5 | 115.1 | -0.6 |
| derivatives | | | | | | |
| - Forward | | | | | | |
| agreements | | | | | | |
--------------------------------------------------------------------------------
| Commodity | 6.4 | 0.0 | 7.2 | -1.2 | 7.2 | -0.7 |
| derivatives | | | | | | |
| - Forward | | | | | | |
| agreements | | | | | | |
--------------------------------------------------------------------------------
DISCONTINUED OPERATIONS
In 2010 and 2009, the discontinued operations include costs related to the Irish
infrastructure business sold in 2008. These costs stem from soil cleaning
operations started in 2008.
--------------------------------------------------------------------------------
| MEUR | 1-6/ | 1-6/ | 1-12/ |
| | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Expenses | 0.9 | 1.9 | 5.7 |
--------------------------------------------------------------------------------
| Profit before taxes | -0.9 | -1.9 | -5.7 |
--------------------------------------------------------------------------------
| Income taxes | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Profit after taxes | -0.9 | -1.9 | -5.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the period from discontinued | -0.9 | -1.9 | -5.7 |
| operations | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from discontinued operations |
--------------------------------------------------------------------------------
| Cash flow from operations | -1.2 | -2.4 | -5.2 |
--------------------------------------------------------------------------------
RELATED-PARTY TRANSACTIONS
--------------------------------------------------------------------------------
| MEUR | 1-6/ | 1-6/ | 1-12/ |
| | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Continuing operations |
--------------------------------------------------------------------------------
| Purchases from associated companies | 0.7 | 0.8 | 1.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balances at the end of the period |
--------------------------------------------------------------------------------
| Accounts payables and other liabilities | 0.1 | 0.1 | 0.0 |
--------------------------------------------------------------------------------
KEY FIGURES
--------------------------------------------------------------------------------
| | 1-6/ | 1-6/ | 1-12/ |
| | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0.11 | 0.04 | 0.16 |
--------------------------------------------------------------------------------
| - continuing operations | 0.12 | 0.07 | 0.24 |
--------------------------------------------------------------------------------
| - discontinued operations | -0.01 | -0.03 | -0.08 |
--------------------------------------------------------------------------------
| Operating profit (continuing operations), | 5.6 | 3.1 | 5.6 |
| % | | | |
--------------------------------------------------------------------------------
| Return on equity, % (p.a.) | 6.5 | 1.9 | 4.1 |
--------------------------------------------------------------------------------
| Return on investment, % (p.a.) | 9.0 | 4.1 | 8.1 |
--------------------------------------------------------------------------------
| Solvency ratio, % | 43.2 | 44.6 | 51.8 |
--------------------------------------------------------------------------------
| Gearing, % | 54.3 | 55.4 | 25.0 |
--------------------------------------------------------------------------------
| Net interest-bearing liabilities | 130.8 | 136.8 | 64.6 |
--------------------------------------------------------------------------------
| Equity per share, EUR | 3.30 | 3.38 | 3.53 |
--------------------------------------------------------------------------------
| - diluted | 3.30 | 3.38 | 3.53 |
--------------------------------------------------------------------------------
| Trading price of shares |
--------------------------------------------------------------------------------
| - low, EUR | 10.58 | 6.80 | 6.80 |
--------------------------------------------------------------------------------
| - high, EUR | 15.66 | 10.34 | 15.10 |
--------------------------------------------------------------------------------
| - average, EUR | 13.26 | 8.13 | 9.95 |
--------------------------------------------------------------------------------
| Shares traded |
--------------------------------------------------------------------------------
| - 1,000 pcs | 19,711 | 23,743 | 45,815 |
--------------------------------------------------------------------------------
| - MEUR | 261 | 193 | 456 |
--------------------------------------------------------------------------------
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