LEMMINKÄINEN?S INTERIM FINANCIAL REVIEW 1 Jan. ? 30 June 2006

LEMMINKÄINEN CORPORATION  STOCK EXCHANGE BULLETIN  9.8.2006, 10:50


LEMMINKÄINEN’S INTERIM FINANCIAL REVIEW 1 Jan. – 30 June 2006:
Marked improvement in earnings

Lemminkäinen Group’s H1 net sales rose 11.5 % to EUR 731.2 million
(655.5). The operating profit was EUR 18.9 million (7.5) and the
result before taxes EUR 11.6 million (3.7). The order book grew
30.6 % to stand at EUR 1,312.1 million (1 004.7). The company’s
full-year result is expected to be better than last year.


LEMMINKÄINEN CONTINUES TO GROW STEADILY

The current year has been a favourable one for Lemminkäinen Group.
The company’s H1 net sales rose 11.5 % to EUR 731.2 million
(655.5). A significant proportion of this growth came from
international operations, which generated 29.8 % (27.9) of total
net sales. The Group’s operating profit was EUR 18.9 million (7.5)
and the result before taxes EUR 11.6 million (3.7). The H1 result
after taxes was EUR 8.6 million (2.6) and earnings per share were
EUR 0.31 (0.03).

The net sales and order book of the Paving and Mineral Aggregates
Division rose, but the result was slightly weaker than last year.

The outlook for the Building Materials Division is brighter than
last year.

Lemcon’s net sales rose and its result improved. The company’s
order book also strengthened.

Palmberg’s result improved significantly and full-year earnings
are expected to be better than last year. The company’s housing
production is growing and the second-half order book is good.

Tekmanni’s result was slightly weaker than last year due to
reduced business volume and increased material prices.


GROWING AND INTERNATIONALISING MARKETS

The total volume of construction is expected to grow this year.
Demand for housing in Finland has remained good and major
infrastructure projects will provide work for construction
companies over the coming years.
In recent years the international operations of the Finnish
construction companies have grown strongly in Scandinavia, Russia
and the Baltic states. Lemminkäinen Group derives a significant
proportion of its net sales growth from international operations,
with about a quarter of its total net sales being generated in the
above-mentioned areas. Furthermore, Lemminkäinen’s services have
been in demand due to the growing investments of Finnish industry
in countries such as China and India.


GOOD OUTLOOK FOR THE 2006 ACCOUNTING PERIOD

Lemminkäinen’s good order book creates the prerequisites for net
sales growth, and the full-year result is expected to be better
than last year.


PRESENTATION AND THE NEXT INTERIM FINANCIAL REVIEW

Lemminkäinen will brief analysts and members of the press on the
interim financial review at 1:30 p.m. on 9 August 2006. The venue
will be Ravintola Sipuli, Kanavaranta 7, Helsinki, Finland. Those
wishing to attend are cordially invited to register in advance by
calling Investor Relations Manager Katri Sundström on +358 2071
54813 or katri.sundstrom@lemminkainen.fi. The presentation
material concerning the interim financial review is available on
the company’s website at www.lemminkainen.com.

Lemminkäinen’s interim financial review for the period January-
September will be published on 8 November 2006.


LEMMINKÄINEN CORPORATION

Juhani Sormaala
Managing Director


APPENDICES:
Lemminkäinen Corporation’s interim financial review 1 Jan. – 30
June 2006


Distribution: Helsinki Exchanges, key media


LEMMINKÄINEN CORPORATION’S INTERIM FINANCIAL REVIEW 1.1.-30.6.2006


MARKET SITUATION

The total volume of construction is expected to grow 3.5 % this
year and 2.5 % next year. The forecasts are based on favourable
growth demand and a moderate rise of the price level. The growth
rate of construction volume will mirror the annual growth rate of
the Scandinavian economies.

Residential construction will continue to be brisk in both new
housing and refurbishment contracting. Some 35 000 new housing
starts are expected to be made this year, whereas the amount of
new housing units were 34 300 in year 2005. The volume of
industrial and commercial construction will also grow, but the
level of office construction will remain fairly minimal in spite
of the recovery. The situation on the civil engineering market
will remain good for the remainder of this year and into 2007. The
demand for labour is growing in all areas of construction and the
availability of professional workers is already becoming scarce in
places.

International operations account for a significant and growing
proportion of the Finnish construction companies’ net sales. The
key markets are Russia, the Baltic states and Scandinavia.


GROUP NET SALES AND EARNINGS

The H1 net sales of Lemminkäinen Group rose 11.5 % to EUR 731.2
million (655.5). International operations accounted for EUR 217.9
million (182.6) or 29.8 % (27.9) of net sales. The Group generated
70 % of its net sales Finland, 13 % in other Scandinavian
countries, 8 % in Eastern Europe, 4.5 % in the Baltic states, and
4.5 % in other countries. The net sales share of international
operations was biggest in the Paving and Mineral Aggregates
Division and in Lemcon, both of which derive about a half of their
revenue from markets outside Finland.

The Group’s H1 operating result was EUR 18.9 million (7.5) and the
result before taxes was EUR 11.6 million(3.7). The H1 result after
taxes was EUR 8.6 million (2.6), and earnings per share were EUR
0.31 (0.03).


BUSINESS SECTORS

Paving and Mineral Aggregates Division

The H1 net sales of the Paving and Mineral Aggregates Division
rose to EUR 171.8 million (162.1). International operations
accounted for EUR 83.7 million (74.0) of the Division’s net sales.
The Division generated 51 % of its net sales in Finland, 30 % in
other Scandinavian countries, and 17 % in the Baltic states.

The Division’s operating result was EUR –14.5 million (-11.8). The
Division’s order book was up on the previous year at EUR 313.5
million (284.9), of which international operations contributed
54.6 % (50.3).

The total volume of asphalt paving works in Finland is down on the
previous year. The Division’s first-half result was adversely
impacted by the exceptional length of the 2005/2006 winter, but
the warm summer has helped compensate for the delayed arrival of
the paving season. The Division’s order book is good, so the full-
year result is largely dependent on the length of the work season.

The price level of asphalt paving contracts is still quite weak in
Finland and Sweden, but slightly better in Denmark and Norway. In
the Baltic states the outlook for asphalt paving remains
favourable. The prices of raw materials, especially bitumen, have
remained high.

Brisk housing production has kept demand for mineral aggregate and
ready-mix concrete at a good level.

Building Materials Division

The H1 net sales of the Building Materials Division were EUR 41.5
million (42.1) and the operating result was EUR –0.6 million (-
1.6). The Division’s order book was 20 % up at EUR 35.3 million
(29.2).

Due to the stronger order book and improved profitability, the
group´s outlook for this year is more favourable.

Demand for roofing and urban environment contracting has remained
good and material sales have been very brisk this summer. The
order book for pre-cast concrete staircase units has been growing
thanks to the gradual recovery of office construction.

On 31 May 2006 Lemminkäinen Betonituote Oy acquired RK-
Betoniporras Oy and the pre-cast concrete staircase operations of
Suonenjoen Sementtituote Oy. After the acquisitions Lemminkäinen’s
new subsidiary, Suonenjoen Betonituote Oy, will continue the
Suonenjoki-based business, which mainly involves the manufacture
of pre-cast concrete staircase units.

Lemcon Ltd

The H1 net sales of Lemcon Ltd rose to EUR 172.7 million (149.3),
of which international operations accounted for EUR 102.9 million
(94.6).
Some 40 % of the company’s net sales came from Finland, with the
remainder being generated in Eastern Europe (31 %), other
Scandinavian countries (10 %), North and South America (10 %), and
other countries (9 %).

Lemcon’s profit before taxes rose to EUR 6.5 million (5.6). The
company’s order book grew strongly from the previous year and was
EUR 347.2 million (236.6), of which operations abroad accounted
for 42.3 % (64.9).

Lemcon’s domestic order book for rock engineering contracting is
still good, and in Sweden too the state of the market remains
favourable.

In Russia, demand for industrial and logistical facilities
continues to be brisk. Lemcon is also studying future business
opportunities in growing areas of Eastern Europe, such as Romania
and the Ukraine.

The share of Lemcon´s technical expert services in
telecommunications network construction is increasing. The growing
investments of Finnish industry in China and India are boosting
demand for company´s services in these markets.

The dispute arising from IKEA’s termination of the construction
contract for the MEGA shopping centre in St. Petersburg is pending
before the court of arbitration.

Oy Alfred A. Palmberg Ab

The net sales of the Group’s building contractor, Oy Alfred A.
Palmberg Ab, continued to grow, the H1 figure being EUR 271.3
million (235.2). The company’s result before taxes improved
significantly and was EUR 18.5 million (11.4). Palmberg’s order
book rose to stand at EUR 542.1 million (378.1).

The growth of building construction is forecast to level off
gradually, but still remaining good for the rest of this year and
possibly next year too. The long-term growth of residential
refurbishment contracting is likely to continue. New housing
starts for 2006 are forecast at about 35 000, whereas the amount
of new starts last year was 34 300. In spite of higher interest
rates, consumer confidence in household finances has held up well
and has supported good demand for housing in Finland.

Palmberg’s housing production is growing steadily. The company
made 910 (697) private-sector housing starts in the first half of
the year. Palmberg has the capabilities to make starts on about
1,500 housing units this year, compared to 1 251 starts made in
2005.

At the end of the review period the company owned a total of 785
000 m2 of unused building rights, of which about 450 000 m2 were
residential building rights. The company also has binding or
conditional co-operation and zoning agreements for a further 560
000 m2, of which about 380 000 m2 are residential building rights.
Market conditions permitting, the company has the possibility to
increase its housing production thanks to the good stock of
building plots.

Palmberg’s full-year outlook is good and the company’s result is
expected to be better than last year due to the increased order
book and favourable market development.

Tekmanni Oy

The H1 net sales of Tekmanni Oy were EUR 87.7 million (93.0) and
the profit before taxes EUR 2.8 million (3.4). The order book was
EUR 74.0 million (75.8).

The company’s weaker net sales and result compared to last year
are mainly the result of reduced business volume and increased
material prices. The order book is also slightly down on last
year.

The sustained level of activity on the refurbishment market has
boosted demand for maintenance, upkeep and repair works in the
technical services sector. In particular, the volume of plumbing
refurbishment works in residential buildings is growing
nationwide.

On 13 June 2006 Tekmanni Service and Johnson Controls IFM Nordic
signed an agreement on the maintenance of Shell service stations.
The contract covers over 100 service stations and encompasses all
facility maintenance services. Furthermore, the contract includes
consulting services related to technical building systems, a
nationwide call-out service, as well as necessary conversion works
and basic repair assignments.


ORDER BOOK

The Group’s order book rose 30.6 % to stand at EUR 1 312.1 million
(1 004.7), of which international operations accounted for EUR
347.1 million (321.9). The market breakdown of the order book was
Finland 74 %, other Scandinavian countries 14 %, the Baltic states
5 %, and Eastern Europe 5 %. Operations abroad make up about a
half of the order book of both the Paving and Mineral Aggregates
Division and Lemcon Ltd.

Order book by business sector

EUR mill.                     6/06      6/05    Change,%
                                                        
Paving and Mineral                                      
Aggregates Division          313.5     284.9        10.0
Building Materials                                      
Division                      35.3      29.2        20.9
Lemcon Ltd                   347.2     236.6        46.7
Oy Alfred A. Palmberg Ab     542.1     378.1        43.4
Tekmanni                      74.0      75.8       - 2.4
Total                      1 312.1   1 004.7        30.6


Of the new construction projects started after the accounting
period, the most important is a new office building complex to be
built by Oy Alfred Palmberg Ab in the Salmisaari district of
Helsinki. Lemminkäinen’s own head office will be relocated to the
new building in 2009. The premises will be leased from the
developer, Varma Mutual Pension Insurance Company. The contract is
worth approx. EUR 100 million and the entire project is included
in the company’s order book for the review period.

Lemcon Ltd has signed a project management contract concerning the
construction of a museum centre in Kotka, Finland. Construction
work on the site has begun and the museum centre will be completed
in November 2007. The contract is worth EUR 26.3 million and is
included in the order book for the review period.

Lemcon Ltd has signed an agreement with the City of Helsinki
concerning excavation and reinforcement works on the eastern part
of the city centre’s underground service tunnel. The contract is
worth EUR 21.7 million and is included in the order book for the
review period. Excavation work has begun and Lemcon expects the
contract to be completed in summer 2008.

Lemcon Ltd has won the foundation building contract for Kiinteistö
Oy Helsingin Hiiliranta ja Hiilipiha in Salmisaari. The contract
is worth about EUR 9 million and is included in the order book for
the review period. Work began in July and will last until spring
2008.

Oka Oy, a subsidiary of Palmberg, is building a shopping centre in
downtown Lappeenranta. The project also includes office space, a
parking facility and apartments. The total value of the contract
is approx. EUR 41 million. The project is partially included in
the order book for the review period.

A contract for the construction of two office buildings in West
Pasila has been signed with Fennia Mutual Insurance Company. The
contract is worth about EUR 50 million. The project is not
included in the order book for the review period.


GROUP STRUCTURE

At the beginning of 2006 the roofing and concrete products
businesses of the Building Materials Division were transferred to
two new subsidiaries: Lemminkäinen Katto Oy and Lemminkäinen
Betonituote Oy. The new companies together with Omni-Sica Oy still
constitute 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.


FINANCING

According to the source and application of funds statement, the
cash flow from operating activities was EUR –112.5 million (-
64.9), the cash flow from investing activities EUR –17.1 million
(-10.8) and the cash flow from financing activities EUR 135.0
million (77.8). The cash flow for the accounting period includes
dividends totalling EUR 18.1 million (11.1) for 2005.

Interest-bearing liabilities at the end of the accounting period
were EUR 426.6 million (378.7) and liquid funds were EUR 47.4
million (42.6). Interest-bearing net debt was EUR 379.2 million
(336.1). The change in interest-bearing net debt from the
comparative period was EUR 43.1 million.

The changes in cash flows and net debt compared with H1 last year
stem from the larger dividend pay-out, the increase in business
volume, and changes in project financing.

Net financing expenses were EUR 7.1 million (4.1), representing
1.0 % (0.6) of net sales. The equity ratio was 23.1 % (22.3) and
gearing 186.4 % (193.0).


INVESTMENTS

Investments in the accounting period amounted to EUR 31.4 million
(26.2). The investments were mainly purchases of paving, crushing
and excavation equipment, production plant for building materials,
and building construction equipment.


PERSONNEL

The average number of employees in the Group over the accounting
period was 7 955 (7 551), of whom 2 080 (1 799) were working
abroad. As of 30 June 2006, there were 9 415 (8 927) employees on
the payroll.


DECISIONS OF THE ANNUAL GENERAL MEETING

The Annual General Meeting of Lemminkäinen Corporation held on 17
March 2006 adopted the 2005 annual financial statements and
granted the Board of Directors and the Managing Director freedom
from responsibility. In accordance with the Board of Directors’
proposal, the Annual General Meeting decided to pay a dividend of
EUR 1.00 per share, i.e. a total dividend pay-out of
17,021,250.00. The record date of the dividend payment was 22
March 2006 and the date of dividend payment was 29 March 2006.

Messrs. Berndt Brunow, Erkki J. Pentti, Heikki Pentti, Teppo
Taberman and Sakari Tamminen were elected to serve as members of
the Company's Board of Directors. The Board of Directors elected
Heikki Pentti to serve as the Chairman and Teppo Taberman to serve
as the Vice Chairman.

PricewaterhouseCoopers Oy, a firm of authorised public
accountants, were elected to serve as the Company’s auditors, with
Mr. Jan Holmberg, A.P.A. acting as the auditor in charge.


SHARES

The listed price of Lemminkäinen Corporation’s share was EUR 30.50
(15.74)at the beginning and EUR 29.28 (22.99) at the end of the
review period. The trading volume was 1,984,384 shares
(3,006,655). The market capitalisation at the end of the
accounting period was EUR 498.4 million (391.3).


FCA’s ALLEGATIONS CONCERNING THE ASPHALT PAVING AND BITUMINOUS
ROOFING INDUSTRIES

In March 2004 the Finnish Competition Authority (FCA) proposed to
the Market Court that a sanction of EUR 68 million should be
imposed on Lemminkäinen in connection with the operation of an
alleged cartel in the asphalt paving industry. In its rejoinder
submitted to the Market Court, Lemminkäinen has denied 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 pending in the Market Court.

In March 2006 the FCA sent companies of the bituminous roofing
industry a copy of its draft proposal to the Market Court for
comment. The draft proposal alleges that prohibited exchanges of
information took place on the bituminous roofing market during the
years 1996-2002. The amount of the fine sought by the FCA is not
specified in the document. Having studied the draft proposal,
Lemminkäinen has made it clear in its response to the FCA that the
company’s activities have been in compliance with the competition
regulations.


OUTLOOK FOR THE 2006 ACCOUNTING PERIOD

Lemminkäinen’s outlook for the year ahead is very favourable. The
Group’s housing production is growing and the favourable
development of Lemminkäinen’s international operations in
established as well as new market areas create good conditions for
net sales and order book growth. The full-year result is expected
to be better than last year.


Helsinki, 9 August 2006


LEMMINKÄINEN CORPORATION
Board of Directors


The information contained in the interim financial review has not
been audited.


TABULATED SECTION OF THE INTERIM FINANCIAL REVIEW

ACCOUNTING PRINCIPLES

This interim financial review has been prepared in accordance with
IFRS measurement and recognition principles. The interim financial
review has been prepared in accordance with the same accounting
principles as those observed in the year-end financial statements
for 2005.

FINANCIAL STATEMENTS AND OTHER TABULATED INFORMATION

1) Consolidated income statement
2) Consolidated income statement, quarterly
3) Net sales by business sector
4) Net sales by business sector, quarterly
5) Operating result by business sector
6) Operating result by business sector, quarterly
7) Consolidated balance sheet
8) Statement of changes in equity
9) Statement of source and application of funds
10) Economic trends and financial indicators
11) Share-specific indicators
12) Guarantees and contingent liabilities

CONSOLIDATED INCOME STATEMENT                                     
                                                                       
EUR mill.             6/2006   6/2005   Change Change,%   12/2005      
                                                                       
Net sales              731.2    655.5     75.7     11.5   1 601.7      
Operating income and                                                   
expenses              -698.1   -634.1    -64.0    -10.1  -1 495.3      
Depreciation           -14.2    -13.9     -0.3     -2.2     -34.0      
Operating profit        18.9      7.5     11.4               72.5      
Financial expenses      -7.9     -6.2     -1.7    -27.4     -11.5      
Financial income         0.8      2.0     -1.2    -60.0       3.8      
Share of the results                                                   
of affiliated                                                          
companies               -0.2      0.2     -0.4                1.1      
Profit before taxes     11.6      3.7      7.9               65.9      
Income taxes            -3.0     -1.0     -2.0              -17.4      
Profit for the                                                         
accounting period        8.6      2.6      6.0               48.5      
                                                                       
Distribution of the result for the accounting period              
To shareholders of                                                     
the parent company       5.3      0.4      4.9               43.7      
To minority                                                            
interests                3.3      2.2      1.1     50.0       4.7      
                                                                       
EPS calculated from profit/loss attributable to parent company    
shareholders, EUR
Earnings per share,                                                    
EUR                     0.31     0.03                        2.57      
Earnings per share,                                                    
EUR, diluted            0.31     0.03                        2.57      
                                                                  


CONSOLIDATED INCOME STATEMENT, QUARTERLY
                                                                       
                        1-3/     4-6/     7-9/   10-12/    1-3/    4-6/
EUR mill.               2005     2005     2005     2005    2006    2006
                                                                       
Net sales              231.2    424.3    516.7    429.5   303.5   427.8
Operating income and                                                   
expenses              -237.2   -396.9   -454.4   -406.8  -305.3  -392.8
Depreciation            -5.0     -8.9    -12.7     -7.4    -5.0    -9.2
Operating profit       -11.0     18.5     49.6     15.3    -6.8    25.8
Financial expenses      -2.6     -3.5     -2.7     -2.7    -2.7    -5.2
Financial income         0.9      1.2      0.9      0.9     0.8     0.0
Share of the results                                                   
of affiliated                                                          
companies               -0.1      0.3      0.8      0.0    -0.3     0.2
Profit before taxes    -12.8     16.4     48.7     13.5    -9.1    20.7
Income taxes             3.2     -4.2    -13.0     -3.4     1.7    -4.8
Profit for the                                                         
accounting period       -9.6     12.2     35.7     10.1    -7.3    15.9
                                                                
Distribution of the result for the accounting period            
To shareholders of                                                     
the parent company     -10.9     11.3     34.1      9.2    -8.3    13.6
To minority                                                            
interests                1.3      0.9      1.6      0.9     1.0     2.4
                                                                       
EPS calculated from profit/loss attributable to parent          
company shareholders, EUR
Earnings per share,                                                    
EUR                    -0.64     0.66     2.00     0.54   -0.49    0.80
Earnings per share,                                                    
EUR, diluted           -0.64     0.66     2.00     0.54   -0.49    0.80
                                                                

                                                                
NET SALES BY BUSINESS SECTOR                                           
                                                                       
EUR mill.             6/2006   6/2005   Change Change,% 12/2005        
                                                                       
Lemminkäinen                                                           
Corporation
Paving and Mineral                                                     
Aggregates Division    171.8    162.1      9.7      6.0   514.7        
Building Materials                                                     
Division                41.5     42.1     -0.6     -1.4   100.3        
Lemcon Ltd             172.7    149.3     23.4     15.7   328.8        
Oy Alfred A.                                                           
Palmberg Ab            271.3    235.2     36.1     15.3   517.3        
Tekmanni Oy             87.7     93.0     -5.3     -5.7   191.1        
Others                 -13.8    -26.3     12.5     47.5   -50.4        
Group total            731.2    655.5     75.7     11.5 1 601.7        
                                                                       
                                                                       
NET SALES BY BUSINESS SECTOR, QUARTERLY                                
                                                                       
                        1-3/     4-6/     7-9/   10-12/    1-3/    4-6/
EUR mill.               2005     2005     2005     2005    2006    2006
                                                                       
Lemminkäinen                                                           
Corporation
Paving and Mineral                                                     
Aggregates Division     21.5    140.6    223.8    128.8    23.9   147.8
Building Materials                                                     
Division                13.2     28.9     38.7     19.4    11.6    29.8
Lemcon Ltd              66.0     83.3     82.6     96.9   100.9    71.8
Oy Alfred A.                                                           
Palmberg Ab             99.4    135.8    140.0    142.2   129.7   141.7
Tekmanni Oy             40.5     52.5     46.8     51.4    42.9    44.8
Others                  -9.4    -16.9    -15.0     -9.2    -5.6    -8.2
Group total            231.2    424.3    516.7    429.5   303.5   427.8
                                                                       
                                                                       
OPERATING RESULT BY BUSINESS SECTOR                                    
                                                                       
EUR mill.             6/2006   6/2005   Change Change,% 12/2005        
                                                                       
Lemminkäinen                                                           
Corporation
Paving and Mineral                                                     
Aggregates Division    -14.5    -11.8     -2.7    -22.9    20.5        
Building Materials                                                     
Division                -0.6     -1.6      1.0     62.5     0.6        
Lemcon Ltd               7.2      4.7      2.5     53.2    15.3        
Oy Alfred A.                                                           
Palmberg Ab             21.9     13.1      8.8     67.2    28.3        
Tekmanni Oy              2.4      3.1     -0.7    -22.6     6.8        
Others                   2.7      0.0      2.7              1.0        
Group total             18.9      7.5     11.4             72.5        
                                                                       
OPERATING RESULT BY BUSINESS SECTOR, QUARTERLY                         
                                                                       
                        1-3/     4-6/     7-9/   10-12/    1-3/    4-6/
EUR mill.               2005     2005     2005     2005    2006    2006
                                                                       
Lemminkäinen                                                           
Corporation
Paving and Mineral                                                     
Aggregates Division    -16.2      4.4     28.7      3.7   -20.6     6.1
Building Materials                                                     
Division                -3.4      1.8      3.8     -1.6    -2.6     1.9
Lemcon Ltd               2.6      2.1      5.4      5.2     4.1     3.1
Oy Alfred A.                                                           
Palmberg Ab              4.6      8.5      9.5      5.7     7.5    14.3
Tekmanni Oy              1.5      1.6      2.5      1.1     2.2     0.1
Others                  -0.1      0.1     -0.2      1.1     2.5     0.2
Group total            -11.0     18.5     49.6     15.3    -6.8    25.8
                                                                       

                                                               
CONSOLIDATED BALANCE SHEET                                     
                                                               
EUR mill.                      6/2006   6/2005          12/2005
                                                               
Non-current assets                                             
Tangible assets                 175.8    175.6            164.4
Goodwill on consolidation        67.1     63.7             63.5
Other intangible assets           2.6      2.8              2.5
Investments                       8.2     10.9             10.9
Deferred tax asset                9.7      9.1              4.0
Other non-current                                              
receivables                       1.6      0.2              0.7
Total                           265.1    262.3            245.9
                                                               
Current assets                                                 
Inventories                     266.0    249.3            223.7
Trade and other receivables     381.9    306.2            263.4
Cash funds                       47.4     42.6             42.4
Total                           695.3    598.1            529.5
                                                               
Assets, total                   960.4    860.4            775.4
                                                               
Shareholders’ equity and                                       
liabilities
                                                               
Equity attributable to shareholders of the                     
parent company
Share capital                    34.0     34.0             34.0
Other shareholders’ equity                                     
before minority interest        153.6    123.6            166.8
Minority interest                15.8     16.5             14.6
Shareholders’ equity, total     203.4    174.1            215.5
                                                               
Non-current liabilities                                        
Deferred tax liability           14.4     19.4             19.4
Pension liabilities               0.4      0.6              0.5
Provisions                        2.3      4.4              4.9
Interest-bearing liabilities    101.2    131.4            103.5
Other liabilities                 2.5      1.1              2.5
Total                           120.7    157.0            130.8
                                                               
Current liabilities                                            
Accounts payable and other      307.5    280.6            267.1
liabilities
Provisions                        3.4      1.5              1.5
Interest-bearing liabilities    325.4    247.2            160.5
Total                           636.3    529.3            429.2
                                                               
Shareholders’ equity and                                       
liabilities, total              960.4    860.4            775.4

                                                                       
STATEMENT OF CHANGES IN EQUITY
EUR mill.      Share   Share  Transla  Revalua Retained Minorit  Share-
               capit premium     tion     tion earnings       y  holder
                  al account  differe  reserve          interes      s'
                                  nce                         t  equity
                              reserve                                 ,
                                                                  total
Adjusted                                                               
shareholders’                                                          
equity,                                                                
1.1.2005        34.0     5.8     -0.2      1.4    125.7    15.2   181.9
                                                                       
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
Dividend                                                               
distribution                                      -10.2           -10.2
Result for the                                                         
accounting                                                             
period                                             43.7     4.7    48.5
Change in                                                              
minority                                                               
interest                                                   -5.3    -5.3
                                                                
Shareholders’                                                          
equity,                                                                
31.12.2005      34.0     5.8      0.4      1.5    159.2    14.6   215.5
                                                                       
Translation                                                            
difference                       -0.1                              -0.1
Hedging of net                                                         
investment in                                                          
foreign                                                                
subsidiary                       -0.1                              -0.1
Change in fair                                                         
value                                      0.0                      0.0
Effect of sold                                                         
shares                                    -1.3                     -1.3
Dividend                                                               
distribution                                      -17.0           -17.0
Result for the                                                         
accounting                                                             
period                                              5.3     3.3     8.6
Change in                                                              
minority                                                               
interest                                                   -2.1    -2.1
                                                                       
Shareholders’                                                          
equity,                                                                
30.6.2006       34.0     5.8      0.2      0.2    147.5    15.8   203.4
                                                                       

                                                               
STATEMENT OF SOURCE AND                                        
APPLICATION OF FUNDS
                                                               
EUR mill.                      6/2006   6/2005          12/2005
                                                               
Result before extraordinary                                    
items                            11.6      3.7             65.9
Depreciation according to                                      
plan                             14.2     13.9             34.0
Other adjustments                 3.2      2.0              4.3
Cash flow before change in                                     
working capital                  29.0     19.6            104.2
Change in working capital      -126.1    -73.7            -17.6
Financial items                  -4.5     -4.7             -7.0
Direct taxes paid               -10.9     -6.1            -20.1
Cash flow from operating                                       
activities                     -112.5    -64.9             59.5
Cash flow from investing                                       
activities                      -17.1    -10.8            -18.3
Change in loans                 153.1     88.9            -28.1
Dividends paid                  -18.1    -11.1            -11.1
Cash flow from financing                                       
activities                      135.0     77.8            -39.3
Change in cash funds              5.4      2.1              1.9
Cash funds at beginning of                                     
period                           42.4     39.9             39.9
Translation difference of                                      
cash funds                       -0.5      0.6              0.6
Cash funds at end of period      47.4     42.6             42.4
                                                               
                                                               
ECONOMIC TRENDS AND            6/2006   6/2005          12/2005
FINANCIAL INDICATORS
                                                               
Return on equity, % 1)            4.1      1.5             24.5
Return on investment, % 1)        3.5      1.9             16.5
Operating result,                                              
% of net sales                    2.6      1.1              4.5
Equity ratio, %                  23.1     22.3             31.0
Gearing, %                      186.4    193.0            102.9
Gross investments, EUR                                         
million (incl. leasing                                         
purchases)                       31.4     26.2             37.4
Order book, EUR mill.         1 312.1  1 004.7          1 011.3
- of which foreign orders,                                     
EUR mill.                       347.1    321.9            343.4
Average number of employees     7 955    7 551            7 912
Employees at end of period      9 415    8 927            7 112
Net sales, EUR mill.            731.2    655.5          1 601.7
- of which operations                                          
abroad, EUR mill.               217.9    182.6            499.6
% of net sales                   29.8     27.9             31.2
                                                               
1)Only the result for the accounting period has been included
in the calculation of ROE and ROI.
                                                               
                                                               
SHARE-SPECIFIC INDICATORS      6/2006   6/2005          12/2005
                                                               
Earnings per share, EUR          0.31     0.03             2.57
Equity per share, EUR           11.03     9.26            11.80
Dividend per share, EUR                                    1.00
Dividend to earnings ratio,                                    
%                                                          38.9
Market capitalisation, EUR                                     
mill.                           498.4    391.3            519.1
Share price at end of                                          
period, EUR                     29.28    22.99            30.50
Trading volume during                                          
period, 1,000 shares            1 984    3 007            4 610
Number of issued shares,                                       
1,000 shares                   17 021   17 021           17 021
                                                               

GUARANTEES AND CONTINGENT LIABILITIES
                                                               
EUR mill.                      6/2006   6/2005          12/2005
                                                               
Securities for own                                             
commitments
Property mortgages                2.9      3.3              3.3
Business mortgages               99.7     99.6             99.2
Bonds pledged as security         0.5      4.1              0.7
Total                           103.1    107.1            103.3
                                                               
Guarantees                                                     
On behalf of affiliated                                        
companies                         0.8      0.3              0.4
On behalf of others               0.9      0.0              5.3
                                                               
Leasing liabilities              26.3     23.5             27.7
                                                               
Derivative contracts                                    
                                                               
Forward foreign exchange                                
contracts
Nominal value                    10.1     21.1             18.1
Current value                     0.0     -0.1             -0.2
                                                               
Currency options, calls                                 
purchased
Nominal value                     0.0      3.3              1.7
Current value                     0.0      0.0              0.0
                                                               
Currency options, puts                                  
written
Nominal value                     0.0      2.9              1.7
Current value                     0.0     -0.2             -0.2
                                                               
Interest rate options, calls                            
purchased
Nominal value                    35.5      7.9             36.4
Current value                     0.0      0.0              0.0
                                                               
Interest rate options, puts                             
written
Nominal value                     6.1      7.9              6.9
Current value                    -0.2     -0.6             -0.4
                                                               
Interest rate swap contracts                            
Nominal value                    39.5     12.8             12.1
Current value                    -1.8     -0.2             -0.1
                                                               
The fair value of contracts is the gain or loss arising from
closure of the contract based on the market price on the
accounting date.