LEMMINKÄINEN?S 2005 FINANCIAL STATEMENT BULLETIN: 20% IMPROVEMENT IN THE COMPANY?S RESULT

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LEMMINKÄINEN CORPORATION                  STOCK EXCHANGE BULLETIN

15.2.2006, 11.40

LEMMINKÄINEN’S 2005 FINANCIAL STATEMENT BULLETIN:
20% IMPROVEMENT IN THE COMPANY’S RESULT

Lemminkäinen Group’s net sales rose 11.9 % to EUR 1,601.7 million
(1,431.3). The profit before taxes was up 19.6 % at EUR 65.9
million (55.1), the return on investment was 16.5 % (14.8) and
earnings per share were EUR 2.57 (2.20). The order book grew by
29.1 % to EUR 1,011.3 million (783.4). The proposed dividend is
EUR 1.00 per share (0.60).


LEMMINKÄINEN CONTINUES TO DEVELOP FAVOURABLY

Lemminkäinen Group had a good year in 2005. The company’s net
sales rose 11.9 % to EUR 1,601.7 million (1,431.3). Most of the
revenue growth came from operations abroad, which generated net
sales of EUR 499.6 million (358.6), representing 31.2 % (25.1) of
the Group total. The profit before taxes improved 19.6 % to EUR
65.9 million (55.1). The operating profit was EUR 72.5 million
(63.9). The return on investment was 16.5 % (14.8), the return on
equity 24.5 % (21.9) and earnings per share EUR 2.57 (2.20). The
equity ratio was 31.0 % (27.5).

The Finnish construction market continued to develop favourably,
and this trend is expected to carry through 2006. The volume of
construction is expected to grow 3-4 % in 2006.

The net sales of Lemminkäinen’s Paving and Mineral Aggregates
Division rose and its result improved. The total volume of
Lemminkäinen’s asphalt production rose to 5.6 million tonnes
(4.8), about a half of which was produced abroad.

The Building Material Division’s result fell short of the set
profitability targets. The corporatisation of the roofing and
concrete products units at the beginning of this year is one of
the steps taken to improve the Division’s flagging profitability.

The volume of Lemcon’s business grew and the company’s
profitability trend was good. The market situation for civil
engineering contracting remains favourable in both Finland and
Sweden. The outlook for the Company’s international operations
developed well.

The net sales of Palmberg, which specialises in building
contracting on the Finnish market, rose and the result remained at
the previous year´s level.  The number of own residential
development apartments completed by the company was 1,068 units
(948). The sustained good level of building construction  provides
the company with favourable conditions for the coming year.

Tekmanni’s result improved considerably. The market for technical
building services is growing.


GOOD OUTLOOK

Lemminkäinen Group’s almost 30% increased order book provides a
good starting point for 2006. There are grounds to expect further
net sales growth and an improvement in the result.


TRANSITION TO IFRS FINANCIAL STATEMENTS

The financial statements for the year ending 31 December 2005 are
prepared in accordance with the International Financial Reporting
Standards (IFRS). The IFRS transition date was 1 January 2004. The
principal effects of the IFRS transition on the opening balance
sheet are described in the stock exchange bulletin published on 8
June 2005. The principal effects of the IFRS transition on the
2004 and 2005 interim financial reviews are described in the stock
exchange bulletin published on 7 December 2005.


ANNUAL GENERAL METING 2006 AND DIVIDEND DISTRIBUTION PROPOSAL

The Board of Directors of Lemminkäinen Corporation has decided to
convene the Annual General Meeting on 17 March 2006. A summons to
attend the meeting will be published as a separate stock exchange
bulletin on 15 February 2006.

The Board of Directors will propose to the Annual General Meeting
that the Company pay a dividend of EUR 1.00 (0.60) per share for
the 2005 accounting period, i.e. a total of EUR 17,021,250.00
(10,212,750.00).

The dividend will be paid to all those included on the list of
shareholders kept by the Finnish Central Securities Depository on
the record date (22 March 2006). The dividend will be paid on 29
March 2006.


2005 ARCHIVE OF STOCK EXCHANGE BULLETINS

The stock exchange bulletins published by Lemminkäinen Corporation
in 2005 can be reviewed on the company’s website at
www.lemminkainen.fi


LEMMINKÄINEN CORPORATION

Juhani Sormaala
Managing Director

DISTRIBUTION: Helsinki Exchanges, key media



BOARD OF DIRECTORS’ REPORT

CONSTRUCTION MARKET

The Finnish construction market continues to develop favourably.
The volume of construction grew 4 % in 2005. Building construction
remained brisk and grew by 4 %. The steady growth of building
construction will continue in 2006. The number of new housing
starts in 2005 was approximately 33,500 units, and the same level
is likely to be achieved this year as well.

Industrial construction increased last year and its growth will
continue in 2006. Commercial construction is also growing, whereas
new office construction still remains quite minimal. Demand for
refurbishment contracting remains good, with the accent on
apartment building repair work.

The volume of civil engineering contracting grew also 5 %.
Investments in transport infrastructure will continue to support
this growth in 2006. Finnish asphalt paving volumes were slightly
higher than in the previous year. The volume of underground
excavations was up thanks to major infrastructure projects.

The value of the Finnish construction industry’s international
operations rose to about EUR 2.2 billion (1.7) in 2005. The trend
was positive in all market areas of the construction companies.


NET SALES AND RESULTS

The net sales of Lemminkäinen Group rose 11.9 % to EUR 1,601.7
million (1,431.3), of which operations abroad accounted for EUR
499.6 million (358.6) or 31.2 % (25.1). The operating profit was
EUR 72.5 million (63.9), the profit before taxes EUR 65.9 million
(55.1) and the profit for the accounting period EUR 43.7 million
(37.4). The return on investment was 16.5 % (14.8), the return on
equity 24.5 % (21.9) and earnings per share EUR 2.57 (2.20).

The improvement in the Group’s result was largely due to the
significantly improved results of Tekmanni and Lemcon Ltd. The
result of the Paving and Mineral Aggregates Division also improved
slightly, and Palmberg’s result remained good. The Building
Materials Division’s result fell well short of the set targets.


RESULTS AND OUTLOOK BY BUSINESS SECTOR

Paving and Mineral Aggregates Division

The net sales of the Paving and Mineral Aggregates Division rose
to EUR 514.7 million (430.4). The Division’s operating profit was
EUR 20.5 million (18.4).

The total volume of asphalt paving contracting was slightly higher
than in the previous year. In Finland the volume of asphalt paving
was 2.8 million tonnes and in other countries altogether it was
approximately 2.7 million tonnes. The exceptionally warm and dry
autumn extended the contracting season and boosted production
volumes to a record level. In Scandinavian countries other than
Finland the price level of asphalt paving contracts has started to
rise. Prices of oil and bitumen products rose significantly, but
the company has been able to hedge against these price rises quite
well. The outlook for Lemminkäinen’s asphalt paving operations
over the coming season is quite satisfactory thanks to the strong
order book.


Building Materials Division

The net sales of the Building Materials Division were EUR 100.3
million (95.7). The Division’s operating profit was EUR 0.6
million (3.1).

The Building Material Division’s result fell short of the set
targets. There is plenty of supply on the market for precast
concrete staircase units, which has kept the competitive situation
tight and the price level weak. Demand for roofing and urban
environment contracting has remained good. The outlook for exports
of roofing materials is satisfactory, but imports of roofing
materials have risen.

The corporatisation of the roofing and concrete products units at
the beginning of this year is one of the steps taken to improve
the Division’s flagging profitability.

Lemcon Ltd

The net sales of Lemcon Ltd rose to EUR 328.8 million (264.5). The
company’s profit before taxes improved 48 % and was EUR 16.7
million (11.3).

Lemcon’s business is growing strongly and the company’s
profitability trend has been positive. The order book for rock
engineering contracting in Finland is good, and it appears that
the market situation in Sweden will remain favourable. Major
infrastructure projects underway and in the pipeline will keep the
order book at a reasonable level in the coming years. Work on the
E18 motorway project is well underway and proceeding according to
plan.

In Russia demand is brisk, notably for the construction of arenas.
Kazan Hall was completed at the end of the year and work began on
the construction of Magnitogorsk Arena. There was further growth
in inward investment to Russia from Western countries in 2005.
Forest and electronics industry investments in Asia continue to
rise. The outlook for Lemcon in China is good. India is a new
potential market.

The outlook for telecom network construction has remained
favourable, and Lemcon Network’s business has grown rapidly. The
company is now operating in 19 countries in Europe, Africa, the
Americas and Asia, and it employs about 600 people.

Oy Alfred A. Palmberg Ab

The net sales of Oy Alfred A. Palmberg Ab, which specialises in
building contracting on the Finnish market, rose 6 % to EUR 517.3
million (486.4). Palmberg’s result before taxes was EUR 25.2
million (26.0).

Low interest rates, extended loan maturities and consumer
confidence in household finances sustained the good level of
residential construction.  The number of own residential
development apartments completed by the company was 1,068 units
(948). New apartments completed under competitive tender
contracting totalled 929 (859). At the end of the accounting
period a total of 587 (923) such apartments were under
construction.

The volume of building construction rose 4 % last year, and growth
is expected to be sustained at this level in 2006.

Palmberg Group’s strong order book provides a good starting point
for 2006. The company is expected to be able to make about 1,500
new housing starts.

Tekmanni Oy

The net sales of Tekmanni Oy were EUR 191.1 million (198.3). The
company’s result before taxes improved and was EUR 7.4 million
(2.6).

Tekmanni’s result improved in all of its business areas. The
business adjustment and restructuring measures implemented last
year have improved the company’s competitiveness and
profitability. The brisk building refurbishment market has
increased the demand for technical building services. Especially
plumbing and pipework modernisation work has increased. Industrial
investments and the markets for technical maintenance and
servicing are growing. Thanks to the industry’s growth potential,
the outlook for Tekmanni over the coming year is favourable.


FINANCING

According to the source and application of funds statement, the
cash flow from business operations was EUR 59.5 million (57.4),
the cash flow from investments EUR –18.3 million (-22.1) and the
cash flow from financing EUR -39.3 million (-40.0). The cash flow
for the review period includes dividends totalling EUR 11.1
million paid in respect of the 2004 accounting period.

Interest-bearing liabilities were EUR 264.0 million (279.5) and
liquid funds were EUR 42.4 million (39.9). Interest-bearing net
debt was EUR 221.6 million (239.6).

Net financing expenses were EUR 7.7 million (9.2), representing
0.5 % (0.6) of net sales. The equity ratio was 31.0 % (27.5) and
gearing 102.9 % (132.4).

TRANSITION TO IFRS FINANCIAL STATEMENTS

Transition schedule

The financial statements for the year ending 31 December 2005 are
prepared in accordance with the International Financial Reporting
Standards (IFRS). Previously, the Group’s financial reporting was
based on the Finnish Accounting Standards (FAS). The Group’s IFRS
transition date is 1 January 2004. The IFRS opening balance sheet
is prepared from the transition date. Interim financial reviews
complete with comparative figures will be prepared in accordance
with IFRS, commencing with the first-quarter review in 2006. The
2005 interim financial reviews and the annual financial statements
for 2004 were restated in accordance with IFRS rules and published
in December 2005.

Phased transition

Inventories and finance leasing have been treated according to
IFRS accounting principles since the annual financial statements
for 2003. The value of inventories has been incremented to include
their share of the fixed costs of production, and finance leasing
purchases have been recognised on the consolidated balance sheet.

Principal effects

The transition to IFRS financial statements will not affect the
Company’s strategies, business structure, dividend distribution
policy or performance-related pay principles. The principal
effects of the IFRS transition on the opening balance sheet are
described in the stock exchange bulletin published on 8 June 2005.
The principal effects of the IFRS transition on the 2004 and 2005
interim financial reviews are described in the stock exchange
bulletin published on 7 December 2005.

INVESTMENTS

Investments made in the accounting period totalled EUR 37.4
million (40.8). These investments were primarily purchases of
paving, crushing and excavation equipment, production plant for
building materials, and building construction equipment.

PERSONNEL

The average number of personnel in the Group during the accounting
period was 7,912 (7,479), of whom 2,750 (2,367) were salaried
staff and 5,162 (5,112) hourly paid employees. The number of
employees at the end of the year was 7,112 (6,783). The average
number of employees working abroad during the accounting period
was 1,965(1,623), i.e. 24.8 % (21.7) of the Group’s personnel.

RESEARCH AND DEVELOPMENT

The Group’s R&D expenses represented 0.4 % of net sales. R&D
focused on technical development, operational efficiency gains,
and environmental and safety issues.

GROUP STRUCTURE

At the beginning of 2006 the Building Materials Division’s roofing
and concrete products operations were transferred to two newly
established subsidiaries: Lemminkäinen Katto Oy and Lemminkäinen
Betonituote Oy. The new companies together with Omni-Sica Oy will
still make up the Building Materials Division.

Lemminkäinen Corporation increased its stake in Tekmanni Oy by
making a tender offer to the minority interests and thereafter by
exercising its right of redemption under the provisions of the
Companies Act. As a result, Tekmanni is now a wholly owned
subsidiary of Lemminkäinen Corporation. The arbitration
proceedings instituted to confirm the redemption price are
pending.


ORDER BOOK

The Group’s uninvoiced order book grew 29.1 % to EUR 1,011.3
million (783.4), of which foreign orders accounted for EUR 343.4
million (244.6).

Order book by business sector

EUR mill.                        2005       2004  Change, %
                                                           
Paving and Mineral              
Aggregates Division             130.2      124.7        4.4
Building Materials Division      13.3       12.5        6.4
Lemcon Ltd                      439.5      239.1       83.8
Oy Alfred A. Palmberg Ab        366.9      334.3        9.8
Tekmanni Oy                      61.5       72.7      -15.4
Total                         1,011.3      783.4       29.1



One of the most significant project management contracts started
during the accounting period is Botnia’s new pulp mill in Uruguay.
The total cost of the mill investment is about EUR 830 million.

In Russia work started on the construction of Metsä-Botnia’s
sawmill in Podporozhj. A multipurpose arena worth about EUR 32
million is being built at Magnitogorsk in the southern Urals. In
St. Petersburg work began on the construction of a shopping centre
for IKEA. The value of the project’s design and construction works
is about EUR 92 million. A skyscraper project worth approximately
EUR 45 million was started in downtown Tallinn. The building will
house a shopping centre, hotel and 180 apartments.

The most notable construction project started in Finland during
the accounting period is the Muurla-Lohja E18 motorway contract,
which began in the summer. Lemminkäinen Corporation is a partner
in the road company established for the project, and Lemcon is
responsible for construction works as a consortium member. The
value of the construction works is EUR 299 million, of which
Lemcon Ltd’s share is approx. EUR 135 million.
Tunnelling and civil engineering works began on the rail track
section between Oslo and Gothenburg in Western Sweden. The
contract is worth about EUR 55 million.
New telecom network construction projects have been started in
Europe, Asia, Africa and the Americas.


SHARES

Lemminkäinen Corporation’s share capital is EUR 34,042,500. The
nominal value of the Company’s share is EUR 2.00 and the number of
issued shares 17,021,250. The Company has one share class.

The average listed price of Lemminkäinen Corporation’s share
during the accounting period was EUR 21.74 (15.98). The year-end
price of the Company’s share was EUR 30.50 (15.74) and the market
capitalisation EUR 519.1 million (267.9). At the end of the year
the Company had 3,116 (3,589) shareholders. The trading volume was
4,610,443 shares (5,004,790).

Lemminkäinen Corporation’s shares were traded in lots of 200
shares up until 25 August 2005. Earlier in that month Lemminkäinen
Corporation had applied to Helsinki Exchanges for a reduction in
the size of its share’s trading lot to 50 shares, and the change
came into effect on the above-mentioned date. The purpose of the
change was to improve the liquidity of Lemminkäinen’s share and
boost its trading volume.

Lemminkäinen Corporation and Nordea Bank Finland Plc have a
liquidity providing (LP) agreement. According to the agreement
Nordea Bank Finland Plc must quote both bid and offer prices for
Lemminkäinen Corporation’s share so that the prices do not deviate
from each other by more than 4 %, calculated on the bid price. The
bid and offer prices quoted by the liquidity provider must be for
at least 200 shares (800 shares prior to 25 August 2005). Nordea
Bank Finland Plc is obliged to quote bid and offer prices for
Lemminkäinen Corporation’s share in Helsinki Stock Exchange’s
trading system every day for at least 85 per cent of the
Continuous Trading I period and also in the daily opening and
closing procedures applicable to securities.

The Company is not aware of any agreements between shareholders
which might markedly influence voting behaviour at meetings of
shareholders.

The Board of Directors is not currently authorised to make a share
issue; neither is it authorised to decide on convertible
promissory notes or bonds with equity warrants.

The Board of Directors is not currently authorised to buy back the
Company’s own shares.

As of 31 December 2005, the members of the Board of Directors and
the Managing Director held a total of 7,505,512 shares,
representing 44.1% of the Company’s shares and their conferred
voting rights.

DECISIONS OF THE ANNUAL GENERAL MEETING

The Annual General Meeting of Lemminkäinen Corporation was held on
18 March 2005. The AGM adopted the Company’s financial statements
for the 2004 accounting period and granted the Managing Director
and members of the Board of Directors freedom from responsibility.
In accordance with the Board of Directors’ proposal, the AGM
decided to pay a dividend of EUR 0.60 per share, i.e. a total
dividend pay-out of EUR 10,212,750.00.

Messrs. Berndt Brunow, Heikki Pentti, Erkki J. Pentti, Teppo
Taberman and Sakari Tamminen were elected to serve as members of
the Board of Directors. The Board of Directors elected Heikki
Pentti to serve as the Chairman. PricewaterhouseCoopers Oy, a firm
of  Authorised Public Accountants, was elected to serve as the
Company’s Auditor.

The Managing Director of Lemminkäinen Corporation is Mr. Juhani
Sormaala.

INVESTIGATIONS OF THE COMPETITION AUTHORITIES

The Finnish Competition Authority (FCA) has proposed to the Market
Court that a fine of EUR 68 million should be imposed on
Lemminkäinen in connection with its allegations of a cartel in the
asphalt paving industry. In the rejoinder submitted to the Market
Court Lemminkäinen has refuted the FCA’s allegations as being
unfounded in all respects and has called for the Market Court to
dismiss the FCA’s sanction proposal in its entirety. The case is
still pending in the Market Court.

OUTLOOK

The Finnish construction market continues to develop favourably.
The volume of construction is expected to grow 3-4% in 2006. The
positive trend will be supported by brisk building construction,
which is expected to grow 4% in 2006. Civil engineering and
refurbishment contracting will also continue to grow.

The outlook for Lemminkäinen Group is good. The Group’s housing
production will continue at a good level, and major infrastructure
project will keep the company occupied in the coming years.
International operations in both current and new market areas will
develop favourably. The outlook for technical building services
and for asphalt paving and mineral aggregate operations is
favourable. The Group’s almost 30% increased order book provides a
good starting point for 2006. There are grounds to expect further
net sales growth and an improvement in the result.


BOARD OF DIRECTORS’ PROPOSAL FOR THE APPROPRIATION OF RETAINED
EARNINGS

The distributable shareholders’ equity shown on the consolidated
balance sheet at 31 December 2005 amounts to EUR 143,539,499.98.
The distributable shareholders’ equity shown on the balance sheet
of the parent company, Lemminkäinen Corporation, at 31 December
2005 amounts to EUR 79,005,031.80, consisting of EUR 77,055,685.20
in retained earnings from previous years and EUR 1,949,346.60 in
profit for the accounting period.

The Board of Directors will propose to the Annual General Meeting
that the Company pay a dividend of EUR 1.00 per share for the 2005
accounting period, i.e. a total of EUR 17,021,250.00, after which
retained earnings would stand at EUR 61,983,781.80.


Helsinki, 15 February 2006


LEMMINKÄINEN CORPORATION
Board of Directors



LEMMINKÄINEN CORPORATION


CONSOLIDATED INCOME STATEMENT                          
                                                       
EUR mill.                 2005        2004      Change  Change, %
                                                       
Net sales              1 601.7     1 431.3       170.4       11.9
Operating income                                                 
and expenses          -1 495.3    -1 335.4      -159.9      -12.0
Depreciation and                                                 
impairment               -34.0       -32.0        -2.0       -6.3
Operating profit          72.5        63.9         8.6       13.5
Financial expenses       -11.5       -12.5         1.0        8.0
Financial income           3.8         3.3         0.5       15.2
Share of the result                                    
of affiliated
undertakings               1.1         0.4         0.7   over 100
Profit before taxes       65.9        55.1        10.8       19.6
Income taxes             -17.4       -14.6        -2.8      -19.2
Result for the                                                   
accounting period         48.5        40.4         8.1       20.0
                                                       
Distribution of the                                    
result for the
accounting period
To shareholders of                                               
the parent company        43.7        37.4         6.3       16.8
To minority                                                      
interests                  4.7         3.1         1.6       51.6
                                                       
Earnings per share calculated                          
from profits belonging to
parent company shareholders
                                                       
EPS, EUR                  2.57        2.20             
EPS, EUR, diluted         2.57        2.20             
                                                       
NET SALES BY BUSINESS SECTOR                           
                                                       
EUR mill.                 2005        2004      Change  Change, %
                                                       
Lemminkäinen                                           
Corporation
Paving and Mineral                                               
Aggregates Division      514.7       430.4        84.3       19.6
Building Materials                                               
Division                 100.3        95.7         4.6        4.8
Lemcon Ltd               328.8       264.5        64.3       24.3
Oy Alfred A.                                                     
Palmberg Ab              517.3       486.4        30.9        6.4
Tekmanni Oy              191.1       198.3        -7.2       -3.6
Others                   -50.4       -44.1        -6.3      -14.3
Group total            1 601.7     1 431.3       170.4       11.9
                                                       
                                                       
OPERATING PROFIT BY BUSINESS                           
SECTOR
                                                       
EUR mill.                 2005        2004      Change  Change, %
                                                       
Lemminkäinen                                           
Corporation
Paving and Mineral                                               
Aggregates Division       20.5        18.4         2.1       11.4
Building Materials                                               
Division                   0.6         3.1        -2.5      -80.6
Lemcon Ltd                15.3        11.1         4.2       37.8
Oy Alfred A.                                                     
Palmberg Ab               28.3        29.2        -0.9       -3.1
Tekmanni Oy                6.8         2.2         4.6   over 100
Others                     1.0        -0.1         1.1           
Group total               72.5        63.9         8.6       13.5
                                                       
CONSOLIDATED BALANCE SHEET                             
                                                       
EUR mill.                 2005        2004             
                                                       
Non-current assets                                     
Tangible assets          164.4       165.4             
Goodwill on                                            
consolidation             63.5        63.4             
Other intangible                                       
assets                     2.5         3.1             
Investments               10.9         9.3             
Deferred tax asset         4.0         4.7             
Other non-current                                      
receivables                0.7         0.1             
Total                    245.9       246.1             
                                                       
Current assets                                         
Inventories              223.7       212.9             
Trade and other                                        
receivables              263.4       219.2             
Cash in hand                                           
and at bank               42.4        39.9             
Total                    529.5       472.0             
                                                       
Assets, total            775.4       718.1             
                                                       
Shareholders’                                          
equity and
liabilities
                                                       
Share capital             34.0        34.0             
Share premium                                          
account                    5.8         5.8             
Revaluation reserve        1.5                         
Translation                                            
differences                0.4        -0.2             
Retained earnings        115.5        88.9             
Result for the                                         
period                    43.7        37.4             
Shareholders’                                          
equity before
minority interest        200.9       165.8             
Minority interest         14.6        15.2             
                                                       
Shareholders’                                          
equity, total            215.5       181.0             
                                                       
Non-current                                            
liabilities
Deferred tax                                           
liability                 19.4        16.3             
Pension provisions         0.5         0.7             
Provisions                 4.9         4.7             
Interest-bearing                                       
liabilities              103.5       111.0             
Other liabilities          2.5         1.1             
Total                    132.3       134.6             
                                                       
Current liabilities                                    
Accounts payable                                       
and other
liabilities              267.1       234.0             
Provisions                 1.5         0.9             
Interest-bearing                                       
liabilities              160.5       168.5             
Total                    427.6       402.5             
                                                       
Shareholders’                                          
equity and
liabilities, total       775.4       718.1             


STATEMENT OF CHANGES                                            
IN EQUITY
                                                                
EUR mill.       Share  Share Transla-   Reva-  Retain- Minori-  Share-
                capi-  pre-  tion       lua-   ed ear- ty inte- hol-
                tal    mium  differ-    tion   nings   rest     ders´
                       ac-   ence       reser                   equity,
                       count            ve                      total
                                                                
Share capital                                                          
31.12.2004        34.0   5.8       -0.2          126.2     15.2   181.0
Effect of adop-                                                        
ting IAS 32 and
39, 1.1.2005                               1.4    -0.6              0.8
Translation                                                            
difference                          0.8                             0.8
Hedging of net                                                         
investment in
foreign
subsidiary                         -0.2                            -0.2
Transfer from                                                          
revaluation                                                            
reserve                                   -0.2                     -0.2
Change in fair                                                         
value                                      0.2                      0.2
Reversal of                                                            
dividend
liability                                          0.0              0.0
Dividends paid                                   -10.2            -10.2
Profit for the                                                         
period                                            43.7             43.7
Change in                                                              
minority
interest                                                   -0.6    -0.6
                                                                       
Shareholders’                                                          
equity
31.12.2005        34.0   5.8        0.4    1.5   159.2     14.6   215.5


                                       
CONSOLIDATED STATEMENT OF SOURCE
AND APPLICATION OF FUNDS
                                       
EUR mill.                         2005       2004
                                       
Result before                                    
extraordinary items               65.9       55.1
Depreciation according                           
to plan                           34.0       32.0
Other adjustments                  4.3        6.0
Cash flow before change                          
in working capital               104.2       93.1
Change in working capital        -17.6      -12.1
Financial items                   -7.0       -8.9
Direct taxes paid                -20.1      -14.7
Cash flow from business                          
operations                        59.5       57.4
Cash flow from                                   
investments                      -18.3      -22.1
Change in loans                  -28.1        4.9
Dividends paid                   -11.1      -44.9
Cash flow from financing         -39.3      -40.0
Change in cash funds               1.9       -4.8
Cash funds at beginning                          
of accounting period              39.9       44.5
Translation difference of                        
cash funds                         0.6        0.2
Cash funds at end of                             
accounting period                 42.4       39.9
                                                 
ECONOMIC TRENDS AND               2005       2004
FINANCIAL INDICATORS
                                       
Net sales, EUR mill.           1 601.7    1 431.3
- of which exports and                           
operations abroad,
EUR mill.                        499.6      358.6
% of net sales                    31.2       25.1
Operating margin, %                4.5        4.5
Return on equity, %               24.5       21.9
Return on investment, %           16.5       14.8
Equity ratio, %                   31.0       27.5
Gearing, %                       102.9      132.4
Interest-bearing net debt        221.6      239.6
Gross investments, EUR                           
mill.(incl. leasing
purchases)                        37.4       40.8
Order book, EUR mill.          1 011.3      783.4
- of which exports and                           
operations abroad,
EUR mill.                        343.4      244.6
Average number of                                
employees                        7 912      7 479
Employees at end of                              
period                           7 112      6 783
                                       
SHARE-PERFORMANCE                 2005       2004
INDICATORS
                                       
Earnings per share, EUR           2.57       2.20
Equity per share, EUR            11.80       9.74
Dividend per share, EUR1)         1.00       0.60
Dividend-to-earnings                             
ratio, %                          38,9       27.3
Share price at end of                            
period, EUR                      30.50      15.74
Market capitalisation,                           
EUR mill.                        519.1      267.9
Share trading volume,                            
1 000                            4 610      5 005
Number of shares in                              
issue, 1 000                    17 021     17 021
                                       
1) Board of Directors’ proposal to the AGM
                                       
                                       
GUARANTEES AND CONTINGENT LIABILITIES  
                                       
EUR million                       2005       2004
                                       
Securities for own                     
commitments
Property mortgages                 3.3        4.6
Business mortgages                99.2      101.9
Bonds pledged as security          0.7        4.4
Total                            103.3      110.9
                                                 
Guarantees                                       
On behalf of affiliated                          
companies                          0.4        0.3
On behalf of others                5.3        0.0
                                                 
Minimum lease payments of                        
irrevocable lease                                
agreements                                       
One year or less                   7.8        6.1
Over one year but no more                        
than five years                   16.7       14.8
Over five years                   27.7       25.1
                                                 
Derivative contracts                             
                                                 
Forward foreign exchange               
contracts
Nominal value                     18.1       11.5
Current value                     -0.2        0.0
                                                 
Currency options, calls                          
purchased
Nominal value                      1.7        0.0
Current value                      0.0        0.0
                                                 
Currency options, puts                           
written
Nominal value                      1.7        0.0
Current value                     -0.2        0.0
                                                 
Interest rate options,                 
calls purchased
Nominal value                     36.4        8.4
Current value                      0.0        0.0
                                                 
Interest rate options,                           
puts written
Nominal value                      6.9        8.4
Current value                     -0.4       -0.7
                                                 
Interest rate swap                               
contracts
Nominal value                     12.1       16.7
Current value                     -0.1       -0.1

The current value of a derivative contract is the profit or loss
arising from closure of the contract calculated on the basis of
market price prevailing on the accounting date.

The Auditors have not yet submitted their report on the financial
statements.