Sanofi to make formal Genzyme offer

(Reuters) – France’s Sanofi-Aventis (SASY.PA) plans to make a formal offer of up to $18.7 billion for Genzyme (GENZ.O) after its informal overture failed to strike interest, sources familiar with the situation said on Wednesday.

The board of Sanofi met in Paris on Wednesday and authorized management to make a formal offer of up to $70 per share for Genzyme, sources said.

Sanofi has bank commitments of funding that would allow it to raise that bid if needed, one source said. A second source cautioned that no formal proposal had been made yet and plans could still change.

Genzyme has a market capitalization of about $18 billion. At $70 per share, Sanofi would be offering a premium of roughly 30 percent over what the price of Genzyme’s stock was before news of takeover interest emerged.

The Wall Street Journal, citing people close to Genzyme, suggested that about $75 a share could be sufficient to win the support of Genzyme’s board.

Sanofi, which is scheduled to report second-quarter earnings on Thursday, declined to comment. Genzyme could not be immediately reached for comment.

Shares of Genzyme gained 5 percent to $71.20 in extended trading on Wednesday after news of the board meeting.

Analysts see Sanofi in greater need of a major acquisition than some of its rivals as it braces for generic competition for some of its key products.

Last week, Sanofi lowered its view for 2010 earnings per share after U.S. regulators approved a generic form of the Lovenox blood thinner, its No. 2 product last year.

Genzyme’s biggest-selling drug is Cerezyme, a treatment for Gaucher disease, a rare genetic disorder. Promising drugs in late stage development include a treatment for multiple sclerosis.

Orphan drugs — those that treat small numbers of patients but command high prices — are much less amenable to generic competition than pills and are therefore attractive acquisition candidates.

BEAR HUG LETTER EXPECTED

Sanofi’s proposal was expected to come in the form of a publicly disclosed “bear hug” letter that would lay out proposed takeover terms and try to pressure Genzyme to open negotiations, the first source said.

Genzyme failed to respond to Sanofi’s informal overture, sources previously told Reuters. Genzyme, which is trying to sell three non-core businesses, is not looking to sell the company, sources previously said.

Reports that Sanofi was making a run at Genzyme surfaced on Friday. The news has sent the U.S. company’s shares up about 30 percent since then as investors figured the company would garner a hefty premium for its portfolio of expensive treatments for rare genetic disorders and a pipeline of drugs in development.

Analysts see Genzyme fetching anywhere from $60 to $85 a share, depending on their view of the value of the company’s experimental drugs, the risks associated with its recovery from a manufacturing crisis and the entry of other bidders.

Some company watchers, however, focus on a narrower price range and say Genzyme shareholders may be willing to accept a price of $70 to $80 per share, particularly newer investors who were drawn to the company when it was targeted by activist investor Carl Icahn.

Sanofi’s approach comes on the heels of a turbulent two years for Genzyme and its chief executive, Henri Termeer, who is expected to step down within the next year or two.

Earlier this year, Termeer fought off a threatened proxy fight by reaching settlements with investors Carl Icahn, who now has two representatives on the company’s board, and Ralph Whitworth of Relational Investors LLC, who also sits on the board.

The Wall Street Journal said Britain’s Glaxo (GSK.L) had also recently made “a very casual approach” to Genzyme, but industry insiders and analysts said that Glaxo Chief Executive Andrew Witty, with a reputation for caution on M&A, was unlikely to chase Genzyme.

(Reporting by Jessica Hall; Editing by Gary Hill, Phil Berlowitz, Gary Hill)

UPDATE 1-Sanofi Q2 beats market; mum on Genzyme bid talk

PARIS, July 29 (Reuters) – Sanofi-Aventis (SASY.PA) beat second-quarter earnings expectations as it beefed up sales and tightened its R&D spending, but the French drugmaker gave no hint in its results statement of any acquisition plans.

Sources told Reuters late on Wednesday that Sanofi plans to make a formal offer of up to $18.7 billion, or $70 per share, for U.S. biotech Genzyme (GENZ.O) as it seeks to replenish its drug pipeline and make up for the loss of patent protection on blockbuster drugs in the years through 2013. [ID:nN28226612]

Quarterly earnings beat the average outcome of a Reuters poll on all fronts as Sanofi tightened spending, and as sales were driven by its diabetes division, emerging markets and consumer health.

Business net income rose 7.6 percent to 2.478 billion euros ($3.22 billion) versus the poll’s average of 2.32 billion euros. Earnings per share climbed 8 percent to 1.90 euros versus the poll’s 1.78 euros.

Sales increased 4.6 percent to 7.783 billion euros even as competition grew from generic copies of bloodthinner Plavix and cancer drug Eloxatin, and as vaccine sales declined.

The U.S. health regulator’s approval of a generic to bloodthinner Lovenox led Sanofi last week to cut its earnings per share forecast to between stable and 4 percent lower at constant exchange rates from 2-5 percent growth against 2009.

For 2013, Sanofi expects sales to be at least at 2008′s level of 27.57 billion euros, and business net income to be similar to the 2008 level of 7.314 billion euros.

Those forecasts take into account the arrival of a Lovenox copy as well as government healthcare spending cuts, and exclude acquisitions above 1 billion euros, like consumer health company Chattem and a stake in Merial animal health that Sanofi did not already own.

Sanofi expected cost savings, including on R&D, to exceed 1 billion euros at constant exchange rates this year from the 2008 level and compared with a 2013 savings goal of 2 billion euros.

MUM ON MERGERS

In its earnings statement on Thursday, Sanofi did not comment on its acquisition strategy for which CEO Chris Viehbacher has set a limit of 15 billion euros, though never entirely dismissing a bigger deal.

Last year, Sanofi invested 6.6 billion euros on 33 new partnerships and acquisitions and has said it would do a similar number of deals this year to further branch out its business and address unmet medical needs.

A bigger move could be on the cards, however, as more than a fifth of Sanofi’s 2008 drug sales — excluding a generic Lovenox — face patent expiries to 2013, and its drug portfolio can’t offset that loss.

Sanofi’s net debt rose to 6.17 billion euros in the first half from 4.14 billion euros at end-2009, while net cash from operating activities stood at 4.2 billion euros.

Sanofi shares closed 0.6 percent higher at 45.43 euros on Wednesday. The stock is down about 17.5 percent so far this year, underperforming a 1.9 percent dip in the DJ health index .SXDP.

Dassault Systemes ups 2010 guidance on weak euro

July 29 (Reuters) – Dassault Systemes (DAST.PA) hiked 2010 earnings guidance on Thursday for the second time this year thanks to the weaker euro and the performance of assets acquired from IBM (IBM.N).

The French group, which specialises in three-dimensional modelling software for clients including Boeing (BA.N), now expects 2010 non-IFRS earnings per share of between 2.25 to 2.35 euros, up from 2.19 to 2.28. A weakening euro had pushed it to hike earnings forecasts when it reported first-quarter results.

The firm on Thursday reported a 24 percent rise in non-IFRS second-quarter revenue, to 385.6 million euros ($501.8 million), as well as an 82 percent rise in earnings per share, to 0.40 euros per share.

“Dassault Systemes had a very solid second quarter, with sales above the high end of our revenue target,” Dassault Systemes Chief Executive Bernard Charles said, citing new partnerships with Michelin (MICP.PA) and the aquisition of search specialist Exalead in June.

Dassault Systemes, which has a market value of 6.1 billion euros, has seen its shares rise 29.7 percent so far this year, buoyed by a resurgence in business spending on technology after the crisis.

(Reporting by Lionel Laurent, editing by Geert De Clercq)

((lionel.laurent@thomsonreuters.com; +33 1 49 49 56 85; Reuters Messaging: lionel.laurent.reuters.com@reuters.net))

($1=.7684 Euro) Keywords: DASSAULT SYSTEMES/

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Oriola-KD Oyj: Oriola-KD Corporation’s Interim Report for 1 January – 30 June 2010

Oriola-KD Corporation Stock Exchange Release 29 July 2010 at 8.30 a.m.

Oriola-KD Corporation’s Interim Report for 1 January – 30 June 2010

This review presents financial information regarding the continuing operations of
Oriola-KD Group (hereinafter Oriola-KD) for the period January-June 2010. Oriola-KD’s
Healthcare Trade business was sold on 31 May 2010 and its figures are reported in the
tables in the discontinued operations section. The interim report 1 January-30 June 2010
was drawn up in accordance with the IAS 34 standard and Oriola-KD’s 2009 annual report.
In addition, new IAS/IFRS standards have been adopted in 2010, the most important of
which are IFRS 3 and IAS 27. The figures are unaudited.

Oriola-KD sold its Healthcare Trade business to Mediq N.V. on 31 May 2010 for approx.
EUR 85 million. A profit of EUR 54.0 million was entered for the corporate transaction
and as a consequence the Group’s goodwill decreased by EUR 7.7 million during the second
quarter of 2010. The final value of the deal and the profit entered will be specified
according to the conditions associated with the acquisition price by the end of 2010.

Key figures for continuing operations for 1 January – 30 June 2010

*
The figures refer to continuing operations and do not include the Healthcare Trade,
unless otherwise stated

*
Net sales increased 21 per cent to EUR 903.1 million (Jan-Jun 2009: EUR 746.5 million)

*
Operating profit decreased 47 per cent to EUR 11.3 million (Jan-Jun 2009: EUR 21.2
million)

*
Net profit decreased 52 per cent to EUR 7.4 million (Jan-Jun 2009: EUR 15.3 million)

*
Earnings per share were EUR 0.05 (Jan-Jun 2009: EUR 0.11)

*
Net cash flow from operations including the cash flow from the Healthcare Trade business
was EUR 54.1 million (Jan-Jun 2009: EUR -5.8 million)

*
Return on capital employed was 4.8 per cent (Jan-Jun 2009: 16.1 per cent including the
Healthcare Trade transaction)

*
Oriola-KD’s net sales from its continuing operations for 2010 is forecasted to be higher
than in 2009 and operating profit is forecasted to be lower than in 2009

Key figures for continuing operations for 1 April – 30 June 2010

*
The figures refer to continuing operations and do not include the Healthcare Trade,
unless otherwise stated

*
Net sales increased 29 per cent to EUR 487.3 million (Q2/2009: EUR 377.8 million)

*
Operating profit decreased 20 per cent to EUR 8.4 million (Q2/2009: EUR 10.5 million)

*
Net profit decreased 29 per cent to EUR 5.4 million (Q2/2009: EUR 7.6 million)

*
Earnings per share were EUR 0.04 (Q2/2009: EUR 0.05)

President and CEO Eero Hautaniemi: “The net sales of Oriola-KD’s continuing operations
increased 21 per cent to EUR 903 million and operating profit decreased 47 per cent to
EUR 11 million in January-June 2010. Businesses developed according to our expectations
in the second quarter. We took over the pharmacy chain acquired in Sweden and continued
to expand and intensify operations in Russia in a very difficult market situation. We
sold our Healthcare Trade business to Dutch company Mediq with EUR 85 million in May
2010.”

Financial performance

The figures related to financial performance refer to continuing operations and do not
include the Healthcare Trade, unless otherwise stated.

Oriola-KD’s net sales in January-June 2010 were EUR 903.1 million (EUR 746.5 million)
and operating profit was EUR 11.3 million (EUR 21.2 million). Profit after financial
items came to EUR 9.0 million (EUR 19.4 million) and net profit to EUR 7.4 million (EUR
15.3 million). Earnings per share in January-June 2010 were EUR 0.05 (EUR 0.11).

Second-quarter net sales came to EUR 487.3 million (EUR 377.8 million) and operating
profit to EUR 8.4 million (EUR 10.5 million). Profit after financial items came to EUR
6.9 million (EUR 9.5 million) and net profit to EUR 5.4 million (EUR 7.6 million).
Earnings per share in the second quarter were EUR 0.04 (EUR 0.05).

Oriola-KD’s financing expenses in January-June 2010 were EUR 2.3 million (EUR 1.8
million). Taxes amounted to EUR 1.6 million (EUR 4.1 million). Taxes corresponding to
the result for continuing operations for the January-June 2010 period are entered under
this figure.

Return on capital employed for continuing operations was 4.8 per cent (16.1 per cent
including the Healthcare Trade) and return on equity 5.1 per cent (19.1 per cent
including the Healthcare Trade) in January-June 2010.

Net sales generated by the discontinued Healthcare Trade business came to EUR 65.3
million and operating profit to EUR 2.9 million in January-May 2010. The business had
approximately 440 employees in Finland, Sweden, Denmark, Estonia, Latvia and Lithuania.

Balance sheet, financing and cash flow

The figures related to the balance sheet, financing and cash flow include the figures
for the Healthcare Trade until 31 May 2010 and the operating profit from the
transaction. The Swedish pharmaceutical retail business is included in Oriola-KD’s
figures as of 19 February 2010. The Healthcare Trade business was sold on 31 May 2010.

Oriola-KD’s balance sheet total on 30 June 2010 stood at EUR 1173.2 million (EUR 819.2
million). Cash and cash equivalents on 30 June 2010 stood at EUR 148.1 million (EUR 42.2
million). Equity was EUR 325.9 million (EUR 205.5 million) and the equity ratio was 28.5
per cent (25.8 per cent). The sale of the Healthcare Trade increased Oriola-KD’s equity
and equity ratio and decreased interest-bearing net debt and goodwill.

Interest-bearing net debt at the end of June 2010 was EUR 75.1 million (EUR 101.1
million) and the gearing ratio was 23.0 per cent (49.2 per cent). Oriola-KD hedged the
long-term interest-bearing debt associated with the Swedish pharmaceutical retail trade
against interest rate risk during the second quarter of 2010. Interest-bearing net debt
consists of long-term debt financing, use of the issued commercial paper programme,
advance payments from pharmacies and the estimated discounted value of the minority
share of the Swedish pharmacy company that Oriola-KD is obliged to acquire.

The terms of the financial covenants were met with a wide margin at the end of June
2010. Oriola-KD’s long-term credit limit facilities of approximately EUR 101.5 million
and EUR 41.0 million in short-term credit account facilities stood unused at the end of
the review period. Oriola-KD had drawn EUR 78.9 million from the EUR 150.0 commercial
paper programme.

Net cash flow from operations in January-June 2010 was EUR 54.1 million (EUR -5.8
million), of which changes in working capital accounted for EUR 33.6 million (EUR -24.6
million). The trade receivables sales programme of the Swedish pharmaceutical wholesale
was continued during the second quarter of 2010.

Net cash flow from investments was EUR -153.3 million (EUR -26.7 million). Net cash flow
from investments includes the acquisition of pharmacy chain in Sweden, the acquisition
of the 25 per cent minority share in Russia, operative investments and the sale of the
Healthcare Trade. During the January-June 2010 period, cash flow after investments was
EUR -99.2 million (EUR -32.5 million).

On 24 February 2010, Oriola-KD acquired the remaining 25 per cent holding in Foreti Oy,
which owns the pharmaceutical retail company (OOO Vitim) and pharmaceutical wholesale
company (OOO Moron) operating in Russia. As a result of the acquisition, Oriola-KD’s
Russian subsidiaries are now fully-owned. The price of the 25 per cent holding was EUR
65.0 million. The total price of the corporate acquisition in Russia was EUR 153.7
million, paid in cash.

Oriola-KD paid EUR 18.1 million in dividends for 2009, i.e. EUR 0.12 per share (EUR 0.08
per share in 2008) during the second quarter.

Investments

Gross investments in January-June came to EUR 185.7 million (EUR 24.0 million) including
the acquisition of the pharmacy chain in Sweden and operative investments. In addition
the Healthcare Trade business was sold with EUR 85 million in the review period.

On 19 February 2010, Kronans Droghandel Retail AB acquired 100 per cent of the stock of
a pharmacy company with 170 pharmacies nationwide. Paid in cash, the price was EUR 161.5
million (SEK 1.59 billion). Oriola-KD has an 80 per cent holding in Kronans Droghandel
Retail AB and the remaining 20 per cent is held by KF (Kooperativa Förbundet). Oriola-KD
has an obligation and right to acquire a minority share in Kooperativa Förbundet after
long-term cooperation. The obligation to acquire was entered under long-term
interest-bearing debt in the Oriola-KD balance sheet in conjunction with the acquisition
of the pharmacies. Kronans Droghandel Retail AB is 100 per cent consolidated into
Oriola-KD’s income statement and balance sheet.

Personnel

The figures related to personnel refer to the continuing operations, not including the
Healthcare Trade.

On 30 June 2010, Oriola-KD had a payroll of 4,721 (3,925) employees, 11 per cent (11 per
cent) of whom worked in Finland, 29 per cent (7 per cent) in Sweden, 58 per cent (79 per
cent) in Russia and 2 per cent (3 per cent) in the Baltic countries. The numbers
increased because of the acquisition of the Swedish pharmacy chain in February 2010,
which added some 930 persons.

Changes to the Oriola-KD Group Management Team: Ilari Vaalavirta who was a member of the
Group Management Team and Vice President of the Healthcare Trade transferred to Mediq
with the sale of the Healthcare Trade during the second quarter of 2010.

Business segments

In accordance with its organisational structure and internal reporting, Oriola-KD’s
business segments after the sale of Healthcare Trade are, as of 1 June 2010,
Pharmaceutical Trade Finland, Pharmaceutical Trade Sweden, Pharmaceutical Trade Russia,
Pharmaceutical Trade Baltic Countries and Dental Trade.

Pharmaceutical Trade Finland

Pharmaceutical Trade Finland’s net sales in January-June 2010 were EUR 210.4 million
(EUR 258.8 million) and its operating profit was EUR 9.5 million (EUR 8.8 million).
During the review period, changes from the stock owned by Oriola-KD to consignment
stock, agreed with pharmaceutical companies, reduced net sales.

Net sales in the second quarter of 2010 were EUR 105.9 million (EUR 132.0 million) and
operating profit EUR 5.0 million (EUR 4.9 million).

The pharmaceutical market declined by 1.4 percent (grew 0.2%) in Finland in January-June
2010. Oriola-KD’s market share in the Finnish pharmaceutical wholesale market was 46.4
per cent (46.8 per cent) in January-June 2010 (source: IMS Health). No major changes in
principals that would have had a bearing on market share took place in the review
period.

Pharmaceutical Trade Finland had 492 (405) employees at the end of June 2010.
Oriola-KD’s logistics centres are located in Espoo and Oulu. The increase of personnel
is mainly due to recruitments to replace leased work force, labour intensive new
products and the provision of certain transitional services in relation to the
divestment of the Healthcare Trade.

Pharmaceutical Trade Sweden

Pharmaceutical Trade Sweden’s net sales in January-June 2010 were EUR 422.4 million (EUR
256.9 million), of which retail accounted for EUR 166.3 million (EUR 0.0 million) as of
19 February 2010 and wholesale EUR 276.5 million (EUR 256.9 million). The retail
business acquired has been consolidated with the Oriola-KD figures as of 19 February
2010.

Pharmaceutical Trade Sweden’s operating profit in January-June 2010 was EUR 4.2 million
(EUR -2.3 million). The costs associated with the preparations concerning the pharmacy
business in Sweden in 1 January 2010 – 19 February 2010 were EUR 2.2 million (EUR 6.0
million in January-June 2009). In addition, EUR 0.7 million has been entered as
depreciation on the fair value allocation of the acquisition.

Second-quarter net sales came to EUR 241.4 million (EUR 130.5 million), of which retail
accounted for EUR 115.5 million (EUR 0.0 million) and wholesale EUR 140.3 million (EUR
130.5 million). Operating profit was EUR 5.6 million (EUR -2.0 million).

On 19 February 2010, Kronans Droghandel Retail AB acquired 100 per cent of the stock of
a pharmacy company with 170 pharmacies nationwide. Paid in cash, the final price was EUR
161.5 million (SEK 1.59 billion). In 2009, the pro forma net sales of the acquired
pharmacy cluster was SEK 4.6 billion (SEK 4.4 billion in 2008) and pro forma operating
profit including average central overhead costs of Apoteket AB was SEK 205 million (SEK
183 million in 2008). Oriola-KD had 173 pharmacies in Sweden at the end of June 2010.
Oriola-KD’s logistics centres are located in Gothenburg and Enköping.

The pharmaceutical market grew 0.6 per cent (2.8 per cent) in Sweden in January-June
2010. Oriola-KD’s market share in the Swedish wholesale market was 40.4 per cent (41.4
per cent) in January-June 2010 (source: IMS Health).

Pharmaceutical Trade Sweden had 1360 (268) employees at the end of June 2010, of whom
1045 (0) were employed in retail and 315 (268) in wholesale.

Pharmaceutical Trade Russia

Pharmaceutical Trade Russia’s net sales in January-June 2010 were EUR 255.0 million (EUR
213.9 million), of which retail accounted for EUR 47.5 million (EUR 49.7 million) and
wholesale EUR 231.9 million (EUR 192.3 million).

The January-June 2010 operating loss was EUR 2.5 million (operating profit of EUR 16.3
million), which includes discounts from pharmaceutical companies associated with
purchases. The Russian pharmaceutical market growth in Russian rubles was some 0 per
cent in January-June 2010 (some 30 per cent), which together with the price control
system has led to very intense competition. Oriola-KD’s net sales increased by about 8
per cent (35 per cent) in Russian rubles in January-June 2010.

Second-quarter net sales came to EUR 132.8 million (EUR 106.6 million), of which retail
accounted for EUR 23.9 million (EUR 24.0 million) and wholesale EUR 121.3 million (EUR
95.9 million). Operating loss was EUR 2.0 million (operating profit of EUR 8.6 million).

At the end of June 2010, Oriola-KD had 181 (163) pharmacies in the Moscow region and
nine regional distribution centres in Russia in addition to its main logistics centre.
Also, Oriola-KD started pharmaceutical wholesale in Yekaterinburg and Novosibirsk during
the first half-year. The regional expansion of the Russian wholesale business and the
growth of the retail business in Moscow will be continued during 2010.

Pharmaceutical Trade Russia had 2,766 (3,119) employees at the end of June 2010, of whom
1,277 (1,609) were employed in retail and 1,489 (1,510) in wholesale. Measures were
taken to improve the efficiency of operations, and as a consequence the number of
employees has decreased in spite of the increase in the number of pharmacies and the
regional expansion of the wholesale business.

Pharmaceutical Trade Baltic Countries

Pharmaceutical Trade Baltic Countries’ net sales in January-June 2010 were EUR 15.6
million (EUR 17.3 million) and operating profit was EUR 0.4 million (EUR 0.4 million).

Second-quarter net sales were EUR 7.3 million (EUR 8.8 million) and operating profit EUR
0.2 million (EUR 0.2 million).

Oriola-KD discontinued pharmaceutical wholesale in Estonia in the first quarter of 2010.
The discontinuation of business operations did not have any material cost effect.

Pharmaceutical Trade Baltic Countries had 103 (133) employees at the end of June 2010.

Dental Trade

In January-June 2010, the operating profit of Dental Trade was EUR 3.1 million (EUR 1.8
million). Second-quarter operating profit was EUR 1.4 million (EUR 0.7 million).

The dental trade businesses of Oriola-KD Corporation and Lifco AB were combined in 2007.
Oriola-KD’s holding in the Dental Trade business is 30 per cent and Lifco’s holding is
70 per cent. Oriola-KD’s operating profit includes the profit after taxes from the
associated company.

Related parties

Related parties in the Oriola-KD Group are deemed to comprise the parent company
Oriola-KD Corporation, the subsidiaries and associated companies, the members of the
Board and the President and CEO of Oriola-KD Corporation, other members of the Group
Management Team of the Oriola-KD Group, the immediate family of the aforementioned
persons, the companies controlled by the aforementioned persons, and the Oriola Pension
Foundation. The Group has no significant business transactions with related parties,
except for pension expenses arising from defined benefit plans with the Oriola Pension
Foundation. Oriola-KD Corporation has given internal loans mainly to the holding
companies of Swedish and Russian businesses. Oriola-KD Corporation has given no
significant sureties on behalf of Group companies, with the exception of a mother
company guarantee for a loan given to Kronans Droghandel Retail AB.

Oriola-KD Corporation shares

Trading volume of Oriola-KD Corporation’s class A and B shares in January-June 2010:

Trading volume Jan-Jun 2010 Jan-Jun 2009
Class A Class B Class A Class B
Trading volume, million 3.6 53.8 2.9 42.2
Trading volume, EUR million 16.9 228.4 6.3 95.9
Highest, EUR 5.47 5.49 2.85 2.85
Lowest, EUR 3.30 3.30 1.68 1.68
Closing quotation, end of period, EUR 3.95 3.83 2.77 2.76

3.83

2.77

2.76

In the review period, the traded volume of Oriola-KD Corporation shares, excluding
treasury shares, corresponded to 38.0 per cent (31.6 per cent) of the total number of
shares. The traded volume of class A shares amounted to 7.5 per cent (6.0 per cent) of
the average stock, and that of class B shares, excluding treasury shares, 52.1 per cent
(44.8 per cent).

Oriola-KD Corporation’s market capitalisation on 30 June 2010 was EUR 585.0 million (EUR
417.0 million).

On 8 March 2010, pursuant to the authorisation granted to it by the Annual General
Meeting of 13 March 2007, the Board of Directors of Oriola-KD Corporation resolved that
a directed bonus issue be made, in which a total of 209,300 class B shares held by the
company were assigned to the company’s President and CEO and to certain other members of
Oriola-KD Corporation’s Group Management Team and of its extended Group Management Team,
as part of the 2007-2009 share-based incentive scheme for the Group’s management. These
shares represent approximately 0.14 per cent of the total number of company shares and
approximately 0.02 per cent of the total number of votes.

On 28 June 2010, pursuant to the authorisation granted to it by the Annual General
Meeting of 13 March 2007, the Board of Directors of Oriola-KD Corporation resolved that
a directed bonus issue be made, in which a total of 37,350 class B shares held by the
company were assigned to certain key members of the Oriola-KD Group as part of the
2007-2009 share-based incentive scheme for the Group’s management. These shares
represent approximately 0.02 per cent of the total number of company shares and
approximately 0.0035 per cent of the total number of votes.

The company has 96,822 treasury shares, all of which are class B shares. These account
for 0.06 per cent of the company’s shares and 0.009 per cent of the votes.

At the end of June 2010, the company had 151,257,828 shares (151,257,828), of which
47,217,359 were class A shares (48,392,203) and 104,040,469 were class B shares
(102,865,625). Pursuant to article 3 of the Articles of Association, a shareholder can
request that class A shares be converted to class B shares. During January-June 2010, a
total of 450,000 (300,000) Class A shares were converted into Class B shares

The Board of Directors of Oriola-KD has defined the earning criteria for the share
incentive scheme for the Group’s key personnel for the years 2010-2012 so that any
payment for the 2010 earning period will be based on Oriola-KD’s earnings per share
(EPS) and return on capital employed (ROCE).

Risks

The Board of Directors of Oriola-KD has approved the company’s risk management policy in
which the risk management operating model, principles, responsibilities and reporting
are specified. The Group’s risk management seeks to identify, measure and manage risks
that may threaten the operations of the company and the achievement of goals set for
them. The roles and responsibilities relating to risk management have been determined in
the Group.

Oriola-KD’s risks are classified as strategic, operational and financial. Risk
management is a key element of the strategic process, operational planning and daily
decision-making at Oriola-KD.

Oriola-KD has identified the following principal strategic and operational risks in its
business:

*
changes in bargaining position vis-à-vis suppliers and customers;

*
impacts of the changes in Pharmaceutical Trade Sweden on business;

*
impacts of the changes in Pharmaceutical Trade Russia on business;

*
maintenance of cost-effectiveness and flexibility in costs;

*
provision of competitive products and services in expanding and consolidating markets;
and

*
commitment of key employees.

The major financial risks for Oriola-KD involve currency exchange rates, interest rates,
liquidity and credit.

Oriola-KD’s exposure to risks relating to businesses and financial risks has increased
with the expansion into the Russian pharmaceutical retail and wholesale market and the
Swedish pharmaceutical retail market. Currency risks are the most significant of
Oriola-KD’s financial risks in Russia and Sweden, as any changes in the value of the
Russian ruble or the Swedish krona will have an impact on Oriola-KD’s financial
performance and equity.

Goodwill and intangible rights are subject to annual impairment testing, which may have
a negative effect on Oriola-KD’s financial performance.

Near-term risks and uncertainty factors

The difficult state of the Russian economy, intense competition and the price control
system have a material impact on Oriola-KD near-term outlook in the country. The
development of the Swedish pharmacy market is subject to uncertainties that may have a
substantial effect on Oriola-KD’s Swedish business.

Decisions of the Annual General Meeting

The Annual General Meeting of Oriola-KD Corporation, held on 7 April 2010, confirmed the
2009 financial statements and discharged the Board members and the President and CEO
from liability for the financial year ending 31 December 2009. The Annual General
Meeting resolved that the sum of EUR 0.12 per share be paid as dividend on the basis of
the balance sheet adopted for the financial year ending 31 December 2009.

The Board was authorised, in accordance with its proposal, to decide on the payment of
additional dividend from undistributed profits and/or distribution of funds, in one or
more batches, from the company’s invested non-restricted equity fund or both so that the
amount of the additional dividend and/or return of capital paid under the authorisation
would not exceed EUR 0.05 per share. The authorisation will be in force until the next
annual general meeting.

The Annual General Meeting confirmed that the Board comprises eight members. Harry
Brade, Pauli Kulvik, Outi Raitasuo, Antti Remes, Olli Riikkala, Jaakko Uotila and Mika
Vidgrén were re-elected to the Board. Per Båtelson was elected as a new member to the
Board. Olli Riikkala continues as Chairman of the Board. The Annual General Meeting
confirmed that the Chairman of the Board will receive EUR 48,400 in remuneration for his
term of office, the Vice Chairman EUR 30,250 and the other members of the Board EUR
24,200 each. Of the annual fees, 60 per cent will be paid in cash and 40 per cent in
company shares so that after the release of the company’s interim report for the first
quarter of 2010, Oriola-KD Corporation Class B shares would be acquired on the market
for Board members, and the cash portion of the annual fee will also be paid. The
Chairman of the Board will receive an attendance fee of EUR 800 for each meeting, and
the other Board members EUR 400 per meeting. Meeting fees will also be paid in the same
manner to members of any committees set up by the Board of Directors or the company. The
Chairman of the Board will also have a company-paid phone. Travel expenses will be paid
in accordance with the travel policy of the company.

The Annual General Meeting re-elected PricewaterhouseCoopers Oy as auditor for the
company, with Heikki Lassila APA as principal auditor, for the 2010 financial year. The
auditor will be remunerated according to invoice.

The Annual General Meeting resolved that article 12 of the Articles of Association on
time of the notice of general meeting be amended.

The Annual General Meeting authorised the Board to decide on the purchase of Oriola-KD
Corporation class B shares in accordance with the Board’s proposal. Pursuant to the
authorisation, the Board is authorised to decide on the purchase of no more than
15,000,000 of the company’s own class B shares, corresponding to approximately 9.92 per
cent of the total number of company shares. The authorisation can only be used in such a
way that the company and its subsidiaries together would hold no more than one tenth
(1/10) of the total number of company shares at any one time. The purchase authorisation
would remain in force no longer than eighteen (18) months following the decision of the
General Meeting. The authorisation revokes the Annual General Meeting’s decision of 16
April 2009 authorising the Board to decide on the purchase of Oriola-KD Corporation
class B shares.

The Annual General Meeting authorised the Board to decide on a share issue of the
company’s shares against payment in one or more batches in accordance with the Board’s
proposal. The authorisation includes the right to issue new class B shares or to assign
class B shares held by the company. The authorisation covers no more than thirty million
(30,000,000) of the company’s class B shares in total, which corresponds to
approximately 19.83 per cent of the total number of company shares. The authorisation
granted to the Board includes the right to deviate from the pre-emptive subscription
right of shareholders, provided that there are financial grounds considered important
from the company’s perspective for such a deviation. The authorisation will remain in
force for eighteen (18) months following the decision of the General Meeting. The
authorisation revokes the share issue authorisations previously received by the Board,
with the exception of the authorisation granted to the Board by the Annual General
Meeting of 13 March 2007, under which the Board may decide on arranging a directed bonus
issue of no more than 650,000 class B shares for the purpose of implementing the
2007-2009 share-based incentive scheme for management.

The Annual General Meeting also authorised the Board to decide on granting the company’s
shares to the company in one or more batches under a bonus issue in accordance with the
Board’s proposal. The maximum amount of the company’s new B class shares issued under
this authorisation is 1,200,000, which was 0.79 per cent of the company’s total shares
and 0.11 per cent of total votes. The purpose of the authorisation is to allow treasury
shares to be used as laid out below in the new share-based incentive scheme or Oriola-KD
key persons. The Board was also authorised to issue class B shares, waiving the
pre-emptive subscription rights of the shareholders according to the Board’s proposal.
The class B shares issued may be either new or treasury shares. The total share amount
of the authorisation is 1.200.000 class B shares. The share issue may be a bonus issue.
These shares represent approximately 0.79 per cent of the total number of company shares
and approximately 0.11 per cent of the total number of votes. The Board may use this
authorisation in the new 2010-2012 share-based incentive scheme or Oriola-KD key
persons. The authorisations remain in force for no more than four (4) years following
the decision of the General Meeting.

Decisions of the organisational meeting of the Board

At the organisational meeting held immediately after the AGM, the Board resolved to
elect Antti Remes to continue serving as Vice Chairman of the Board. The composition of
the Audit and Compensation Committees was confirmed as follows.

Audit Committee:
Antti Remes, Chairman
Harry Brade
Outi Raitasuo
Mika Vidgrén

Compensation Committee:
Olli Riikkala, Chairman
Pauli Kulvik
Jaakko Uotila

The company also has a Nomination Committee, the members of which will be elected later.

The Board of Directors has evaluated the independence of its members and found that all
the members are independent of both the company and its major shareholders.

Outlook

Oriola-KD’s outlook for 2010 is based on external market forecasts, agreements with
suppliers and customers, order intake and management assessments. Long-term fundamentals
and growth prospects are expected to be favourable in the pharmaceutical market.

Oriola-KD expects that the pharmaceutical market in Finland and Sweden will grow by
about 3-5 per cent annually over the next few years in the local currencies, which is in
line with the longer-term average growth rate of these markets. The Russian
pharmaceutical market is expected to see annual growth of approximately 10-15 per cent
in Russian rubles in the next few years. The growth of the Russian pharmaceutical market
in 2010 is expected to be significantly slower than in the long term, mainly because of
the difficult state of the Russian economy, very intense competition and the price
control system. Competition in the Swedish retail market is expected to be stiff in 2010
as a result of the deregulation.

Oriola-KD’s net sales from its continuing operations for 2010 is forecasted to be higher
than in 2009 and operating profit is forecasted to be lower than in 2009. Pharmaceutical
Trade Russia’s operating profit is forecasted to be clearly lower than in 2009.

Tables

Consolidated Statement of 1 Jan – 30 June 1 Jan – 30 June 1 Apr – 30 June 1 Apr – 30 June 1 Jan – 31 Dec
Comprehensive Income (IFRS), 2010 2009 2010 2009 2009
EUR million
Continuing operations
Net sales 903.1 746.5 487.3 377.8 1569.2
Cost of goods sold -779.9 -649.2 -416.7 -330.0 -1363.8
Gross profit 123.2 97.4 70.6 47.7 205.4
Other operating income 1.9 1.0 0.8 0.5 2.1
Selling and
distribution expenses -91.2 -63.2 -45.5 -32.3 -129.2
Administrative expenses -25.7 -15.7 -19.0 -6.2 -25.8
Profit from
associated companies 3.1 1.8 1.4 0.8 3.9
Operating profit 11.3 21.2 8.4 10.5 56.4
Financial income 3.4 4.6 2.3 2.6 7.9
Financial expenses -5.7 -6.4 -3.8 -3.5 -9.9
Profit before taxes 9.0 19.4 6.9 9.5 54.5
Income taxes*) -1.6 -4.1 -1.5 -1.9 -11.4
Profit from the continuing operations
for the period under review 7.4 15.3 5.4 7.6 43.0

Discontinued operations
Profit from the discontinued operations
for the period under review 56.2 3.4 55.3 2.2 5.6
Profit for the period under review
including discontinued operations 63.6 18.7 60.7 9.8 48.6

Other comprehensive income
Hedge of a net investment in a
foreign operation 8.2 -2.7 2.5 1.2 -2.0
Cash flow hedge -0.4 – -0.4 – –
Income tax relating to other comprehensive income -1.6 0.5 -0.5 -0.2 0.4
Translation difference 30.8 -4.9 17.1 3.2 1.3
Total comprehensive income for the period under review
including discontinued operations 100.6 11.7 79.4 13.9 48.4

Attribution of profit from the continuing operations
for the period under review
To parent company shareholders 7.4 15.3 5.4 7.6 43.9
To minority interest – – – – -0.9

Attribution of profit for the period under review
including discontinued operations
To parent company shareholders 63.6 18.7 60.7 9.8 49.5
To minority interest – – – – -0.9

Attribution of total comprehensive income for the
period under review (including discontinued operations)
To parent company shareholders 100.6 11.7 79.4 13.9 49.3
To minority interest – – – – -0.9

Earnings per share
from the continuing operations
Basic earnings per share, EUR 0.05 0.11 0.04 0.05 0.30
Diluted earnings per share, EUR 0.05 0.11 0.04 0.05 0.30

Earnings per share
for the period under review
(including discontinued operations)
Basic earnings per share, EUR 0.42 0.13 0.40 0.07 0.34
Diluted earnings per share, EUR 0.42 0.13 0.40 0.07 0.34

*) The tax expense for the period has been calculated as the proportional share of the
total estimated taxes for the financial year.

Consolidated Balance Sheet (IFRS),
EUR million

ASSETS 30 June 2010 30 June 2009 31 Dec
2009

Non-current assets
Property, plant and equipment 61.0 53.1 53.3
Goodwill 258.4 118.9 141.7
Other intangible assets 72.6 38.7 39.5
Investments in associated companies 30.4 28.4 30.7
Other non-current assets 8.3 8.7 7.5
Deferred tax assets 5.7 2.3 2.5
Non-current assets total 436.5 250.1 275.2

Current assets
Inventories 311.8 261.1 287.1
Trade and other receivables 276.8 265.8 227.1
Cash and cash equivalents 148.1 42.2 133.7
Current assets total 736.7 569.1 647.8

ASSETS TOTAL 1173.2 819.2 923.1

EQUITY AND LIABILITIES 30 June 2010 30 June 2009 31 Dec
2009

Equity
Share capital 36.2 36.2 36.2
Other funds 50.4 50.8 50.9
Retained earnings 239.3 118.6 156.4
Equity of the parent
company shareholders 325.9 205.5 243.4
Minority interest – – 10.8
Equity total 325.9 205.5 254.2

Non-current liabilities
Deferred tax liabilities 23.1 14.1 13.6
Pension liabilities 5.0 4.3 4.9
Provisions – 0.0 0.0
Interest-bearing non-current liabilities 116.6 0.1 0.2
Non-current liabilities total 144.8 18.5 18.8

Current liabilities
Trade payables and other current liabilities 596.0 451.9 500.5
Interest-bearing current liabilities 106.6 143.2 149.5
Current liabilities total 702.5 595.1 650.1

EQUITY AND LIABILITIES TOTAL 1173.2 819.2 923.1

819.2

923.1

Consolidated Statement
of Changes in
Equity (IFRS)
Equity of the
parent
company
Share Other Translation Retained share- Minority
EUR million capital funds differences earnings holders interest Total
Equity
1 Jan 2009 36.2 30.1 -30.1 148.2 184.4 1.0 185.5
Dividends paid – – – -11.3 -11.3 – -11.3
Share issue – 20.6 – – 20.6 – 20.6

Change in minority interest – – – – 0.0 -1.0 -1.0

Share-based payments – – – 0.1 0.1 – 0.1
Total comprehensive income
for the period under review – – -7.0 18.7 11.7 – 11.7
Equity
30 June 2009 36.2 50.8 -37.1 155.7 205.5 0.0 205.5

Equity
1 Jan 2010 36.2 50.9 -30.4 186.8 243.4 10.8 254.2
Dividends – – – -18.1 -18.1 – -18.1
Share issue – – – – 0.0 – 0.0

Change in minority interest – – – – 0.0 -10.8 -10.8

Share-based payments – – – 0.1 0.1 – 0.1
Assignment of shares – -0.1 – – -0.1 – -0.1
Total comprehensive income
for the period under review – -0.4 37.4 63.6 100.6 – 100.6
Equity
30 June 2010 36.2 50.4 7.0 232.4 325.9 0.0 325.9

232.4

325.9

0.0

325.9

Consolidated Cash Flow Statement 1 Jan – 30 June 1 Jan – 30 June 1 Jan – 31 Dec
*) (IFRS), EUR million 2010 2009 2009
Operating profit 14.2 25.9 65.4
Depreciation 5.5 4.8 9.4
Change in working capital 33.6 -24.6 37.9
Cash flow from financial
items and taxes -7.5 -8.1 -13.3
Other adjustments 8.4 -3.8 1.5
Net cash flow from operating activities 54.1 -5.8 100.9

Net cash flow from investing activities -153.3 -26.7 -28.0

Net cash flow from financing activities 108.0 28.8 14.5

Net change in cash and cash equivalents 8.9 -3.7 87.4

Cash and cash equivalents
at the beginning of the period 133.7 46.5 46.5
Foreign exchange rate differences 5.5 -0.5 -0.2
Net change in cash and cash equivalents 8.9 -3.7 87.4
Cash and cash equivalents
at the end of the period 148.1 42.2 133.7
*) Includes net cash flow of Healthcare Trade until 31 May 2010.

*) Includes net cash flow of Healthcare Trade until 31 May 2010.

Change in Property, Plant and Equipment, 1 Jan – 30 June 1 Jan – 30 June 1 Jan – 31 Dec
EUR million 2010 2009 2009
Carrying amount at the beginning of the period 53.3 54.5 54.5
Increases through acquisitions of subsidiary shares 8.9 – –
Increases 4.5 2.8 6.0
Decreases -4.0 -0.7 -1.8
Depreciation -3.7 -3.2 -6.5
Foreign exchange rate differences 2.1 -0.3 1.1
Carrying amount at the end of the period 61.0 53.1 53.3

53.1

53.3

1 Jan – 30 June 1 Jan – 30 June 1 Jan – 31 Dec
Key Figures 2010 2009 2009
Equity ratio, % 28.5% 25.8% 29.2%
Equity per share, EUR 2.16 1.36 1.61
Return on capital employed (ROCE), % 4.8% 16.1% 18.7%
Return on equity, % 5.1% 19.1% 22.1%
Net interest-bearing debt, EUR million 75.1 101.1 16.0
Gearing, % 23.0% 49.2% 6.3%
Earnings per share, EUR 0.42 0.13 0.34
Average number of shares, 1000 pcs 151 167 143 044 147 034

143 044

147 034

Derivatives, Commitments
and Contingent Liabilities

30 June 2010
Positive fair Negative fair Nominal values of
EUR million value value contracts
Derivatives recognised as
cash flow hedges
Foreign currency forward and swap contracts – – –
Interest rate swaps – -0.4 105.0
Derivatives measured at
fair value through profit or loss
Foreign currency forward and swap contracts 0.6 – 59.3

30 June 2009
Positive fair Negative fair Nominal values of
EUR million value value contracts
Derivatives recognised
as cash flow hedges
Foreign currency forward and swap contracts 2.1 – 40.8
Derivatives measured at
fair value through profit or loss
Foreign currency forward and swap contracts 0.3 – 20.0

Contingencies for Own Liabilities,
EUR million 30 June 2010 30 June 2009 31 Dec 2009
Guarantees given 119.4 35.6 36.8
Mortgages on land and buildings 2.0 2.0 2.0
Mortgages on company assets 2.2 1.9 2.0
Other guarantees and liabilities 0.1 1.4 1.9
Total 123.7 41.0 42.7

Leasing-liabilities (operating liabilities) 1.2 0.4 0.3
Rent contingencies 59.6 34.7 33.8

34.7

33.8

Net Sales by Operating Segments, 1 Jan – 30 June 1 Jan – 30 June 1 Jan – 31 Dec
EUR million 2010 2009 2009
Pharmaceutical Trade Finland 210.4 258.8 505.1
Pharmaceutical Trade Sweden 422.4 256.9 548.3
Pharmaceutical Trade Russia 255.0 213.9 480.7
Pharmaceutical Trade Baltics 15.6 17.3 35.7
Net sales to other segments -0.2 -0.3 -0.5
Continuing operations total 903.1 746.5 1569.2
Discontinued operations 65.3 69.9 145.1
Net sales to other segments -1.6 -0.6 -1.2
Group Total 966.8 815.8 1713.1

815.8

1713.1

Operating Profit by Operating Segments, 1 Jan – 30 June 1 Jan – 30 June 1 Jan – 31 Dec
EUR million 2010 2009 2009
Pharmaceutical Trade Finland 9.5 8.8 18.1
Pharmaceutical Trade Sweden 4.2 -2.3 -5.0
Pharmaceutical Trade Russia -2.5 16.3 44.5
Pharmaceutical Trade Baltics 0.4 0.4 0.9
Dental Trade 3.1 1.8 3.9
Group Administration and Others -3.5 -3.7 -5.9
Continuing operations total 11.3 21.2 56.4
Discontinued operations 56.9 4.7 8.9
Group Total 68.2 25.9 65.4

Continuing operations
Average number of personnel 4 590 4 002 3 923
Number of personnel at the end of the period 4 721 3 925 3 870

Group total
Average number of personnel 4 930 4 460 4 373
Number of personnel at the end of the period 4 721 4 399 4 299

4 399

4 299

Net Sales by Operating Segments,
EUR million Q2/2010 Q1/2010 Q4/2009 Q3/2009 Q2/2009 Q1/2009
Pharmaceutical Trade Finland 105.9 104.5 125.8 120.6 132.0 126.8
Pharmaceutical Trade Sweden 241.4 181.0 159.3 132.1 130.5 126.4
Pharmaceutical Trade Russia 132.8 122.1 148.2 118.6 106.6 107.2
Pharmaceutical Trade Baltics 7.3 8.3 10.3 8.0 8.8 8.6
Net sales to other segments -0.1 -0.1 -0.1 -0.1 -0.1 -0.2
Continuing operations total 487.3 415.7 443.5 379.2 377.8 368.8
Discontinued operations 30.9 34.4 43.4 31.9 34.9 35.0
Net sales to other segments -0.5 -1.1 -0.3 -0.3 -0.3 -0.3
Group Total 517.7 449.0 486.5 410.8 412.3 403.5

486.5

410.8

412.3

403.5

Operating Profit by Operating Segments,
EUR million Q2/2010 Q1/2010 Q4/2009 Q3/2009 Q2/2009 Q1/2009
Pharmaceutical Trade Finland 5.0 4.5 4.4 4.9 4.9 3.9
Pharmaceutical Trade Sweden 5.6 -1.4 -2.2 -0.4 -2.0 -0.4
Pharmaceutical Trade Russia -2.0 -0.4 21.6 6.6 8.6 7.6
Pharmaceutical Trade Baltics 0.2 0.3 0.3 0.2 0.2 0.1
Dental Trade 1.4 1.6 1.2 0.8 0.7 1.1
Group Administration and Others -1.9 -1.6 -0.8 -1.5 -2.0 -1.6
Continuing operations total 8.4 3.0 24.5 10.7 10.5 10.7
Discontinued operations 55.6 1.3 2.4 1.9 3.0 1.7
Group Total 64.0 4.2 26.9 12.6 13.5 12.4

26.9

12.6

13.5

12.4

1 Jan – 30 June 1 Jan – 30 June 1 Jan – 31 Dec
Net Sales by Market, EUR million 2010 2009 2009
Finland 211.5 258.5 509.9
Sweden 419.0 256.9 539.8
Russia 255.0 213.9 480.7
Baltic countries 15.6 17.3 35.7
Other countries 2.1 0.0 3.2
Continuing opertions total 903.1 746.5 1569.2

746.5

1569.2

Net Sales by Market, EUR million Q2/2010 Q1/2010 Q4/2009 Q3/2009 Q2/2009 Q1/2009
Finland 106.5 105.0 126.3 125.1 131.9 126.6
Sweden 239.5 179.4 157.7 125.2 130.5 126.4
Russia 132.8 122.1 148.2 118.6 106.6 107.2
Baltic countries 7.3 8.3 10.3 8.0 8.8 8.6
Other countries 1.2 0.9 1.0 2.2 – –
Continuing operations total 487.3 415.7 443.5 379.2 377.8 368.8

443.5

379.2

377.8

368.8

DISCONTINUED OPERATIONS

Comprehensive Income 1 Jan – 31 May 1 Jan – 31 Dec
(IFRS), EUR million 2010 2009
Discontinued operations
Net sales 65.3 145.1
Cost of goods sold -46.6 -100.3
Gross profit 18.6 44.8
Other operating income 54.2 2.2
Selling and
distribution expenses -15.0 -35.3
Administrative expenses -1.0 -2.8
Operating profit 56.9 8.9
Financial income 0.1 0.0
Financial expenses -0.1 -1.4
Profit before taxes 56.9 7.6
Income taxes*) -0.7 -2.0
Profit from the discontinued operations for the period under review 56.2 5.6

Attribution of profit from the discontinued operations
for the period under review
To parent company shareholders 56.2 5.6
To minority interest – –

-

-

Earnings per share
from the discontinued operations
Basic earnings per share, EUR 0.37 0.04
Diluted earnings per share, EUR 0.37 0.04

*) The tax expense for the period has been
calculated as the proportional share of
the total estimated taxes for the financial year.

the total estimated taxes for the financial year.

Cash Flow Statement 1 Jan – 31 May 1 Jan – 31 Dec
(IFRS), EUR million 2010 2009
Net cash flow from operating activities 6.7 -3.5
Net cash flow from investing activities -0.9 -1.9
Net cash flow from financing activities 0.2 5.4
Net change in cash and cash equivalents 6.0 -0.1

6.0

-0.1

BUSINESS COMBINATIONS DISCLOSURE

Acquisition of national pharmacy chain in Sweden (Pharmacy Company Sweden 2 AB)

Oriola-KD announced in November 2009 that it would acquire 100 per cent of the shares of
Pharmacy Company Sweden 2 AB, a national pharmacy cluster with 170 pharmacies. The
transaction was executed in February 2010. The acquired pharmacy business covers only
retail activities. The transaction does not include any contingent considerations.
Entering the pharmaceutical retail business in Sweden is an important part of
Oriola-KD’s strategy to expand the operations from pharmaceutical wholesale to retail.

The acquisition cost is calculated on the basis of the company’s provisional balance
sheet as per 19 February 2010 prepared in accordance with IFRS and the Oriola-KD Group’s
accounting principles in respect of all material elements. The provisional balance sheet
and acquisition cost calculation are unaudited.

The acquisition is accounted for using provisional values as permitted under IFRS 3R.
Over the 12 months following the acquisition, Oriola-KD will make the necessary
adjustments to these provisional values. The fair value of the identifiable fixed assets
was 8.6 million euros and inventory 22.2 million euros. These figures are provisional
figures and the values might be adjusted during 2010.

The fair value of trade receivables and other receivables is 50.9 million euros and it
does not include any material risk.

The initial purchase price allocation calculation calculated in Swedish crowns has been
translated into euros by using the exchange rate of acquisition date.

The financial result and the balance sheet of the acquired company has been consolidated
into the Oriola-KD Group from the acquisition date, i.e. 19 February 2010.

Business combinations disclosure under IFRS 3 (revised)

The 101.3 million euro goodwill arising from the acquisition is primarily representing
the strong market position, growth expectations, opportunities after monopoly
deregulation and experienced existing personnel as well as expected synergies with
Oriola-KD’s sizeable wholesale operations in Sweden. None of the goodwill is deductible
for income tax purposes.

The following table summarises the consideration paid for the pharmacy cluster and the
amounts of the assets acquired and liabilities assumed recognised at the acquisition
date, as well as the fair value at the acquisition date of the non-controlling
interest.

Consideration
19.2.2010
Carrying amount, EUR million Fair value allocations, EUR million Fair
value, EUR
million
Cash 161.5 0.0 161.5
Equity instruments 0 0.0 0.0
Contingent consideration 0 0.0 0.0
Total consideration transferred 161.5 161.5
Indemnification asset 0 0.0 0.0
Fair value of equity interest held before 0 0.0 0.0
the business combination
Total consideration 161.5 161.5

Acquisition related costs
-included in administrative expenses in the consolidated income statement for 2009 1.2
-included in administrative expenses in the consolidated income statement for 2010 0.5

Recognised amounts of identifiable
assets acquired and liabilities assumed
Cash and cash equivalents 2.4 0.0 2.4
Property, plant and equipment 8.6 0.0 8.6
Trademarks (included in intangibles) 0.0 0.0 0.0
Pharmacy licences and rental agreements (included in intangibles) 0.0 25.4 25.4
Contractual customer relationship (included in intangibles) 0.0 0.0 0.0
Investment in associates 0.0 0.0 0.0
Available-for-sale financial assets 0.0 0.0 0.0
Inventories 22.2 0.2 22.4
Trade receivables 44.0 0.0 44.0
Other receivables 6.8 0.0 6.8
Trade and other payables -42.8 0.0 -42.8
Retirement benefit obligations 0.0 0.0 0.0
Borrowings 0.0 0.0 0.0
Contingent liability 0.0 0.0 0.0
Deferred tax liabilities 0.0 -6.7 -6.7
Total identifiable net assets 41.3 18.9 60.2
Non-controlling interest 0.0 0.0 0.0
Goodwill 101.3

The pro forma net sales of the acquired pharmacy cluster was SEK 4.6 billion and pro
forma operating profit including average central overhead costs of Apoteket AB was SEK
205 million.

Espoo 28 July 2010

Oriola-KD Corporation’s Board of Directors

Oriola-KD Corporation

Eero Hautaniemi
President and CEO

Kimmo Virtanen
Executive Vice President and CFO

Further information:

Eero Hautaniemi
President and CEO
tel. +358 (0)10 429 2109
e-mail: eero.hautaniemi@oriola-kd.com

Kimmo Virtanen
Executive Vice President and CFO
tel. +358 (0)10 429 2069
e-mail: kimmo.virtanen@oriola-kd.com

Pellervo Hämäläinen
Vice President, Communications and Investor Relations
tel. +358 (0)10 429 2497
e-mail: pellervo.hamalainen@oriola-kd.com

Distribution
NASDAQ OMX Helsinki Ltd
Principal media

Published by:
Oriola-KD Corporation
Corporate Communications
Orionintie 5
FI-02200 Espoo, Finland
www.oriola-kd.com

HUG#1434559

Oriola-KD Corporation’s Interim Report for 1 January – 30 June 2010

http://hugin.info/136732/R/1434559/380121.pdf

Takkt AG: TAKKT Group returns to growth

Takkt AG / TAKKT Group returns to growth processed and transmitted by Hugin AS. The
issuer is solely responsible for the content of this announcement.

Turnover and profit rise in both Europe and North America

Stuttgart, Germany, 29 July 2010. The economic upswing in the first half of 2010 had a
positive effect on business developments at TAKKT Group. TAKKT’s business revived
considerably in the second quarter, compensating for the negative growth rates recorded
in the first months of 2010 and enabling the Group to post an organic increase in
turnover for the first half-year. Operational profitability improved significantly
compared to the previous year’s period. As forecasted at the beginning of the year,
TAKKT Group has returned to growth. In the light of the positive business climate, the
organic growth target for the company’s annual turnover has been raised to around three
percent.

Significant events in the first half of 2010

* Organic increase in turnover of 0.9 percent in the first half-year and 6.6 percent in
Q2
* EBITDA margin climbs to 13.9 (11.0) percent
* Earnings per share up 46 percent
* TAKKT awarded first place in the Investor Relations Awards organised by the business
magazine Capital

In the first six months of 2010, TAKKT Group benefited from the economic upturn in all
its key sales regions. Consolidated turnover increased by 5.2 percent to EUR 376.8
(previous year’s period: 358.3) million. Adjusted for currency effects and Central
Products LLC (Central), acquired in April 2009, this corresponds to organic growth of
0.9 percent in turnover. While an organic decrease in turnover of minus 4.1 percent was
recorded in Q1, organic turnover growth of 6.6 percent was posted in the second quarter.
“The growth dynamic remained intact in the first six months of the current financial
year. In March 2010, we predicted that the company would return to growth in Q2 – this
has proved us right”, said CEO Dr Felix A. Zimmermann.

As expected, the gross profit margin increased slightly in the first half to 42.8 (42.3)
percent. Excluding the Central acquisition, the increase was 0.8 percentage points.
TAKKT Group is continuing to benefit from the improved procurement conditions agreed
during the crisis.

Operational profitability showed a considerable year-on-year improvement in the first
half of 2010 due to a turnover-related increase in infrastructure utilisation, higher
advertising efficiency and the FOCUS measures implemented in the previous year. EBITDA
(earnings before interest, tax, depreciation and amortisation) rose by 32.2 percent to
EUR 52.2 (39.5) million in the first six months of the year. This corresponds to an
increase in the EBITDA margin to 13.9 (11.0) percent.

As usual, cash flow developed strongly during the reporting period, increasing by 24.3
percent to EUR 36.8 (29.6) million. The cash flow margin was 9.8 (8.3) percent.

Upturn at TAKKT EUROPE
The new Group structure introduced on 01 January 2010 (last year’s figures have been
adjusted to improve comparability) enabled the growth rate of the TAKKT EUROPE division
to catch up with the TAKKT AMERICA division growth rate. Although its customers
initially remained reluctant to buy, the first six months of the year were marked by a
gradual, continuous recovery at TAKKT EUROPE. In total, the division generated turnover
of EUR 222.4 (218.8) million – an increase of 1.6 percent year-on-year. With this, TAKKT
EUROPE generated 59.0 (61.0) percent of consolidated turnover. Adjusted for the various
currency effects, the growth was equivalent to 0.1 percent in the first half and 7.7
percent in Q2.

The Office Equipment Group (OEG) – comprising the Topdeq companies – was unable to keep
up with the high single-digit growth rate posted by the Business Equipment Group (BEG),
which consists of the former KAISER + KRAFT EUROPA companies. Even after adjusting for
the US activities closed at the end of 2009, turnover dropped by a double-digit
percentage at the OEG and remained disappointing. In the light of this, the Group is
currently working on strategically repositioning the Topdeq companies.

TAKKT EUROPE generated EBITDA of EUR 41.9 (31.1) million in the first half of the year.
This took the EBITDA margin from 14.2 percent in H1 2009 to 18.8 percent.

The Group continues to drive the division’s expansion in the current financial year.
KAISER + KRAFT began operations in Russia in January. Following a successful launch in
Germany, the new online brand Certeo has now also been rolled out on the Austrian
market. The gaerner Group, which specialises in plant and office equipment, commenced
sales activities in Italy in May 2010.

All companies will expand their range of private label articles due to positive
experience throughout the Group. The BEG has been offering high-quality transport
equipment at fair prices under the name of Quipo since March. In addition to this,
Topdeq has been marketing its own range of high-end office furniture since January,
branded as siqnatop.

In April 2010, TAKKT acquired minority interests in the Dutch company Vink Lisse B.V.
and the Belgian subsidiary KAISER + KRAFT N.V. for a purchase price of approximately EUR
11 million.

TAKKT AMERICA posts solid growth
Turnover at the TAKKT AMERICA division came in at USD 204.4 (185.8) million in the
reporting period. This corresponds to a year-on-year increase of 10.0 percent. Adjusted
for the Central acquisition, the division’s turnover still grew by 3.4 percent based on
US dollar figures in the first half, with growth of 5.5 percent recorded in the second
quarter. Translated into the reporting currency Euro, turnover increased by 10.7 percent
to EUR 154.5 (139.6) million during the first six months. TAKKT AMERICA therefore
contributed 41.0 (39.0) percent to consolidated turnover.

The division still benefits from the broad diversification of its client base and
product portfolio. As expected, the companies within the Office Equipment Group (OEG)
experienced a slight year-on-year decline in turnover as they tend to be late-cycle
businesses. Thanks to high growth rates in the second quarter, the Plant Equipment Group
(PEG) posted a single-digit increase in turnover overall. With high single-digit rates
of organic growth, the Specialties Group (SPG) recorded the strongest gain. Including
Central, growth here even ran well into double figures.

In the period under review, TAKKT AMERICA generated EBITDA of EUR 14.1 (12.1) million.
This corresponds to an EBITDA margin of 9.1 (8.7) percent. Adjusted for Central, the
EBITDA margin was 8.9 (8.4) percent.

Following the successful launch of Hubert in Germany and France, the brand will be
rolled out into the Swiss market in autumn 2010. The PEG has also been active on the
North American market with the online-only brand Industrialsupplies.com since June.
Furthermore all three groups of the TAKKT AMERICA division are intensifying their
private label engagement.

Business climate gives grounds for more optimistic forecast
For the remainder of 2010, TAKKT expects the economic recovery in Europe and North
America to continue, though with slightly diminished dynamic. “We should be able to
exceed the upper limit of organic growth of two percent targeted at the beginning of the
year. We currently expect to see growth of around three percent. If we achieve this
turnover goal, the EBITDA margin for the whole Group should come close to the lower end
of the long-term target corridor of twelve to 15 percent”, said Dr Florian Funck, CFO.

Conference call
We invite you to directly address the Management Board with your questions. We will be
hosting a conference call for this purpose at 15:00 (CEST) on 29 July 2010, during which
we will be open to questions. To take part, please dial the following number: +49 69
201744-295 (access code: 779134#).

Short profile of TAKKT AG
TAKKT is the leading B2B direct marketing specialist for business equipment in Europe
and North America. The Group is represented with its brands in more than 25 countries.
The product range of the TAKKT subsidiaries comprises over 160,000 items for the areas
of business and warehouse equipment, classic and design-oriented office furniture and
accessories, and supplies for retailers, the food service industry and the hotel market.

TAKKT Group employs some 1,800 staff, has around three million customers worldwide and
distributes more than 55 million catalogues and mailings per year.

TAKKT AG is listed on the SDAX and was admitted to Deutsche Boerse’s Prime Standard on
01 January 2003.

IFRS figures for TAKKT Group to the end of Q2 2010

in EUR million

Q2 2010 Q2 2009* Change in % HY 1 2010 HY 1 2009* Change in %
Turnover TAKKT Group 191.0 171.9 11.1 376.8 358.3 5.2
Organic growth 6.6 0.9
TAKKT EUROPE 108.4 98.6 9.9 222.4 218.8 1.6
TAKKT AMERICA (€) 82.6 73.3 12.7 154.5 139.6 10.7
TAKKT AMERICA ($) 105.0 99.5 5.5 204.4 185.8 10.0
EBITDA 23.5 12.6 86.5 52.2 39.5 32.2
EBITDA margin 12.3 7.3 13.9 11.0
EBIT 18.4 7.7 139.0 42.3 30.5 38.7
EBIT margin 9.6 4.5 11.2 8.5
Profit before tax 15.9 6.1 160.7 37.6 27.5 36.7
Pbt margin 8.3 3.5 10.0 7.7
Cash flow 16.3 9.9 64.6 36.8 29.6 24.3
Cash flow margin 8.5 5.8 9.8 8.3

* The 2009 figures have been adjusted to the new segment structure for the sake of
comparability.

Contacts:
Dr Felix A. Zimmermann, CEO Tel. +49 711 3465-8201
Dr Florian Funck, CFO Tel. +49 711 3465-8207

Email: investor@takkt.de

HUG#1434502

Press Release as PDF http://hugin.info/131631/R/1434502/380103.pdf

— End of Message —

Takkt AG
Neckartaltstr. 155 Stuttgart null

Listed: Regulierter Markt in Frankfurter Wertpapierbörse;

Royal Wessanen nv: Wessanen reports improved underlying operating profit and EPS

Q2 2010 highlights

*

Revenue steady at EUR 193.7 million, in line with last year’s second quarter

*

Operating result (EBIT) improved to EUR 9.4 million (Q2 2009: EUR (4.8) million)

*

Net result of EUR 6.6 million; Earnings per share (EPS) of EUR 0.08

*

Wessanen Europe revenue EUR 131.0 million (0.6% autonomous growth)

*

Piet Hein Merckens took over as CEO on 1 June

*

Strategic initiatives (e.g. brand harmonisation and centralised sourcing) are on
schedule

*

For second half 2010, Wessanen expects its operating result to be around break-even

HUG#1434676

Download hier het Nederlandse persbericht (PDF, 200kB)

http://hugin.info/143317/R/1434676/380234.pdf

Download the full press release including the semi-annual financial report (English
version, 197kB) http://hugin.info/143317/R/1434676/380233.pdf

Kemira Oyj: Kemira Oyj’s Interim Report January-June 2010: Marked recovery in demand compared to last year, significant increase in operating profit

Kemira Oyj
Stock Exchange Release
July 29, 2010 at 8.30 (CET+1)

January-June:

*
Revenue in January-June 2010 increased by 7% to EUR 1,059.9 million (January-June 2009:
EUR 986.0 million).

*
Operating profit excluding non-recurring items rose 49% to EUR 79.6 million (53.4).
Operating profit rose 55% to EUR 82.9 million (53.4).

*
Gearing was 48% (December 31, 2009: 53%).

*
Profit before taxes improved by 140% to EUR 69.0 million (28.8)

*
Earnings per share from continuing operations was EUR 0.35 (0.16).

*
During the current year, Kemira expects the demand to develop favorably as our customer
demand is getting stronger. Operating profit from continuing operations, excluding
non-recurring items, is estimated to grow notably from last year (2009: EUR 124.9
million).

*
Tikkurila Oyj was separated from Kemira on March 26, 2010 and is reported under
Discontinued operations (see tables).

Second quarter:

*
Revenue in April -June 2010 rose 12% to EUR 545.2 million (April-June 2009: EUR 488.5
million).

*
Operating profit excluding non-recurring items rose 38% to EUR 40.5 million (29.3).

*
Operating profit percentage excluding non-recurring items was 7.4% (6.0%).

*
Operating profit rose 52% to EUR 44.5 million (29.3).

*
Profit before taxes totalled EUR 37.3 million (20.8).

*
Earnings per share from continuing operations was EUR 0.17 (0.11).

Kemira’s President and CEO Harri Kerminen:

The recovery in demand which started at the end of the first quarter also continued in
the second quarter. The 12% growth in revenue compared to the second quarter last year
is a reflection of increased deliveries to our customer industries. The revenues of Oil
& Mining and Paper segments rose over 10 %. The revenue of the Municipal & Industrial
segment developed positively as well, especially regarding deliveries to Industrial
customers.

The operating profit excl. non-recurring items in continuing operations improved in the
second quarter by 38%. In addition to higher sales volumes, the result was boosted by
lower costs. Operating profit as a share of revenue rose to 7.4% from 6.0% the previous
year. Profit before tax was markedly better than last year.

We will continue to develop the company according to our strategy, focusing on water
chemistry. As a part of this work, we announced the divestments of two non-water related
Paper segment units. The globally growing water business offers Kemira opportunities to
expand the utilisation of our current competencies in the water treatment sector.
Furthermore, the cooperation with customers and research centers provides a strong basis
for the profitable growth of Kemira.

Key Figures and Ratios

Figures in the text section of the interim report are for continuing operations
excluding Tikkurila, unless otherwise mentioned. Tikkurila Oyj was separated from Kemira
on March 26, 2010. It is reported under Discontinued operations (see tables).

EUR million 4-6/2010 4-6/2009 1-6/2010 1-6/2009 1-12/2009
Revenue 545.2 488.5 1,059.9 986.0 1,969.9
EBITDA 68.3 55.4 131.1 104.0 207.2
EBITDA, % 12.5 11.3 12.4 10.6 10.5
Operating profit, excluding non-recurring items 40.5 29.3 79.6 53.4 124.9
Operating profit 44.5 29.3 82.9 53.4 109.7
Operating profit, excluding non-recurring items, % 7.4 6.0 7.5 5.4 6.3
Operating profit, % 8.2 6.0 7.8 5.4 5.6
Financial income and expenses -9.8 -7.3 -17.7 -19.6 -37.8
Profit before tax 37.3 20.8 69.0 28.8 76.5
Net profit from continuing operations 27.3 15.5 55.0 22.2 67.1
Net profit*** 27.3 29.5 586.0** 35.6** 85.5**
EPS, EUR, from continuing operations 0.17 0.11 0.35 0.16 0.47
Capital employed * 1,631.7 1,722.6 1,631.7 1,722.6 1,659.3
ROCE %* 8.8 1.7 8.8 1.7 6.3
Cash flow after investments 1.9 83.9** 134.6** 49.5** 202.2**
Equity ratio, % at period-end 50** 35** 50** 35** 45**
Gearing, % at period-end 48** 104** 48** 104** 53**
Personnel at period-end 5,177 9,139** 5,177 9,139** 8,493**

5,177

9,139**

8,493**

* 12-month rolling average
**Includes Tikkurila until March 25, 2010
***Net profit January-March 2010 includes a non-recurring income of EUR 529.2 million
from the separation of Tikkurila, consisting of the difference between the market price
of Tikkurila on March 26, 2010 and the shareholder’s equity of Tikkurila on March 25,
2010 less the transfer tax related to Tikkurila’s listing as well as listing costs.

Definitions of key figures are available at www.kemira.com > Investors > Financial
information. Due to the rights offering arranged in 2009, historical per share key
figures have been adjusted with the following formula: average number of shares x 1.1.

Conference for analysts and the media:

Kemira will arrange a press conference for analysts and media today, July 29, 2010
starting at 10:30 a.m. at Kemira House, Porkkalankatu 3, Helsinki. The press conference
will be held in Finnish. Harri Kerminen, Kemira’s President and CEO, will present the
interim report. The presentation material will be available on Kemira’s website at
www.kemira.com at 10:30 a.m.

A conference call in English will begin at 1:00 p.m. Finnish time. In order to
participate in the call, please dial +44 (0)20 7162 0077, code 871463, ten minutes
before the conference begins. The presentation material will be available on Kemira’s
website at www.kemira.com. A recording of the conference call will be available on
Kemira’s website later today.

Kemira Oyj will publish its January-September interim report on Thursday October 28,
2010 at 8:30 a.m.

Additional information:

CFO Jyrki Mäki-Kala
Tel: +358 40 534 1060

Kemira is a global two billion euro chemicals company that is focused on serving
customers in water-intensive industries. The company offers water quality and quantity
management that improve customers’ energy, water and raw material efficiency. Kemira’s
vision is to be a leading water chemistry company.

www.kemira.com http://www.kemira.com/
www.waterfootprintkemira.com http://www.waterfootprintkemira.com/

Financial Performance in April-June 2010

Kemira Group’s revenue increased by 12% in April-June 2010 compared to the corresponding
period in 2009. April-June 2010 revenue was EUR 545.2 million (April-June 2009: EUR
488.5 million). Demand continued to grow in April-June in most customer industries.
Sales prices decreased in some products as a result of a drop in raw material prices
seen in 2009. The exchange rate effect increased revenue by about EUR 29 million.

Revenue, EUR million 4-6/2010 4-6/2009 1-12/2009
Paper 247.4 221.6 906.4
Municipal & Industrial 163.7 160.7 607.5
Oil & Mining 78.1 55.2 235.0
Other 56.0 71.7 300.4
Eliminations 0.0 -20.7 -79.4
Total 545.2 488.5 1,969.9

488.5

1,969.9

Operating profit rose 52% in April-June 2010 compared to the corresponding period in
2009 and amounted to EUR 44.5 million (29.3). Operating profit excluding non-recurring
items, main items being the divestments of two non-water related Paper segment units and
a service company in Helsingborg, was EUR 40.5 million (29.3). Operating profit margin
was 7.4% (6.0%). The operating profit was boosted by the about EUR 13 million lower cost
and higher sales volumes. Fixed costs were at a higher level than last year, due to the
negative effect of the exchange rate fluctuations.

Operating profit, excluding non-recurring items, 4-6/2010 4-6/2009 1-12/2009

EUR million
Paper 18.3 8.0 44.9
Municipal & Industrial 15.6 18.2 66.4
Oil & Mining 6.9 3.2 14.2
Other -0.3 -0.1 -0.6
Eliminations 0.0 0.0 0.0
Total 40.5 29.3 124.9

29.3

124.9

The share of associates’ results was EUR 2.6 million (-1.2).

Profit before tax in April-June amounted to EUR 37.3 million (20.8), and net profit from
continuing operations totalled EUR 27.3 million (15.5).

Earnings per share from continuing operations was EUR 0.17 (0.11).

Financial Performance in January-June 2010

Kemira Group’s revenue of continuing operations increased by 7% in January-June 2010
compared to the corresponding period in 2009, due to the increase in demand in most
customer industries. January-June 2010 revenue was EUR 1,059.9 million (January-June
2009: EUR 986.0 million). Sales volumes increased by about 10%. The growth was strongest
in the Oil & Mining and Paper segments. The exchange rate effect increased revenue by
about EUR 34 million. Sales prices decreased in some products as a result of a drop in
raw material prices seen in 2009.

Revenue, EUR million 1-6/2010 1-6/2009 1-12/2009
Paper 481.4 446.6 906.4
Municipal & Industrial 312.1 311.4 607.5
Oil & Mining 144.7 109.6 235.0
Other 121.8 156.9 300.4
Eliminations -0.1 -38.5 -79.4
Total 1,059.9 986.0 1,969.9

986.0

1,969.9

Operating profit in January-June 2010 amounted to EUR 82.9 million (53.4). Operating
profit excluding non-recurring items, main items being the divestments of two non-water
related Paper segment units and a service company in Helsingborg, rose by 49% to EUR
79.6 million (53.4). The positive growth in the sales volumes in the latter half of the
period increased the operating profit markedly. The costs decreased by about EUR 49
million in January-June 2010 compared to the corresponding period in 2009. The exchange
rate effect on operating profit was minor. Fixed costs were at the level of 2009, when
excluding the negative effect from exchange rate.

Operating profit, excluding non-recurring items, 1-6/2010 1-6/2009 1-12/2009

EUR million
Paper 33.5 15.5 44.9
Municipal & Industrial 32.3 28.6 66.4
Oil & Mining 13.3 5.2 14.2
Other 0.5 4.1 -0.6
Eliminations 0.0 0.0 0.0
Total 79.6 53.4 124.9

53.4

124.9

The share of associates’ results was EUR 3.8 million (-5.0).
The January-June profit before tax was EUR 69.0 million (28.8). Net profit for the
period from continuing operations totalled EUR 55.0 million (22.2). Net profit was EUR
586.0 million (35.6). This includes a non-recurring income of EUR 529.2 million from the
separation of Tikkurila, consisting of the difference between the market price of
Tikkurila on March 26, 2010 and the shareholder’s equity of Tikkurila on March 25, 2010
less the transfer tax related to Tikkurila’s listing as well as listing costs.

Financial position and cash flow

Cash flow from operating activities in January-June 2010 amounted to EUR 34.7 million
(87.7). Cash flow includes Tikkurila until March 25, 2010. Compared to last year, cash
flow was adversely affected by the separation of Tikkurila in the first quarter, as well
as the increase of net working capital connected to the growth of revenue. Cash flow
after investments amounted to EUR 134.6 million (49.5). Cash flow from investing
activities includes the loan repayment from Tikkurila as well a cash and cash
equivalents transferred to Tikkurila, and the effect of the transfer tax related to
Tikkurila’s listing, in total EUR 119.3. The cash flow effect of expansion, improvement
and maintenance investments was EUR -31.2 million (-36.1). No acquisitions were carried
out during the period. Acquisitions amounted to EUR 3.7 million last year relating to
Tikkurila.

At the end of the period the Group’s net debt stood at EUR 611.0 million (December 31,
2009: EUR 675.6 million). The decrease in net debt was mainly due to the separation of
Tikkurila (effect approximately EUR 160 million). Currency exchange rate fluctuations
increased net debt by approximately EUR 54 million and in addition, during the second
quarter Kemira Oyj paid out EUR 41 million in dividend.

At the end of the period, interest-bearing liabilities stood at EUR 723.6 million
(December 31, 2009: 950.2). Fixed-rate loans accounted for 76% of total interest-bearing
loans (December 31, 2009: 70%). The average interest rate on the Group’s
interest-bearing liabilities was 4.4% (5.7%). At the end of June, the duration of the
Group’s interest-bearing loan portfolio was 18 months (December 31, 2009: 19 months).

The unused amount of the EUR 500 million revolving credit facility that falls due in
2012 was EUR 437 million at the end of the period. The total limit of the revolving
credit facility has been reduced from EUR 750 million to EUR 500 million. Short-term
liabilities maturing in the next 12 months amounted to EUR 126.5 million, with
commercial papers issued on the Finnish markets representing EUR 4.9 million and
repayments of long-term loans representing EUR 110.3 million. Cash and cash equivalents
totalled EUR 112.6 million on June 30, 2010. Based on its current structure, it is
expected that the Group will not encounter any significant refinancing needs in 2010,
since the current loan arrangements cover its financing needs. The terms of the
revolving credit facility and other major bilateral loan arrangements require that the
Group’s equity ratio must be more than 25%.

At the end of the period, the equity ratio stood at 50% (December 31, 2009: 45%), while
gearing was 48% (December 31, 2009: 53%). Kemira’s gearing target is 40-80%.
Shareholders’ equity decreased by approximately EUR 70 million due to the separation of
Tikkurila. The net impact of currencies on shareholders’ equity was approximately EUR 45
million.

In January-June the Group’s net financial expenses were EUR 17.7 million (19.6). Net
financial expenses decreased from the corresponding period in 2009, mainly due to lower
debt and lower market rate levels; at the same time they increased due to the exchange
rate effects.

Capital expenditure

Gross capital expenditure in January-June, excluding acquisitions, amounted to EUR 34.7
million (36.1). Gross capital expenditure of continuing operations, excluding
acquisitions, totalled EUR 32.5 million (27.9). Expansion investments represented around
24% of gross capital investments, improvement investments around 40%, and maintenance
investments around 36%. The depreciation of continuing operations amounted to EUR 48.2
million (50.6). Cash flow from the sale of assets in continuing operations was EUR 12.4
million (1.5) in January-June.

Research and Development

In continuing operations, research and development expenditure in January-June was EUR
20.4 million (19.9) i.e. 2.1% (2.1%) of all operating expenses.

In March Kemira and VTT announced the establishing of a large water research center in
Finland. The total cost of the research, which will be performed at the centre, is
estimated at EUR 120 million, including external funding. The investments are allocated
over a period of 4 years, resulting in further investment activities in projects for
piloting and proof of concept purposes. The centre will employ approximately 200 persons
annually.

At the beginning of the year, about one third of the projects forming the water research
program have been kicked off and new strategic partners (customers and other technology
suppliers) are joining the program. Kemira has tightened cooperation with the University
of Alberta (Canada). University of Alberta has long researched effective extraction of
oil from oil sands. The focus of the cooperation will be on water treatment in
particular.

In June, Kemira and Nanyang Technological University (Singapore) announced joint a R&D
cooperation, with the aim to enhance used water treatment and purification. The goal of
the 2-year project is to design a more efficient water treatment process with lower
energy consumption and waste volume. The cooperation is part of a membrane research
effort.

Human Resources

The number of Kemira Group employees at the end of the period was 5,177 (June 30, 2009:
9,139). The number of personnel declined mostly due to the separation of Tikkurila.

Segments

Paper

We offer chemical products and integrated systems that help customers in the
water-intensive pulp and paper industry to improve their profitability as well as their
water, raw material and energy efficiency. Our solutions support sustainable
development.

EUR million 4-6/2010 4-6/2009 1-6/2010 1-6/2009 1-12/2009
Revenue 247.4 221.6 481.4 446.6 906.4
EBITDA 33.0 20.9 60.5 40.7 87.0
EBITDA, % 13.3 9.4 12.6 9.1 9.6
Operating profit, excluding non-recurring items 18.3 8.0 33.5 15.5 44.9
Operating profit 21.0 8.0 36.2 15.5 40.1
Operating profit, excluding non-recurring items, % 7.4 3.6 7.0 3.5 5.0
Operating profit, % 8.5 3.6 7.5 3.5 4.4
Capital employed* 780.8 818.3 780.8 818.3 782.6
ROCE %* 7.8 -0.9 7.8 -0.9 5.1
Capital expenditure, excluding acquisitions 9.7 13.4 17.9 18.5 37.8
Cash flow after investments, excluding interest and taxes 11.8 25.2 34.6 31.5 75.6

34.6

31.5

75.6

* 12-month rolling average

The Paper segment’s revenue in April-June 2010 rose by 12% to EUR 247.4 million (221.6).
Strong pulp demand has kept the sales of pulp chemicals at a good level. Demand for
packaging board has picked up in particular in Asia and Eastern Europe since the second
half of last year, increasing chemical sales into these regions. The demand for paper
used in magazines and newspapers and the number of printed advertising material has
increased the demand for the products. In some products, sales prices declined as a
result of a drop in raw material prices in 2009. The exchange rate effects had a EUR 16
million positive impact on revenue.

Operating profit excluding non-recurring items for April-June was EUR 18.3 million
(8.0). The operating profit margin rose to 7.4% from 3.6 % last year. Costs decreased by
some EUR 12 million in April-June compared to the corresponding period in 2009.

In January-June the Paper segment’s revenue increased by 8% to EUR 481.4 million
(446.6). The currency exchange effect had a positive impact on revenue of approximately
EUR 19 million. Operating profit excluding non-recurring items was EUR 33.5 million
(15.5). Operating profit as a share of revenue was 7.0% (3.5%). Costs in January-June
were about EUR 30 million lower than in January-June 2009. Exchange rates had no
significant effect on the result.

During this period Kemira announced the divestments of two non-water related Paper
segment units.

Kemira sold the sulphuric acid plant in Kokkola to Boliden Kokkola Oy. The business
operations were transferred to Boliden Kokkola Oy on May 1, 2010. Kemira continues
chemical terminal operations in Kokkola including services to Boliden. The transaction
has no significant impact on Kemira’s financial result.

Kemira and German Catec GmbH financially supported by Fengler Beteiligungs GmbH have
signed a contract, according to which Kemira sells its global Fluorescent Whitening
Agents to Catec. Fluorescent whitening agents improve the whiteness and brightness of
paper. The deal covers a production plant in Leverkusen, the global sales network and
the associated support functions. The business employs about a 100 people, most of them
in Germany. They will be transferred to Catec at the end of the third quarter, when the
transaction is to be closed. The transaction has no significant impact on Kemira’s
financial result.

Municipal & Industrial

We offer water treatment chemicals for municipalities and industrial customers. Our
strengths are high-level application know-how, a comprehensive range of water treatment
chemicals, and reliable customer deliveries.

EUR million 4-6/2010 4-6/2009 1-6/2010 1-6/2009 1-12/2009
Revenue 163.7 160.7 312.1 311.4 607.5
EBITDA 21.0 25.1 41.6 41.5 91.7
EBITDA, % 12.8 15.6 13.3 13.3 15.1
Operating profit, excluding non-recurring items 15.6 18.2 32.3 28.6 66.4
Operating profit 14.8 18.2 29.4 28.6 59.8
Operating profit, excluding non-recurring items, % 9.5 11.3 10.3 9.2 10.9
Operating profit, % 9.0 11.3 9.4 9.2 9.8
Capital employed* 352.1 356.5 352.1 356.5 349.4
ROCE %* 17.2 6.3 17.2 6.3 17.1
Capital expenditure, excluding acquisitions 4.5 3.4 8.2 5.5 21.0
Cash flow after investments, excluding interest and taxes 8.5 47.7 21.1 55.9 93.5

21.1

55.9

93.5

* 12-month rolling average

The Municipal & Industrial segment’s revenue in April-June totalled EUR 163.7 million.
A year earlier it was EUR 160.7 million. The delivery volumes were higher than in
April-June 2009, but the average sales prices in some products decreased as a result of
a drop in raw material prices. The exchange rate effects had a EUR 11 million positive
impact on revenue. Healthy demand continued in the municipal water treatment business,
and delivery volumes were slightly higher than a year ago. Also in the industrial water
treatment business the volumes increased, especially in Europe and Asia.

Operating profit excluding non-recurring items was EUR 15.6 million (18.2). The decrease
in some average sales prices due to the drop in raw material prices had a negative
impact on the result. Costs decreased in April-June by some EUR 7 million compared to
the corresponding period in 2009. Exchange rates had no significant effect on the
result.

The segment’s revenue in January-June was EUR 312.1 million (311.4). The average prices
decreased in some products as a result of a drop in raw material prices seen in 2009.
The sales volumes grew by about 5%. The exchange rate effect increased the revenue by
about EUR 14 million. Operating profit excluding non-recurring items was EUR 32.3
million (28.6) and the operating profit margin was 10.3% (9.2%). Costs in January-June
were about EUR 21 million lower than in January-June 2009. Exchange rates had no
significant effect on the result.

Oil & Mining

We offer a large selection of innovative chemical extraction and process solutions for
the oil and mining industries, where water plays a central role. Utilizing our
expertise, we enable our customers to improve efficiency and productivity.

EUR million 4-6/2010 4-6/2009 1-6/2010 1-6/2009 1-12/2009
Revenue 78.1 55.2 144.7 109.6 235.0
EBITDA 12.6 5.4 21.3 9.9 23.6
EBITDA, % 16.1 9.8 14.7 9.0 10.1
Operating profit, excluding non-recurring items 6.9 3.2 13.3 5.2 14.2
Operating profit 10.3 3.2 16.7 5.2 19.9
Operating profit, excluding non-recurring items, % 8.8 5.8 9.2 4.7 6.0
Operating profit, % 13.2 5.8 11.5 4.7 8.5
Capital employed* 139.1 159.3 139.1 159.3 148.9
ROCE %* 22.6 0.6 22.6 0.6 13.4
Capital expenditure, excluding acquisitions 1.1 0.9 2.3 1.5 4.7
Cash flow after investments, excluding interest and taxes 7.1 16.3 15.0 8.9 20.8

15.0

8.9

20.8

* 12-month rolling average

The Oil & Mining segment’s revenue in April-June rose by 41% to EUR 78.1 million (55.2).
Overall sales volumes rose significantly from the corresponding period in 2009. Demand
has been strong, in particular in the oil and gas markets in North America. Demand of
chemicals for the mining industry recovered already during the first quarter 2010.

Operating profit excluding non-recurring items for April-June was EUR 6.9 million (3.2).
The operating profit margin rose to 8.8% from 5.8% last year. In addition to the
increase in sales volumes, the profit was improved by the slightly higher average sales
prices of products. Costs increased by some EUR 5 million compared to the corresponding
period in 2009.

The segment’s revenue in January-June 2010 rose by 32% to EUR 144.7 million (109.6). The
average sales prices of products maintained the same level as a year before. The sales
volumes grew by about 25%. The currency exchange effect increased revenue by about EUR 2
million. Operating profit excluding non-recurring items was EUR 13.3 million (5.2).
Operating profit as a share of revenue reached 9.2% (4.7%). Costs were at the same level
in January-June as they were in the corresponding period in 2009. Exchange rates had no
significant effect on the result.

Other

The Other segment consists of specialty chemicals such as organic salts and acids and
the Group expenses not charged to the segments (some research and development costs and
the costs of the CEO Office). The demand of specialty chemicals was at a good level in
the Other segment. Products are delivered for instance to the food industry, feed
industry and pharmaceutical industry, as well as for airport runway de-icing.

Separation of Tikkurila

Trading with Tikkurila Oyj’s share began on NASDAQ OMX Helsinki Oy on March 26, 2010
when Tikkurila was separated from Kemira Oyj.

On March 16, 2010 Kemira’s Annual General Meeting decided that each of the four Kemira’s
shares entitle their holder to receive one share of Tikkurila as a dividend. In total,
Kemira distributed a total of 37,933,097 Tikkurila shares as dividend to its
shareholders which corresponds with 86% of Tikkurila’s shares and votes. Kemira
continues to hold a 14% minority share in Tikkurila. The taxation value and purchase
price for the Tikkurila shares distributed as dividend is the volume-weighted average
price of the shares on the first trading day, March 26, 2010, which was EUR 15.80.

Kemira Oyj’s shares and shareholders

On June 30, 2010, Kemira Oyj’s share capital was EUR 221.8 million and the number of
shares was 155,342,557. At the end of June, Kemira owned 3,600,225 own shares (December
31, 2009: 3,854,771), which corresponds with 2.3% (December 31, 2009: 2.5%) of Kemira
Oyj’s shares. Based on the Annual General Meeting decision on March 16, 2010, Kemira Oyj
transferred 12,255 shares to the members of Kemira Oyj’s Board as part of the
remuneration of the Board on May 7, 2010.

The highest share price of Kemira Oyj’s shares on NASDAQ OMX Helsinki Oy in January-June
was EUR 13.19 and the lowest was EUR 7.89. The average share price was EUR 9.86. The
company’s market value less the shares held by Kemira was EUR 1,338.4 million at the end
of June.

Members of the Nomination Committee

The Board of Directors of Kemira Oyj has assembled a Nomination Committee to prepare a
proposal for the Annual General Meeting concerning the composition and remuneration of
the Board of Directors. The Nomination Committee consists of representatives of the four
largest shareholders of Kemira Oyj as of May 31, 2010 and the Chairman of the Board of
Directors of the Company as an expert member. Members of the Nomination Committee are
Jari Paasikivi, President and CEO of Oras Invest Oy; Kari Järvinen, Managing Director of
Solidium Oy; Risto Murto, Deputy CEO, Varma Mutual Pension Insurance Company; Timo
Ritakallio, Deputy CEO, Ilmarinen Mutual Pension Insurance Company; and Pekka Paasikivi,
Chairman of Kemira’s Board of Directors as an expert member.

Other events during the review period

Kemira sold the sulphuric acid plant in Kokkola to Boliden Kokkola Oy. The business
operations were transferred to Boliden Kokkola Oy on May 1, 2010. Kemira continues
chemical terminal operations in Kokkola including services to Boliden. The transaction
has no significant impact on Kemira’s financial result.

Kemira Oyj and a Swedish company Coor Service Management AB have May 21, 2010 signed a
contract, according to which Kemira sold its IPOS service company to Coor. IPOS
(Industry Park of Sweden AB) provides its customers maintenance, technical and other
services in the Industry Park of Helsingborg. The IPOS legal entity and a staff of about
130 persons were transferred to Coor per July 1, 2010. The transaction had no
significant impact on Kemira’s financial result.

June 23, 2010, Kemira and German Catec GmbH financially supported by Fengler
Beteiligungs GmbH signed a contract, according to which Kemira sells its global
Fluorescent Whitening Agents to Catec. The deal covers a production plant in Leverkusen,
the global sales network and the associated support functions. The business employs
about a 100 people, most of them in Germany. They will be transferred to Catec at the
end of the third quarter, when the transaction is to be completed. The transaction has
no significant impact on Kemira’s financial result.

On June 29, 2010, Kemira announced that it will start joint a R&D cooperation with
Nanyang Technological University (Singapore), with the aim to enhance used water
treatment and purification. The goal of the 2-year project is to design a more efficient
water treatment process which produces more clean water with lower energy consumption
and waste volume.

Randy Owens, President, Kemira Oil & Mining, will alongside his current role be the
region head of North America. Hannu Melarti, SVP, Region North America has left the
company to pursue career options outside Kemira as of July 1, 2010.

Kemira has received the European Commission’s decision regarding anticompetitive
activities of animal feed phosphates producers in Europe on July 20, 2010. The European
Commission decided that Kemira should not pay any fine, since it was the first company
to report these activities to the Commission. Kemira has cooperated with the European
Commission during the investigation which began at the end of 2003. Kemira divested the
animal feed phosphates business in 2004. Kemira informed the public about the
Commission’s investigations in 2004, in the prospectus of Kemira GrowHow. The decision
of the European Commission will not have any financial impact on Kemira.

Short-term risks and uncertainties

Kemira’s main short-term risks and uncertainties are connected to raw material
availability and prices.

Substantial fluctuations in the world market prices of electricity and oil are reflected
in Kemira’s financial results, via raw material prices and logistics costs.

Introduction of REACH legislation may decrease the available raw material options and
thus increase our raw material costs. REACH registration of Kemira’s own products may
also be more expensive than estimated, in particular if we are not able to share the
costs with other companies. Acrylamide, boric acid, borates and sodium dichromate have
been added to the list of candidates for authorization under REACH. If acrylamide, which
Kemira uses as a raw material for polymers, will be added to the list of substances
subject to authorization under REACH, this would make its use more difficult. Boric
acid, borates and sodium dichromate are mainly used in the production at Kemira
Chemicals Oy.

Changes in the exchange rates of key currencies can affect Kemira’s financials.

A detailed account of Kemira’s risk management principles and organization is available
on the company website at www.kemira.com. An account of financial risks is available in
the Notes to the Financial Statements 2009. Environmental and hazard risks are discussed
in Kemira’s environmental report.

Outlook

Kemira’s goal is to be a leading water chemistry company. Implementation of Kemira’s
water strategy has progressed well and the company has improved its profitability
significantly and strengthened the balance sheet with several measures. Kemira will
continue to focus on improving profitability and reinforcing positive cash flow, and the
company will also increase its actions to boost growth.

The basis for growth is the expanding water chemicals markets and Kemira’s strong
know-how in water quality and quantity management. Increasing water shortage, tightening
legislation and customers’ needs to increase operational efficiency create opportunities
for Kemira to develop new water applications for both new and current customers.
Investment in research and development is a central part of Kemira’s strategy. The focus
of Kemira’s R&D activities is on the development and commercialization of new innovative
technologies both globally and locally.

During the current year, Kemira expects the demand to develop favorably as our
customers’ demand is getting stronger. Operating profit from continuing operations,
excluding non-recurring items, is expected to grow notably from last year (2009: EUR
124.9 million).

Helsinki, 29 July 2010

Board of Directors

All forward-looking statements in this review are based on the management’s current
expectations and beliefs about future events, and actual results may differ materially
from the expectations and beliefs such statements contain.

KEMIRA GROUP

Quarterly figures are unaudited.
All figures in this financial report have been rounded and consequently the sum of individual figures can deviate from the presented sum figure.

This Interim Consolidated Financial Statement has been prepared in compliance with IAS 34.
The accounting policies adopted are consistent with those of the Group’s annual financial statement, added with the following changes.

Changes to the accounting policies as of January 1, 2010:
– IFRS 3 Business Combinations – The standard change had no effect on the interim consolidated financial statement.
– IAS 27 Consolidated and Separete Financial Statements (amended 2008) – The standard change had no effect on the interim consolidated financial statement.
– IFRIC 17 Distributions of non-cash assets to owners – New interpretation has been followed in separation of Tikkurila Oyj.
The changes have been described in annual financial statement 2009.

The changes have been described in annual financial statement 2009.

INCOME STATEMENT 4-6/2010 4-6/2009 1-6/2010 1-6/2009 2009
EUR million
Continuing operations

Revenue 545.2 488.5 1,059.9 986.0 1,969.9
Other operating income 10.5 3.7 13.5 6.8 13.5
Expenses -487.4 -436.8 -942.3 -888.8 -1,776.2
Depreciation, impairments
and reversals of impairments -23.8 -26.1 -48.2 -50.6 -97.5
Operating profit 44.5 29.3 82.9 53.4 109.7
Financial income and expenses, net -9.8 -7.3 -17.7 -19.6 -37.8
Share of profit or loss of associates 2.6 -1.2 3.8 -5.0 -4.8
Group contribution – – – – 9.4
Profit before tax 37.3 20.8 69.0 28.8 76.5
Income tax -10.0 -5.3 -14.0 -6.6 -9.4
Net profit for the period,
continuing operations 27.3 15.5 55.0 22.2 67.1

Discontinued operations
Net profit for the period,
discontinued operations – 14.0 531.0 13.4 18.4

Net profit for the period 27.3 29.5 586.0 35.6 85.5

Attributable to:
Equity holders of the parent 25.9 14.4 52.7 20.7 63.4
Minority interest 1.4 1.1 2.3 1.5 3.7
Net profit for the period 27.3 15.5 55.0 22.2 67.1

Earnings per share, continuing operations
basic and diluted, EUR 0.17 0.11 0.35 0.16 0.47
Earnings per share, basic and diluted, EUR 0.17 0.21 3.85 0.25 0.61

STATEMENT OF COMPREHENSIVE INCOME 4-6/2010 4-6/2009 1-6/2010 1-6/2009 2009

Net profit for the period 27.3 29.5 586.0 35.6 85.5
Other comprehensive income, net of tax:
Available-for-sale
– change in fair value 1.0 – -2.5 – 3.7
Exchange differences 16.8 10.5 53.8 2.6 28.1
Hedge of net investment
in foreign entities -4.1 0.0 -8.6 -0.8 -3.0
Cash flow hedging 3.8 7.7 2.1 5.1 10.0
Other changes 0.4 0.5 -0.3 0.0 -0.4
Other comprehensive income, net of tax 17.9 18.7 44.5 6.9 38.4
Total comprehensive income 45.2 48.2 630.5 42.5 123.9

Attributable to:
Equity holders of the parent 43.7 46.1 627.0 40.8 119.9
Minority interest 1.5 2.1 3.5 1.7 4.0
Total comprehensive income 45.2 48.2 630.5 42.5 123.9

BALANCE SHEET
EUR million

ASSETS 30.6.2010 31.12.2009 *

Non-current assets
Goodwill 612.7 658.0
Other intangible assets 69.5 102.2
Property, plant and equipment 679.8 761.5
Holdings in associates 134.2 131.1
Available-for-sale investments 260.6 166.2
Deferred tax assets 18.5 18.8
Other investments 11.4 13.2
Defined benefit pension receivables 35.7 35.3
Total non-current assets 1,822.4 1,886.3

Current assets
Inventories 192.6 246.5
Interest-bearing receivables 1.0 1.4
Accounts receivables and other receivables 366.3 400.6
Current tax asset 8.5 7.3
Money market investments 78.9 202.1
Cash and cash equivalents 33.7 72.5
Total receivables 681.0 930.4

Non-current assets held-for sale ** 14.7 –

Total assets 2,518.1 2,816.7

30.6.2010 31.12.2009 *
EQUITY AND LIABILITIES

Equity attributable to equity holders of the parent 1,237.0 1,249.5
Minority interest 24.0 19.3
Total equity 1,261.0 1,268.8

Non-current liabilities
Interest-bearing non-current liabilities 597.1 512.6
Deferred tax liabilities 70.2 90.1
Pension liabilities 55.9 70.4
Provisions 55.4 55.6
Total non-current liabilities 778.6 728.7

Current liabilities
Interest-bearing current liabilities 126.5 437.6
Interest-free current liabilities 312.2 369.1
Current tax liabilities 15.3 0.5
Provisions 11.7 12.0
Total current liabilities 465.7 819.2

Non-current liabilities classified as held for sale ** 12.8 –

Total liabilities 1,257.1 1,547.9

Total equity and liabilities 2,518.1 2,816.7

* Includes Tikkurila
** Non-current assets held-for sale consist of assets and liabilities of IPOS (Industry Park of Sweden AB) located in Sweden, which are transferred in the company sale to Coor Service Management AB per July 1, 2010. Kemira Oyj and Coor Service Management AB signed the contract on May 21, 2010.

CONSOLIDATED CASH FLOW STATEMENT 4-6/2010 4-6/2009 1-6/2010 1-6/2009 2009
EUR million
Includes Tikkurila until March 25, 2010

Cash flow from operating activities
Profit for the period 25.9 28.5 583.7 34.2 81.8
Total adjustments 31.3 52.5 -455.0 101.0 206.9
57.2 81.0 128.7 135.2 288.7
Change in net working capital -21.9 52.1 -52.0 -11.2 74.4
35.3 133.1 76.7 124.0 363.1
Financing items -15.5 -13.7 -32.0 -20.6 -49.0
Taxes paid -4.6 -9.6 -10.0 -15.7 -26.3
Net cash generated from
operating activities 15.2 109.8 34.7 87.7 287.8

Cash flow from investing activities
Capital expenditure for acquisitions – -3.7 – -3.7 -3.7
Other capital expenditure -15.1 -23.4 -31.2 -36.1 -82.2
Proceeds from sale of assets * 1.9 1.2 -17.0 1.6 2.4
Change in other investments * -0.1 – 148.1 – -2.1
Net cash used in investing activities -13.3 -25.9 99.9 -38.2 -85.6
Cash flow before financing activities 1.9 83.9 134.6 49.5 202.2

Cash flow from financing activities
Proceeds from non-current
interest-bearing liabilities 4.2 4.3 49.4 56.6 228.3
Repayments from non-current
interest-bearing liabilities -13.9 -26.1 -25.2 -18.2 -249.7
Short-term financing,
net (increase +, decrease -) -24.1 2.2 -254.8 -10.9 -183.6
Dividends paid -44.7 -33.0 -44.7 -33.0 -33.5
Share issue – – – – 200.0
Other financing items 19.4 6.4 -22.7 -0.6 -11.3
Net cash used in financing activities -59.1 -46.2 -298.0 -6.1 -49.8

Net change in cash and cash equivalents -57.2 37.7 -163.4 43.4 152.4

Cash and cash equivalents at end of period 119.7 161.4 119.7 161.4 274.6
Exchange gains (+) / losses (-) on cash
and cash equivalents -4.2 1.7 -8.5 1.4 -2.8
Cash and cash equivalents
at beginning of period 172.7 125.4 274.6 119.4 119.4
Net change in cash and cash equivalents -57.2 37.7 -163.4 43.4 152.4

* 1-6/2010 include cash and cash equivalents transferred to Tikkurila as well as the loan repayment from Tikkurila

STATEMENT OF CHANGES IN EQUITY
EUR million
Equity attributable to equity holders of the parent
Capital Un-
paid-in in Fair value restricted
Share excess of and other equity
capital par value reserves reserve

Shareholders’ equity at January 1, 2009 221.8 257.9 81.4 –
Net profit for the period – – – –
Other comprehensive income, net of tax – – 5.1 –
Total comprehensive income – – 5.1 –
Dividends paid – – – –
Share-based compensations – – – –
Changes due to business combinations – – – –
Transfers in equity – – 0.1 –
Shareholders’ equity at June 30, 2009 221.8 257.9 86.6 –

Shareholders’ equity at January 1, 2010 221.8 257.9 95.8 196.3
Net profit for the period – – – –
Other comprehensive income, net of tax – – -0.5 –
Total comprehensive income – – -0.5 –
Dividends paid – – – –
Treasury shares issued to target group
of share-based incentive plan – – – –
Share-based compensations – – – –
Changes due to business combinations – – – –
Shareholders’ equity at June 30, 2010 221.8 257.9 95.3 196.3

Equity attributable to equity holders of the parent
Exchange Treasury Retained
differences shares earnings

Shareholders’ equity at January 1, 2009 -104.6 -25.9 532.2
Net profit for the period – – 34.1
Other comprehensive income, net of tax 1.5 – 0.1
Total comprehensive income 1.5 – 34.2
Dividends paid – – -30.3
Share-based compensations – – 0.4
Changes due to business combinations – – –
Transfers in equity – – -0.1
Shareholders’ equity at June 30, 2009 -103.1 -25.9 536.4

Shareholders’ equity at January 1, 2010 -79.9 -25.9 583.6
Net profit for the period – – 583.7
Other comprehensive income, net of tax 43.7 – 0.1
Total comprehensive income 43.7 – 583.8
Dividends paid – – -640.3
Treasury shares issued to target group
of share-based incentive plan – 1.7 –
Share-based compensations – – -0.7
Changes due to business combinations – – -0.3
Shareholders’ equity at June 30, 2010 -36.2 -24.2 526.1

Minority
interests Total
Shareholders’ equity at January 1, 2009 13.2 976.0
Net profit for the period 1.5 35.6
Other comprehensive income, net of tax 0.2 6.9
Total comprehensive income 1.7 42.5
Dividends paid -2.7 -33.0
Share-based compensations – 0.4
Changes due to business combinations 5.5 5.5
Transfers in equity – 0.0
Shareholders’ equity at June 30, 2009 17.7 991.4

Shareholders’ equity at January 1, 2010 19.2 1,268.8
Net profit for the period 2.3 586.0
Other comprehensive income, net of tax 1.2 44.5
Total comprehensive income 3.5 630.5
Dividends paid -3.7 -644.0
Treasury shares issued to target group
of share-based incentive plan – 1.7
Share-based compensations – -0.7
Changes due to business combinations 5.0 4.7
Shareholders’ equity at June 30, 2010 24.0 1,261.0

Kemira had in its possession 3,600,225 of its treasury shares on June 30, 2010. The
average share price of treasury shares was EUR 6.73 and they represented 2.3% of the
share capital and the aggregate number of votes conferred by all shares. The aggregate
par value of the treasury shares is EUR 5.1 million.

The capital paid-in in excess of par value is a reserve accumulating through
subscriptions entitled by the Management stock option program 2001 and is based on the
Finnish Companies Act (734/1978), which does no longer change. According to IFRS, the
Fair Value reserve is a reserve accumulating based on available-for-sale financial
assets (shares) measured at fair value and hedge accounting. Other reserves are required
by local legislation. The unrestricted equity reserve includes other equity type
investments and the subscription price of shares to the extent that it will not, based
on a specific decision, be recognized in share capital.

KEY FIGURES 4-6/2010 4-6/2009 1-6/2010 1-6/2009 2009

Earnings per share, continuing operations,
basic and diluted, EUR ** 0.17 0.11 0.35 0.16 0.47
Earnings per share, discontinued
operations, basic and diluted, EUR ** – 0.10 3.50 0.09 0.14
Cash flow from operations per share,
EUR ** 0.10 0.82 0.23 0.66 2.13
Capital expenditure, EUR million 18.6 27.1 34.7 39.8 85.9
Capital expenditure / revenue, % 3.4 4.2 3.0 3.2 3.4

Average number of shares (1000),
basic * 151,647 133,309 151,647 133,309 134,824
Average number of shares (1000),
diluted * 151,734 133,309 151,734 133,309 135,085
Number of shares at end
of period (1000), basic * 151,722 133,309 151,722 133,309 151,488
Number of shares at end of
period (1000), diluted * 151,722 133,309 151,722 133,309 151,748

Equity per share, attributable to
equity holders of the parent, EUR ** 8.15 7.30 8.25
Equity ratio, % 50.2 35.0 45.1
Gearing, % 48.5 104.3 53.2
Interest-bearing net liabilities,
EUR million 611.0 1,033.7 675.6
Personnel (average) 6,259 9,052 8,843

* Number of shares outstanding, excluding the number of shares bought back.
** Rights offering restatement year 2009

REVENUE BY BUSINESS AREA 4-6/2010 4-6/2009 1-6/2010 1-6/2009 2009
EUR million

Paper external 247.4 222.2 481.4 446.1 905.2
Paper Intra-Group – -0.6 – 0.5 1.2
Municipal & Industrial external 163.7 160.4 312.1 311.1 607.3
Municipal & Industrial Intra-Group – 0.3 – 0.3 0.2
Oil & Mining external 78.1 52.3 144.7 109.3 234.4
Oil & Mining Intra-Group – 2.9 – 0.3 0.6
Other external 56.0 53.6 121.7 119.5 223.0
Other Intra-Group – 18.1 0.1 37.4 77.4
Eliminations – -20.7 -0.1 -38.5 -79.4
Total, continuing operations 545.2 488.5 1,059.9 986.0 1,969.9

Tikkurila, external,
discontinued operations – 162.4 108.2 273.6 530.2

Total 545.2 650.9 1,168.1 1,259.6 2,500.1

OPERATING PROFIT BY BUSINESS AREA 4-6/2010 4-6/2009 1-6/2010 1-6/2009 2009
EUR million

Paper 21.0 8.0 36.2 15.5 40.1
Municipal & Industrial 14.8 18.2 29.4 28.6 59.8
Oil & Mining 10.3 3.2 16.7 5.2 19.9
Other -1.6 -0.1 0.6 4.1 -10.1
Eliminations – – – – –
Total, continuing operations 44.5 29.3 82.9 53.4 109.7

Tikkurila, discontinued operations – 22.1 5.3 26.1 47.7

Total 44.5 51.4 88.2 79.5 157.4

CHANGES IN PROPERTY, PLANT AND EQUIPMENT 1-6/2010 1-6/2009 2009
EUR million

Carrying amount at beginning of year 761.5 765.7 765.7
Acquisitions of subsidiaries – – 0.1
Increases 27.9 34.7 76.1
Decreases -2.1 -1.7 -2.0
Disposal of subsidiaries -115.9 – –
Depreciation, impairments
and reversals of impairments -44.6 -48.6 -88.9
Exchange rate differences and
other changes 53.0 4.1 10.5
Net carrying amount at end of period 679.8 754.2 761.5

CHANGES IN INTANGIBLE ASSETS 1-6/2010 1-6/2009 2009
EUR million

Carrying amount at beginning of year 760.2 766.7 766.7
Acquisitions of subsidiaries – 2.4 2.4
Increases 6.8 6.4 11.6
Decreases – – -0.1
Disposal of subsidiaries -101.3 – –
Depreciation and impairments -8.3 -11.2 -27.6
Exchange rate differences and
other changes 24.8 3.8 7.2
Net carrying amount at end of period 682.2 768.1 760.2

CONTINGENT LIABILITIES 30.6.2010 31.12.2009
EUR million

Mortgages 13.9 37.5
Assets pledged
On behalf of own commitments 5.9 5.5
Guarantees
On behalf of own commitments 47.4 45.2
On behalf of associates 0.9 1.0
On behalf of others 5.0 9.2
Operating leasing liabilities
Maturity within one year 22.2 26.0
Maturity after one year 125.9 137.3
Other obligations
On behalf of own commitments 1.0 1.7
On behalf of associates 1.7 1.8

Major off-balance sheet investment commitments

There were no major contractual commitments for the acquisition of property, plant and equipment on June 30, 2010.

There were no major contractual commitments for the acquisition of property, plant and
equipment on June 30, 2010.

Litigation

On August 19, 2009, Kemira Oyj received a summons stating that Cartel Damage Claims
Hydrogen Peroxide SA (CDC) had filed an action against six hydrogen peroxide
manufacturers, including Kemira, for violations of competition law applicable to the
hydrogen peroxide business. In its claim, Cartel Damage Claims Hydrogen Peroxide SA
seeks an order from the Regional Court of Dortmund in Germany to obtain an unabridged
and full copy of the decision of the European Commission, dated May 3, 2006, and demands
that the defendants, including Kemira, are jointly and severally ordered to pay damages
together with accrued interest on the basis of such decision.

Cartel Damage Claims Hydrogen Peroxide SA states that it will specify the amount of the
damages at a later stage after the full copy of the decision of the European Commission
has been obtained by it. In order to provide initial guidance as to the amount of such
damages, Cartel Damage Claims Hydrogen Peroxide SA presents in its claim a preliminary
calculation of the alleged overcharge having been paid to the defendants as a result of
the violation of the applicable competition rules by the parties which have assigned and
sold their claim to Cartel Damage Claims Hydrogen Peroxide SA. Such alleged overcharge,
together with accrued interest until December 31, 2008, is stated to be approximately
EUR 641.3 million. The process is currently pending in the Regional Court of Dortmund,
Germany.

Kemira defends against the claim of Cartel Damage Claims Hydrogen Peroxide SA. However,
Kemira is currently not in a position to make any estimate regarding the duration or the
likely outcome of the process. No assurance can be given as to the outcome of the
process, and an unfavorable judgment against Kemira could have a material adverse effect
on Kemira’s business, financial condition or results of operations. Due to its extensive
international operations the Group, in addition to the CDC claim, is involved in a
number of other legal proceedings incidental to these operations and it does not expect
the outcome of these other currently pending legal proceedings to have materially
adverse effect upon its consolidated results or financial position.

RELATED PARTY

Transactions with related parties have not changed materially after annual closing 2009.

DERIVATIVE INSTRUMENTS
EUR million
30.6.2010 31.12.2009
Nominal Fair Nominal Fair
value value value value
Currency instruments
Forward contracts 498.2 3.2 549.5 1.5
of which hedges of
net investment in a foreign operation – – – –

Currency options
Bought – – – –
Sold – – – –

Currency swaps – – 29.3 -3.9

Interest rate instruments
Interest rate swaps 353.2 -9.6 354.7 -9.4
of which cash flow hedge 315.1 -7.8 307.8 -7.4
Interest rate options
Bought 10.0 – 10.0 –
Sold – – – –

Bond futures 10.0 – 10.0 0.2
of which open 10.0 – 10.0 0.2

Other instruments GWh Fair value GWh Fair value
Fair Fair

Electricity forward contracts, bought 1,036.1 4.5 1,156.7 1.2
of which cash flow hedge 966.0 4.4 1,051.6 1.1
Electricity forward contracts, sold 70.1 -0.1 – –
of which cash flow hedge – – – –

Fair Fair
K tons value K tons value
Natural gas hedging 12.5 -0.4 14.8 -0.2
of which cash flow hedge 12.5 -0.4 14.8 -0.2
Salt derivatives – – 160.0 –

The fair values of the instruments which are publicly traded are based on market
valuation on the date of reporting. Other instruments have been valuated based on net
present values of future cash flows. Valuation models have been used to estimate the
fair values of options.

Nominal values of the financial instruments do not necessarily correspond to the actual
cash flows between the counterparties and do not therefore give a fair view of the risk
position of the Group.

QUARTERLY INFORMATION 2009 2009 2009 2009
EUR million Q4 Q3 Q2 Q1
Continuing operations

Revenue
Paper external 229.2 229.9 222.2 223.9
Paper Intra-Group 0.4 0.3 -0.6 1.1
Municipal & Industrial external 140.6 155.6 160.4 150.7
Municipal & Industrial Intra-Group – -0.1 0.3 –
Oil & Mining external 69.2 55.9 52.3 57.0
Oil & Mining Intra-Group 0.2 0.1 2.9 -2.6
Other external 57.2 46.3 53.6 65.9
Other Intra-Group 20.6 19.4 18.1 19.3
Eliminations -21.2 -19.7 -20.7 -17.8
Total 496.2 487.7 488.5 497.5

Operating profit
Paper 9.8 14.8 8.0 7.5
Municipal & Industrial 6.3 24.9 18.2 10.4
Oil & Mining 11.2 3.5 3.2 2.0
Other -10.0 -4.2 -0.1 4.2
Eliminations – – – –
Total 17.3 39.0 29.3 24.1

Operating profit, excluding non-recurring items
Paper 14.6 14.8 8.0 7.5
Municipal & Industrial 12.9 24.9 18.2 10.4
Oil & Mining 5.5 3.5 3.2 2.0
Other -0.5 -4.2 -0.1 4.2
Eliminations – – – –
Total 32.5 39.0 29.3 24.1

2010 2010
Q2 Q1

Revenue
Paper external 247.4 234.0
Paper Intra-Group – –
Municipal & Industrial external 163.7 148.4
Municipal & Industrial Intra-Group – –
Oil & Mining external 78.1 66.6
Oil & Mining Intra-Group – –
Other external 56.0 65.7
Other Intra-Group – 0.1
Eliminations – -0.1
Total 545.2 514.7

Operating profit
Paper 21.0 15.2
Municipal & Industrial 14.8 14.6
Oil & Mining 10.3 6.4
Other -1.6 2.2
Eliminations – –
Total 44.5 38.4

Operating profit, excluding non-recurring items
Paper 18.3 15.2
Municipal & Industrial 15.6 16.7
Oil & Mining 6.9 6.4
Other -0.3 0.8
Eliminations – –
Total 40.5 39.1

DEFINITIONS OF KEY FIGURES

Earnings per share (EPS): Equity ratio, %:
Net profit attributable to Total equity x 100 /
equity holders Total assets – prepayments
of the parent / received
Average number of shares

Cash flow from operations: Gearing, %:
Cash flow from operations, Interest-bearing net
after change in liabilities x 100 /
net working capital Total equity
and before investing
activities

Cash flow from operations Interest-bearing net liabilities:
per share: Interest-bearing liabilities –
Cash flow from operations / money market investments –
Average number of shares cash and cash equivalents

Equity per share: Return on capital employed
Equity attributable to equity (ROCE), %:
holders of the parent at Operating profit + share of profit
end of period / or loss of associates x 100 /
Number of shares at Capital employed 1) 2)
end of period

1) Average
2) Net working capital + property, plant and equipment available for use + intangible assets available for use + investments in associates
DISCONTINUED OPERATIONS Trading with Tikkurila Oyj’s share began on NASDAQ OMX Helsinki Oy on March
26, 2010 and Tikkurila was separated from Kemira Oyj. Tikkurila comprised own segment in Kemira. On
March 16, 2010 Kemira’s Annual General Meeting decided that each four Kemira’s shares entitle their
holder to receive one share of Tikkurila as a dividend. Kemira distributed a total of 37,933,097
Tikkurila shares as dividend to its shareholders which corresponds with 86% of Tikkurila’s shares and
votes. Kemira held a 14% minority share in Tikkurila.

DISCONTINUED OPERATIONS

Trading with Tikkurila Oyj’s share began on NASDAQ OMX Helsinki Oy on March 26, 2010 and
Tikkurila was separated from Kemira Oyj. Tikkurila comprised own segment in Kemira.

On March 16, 2010 Kemira’s Annual General Meeting decided that each four Kemira’s shares
entitle their holder to receive one share of Tikkurila as a dividend. Kemira distributed
a total of 37,933,097 Tikkurila shares as dividend to its shareholders which corresponds
with 86% of Tikkurila’s shares and votes. Kemira held a 14% minority share in
Tikkurila.

INCOME STATEMENT 1.1.- 25.3.2010 1.1. – 31.12.2009
EUR million

Revenue 108.2 530.2
Other operating income 0.4 1.5
Expenses -98.6 -465.2
Depreciation, impairments and reversals of impairments -4.7 -18.8
Operating profit 5.3 47.7
Financial income and expenses, net -1.6 -12.0
Share of profit or loss of associates – 0.1
Group contribution – -9.4
Profit before tax 3.7 26.4
Income tax -1.9 -8.0
Net profit for the period 1.8 18.4

Profit for Tikkurila spin off 529.2
Net profit for the period, discontinued operations 531.0

Attributable to, discontinued operations:
Equity holders of the parent 1.8
Minority interest 0.0
Net profit for the period 1.8

Earnings per share, discontinued operations,
basic and diluted, EUR 3.50 0.14

CASH FLOW 1.1.- 25.3.2010 1.1. – 31.12.2009
EUR million

Cash flow from operating activities -29.0 62.5
Cash flow from investing activities -1.9 -17.1
Cash flow from financing activities 24.9 -53.1
Net change in cash and cash equivalents -6.0 -7.7

The effect of paying Tikkurila as dividend on Group’s financial position

25.3.2010 31.12.2009

Non-current assets 230.0 224.6
Receivables 222.1 178.5
Non-current liabilities -164.0 -140.6
Current liabilities -132.6 -118.6
Assets and liabilities, net 155.5 143.9

Expenses paid in cash 1) -10.4
Cash and cash equivalents of discontinued operations -19.2
The effect on cash flow -29.6

1) Expenses paid in cash include transfer tax and other expenses of EUR 10.3 million paid during the second quarter in 2010.

1) Expenses paid in cash include transfer tax and other expenses of EUR 10.3 million
paid during the second quarter in 2010.

Nutreco: Excellent results for the first half of 2010: Strong increase in operating result (EBITA) to EUR 84 million

EUR 2,250.5 million; an increase of 5.8% compared with the first half of
2009

* Strong increase in volume of Fish feed and Premix and feed specialties

* All business segments report better operating results compared with the first half of
2009

* 2010 interim dividend of EUR 0.50 in cash or shares

* For the full year 2010, Nutreco expects an increase of approximately 25% in EBITA
before exceptional items compared with 2009 (EUR 175.2 million)

Key figures
(EUR x million)
H1 2010 H1 2009 Change
Revenue from ‘continuing operations’ 2,250.5 2,127.7 5.8%
Operating result before exceptional items and amortisation (EBITA) 84.0 41.6 101.9%
Operating result from ‘continuing operations’ before amortisation (EBITA) 74.1 38.5 92.5%
Profit after tax from ‘continuing operations’ 40.4 13.7 194.9%
Basic earnings per share from ‘continuing operations’ (EUR) 1.13 0.36 213.9%
Interim dividend per ordinary share (EUR) 0.50 0.20 150.0%

150.0%

Wout Dekker, CEO Nutreco:

“We have had excellent first six months. The results are better than in the same period
last year for all business segments. These results, the recovery of the markets and our
good financial situation give us confidence for the future. We are also very pleased
with the composition and quality of our results. For the second half of the year, we
expect results in line with the very strong second half of 2009. For the full year this
will lead to an increase of approximately 25% in EBITA before exceptional items.”

All business segments report better operating results
“Our premix and feed specialties operations have very good results, with a growth in
volume and an improved product mix. Fish feed operations show strong growth in Norway
and we experience a recovery in the Chilean aquaculture sector. Our compound feed
operations in Europe reported business results in line with the trend of the last
quarters of 2009. The results in The Netherlands improved substantially compared with
the first half of 2009. In Spain the acquisition of Cargill’s compound feed operations
contributed to revenues. The integration and optimisation of factories is progressing
well. Our meat operations had good results, slightly better than in the first half of
2009.”

Focus on strengthening global position in Fish feed and Premix and feed specialties
“The recent acquisition of a fish and shrimp feed business in Vietnam is in line with
our strategy to further strengthen our position in feed for amongst others shrimp,
tilapia, barramundi, snapper and grouper, in countries of strategic importance. After
China and India, Vietnam is the world’s largest aquaculture producer. For Nutreco, the
acquisition is a good entry into the Vietnamese market and a basis for further growth.
Next to this acquisition Nutreco is investing in renewing and expanding its production
capacity. In March we announced the investment of EUR 20 million in upgrading and
expanding the fish feed factory in Australia. The investment will enable Skretting to
meet the growing demand for high-quality fish feed for salmon, trout, barramundi and
tuna in both Australia and New Zealand. Since 2001, the volume for fish feed in this
region has grown by 10% annually.
In April, Nutreco announced a EUR 6 million investment in upgrading and expanding the
production capacity of Selko, a producer of additives for animal nutrition. This
investment will enable Selko to meet the globally growing demand for alternatives to
antibiotics and for products that can contribute to controlling the development of
salmonella in animal nutrition, raw materials for animal nutrition and drinking water.

Nutreco remains focused on growth by innovations and we continue to execute our strategy
to further strengthen our global market position in Premix and feed specialties and Fish
feed by means of organic growth and acquisitions.”

Outlook

Barring unforeseen circumstances, Nutreco expects EBITA before exceptional items in the
second half of the year to be in line with the very strong second half of 2009 (EUR
133.6 million). For the full year 2010 this will result in an increase of approximately
25% in EBITA before exceptional items compared with 2009 (EUR 175.2 million).

Strategy

Nutreco will continue to focus on growth in animal nutrition and fish feed by means of:

* Focusing on geographical regions and markets with prospects for structural profitable
growth in countries such as Brazil, China, Russia and Vietnam;
* Participating in consolidation in countries where Nutreco has a leading position in
compound feed, such as Canada/North America, the Netherlands and Spain;
* Further strengthen our global market position in Premix and feed specialties and Fish
feed through independent growth and acquisitions;
* Implementing Nutreco’s innovation strategy.

Nutreco will publish a trading update on the third quarter of 2010 on 28 October 2010.

* * * * *

Nutreco

Nutreco is a global leader in animal nutrition and fish feed. Our advanced feed
solutions are at the origin of food for millions of consumers worldwide. Quality,
innovation and sustainability are guiding principles, embedded in the Nutreco culture
from research and raw material procurement to products and services for agriculture and
aquaculture. Experience across 100 years brings Nutreco a rich heritage of knowledge and
experience for building its future. Nutreco employs approximately 9,700 people in 30
countries, with sales in 80 countries. Nutreco is listed on the NYSE Euronext stock
exchange in Amsterdam and with annual revenues of EUR 4.5 billion in 2009.

www.nutreco.com http://www.nutreco.com/

For more information:

Jurgen Pullens, Director Investor Relations and Corporate Communications, Nutreco
Telephone: +31 (0)33 422 6134
Mobile: +31 (0)6 5159 9483
E-mail: jurgen.pullens@nutreco.com mailto:jurgen.pullens@nutreco.com

The full press release is attached in the pdf below

HUG#1434661

Excellent results for the first half of 2010

http://hugin.info/133565/R/1434661/380210.pdf

UPDATE 1-Informa beats H1 forecasts, hikes dividend 25 pct

LONDON, July 27 (Reuters) – British business media group Informa (INF.L) said delegates and sponsors returned to its core events and training courses in the first half, helping it beat sales and earnings forecasts and hike its dividend 25 percent.

Informa said on Tuesday publishing revenues remained resilient, with three-quarters now delivered electronically, and said it continued to benefit from cost-cutting programmes initiated in 2008 and 2009.

The company, whose exhibition portfolio includes Arab Health and Palm China, said it was confident about its balance of stable publishing revenues and cyclical event revenues, despite a fragile and uneven global economic recovery.

“While we remain cautious about the economic recovery, we are confident in the resilience, diversity and flexibility of our model,” it said in a statement. “We remain in line with our expectations for the full year.”

Revenues for the first half to end-June were down 0.5 percent organically to 624 million pounds ($964 million), beating the weighted average of 615 million pounds given by Thomson Reuters StarMine SmartEstimates.

Adjusted operating profit was up 5.6 percent to 153 million pounds, also beating the SmartEstimate of 146 million, while adjusted diluted earnings per share were 16.7 pence, compared with the SmartEstimate of 15.4 pence.

Informa raised its dividend to 4.5 pence. (Reporting by Georgina Prodhan; Editing by Mike Nesbit) ($1=.6473 Pounds)

China Water Affairs Announces FY2009/10 Annual Results

HONG KONG, July 27

HONG KONG, July 27 /PRNewswire-Asia/ –

Results Highlights:

Financial Highlights
(HKD ’000) FY2009/10 FY2008/09 Change
Revenue 1,398,168 1,033,199 35%
Gross profit 586,562 320,769 83%
Profit from operation 632,945 395,164 60%
Net profit 444,703 228,674 94%
Profit attributable to
owners of the Company 301,571 115,037 162%
Basic earnings per share
(HK cents) 23.31 9.39 148%
Final dividend per share
(HK cents) 5 3 67%

China Water Affairs Group Limited (“China Water Affairs” or the “Company,” stock code: 00855.HK), one of the leading integrated water services operators in China, today announced the audited annual results of the Company and its subsidiaries (the “Group”) for the twelve months ended 31 March 2010 (the “Review Period”).

During the Review Period, the Group achieved satisfactory business performance. Its total revenue amounted to HK$1,398 million, representing a 35% year-on-year increase. Its gross profit advanced by 83% year-on-year to HK$587 million. Gross profit margin improved 11 percentage points to 42%. Profit from operations reached HK$633 million, representing an increase of 60% year-on-year. Profit attributable to Owners of the Company advanced by 162% year-on-year to HK$302 million. Basic earnings per share were 23.31 Hong Kong cents, up 148% from the previous financial year. The board of directors recommended a final dividend of 3 Hong Kong cents per share. Total dividend per share for the year will increase by 67% year-on-year to 5 Hong Kong cents.

“The Chinese economy grew robustly during the period under review. As the country stepped up efforts in managing water resources in order to resolve the water shortage problem, the overall domestic water prices increased steadily. The Group achieved satisfactory growth in its core operation, with revenue of the city water supply business increased substantially. The city water supply operation and construction segment remained the largest revenue contributor to us. Revenue from this segment increased by 38% year-on-year to HK$908 million while profit from this segment increased by 90% to HK$271 million,” said Mr. Duan Chuan Liang, Chairman of China Water Affairs.

Water tariffs were increased in five water plants during the Review Period. Moreover, water tariffs in another three water plants were raised after the Review Period. In addition, two sewage treatment plants completed construction and commenced operation in Wannian and Yanshan of Jiangxi Province respectively. The Group also acquired the entire interest in Chongqing Qiaoli Pipe Manufacturer so as to create synergies within the Group.

As at 31 March 2009, total assets of the Group were approximately HK$7,776 million, up 40% year-on-year. Net assets amounted to HK$2,550 million, an increase of 36% year-on-year. The Group forged strategic alliances with various banks and obtained credit facilities of over RMB6 billion from financial institutions such as China Everbright Bank and the China Construction Bank, thereby providing it with a solid financial position for future business expansion.

Looking ahead, Mr. Duan Chuan Liang commented, “With the sustained development of the Chinese economy and accelerating urbanization and industrialization, the government will continue the policy of integrating water supply in cities and counties so as to strengthen the management of water industry. These favorable factors are set to provide ample room of growth for our core operations such as city water supply, meter installation and other water related businesses. We will actively look for water and related projects with good potential in order to benefit from great economy of scale. Besides, we will strive hard to improve our operating efficiency and overall competitiveness, thereby creating greater value to our shareholders.”

About China Water Affairs Group Limited

China Water Affairs Group Limited is principally engaged in waterworks investment and operation as well as other related businesses in the PRC. The Group’s businesses include urban water supply, water supply systems management, meter installation and related value-added businesses. Currently, the Group is undergoing rapid development, with operations being extended to over 20 cities in various provinces including Guangdong, Jiangxi, Henan and Jiangsu, etc. With a well established cooperative relationship with various local water authorities, the Group achieves a leading position in the PRC water industry.

The press release is issued by PRChina Limited on behalf of China Water Affairs Group Limited.

For investor and media enquiries:

PRChina
David Shiu
Tel: +852-2522-1838
Email: dshiu@prchina.com.hk

PRChina
Eric Song
Tel: +852-2522-1838
Email: esong@prchina.com.hk

SOURCE China Water Affairs Group Limited

SAP Reports 16% Growth in Software and Software-Related Service Revenues for the Second Quarter

WALLDORF, Germany July 27 /PRNewswire-FirstCall/ — SAP AG (NYSE: SAP) today announced its preliminary financial results for the second quarter ended June 30, 2010.

(Logo: http://photos.prnewswire.com/prnh/20050310/SFTH009LOGO-a )

(Logo: http://www.newscom.com/cgi-bin/prnh/20050310/SFTH009LOGO-a )

FINANCIAL HIGHLIGHTS – Second Quarter 2010

Second Quarter 2010(1)

IFRS

Non-IFRS(2)

€ million, unless
otherwise stated

Q2 2010

Q2 2009

% change

Q2 2010

Q2 2009

% change

% change
const. curr.(3)

Software revenue

637

543

17%

637

543

17%

5%

Software and software-related service revenue

2,258

1,953

16%

2,258

1,953

16%

8%

Total revenue

2,894

2,576

12%

2,894

2,576

12%

5%

Total operating expenses

-2,120

-1,935

10%

-2,054

-1,866

10%

4%

– thereof restructuring

-1

-17

-94%

-1

-17

-94%

Operating profit

774

641

21%

840

710

18%

5%

Operating margin (%)

26.7

24.9

1.8pp

29.0

27.6

1.4pp

0.2pp

Profit after tax

491

426

15%

551

478

15%

Basic earnings per share (€)

0.41

0.36

14%

0.46

0.40

15%

(1) All figures are preliminary and unaudited.

(2) Adjustments in the revenue line items are for support revenue that an entity acquired by SAP would have
recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under
IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items
are for acquisition-related charges and discontinued activities. See Explanations of Non-IFRS Measures in the
appendix for details.

(3) Constant currency revenue and operating profit figures are calculated by translating revenue and operating
profit of the current period using the average exchange rates from the previous year’s respective period
instead of the current period. Constant currency period-over-period changes are calculated by comparing the
current year’s non-IFRS constant currency numbers with the non-IFRS number of the previous year’s
respective period. See Explanations of Non-IFRS Measures in the appendix for details.

Revenues – Second Quarter 2010

* IFRS software and software-related service revenues were euro 2.26 billion (2009: euro 1.95 billion), an increase of 16% (8% at constant currencies).
* IFRS software revenues were euro 637 million (2009: euro 543 million), an increase of 17% (5% at constant currencies).
* IFRS total revenues were euro 2.89 billion (2009: euro 2.58 billion), an increase of 12% (5% at constant currencies).

Income – Second Quarter 2010

* IFRS operating profit was euro 774 million (2009: euro 641 million), an increase of 21%. Non-IFRS operating profit was euro 840 million (2009: euro 710 million), an increase of 18% (5% at constant currencies). In the second quarter of 2009, the IFRS and Non-IFRS operating income was impacted by restructuring charges of euro 17 million resulting from a reduction of positions. In contrast, restructuring charges were not material in the second quarter of 2010.
* IFRS operating margin was 26.7% (2009: 24.9%), an increase of 1.8 percentage points. Non-IFRS operating margin was 29.0% (2009: 27.6%), or 27.8% at constant currencies, an increase of 1.4 percentage points (0.2 percentage points at constant currencies). In contrast to the respective quarter in 2009, the second quarter of 2010 was not materially impacted by restructuring expenses which had, in the second quarter of 2009, negatively impacted the IFRS and Non-IFRS operating margin by 0.7 percentage points. However, severance expenses of euro 11 million (2009: euro 1.3 million) negatively impacted the second quarter 2010 IFRS and Non-IFRS operating margin by 0.4 percentage points (2009: 0.1 percentage points).
* IFRS profit after tax was euro 491 million (2009: euro 426 million), an increase of 15%. Non-IFRS profit after tax was euro 551 million (2009: euro 478 million), an increase of 15%. IFRS basic earnings per share were euro 0.41 (2009: euro 0.36), an increase of 14%. Non-IFRS basic earnings per share were euro 0.46 (2009: euro 0.40), an increase of 15%. The impact, net of tax, of the severance expenses incurred in the second quarter 2010 on the second quarter 2010 IFRS and Non-IFRS basic earnings per share was euro 0.01. The impact, net of tax, of the restructuring expenses incurred in the second quarter 2009 on the second quarter 2009 IFRS and Non-IFRS basic earnings per share was euro 0.01. The IFRS effective tax rate in the second quarter of 2010 was 27.4% (2009: 28.5%).

Second Quarter 2010 Non-IFRS operating profit excludes acquisition-related charges and discontinued activities totaling euro 66 million (2009: euro 69 million). Second quarter 2010 Non-IFRS profit after tax and Non-IFRS basic earnings per share exclude acquisition-related charges and discontinued activities totaling euro 60 million net of tax (2009: euro 52 million).

“We are pleased to report another quarter of growth in software and software-related service revenue,” said Werner Brandt, CFO of SAP. “The top line results were driven by continued growth in software revenue, strong support revenue, mainly from the majority of our customers who endorsed Enterprise Support, and double-digit growth in subscription revenue.”

“Customers continue to invest for growth across large, midsized and small enterprises and within many industries,” said Bill McDermott, Co-CEO of SAP. “We had outstanding growth in strategic markets like the U.S. and we saw continued double-digit growth in key emerging markets in Latin America and Asia. This solid performance is due to renewed customer confidence, an ever-expanding ecosystem, as well as focused execution on our go-to-market strategy.”

“Our focus on customer-driven innovation is positively impacting our growth. Reaching more than 100,000 customers is a testament to the inroads we have made in expanding our volume business and our success in the small and midsized enterprise (SME) segment,” said Jim Hagemann Snabe, Co-CEO of SAP. “Our success in the SME segment creates a strong foundation for the new version of our on-demand platform SAP Business ByDesign. The new version will be available on time on July 31st and is ready for volume deployment in six countries.”

SAP Completes Tender Offer for Shares of Sybase, Inc.

SAP also announced today that it has completed the cash tender offer for all outstanding shares of common stock of Sybase. Under the terms of the agreement, Sybase will operate as a separate company under the leadership of current CEO John Chen and will remain focused on its core business. Sybase will continue to execute plans and product strategies around its core database and information management business and Sybase’s expertise in the mobile business will be a key driver for the Sybase and SAP vision for the unwired enterprise. For more details on SAP and Sybase, please visit www.sap.com/about/investor/sybase.epx .

The acquisition rounds out the Company’s three pillar strategy of providing solutions on-premise, on-demand and on-device supported by orchestration. Already the clear leader in on-premise business software solutions, the Company expects that with its aggressive push into on-demand and now on-device, with the biggest and most heterogeneous mobile platform provided by the acquisition of Sybase, it will be able to extend its reach into new user categories well beyond its traditional user base.

SAP will host a press briefing on August 19, 2010 in Boston, Massachusetts, where SAP Co-CEO Bill McDermott, Sybase CEO John Chen and members of the SAP leadership team will share details on joint company strategy and product road maps, along with planned co-innovations in mobility, analytics and database technologies. Details on the event will follow in a media alert to be issued in early August.

FINANCIAL HIGHLIGHTS – Six Months 2010

First Half 2010(1)

IFRS

Non-IFRS(2)

€ million, unless
otherwise stated

1H 2010

1H 2009

% change

1H 2010

1H 2009

% change

% change const. curr.(3)

Software revenue

1,101

962

14%

1,101

962

14%

6%

Software and software-related service revenue

4,205

3,695

14%

4,205

3,706

13%

9%

Total revenue

5,403

4,974

9%

5,403

4,985

8%

4%

Total operating expenses

-4,072

-4,026

1%

-3,951

-3,879

2%

-1%

– thereof restructuring

-1

-183

-99%

-1

-178

-99%

Operating profit

1,331

948

40%

1,452

1,106

31%

20%

Operating margin (%)

24.6

19.1

5.5pp

26.9

22.2

4.7pp

3.5pp

Profit after tax

878

622

41%

986

740

33%

Basic earnings per share (€)

0.74

0.52

42%

0.83

0.62

34%

(1) All figures are preliminary and unaudited.

(2) Adjustments in the revenue line items are for support revenue that an entity acquired by SAP would have
recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under
IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items
are for acquisition-related charges and discontinued activities. See Explanations of Non-IFRS Measures in
the appendix for details.

(3) Constant currency revenue and operating profit figures are calculated by translating revenue and
operating profit of the current period using the average exchange rates from the previous year’s respective
period instead of the current period. Constant currency period-over-period changes are calculated by
comparing the current year’s non-IFRS constant currency numbers with the non-IFRS number of the previous
year’s respective period. See Explanations of Non-IFRS Measures in the appendix for details.

Revenues – Six Months 2010

* IFRS software and software-related service revenues were euro 4.21 billion (2009: euro 3.70 billion), an increase of 14%. Non-IFRS software and software-related service revenues were euro 4.21 billion (2009: euro 3.71 billion), an increase of 13% (9% at constant currencies).
* IFRS software revenues were euro 1.10 billion (2009: euro 962 million), an increase of 14% (6% at constant currencies).
* IFRS total revenues were euro 5.40 billion (2009: euro 4.97 billion), an increase of 9%. Non-IFRS total revenues were euro 5.40 billion (2009: euro 4.99 billion), an increase of 8% (4% at constant currencies).

Six months 2009 Non-IFRS revenue figures exclude a deferred support revenue write-down from the acquisition of Business Objects of euro 11 million.

Income – Six Months 2010

* IFRS operating profit was euro 1.33 billion (2009: euro 948 million), an increase of 40%. Non-IFRS operating profit was euro 1.45 billion (2009: euro 1.11 billion), an increase of 31% (20% at constant currencies). In the first half of 2009, the IFRS and Non-IFRS operating income was impacted by restructuring charges of euro 183 million and euro 178 million, respectively, resulting from a reduction of positions.
* IFRS operating margin was 24.6% (2009: 19.1%), an increase of 5.5 percentage points. Non-IFRS operating margin was 26.9% (2009: 22.2%), or 25.7% at constant currencies, an increase of 4.7 percentage points (3.5 percentage points at constant currencies). In contrast to the respective first half of 2009, the first half of 2010 was not materially impacted by restructuring expenses which had, in the first half of 2009, negatively impacted the IFRS and Non-IFRS operating margin by 3.7 percentage points and 3.6 percentage points, respectively. However, severance expenses of euro 38 million (2009: euro 3.1 million) and unused lease space expenses of euro 8 million negatively impacted the IFRS and Non-IFRS operating margin by 0.9 percentage points (2009: 0.1 percentage points).
* IFRS profit after tax was euro 878 million (2009: euro 622 million), an increase of 41%. Non-IFRS profit after tax was euro 986 million (2009: euro 740 million), an increase of 33%. IFRS basic earnings per share were euro 0.74 (2009: euro 0.52), an increase of 42%. Non-IFRS basic earnings per share were euro 0.83 (2009: euro 0.62), an increase of 34%. The impact, net of tax, of the severance and unused lease space expenses incurred in the first half of 2010 on the first half 2010 IFRS and Non-IFRS basic earnings per share was euro 0.03. The impact, net of tax, of the restructuring expenses incurred in the first half of 2009 on the first half 2009 IFRS and Non-IFRS basic earnings per share was euro 0.11. The IFRS effective tax rate in the first half year 2010 was 26.6% (2009: 29.6%). The year over year decrease in the effective tax rate mainly results from tax effects on changes in foreign currency exchange rates. The currency related tax effects recorded in the second quarter 2010 were substantially compensated by several individually minor negative tax effects.

First half 2010 Non-IFRS operating profit excludes acquisition-related charges and discontinued activities totaling euro 121 million (2009: euro 158 million). First half 2010 Non-IFRS profit after tax and Non-IFRS basic earnings per share exclude acquisition-related charges and discontinued activities totaling euro 108 million net of tax (2009: euro 118 million).

Cash Flow – Six Months 2010

Operating cash flow was euro 1.28 billion (2009: euro 1.82 billion), a decrease of 30%. The year-over-year decrease in operating cash flow resulted from 1) timing of cash inflows as the Company received significantly more payments from customers in 2009 compared to 2010 due to the onset of the financial crisis that caused 2008 payment delays; 2) net cash outflows for derivative financial instruments used for the hedging of foreign exchange risks which did not affect profit, but were higher in the first six months 2010 compared to the prior period; and 3) a one-time payment in the second quarter of 2010 from the settlement of a lawsuit with the main part of the corresponding insurance reimbursement expected to be received in subsequent periods. Free cash flow was euro 1.16 billion (2009: euro 1.72 billion), a decrease of 33%. Free cash flow was 21% of total revenues (2009: 35%). At June 30, 2010, SAP had a total group liquidity of euro 3.96 billion (December 31, 2009: euro 2.28 billion), which includes cash and cash equivalents and short term investments. At June 30, 2010, net liquidity, defined as total group liquidity less short term debt, was euro 2.19 billion.

Business Outlook

SAP is providing the following outlook for the full-year 2010, which now takes into account the acquisition of Sybase:

* The Company expects full-year 2010 Non-IFRS software and software-related service revenue (1) to increase in a range of 9% – 11% at constant currencies (2009: euro 8.2 billion). SAP’s business, excluding the contribution from Sybase, is expected to contribute 6 – 8 percentage points to this growth.
* The Company expects the full-year 2010 Non-IFRS operating margin to be in a range of 30% – 31% (2009: 27.4%) at constant currencies.
* The Company projects an effective tax rate of 27.5% – 28.5% (based on IFRS) for 2010 (2009: 28.1%).

(1) Unchanged from the past, software and software-related service revenue continues to only include software and services directly related to software. Revenues from all other services (including consulting, training and Sybase’s messaging services) continue to be reported as Professional Services and Other Service Revenue.

Major Customer Wins

In the second quarter of 2010, SAP closed major contracts in key regions.

In EMEA: E.ON IT GmbH, Sisal S.p.A., Bashneft ANK OAO, Swiss Reinsurance Company Ltd., DSG Retail Ltd; In the Americas: American Water Works Service Co., U.S. Department of Agriculture, Delta Air Lines, Inc., Pelagio Oliveira S/A, Montepio Luz Savinon I.A.P, H.D. Smith Wholesale Drug Co., United Nations; In Asia Pacific/Japan: Shanghai Huayi (Group) Company, Huaneng Lancang River Hydro Power, National Institute for Environmental Studies, Sumitomo Chemical Co.,Ltd, Malaysia Airports Holdings Berhad, Parkway Hospitals Singapore Pte Ltd.

Webcast / Supplementary Financial Information

SAP senior management will host a conference call today at 3:00 PM (CET) / 2:00 PM (UK) / 9:00 AM (Eastern) / 6:00 AM (Pacific). The conference call will be web cast live on the Company’s website at http://www.sap.com/investor and will be available for replay.

Supplementary financial information pertaining to the quarterly results can be found at http://www.sap.com/investor.

SAP First Half 2010 Interim Report

The First Half 2010 Interim Report will be published on July 29th, 2010 and will be available for download at http://www.sap.com/investor.

About SAP

SAP is the world’s leading provider of business software(*), offering applications and services that enable companies of all sizes and in more than 25 industries to become best-run businesses. With more than 102,500 customers in over 120 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE, under the symbol “SAP.” For more information, visit www.sap.com.

(*) SAP defines business software as comprising enterprise resource planning, business intelligence, and related applications.

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP’s future financial results are discussed more fully in SAP’s filings with the U.S. Securities and Exchange Commission (“SEC”), including SAP’s most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

Copyright © 2010 SAP AG. All rights reserved.

SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serve informational purposes only. National product specifications may vary.

For more information, press only:

Christoph Liedtke

+49 (6227) 7-50383

christoph.liedtke@sap.com, CET

Guenter Gaugler

+49 (6227) 7-65416

guenter.gaugler@sap.com, CET

Jim Dever

+1 (610) 661-2161

james.dever@sap.com, ET

For more information, financial community only:

Stefan Gruber

+49 (6227) 7-44872

investor@sap.com, CET

Martin Cohen

+1 (212) 653-9619

investor@sap.com, ET

Follow SAP Investor Relations on Twitter at @sapinvestor.

Appendix – Financial Information to Follow

FINANCIAL INFORMATION

FOR THE SECOND QUARTER AND HALF YEAR 2010

– Condensed, Preliminary and Unaudited –

Page

Financial Statements (IFRS)

Income Statements – Quarter

F1

Statements of Comprehensive Income – Quarter

F2

Income Statements – Half Year

F3

Statements of Comprehensive Income – Half Year

F4

Statements of Financial Position

F5

Statements of Changes in Equity

F6

Statements of Cash Flows

F7

Supplementary Financial Information

Reconciliations from Non-IFRS Numbers to IFRS Numbers

F8 to F9

Revenue by Region

F10 to F11

Share-Based Compensation

F12

Free Cash Flow

F12

Days Sales Outstanding

F12

Headcount

F12

Multi-Quarter Summary

F13

Explanations of Non-IFRS Measures

F14 to F16

Financial Statements (IFRS)

CONSOLIDATED INCOME STATEMENTS OF SAP GROUP

For the three months ended June 30

€ millions, unless otherwise stated

2010

2009

Change in %

Software revenue

637

543

17

Support revenue

1,526

1,337

14

Subscription and other software-related service revenue

95

73

30

Software and software-related service revenue

2,258

1,953

16

Consulting revenue

528

517

2

Training revenue

71

70

1

Other service revenue

18

23

-22

Professional services and other service revenue

617

610

1

Other revenue

19

13

46

Total revenue

2,894

2,576

12

Cost of software and software-related services

-415

-400

4

Cost of professional services and other services

-497

-467

6

Research and development

-397

-373

6

Sales and marketing

-658

-561

17

General and administration

-156

-123

27

Restructuring

-1

-17

-94

Other operating income/expense, net

4

6

-33

Total operating expenses

-2,120

-1,935

10

Operating profit

774

641

21

Other non-operating income/expense, net

-86

-22

>100

Finance income

11

8

38

Finance costs

-21

-28

-25

Other financial gains/losses, net

-2

-3

-33

Financial income, net

-12

-23

-48

Profit before tax

676

596

13

Income tax expense

-185

-170

9

Profit after tax

491

426

15

– Profit attributable to non-controlling interests

0

1

-100

– Profit attributable to owners of parent

491

425

16

Basic earnings per share, in €

0.41

0.36

14

Diluted earnings per share, in €

0.41

0.36

14

* For the three months ended June 30, 2010 and 2009 the weighted average number of shares were 1,188 million
(Diluted: 1,189 million) and 1,188 million (Diluted: 1,189 million), respectively (treasury stock excluded).

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OF SAP GROUP

for the second quarter ended June 30

€ millions

2010

2009

Profit after tax

491

426

Gains (losses) on exchange differences on translation, before tax

142

3

Reclassification adjustments on exchange differences on translation, before tax

-11

0

Exchange differences on translation

131

3

Gains (losses) on remeasuring available-for-sale financial assets, before tax

-7

1

Reclassification adjustments on available-for-sale financial assets, before tax

0

0

Available-for-sale financial assets

-7

1

Gains (losses) on cash flow hedges, before tax

-40

-7

Reclassification adjustments on cash flow hedges, before tax

11

25

Cash flow hedges

-29

18

Actuarial gains (losses) on defined benefit plans, before tax

-5

3

Other comprehensive income before tax

90

25

Income tax relating to components of other comprehensive income

10

-6

Other comprehensive income after tax

100

19

Total comprehensive income

591

445

– attributable to non-controlling interests

1

1

– attributable to owners of parent

590

444

CONSOLIDATED INCOME STATEMENTS OF SAP GROUP

For the six months ended June 30

€ millions, unless otherwise stated

2010

2009

Change in %

Software revenue

1,101

962

14

Support revenue

2,920

2,589

13

Subscription and other software-related service revenue

184

144

28

Software and software-related service revenue

4,205

3,695

14

Consulting revenue

1,007

1,071

-6

Training revenue

130

142

-8

Other service revenue

37

47

-21

Professional services and other service revenue

1,174

1,260

-7

Other revenue

24

19

26

Total revenue

5,403

4,974

9

Cost of software and software-related services

-814

-786

4

Cost of professional services and other services

-948

-989

-4

Research and development

-790

-738

7

Sales and marketing

-1,215

-1,074

13

General and administration

-304

-262

16

Restructuring

-1

-183

-99

Other operating income/expense, net

0

6

-100

Total operating expenses

-4,072

-4,026

1

Operating profit

1,331

948

40

Other non-operating income/expense, net

-122

-23

>100

Finance income

22

17

29

Finance costs

-33

-53

-38

Other financial gains/losses, net

-1

-6

-83

Financial income, net

-12

-42

-71

Profit before tax

1,197

883

36

Income tax expense

-319

-261

22

Profit after tax

878

622

41

– Profit attributable to non-controlling interests

1

1

0

– Profit attributable to owners of parent

877

621

41

Basic earnings per share, in €

0.74

0.52

42

Diluted earnings per share, in €

0.74

0.52

42

* For the six months ended June 30, 2010 and 2009 the weighted average number of shares were 1,189 million
(Diluted: 1,189 million) and 1,188 million (Diluted: 1,189 million), respectively (treasury stock excluded).

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME OF SAP GROUP

for the six months ended June 30

€ millions

2010

2009

Profit after tax

878

622

Gains (losses) on exchange differences on translation, before tax

272

35

Reclassification adjustments on exchange differences on translation, before tax

-17

0

Exchange differences on translation

255

35

Gains (losses) on remeasuring available-for-sale financial assets, before tax

-1

1

Reclassification adjustments on available-for-sale financial assets, before tax

0

0

Available-for-sale financial assets

-1

1

Gains (losses) on cash flow hedges, before tax

-72

-22

Reclassification adjustments on cash flow hedges, before tax

16

43

Cash flow hedges

-56

21

Actuarial gains (losses) on defined benefit plans, before tax

-10

2

Other comprehensive income before tax

188

59

Income tax relating to components of other comprehensive income

22

-6

Other comprehensive income after tax

210

53

Total comprehensive income

1,088

675

– attributable to non-controlling interests

1

1

– attributable to owners of parent

1,087

674

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION OF SAP GROUP

as at June 30, 2010 and December 31, 2009

€ millions

2010

2009

Change in %

Assets

Cash and cash equivalents

3,605

1,884

91

Other financial assets

574

486

18

Trade and other receivables

2,768

2,546

9

Other non-financial assets

217

147

48

Tax assets

202

192

5

Total current assets

7,366

5,255

40

Goodwill

5,136

4,994

3

Intangible assets

829

894

-7

Property, plant, and equipment

1,415

1,371

3

Other financial assets

337

284

19

Trade and other receivables

66

52

27

Other non-financial assets

34

35

-3

Tax assets

125

91

37

Deferred tax assets

364

398

-9

Total non-current assets

8,306

8,119

2

Total assets

15,672

13,374

17

€ millions

2010

2009

Change in %

Equity and liabilities

Trade and other payables

698

638

9

Tax liabilities

3

125

-98

Financial liabilities

219

146

50

Other non-financial liabilities

990

1,577

-37

Provisions

354

332

7

Deferred income

1,919

598

>100

Total current liabilities

4,183

3,416

22

Trade and other payables

34

35

-3

Tax liabilities

259

239

8

Financial liabilities

1,764

729

>100

Other non-financial liabilities

12

12

0

Provisions

224

198

13

Deferred tax liabilities

137

190

-28

Deferred income

88

64

38

Total non-current liabilities

2,518

1,467

72

Total liabilities

6,701

4,883

37

Issued capital

1,227

1,226

0

Treasury shares

-1,349

-1,320

2

Share premium

331

317

4

Retained earnings

8,851

8,571

3

Other components of equity

-104

-317

-67

Equity attributable to owners of parent

8,956

8,477

6

Non-controlling interests

15

14

7

Total equity

8,971

8,491

6

Equity and liabilities

15,672

13,374

17

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY OF SAP GROUP

For the six months ended June 30

€ millions

Other Components of Equity

Issued
Capital

Share
Premium

Retained
Earnings

Exchange
Differences

Available-
for-Sale
Financial
Assets

Cash
Flow
Hedges

Treasury
Shares

Equity
Attributable
to Owners
of Parent

Non-Controlling
Interests

Total
Equity

January 1, 2009

1,226

320

7,423

-395

-1

-42

-1,362

7,169

2

7,171

Profit after tax

621

621

1

622

Other comprehensive income

2

34

1

16

53

53

Share-based compensation

-2

-2

-2

Dividends

-594

-594

-594

Treasury shares transactions

-4

21

17

17

Convertible bonds and stock options exercised

4

4

4

Other

1

1

1

June 30, 2009

1,226

318

7,453

-361

-26

-1,341

7,269

3

7,272

January 1, 2010

1,226

317

8,571

-319

13

-11

-1,320

8,477

14

8,491

Profit after tax

877

877

1

878

Other comprehensive income

-3

255

-1

-41

210

210

Share-based compensation

-1

-1

-1

Dividends

-594

-594

-594

Treasury shares transactions

-5

-113

-118

-118

Convertible bonds and stock options exercised

1

20

84

105

105

June 30, 2010

1,227

331

8,851

-64

12

-52

-1,349

8,956

15

8,971

CONSOLIDATED STATEMENTS OF CASH FLOWS OF SAP GROUP

as at June 30

€ millions

2010

2009

Profit after tax

878

622

Adjustments to reconcile profit after taxes to net cash provided by operating activities:

Depreciation and amortization

225

253

Gains/losses on disposals of non-current assets

1

3

Impairment loss on financial assets recognized in profit

0

7

Decrease/increase in sales and bad debt allowances on trade receivables

6

97

Other adjustments for non-cash items

15

13

Deferred income taxes

36

-65

Decrease/increase in trade receivables

31

628

Decrease/increase in other assets

-216

-96

Decrease/increase in trade payables, provisions and other liabilities

-802

-687

Decrease/increase in deferred income

1,108

1,048

Net cash flows from operating activities

1,282

1,823

Business combinations, net of cash and cash equivalents acquired

0

-49

Purchase of intangible assets and property, plant, and equipment

-125

-106

Proceeds from sales of intangible assets or property, plant, and equipment

17

13

Purchase of equity or debt instruments of other entities

-651

-573

Proceeds from sales of equity or debt instruments of other entities

689

233

Net cash flows from investing activities

-70

-482

Dividends paid

-594

-594

Purchase of treasury shares

-120

0

Proceeds from reissuance of treasury shares

85

10

Proceeds from issuing shares (share-based compensation)

21

4

Proceeds from borrowings

1,063

697

Repayments of borrowings

-6

0

Purchase of equity-based derivative instruments (hedge for cash-settled share-based payment plans)

-14

0

Proceeds from exercise of equity-based derivative financial instruments

4

4

Net cash flows from financing activities

439

121

Effect of foreign exchange rates on cash and cash equivalents

70

-25

Net decrease/increase in cash and cash equivalents

1,721

1,437

Cash and cash equivalents at the beginning of the period

1,884

1,280

Cash and cash equivalents at the end of the period

3,605

2,717

Supplementary Financial Information

RECONCILIATIONS FROM NON-IFRS NUMBERS TO IFRS NUMBERS

(Preliminary and unaudited)

The following tables present a reconciliation from our non-IFRS numbers (including our non-IFRS at constant currency numbers) to the respective most comparable IFRS numbers. Note: Our non-IFRS numbers are not prepared under a comprehensive set of accounting rules or principles.

€ millions, unless otherwise stated

Three months ended June 30

2010

2009

Change in %

IFRS

Adj.*

Non-IFRS*

Currency
impact**

Non-IFRS
constant
currency**

IFRS

Adj.*

Non-IFRS*

IFRS

Non-IFRS*

Non-IFRS
constant
currency**

Non-IFRS Revenue Numbers

Software revenue

637

0

637

-66

571

543

0

543

17

17

5

Support revenue

1,526

0

1,526

-88

1,438

1,337

0

1,337

14

14

8

Subscription and other software-related service revenue

95

0

95

-3

92

73

0

73

30

30

26

Software and software-related service revenue

2,258

0

2,258

-157

2,101

1,953

0

1,953

16

16

8

Consulting revenue

528

0

528

-36

492

517

0

517

2

2

-5

Training revenue

71

0

71

-4

67

70

0

70

1

1

-4

Other service revenue

18

0

18

-1

17

23

0

23

-22

-22

-26

Professional services and other service revenue

617

0

617

-41

576

610

0

610

1

1

-6

Other revenue

19

0

19

-1

18

13

0

13

46

46

38

Total revenue

2,894

0

2,894

-199

2,695

2,576

0

2,576

12

12

5

Non-IFRS Operating Expense Numbers

Cost of software and software-related services

-415

41

-374

-400

48

-352

4

6

Cost of professional services and other services

-497

1

-496

-467

1

-466

6

6

Research and development

-397

1

-396

-373

1

-372

6

6

Sales and marketing

-658

15

-643

-561

19

-542

17

19

General and administration

-156

9

-147

-123

0

-123

27

20

Restructuring

-1

0

-1

-17

0

-17

-94

-94

Other operating income/expense, net

4

0

4

6

0

6

-33

-33

Total operating expenses

-2,120

66

-2,054

107

-1,947

-1,935

69

-1,866

10

10

4

Non-IFRS Profit Numbers

Operating profit

774

66

840

-92

748

641

69

710

21

18

5

Other non-operating income/expense, net

-86

11

-75

-22

0

-22

>100

>100

Finance income

11

0

11

8

0

8

38

38

Finance costs

-21

0

-21

-28

0

-28

-25

-25

Other financial gains/losses, net

-2

0

-2

-3

0

-3

-33

-33

Financial income, net

-12

0

-12

-23

0

-23

-48

-48

Profit before tax

676

77

753

596

69

665

13

13

Income tax expense

-185

-17

-202

-170

-17

-187

9

8

Profit after tax

491

60

551

426

52

478

15

15

- Profit attributable to non-controlling interests

0

0

0

1

0

1

-100

-100

- Profit attributable to owners of parent

491

60

551

425

52

477

16

16

Non-IFRS Key Ratios

Operating margin in %

26.7

29.0

27.8

24.9

27.6

1.8pp

1.4pp

0.2pp

Effective tax rate in %

27.4

26.8

28.5

28.1

-1.1pp

-1.3pp

Basic earnings per share, in €

0.41

0.46

0.36

0.40

14

15

* Adjustments in the revenue line items are for support revenue that an entity acquired by SAP would have recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges and discontinued activities. See Explanations of Non-IFRS Measures for details.

** Constant currency revenue and operating income figures are calculated by translating revenue and operating income of the current period using the average exchange rates from the previous year’s respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year’s non-IFRS constant currency numbers with the non-IFRS number of the previous year’s respective period. See Explanations of Non-IFRS Measures for details.

Differences may exist due to rounding.

€ millions, unless otherwise stated

Six months ended June 30

2010

2009

Change in %

IFRS

Adj.*

Non-IFRS*

Currency
impact**

Non-IFRS
constant
currency**

IFRS

Adj.*

Non-IFRS*

IFRS

Non-IFRS*

Non-IFRS
constant
currency**

Non-IFRS Revenue Numbers

Software revenue

1,101

0

1,101

-81

1,020

962

0

962

14

14

6

Support revenue

2,920

0

2,920

-98

2,822

2,589

11

2,600

13

12

9

Subscription and other software-related service revenue

184

0

184

-2

182

144

0

144

28

28

26

Software and software-related service revenue

4,205

0

4,205

-182

4,023

3,695

11

3,706

14

13

9

Consulting revenue

1,007

0

1,007

-41

966

1,071

0

1,071

-6

-6

-10

Training revenue

130

0

130

-5

125

142

0

142

-8

-8

-12

Other service revenue

37

0

37

0

37

47

0

47

-21

-21

-21

Professional services and other service revenue

1,174

0

1,174

-46

1,128

1,260

0

1,260

-7

-7

-10

Other revenue

24

0

24

-1

23

19

0

19

26

26

21

Total revenue

5,403

0

5,403

-229

5,174

4,974

11

4,985

9

8

4

Non-IFRS Operating Expense Numbers

Cost of software and software-related services

-814

81

-733

-786

99

-687

4

7

Cost of professional services and other services

-948

2

-946

-989

2

-987

-4

-4

Research and development

-790

3

-787

-738

2

-736

7

7

Sales and marketing

-1,215

27

-1,188

-1,074

37

-1,037

13

15

General and administration

-304

9

-295

-262

0

-262

16

13

Restructuring

-1

0

-1

-183

5

-178

-99

-99

Other operating income/expense, net

0

0

0

6

1

7

-100

-100

Total operating expenses

-4,072

121

-3,951

109

-3,842

-4,026

147

-3,879

1

2

-1

Non-IFRS Profit Numbers

Operating profit

1,331

121

1,452

-120

1,332

948

158

1,106

40

31

20

Other non-operating income/expense, net

-122

17

-105

-23

0

-23

>100

>100

Finance income

22

0

22

17

0

17

29

29

Finance costs

-33

0

-33

-53

0

-53

-38

-38

Other financial gains/losses, net

-1

0

-1

-6

0

-6

-83

-83

Financial income, net

-12

0

-12

-42

0

-42

-71

-71

Profit before tax

1,197

138

1,335

883

158

1,041

36

28

Income tax expense

-319

-30

-349

-261

-40

-301

22

16

Profit after tax

878

108

986

622

118

740

41

33

- Profit attributable to non-controlling interests

1

0

1

1

0

1

0

0

- Profit attributable to owners of parent

877

108

985

621

118

739

41

33

Non-IFRS Key Ratios

Operating margin in %

24.6

26.9

25.7

19.1

22.2

5.5pp

4.7pp

3.5pp

Effective tax rate in %

26.6

26.1

29.6

28.9

-3.0pp

-2.8pp

Basic earnings per share, in €

0.74

0.83

0.52

0.62

42

34

* Adjustments in the revenue line items are for support revenue that an entity acquired by SAP would have recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. See Explanations of Non-IFRS Measures for details.

** Constant currency revenue figures are calculated by translating revenue of the current period using the average exchange rates from the previous year’s respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year’s non-IFRS constant currency numbers with the non-IFRS number of the previous year’s respective period.

Differences may exist due to rounding.

REVENUE BY REGION

(Preliminary and unaudited)

The following tables present our IFRS and non-IFRS revenue by region based on customer location. The tables also present a reconciliation from our non-IFRS revenue (including our non-IFRS revenue at constant currency) to the respective most comparable IFRS revenue. Note: Our non-IFRS revenues are not prepared under a comprehensive set of accounting rules or principles.

€ millions

Three months ended June 30

2010

2009

Change in %

IFRS

Adj.*

Non-IFRS*

Currency
impact**

Non-IFRS
constant
currency**

IFRS

Adj.*

Non-IFRS*

IFRS

Non-IFRS*

Non-IFRS
constant
currency**

Software revenue by region

EMEA

241

0

241

-7

234

266

0

266

-9

-9

-12

Americas

269

0

269

-39

230

164

0

164

64

64

40

Asia Pacific Japan

127

0

127

-20

107

114

0

114

11

11

-6

Software revenue

637

0

637

-66

571

543

0

543

17

17

5

Software and software-related service revenue by region

Germany

360

0

360

0

360

329

0

329

9

9

9

Rest of EMEA

718

0

718

-26

692

701

0

701

2

2

-1

Total EMEA

1,078

0

1,078

-25

1,053

1,030

0

1,030

5

5

2

United States

616

0

616

-49

567

481

0

481

28

28

18

Rest of Americas

207

0

207

-33

174

158

0

158

31

31

10

Total Americas

822

0

822

-81

741

639

0

639

29

29

16

Japan

111

0

111

-14

97

107

0

107

4

4

-9

Rest of Asia Pacific Japan

247

0

247

-37

210

178

0

178

39

39

18

Total Asia Pacific Japan

358

0

358

-51

307

285

0

285

26

26

8

Software and software-related service revenue

2,258

0

2,258

-157

2,101

1,953

0

1,953

16

16

8

Total revenue by region

Germany

506

0

506

0

506

463

0

463

9

9

9

Rest of EMEA

884

0

884

-32

852

882

0

882

0

0

-3

Total EMEA

1,390

0

1,390

-32

1,358

1,345

0

1,345

3

3

1

United States

802

0

802

-62

740

663

0

663

21

21

12

Rest of Americas

275

0

275

-43

232

214

0

214

29

29

8

Total Americas

1,077

0

1,077

-106

971

877

0

877

23

23

11

Japan

125

0

125

-16

109

126

0

126

-1

-1

-13

Rest of Asia Pacific Japan

302

0

302

-45

257

229

0

229

32

32

12

Total Asia Pacific Japan

427

0

427

-61

366

355

0

355

20

20

3

Total revenue

2,894

0

2,894

-199

2,695

2,576

0

2,576

12

12

5

* Adjustments in the revenue line items are for support revenue that an entity acquired by SAP would have recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. See Explanations of Non-IFRS Measures for details.

** Constant currency revenue figures are calculated by translating revenue of the current period using the average exchange rates from the previous year’s respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year’s non-IFRS constant currency numbers with the non-IFRS number of the previous year’s respective period.

Differences may exist due to rounding.

€ millions

Six months ended June 30

2010

2009

Change in %

IFRS

Adj.*

Non-IFRS*

Currency
impact**

Non-IFRS
constant
currency**

IFRS

Adj.*

Non-IFRS*

IFRS

Non-IFRS*

Non-IFRS
constant
currency**

Software revenue by region

EMEA

459

0

459

-14

445

472

0

472

-3

-3

-6

Americas

440

0

440

-40

400

316

0

316

39

39

27

Asia Pacific Japan

201

0

201

-26

175

174

0

174

16

16

1

Software revenue

1,101

0

1,101

-81

1,020

962

0

962

14

14

6

Software and software-related service revenue by region

Germany

671

0

671

-1

670

605

0

605

11

11

11

Rest of EMEA

1,409

0

1,409

-45

1,364

1,307

4

1,311

8

7

4

Total EMEA

2,079

0

2,079

-44

2,035

1,912

4

1,916

9

9

6

United States

1,087

0

1,087

-23

1,064

941

6

947

15

15

12

Rest of Americas

399

0

399

-46

353

312

0

312

28

28

13

Total Americas

1,485

0

1,485

-68

1,417

1,253

6

1,259

19

18

13

Japan

208

0

208

-14

194

203

0

204

3

2

-5

Rest of Asia Pacific Japan

432

0

432

-54

378

326

0

327

33

32

16

Total Asia Pacific Japan

641

0

641

-69

572

530

1

530

21

21

8

Software and software-related service revenue

4,205

0

4,205

-182

4,023

3,695

11

3,706

14

13

9

Total revenue by region

Germany

949

0

949

0

949

895

0

896

6

6

6

Rest of EMEA

1,743

0

1,743

-56

1,687

1,673

4

1,676

4

4

1

Total EMEA

2,692

0

2,692

-56

2,636

2,568

4

2,572

5

5

2

United States

1,422

0

1,422

-27

1,395

1,313

6

1,319

8

8

6

Rest of Americas

522

0

522

-62

460

425

0

425

23

23

8

Total Americas

1,944

0

1,944

-89

1,855

1,738

6

1,744

12

11

6

Japan

235

0

235

-15

220

246

0

246

-4

-4

-11

Rest of Asia Pacific Japan

531

0

531

-68

463

422

0

423

26

26

9

Total Asia Pacific Japan

767

0

767

-84

683

668

1

669

15

15

2

Total revenue

5,403

0

5,403

-229

5,174

4,974

11

4,985

9

8

4

* Adjustments in the revenue line items are for support revenue that an entity acquired by SAP would have recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. See Explanations of Non-IFRS Measures for details.

** Constant currency revenue figures are calculated by translating revenue of the current period using the average exchange rates from the previous year’s respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year’s non-IFRS constant currency numbers with the non-IFRS number of the previous year’s respective period.

Differences may exist due to rounding.

SHARE-BASED COMPENSATION

(Preliminary and unaudited)

€ millions

Six months ended June 30

2010

2009

Change in %

Share-based compensation per expense line item

Cost of software and software-related services

0

2

-100

Cost of professional services and other services

1

4

-75

Research and development

8

7

14

Sales and marketing

4

4

0

General and administration

4

3

33

Total share-based compensation

17

20

-15

Note: The share-based compensation expenses do not differ between SAP’s IFRS and non-IFRS measures.

Differences may exist due to rounding.

FREE CASH FLOW

(Preliminary and unaudited)

€ millions

Six months ended June 30

2010

2009

Change in %

Net cash flows from operating activities

1,282

1,823

-30

Additions to non-current assets excluding additions from acquisitions

-125

-106

18

Free cash flow

1,157

1,717

-33

Differences may exist due to rounding.

DAYS SALES OUTSTANDING

(Unaudited)

as at June 30, 2010 and December 31, 2009

2010

2009

Change in days

Days sales outstanding in days*

73

79

-6

* Day Sales Outstanding (DSO) measures the length of time it takes to collect receivables. SAP calculates
DSO by dividing the average invoiced accounts receivables balance of the last 12 months by the average
monthly sales of the last 12 months.

NUMBER OF EMPLOYEES (in Full-Time Equivalents)

June 30, 2010

June 30, 2009

EMEA

Americas

Asia Pacific Japan

Total

EMEA

Americas

Asia Pacific Japan

Total

Software and software-related services

3,479

1,422

2,100

7,001

3,238

1,239

1,840

6,317

Professional services and other services

6,407

3,544

2,243

12,194

6,916

3,597

2,358

12,871

Research and Development

8,288

2,458

3,600

14,346

8,620

2,553

3,889

15,062

Sales & Marketing

4,216

3,704

1,811

9,731

4,320

3,600

1,808

9,728

General & Administration

1,891

717

418

3,026

1,945

750

418

3,113

Infrastructure

1,044

471

208

1,723

888

409

179

1,476

SAP Group (June 30)

25,325

12,316

10,380

48,021

25,927

12,148

10,492

48,567

SAP Group (average H1)

25,314

12,117

10,304

47,735

26,422

12,712

10,877

50,011

MULTI-QUARTER SUMMARY

(IFRS and non-IFRS; preliminary und unaudited)

€ millions, unless otherwise stated

Q2/2010

Q1/2010

Q4/2009

Q3/2009

Q2/2009

Q1/2009

Software revenue (IFRS)

637

464

1,120

525

543

418

Revenue adjustment*

0

0

0

0

0

0

Software revenue (non-IFRS)

637

464

1,120

525

543

418

Support revenue (IFRS)

1,526

1,394

1,364

1,333

1,337

1,252

Revenue adjustment*

0

0

0

0

0

11

Support revenue (non-IFRS)

1,526

1,394

1,364

1,333

1,337

1,263

Subscription and other software-related service revenue (IFRS)

95

89

82

79

73

71

Revenue adjustment*

0

0

0

0

0

0

Subscription and other software-related service revenue (non-IFRS)

95

89

82

79

73

71

Software and software-related service revenue (IFRS)

2,258

1,947

2,566

1,937

1,953

1,741

Revenue adjustment*

0

0

0

0

0

11

Software and software-related service revenue (non-IFRS)

2,258

1,947

2,566

1,937

1,953

1,752

Total revenue (IFRS)

2,894

2,509

3,190

2,508

2,576

2,397

Revenue adjustment*

0

0

0

0

0

11

Total revenue (non-IFRS)

2,894

2,509

3,190

2,508

2,576

2,408

Operating profit (IFRS)

774

557

1,022

619

641

307

Revenue adjustment*

0

0

0

0

0

11

Expense adjustment*

66

54

113

68

69

78

Operating profit (non-IFRS)

840

612

1,134

687

710

396

Operating margin (IFRS)

26.7

22.2

32.0

24.7

24.9

12.8

Operating margin (non-IFRS)

29.0

24.4

35.5

27.4

27.6

16.4

Effective tax rate (IFRS)

27.4

25.7

31.1

20.5

28.5

31.7

Effective tax rate (non-IFRS)

26.8

25.3

30.5

21.0

28.1

30.1

Basic earnings per share, in € (IFRS)

0.41

0.33

0.57

0.38

0.36

0.17

Basic earnings per share, in € (non-IFRS)

0.46

0.37

0.64

0.42

0.40

0.22

Headcount**

48,021

47,598

47,584

47,810

48,567

49,922

* Adjustments in the revenue line items are for support revenue that an entity acquired by SAP would have recognized had it remained a stand-alone entity but
that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. Adjustments in the operating expense line
items are for acquisition-related charges and discontinued activities. See Explanations of Non-IFRS Measures for details.

** in full-time equivalents at quarter end

Differences may exist due to rounding.

EXPLANATIONS OF NON-IFRS MEASURES

This document discloses certain financial measures, such as non-IFRS revenues, non-IFRS expenses, non-IFRS operating income, non-IFRS operating margin, non-IFRS net income, non-IFRS earnings per share, free cash flow as well as constant currency revenue and operating income measures that are not prepared in accordance with IFRS and are therefore considered non-IFRS financial measures. Our non-IFRS financial measures may not correspond to non-IFRS financial measures that other companies report. The non-IFRS financial measures that we report should be considered in addition to, and not as substitutes for or superior to, revenue, operating income, cash flows, or other measures of financial performance prepared in accordance with IFRS. Our non-IFRS financial measures included in this document are reconciled to the nearest IFRS measure in the tables on the pages F8 to F13 above.

We believe that the supplemental historical and prospective non-IFRS financial information presented here provides useful supplemental information to investors because it is the same information used by our management in running our business and making financial, strategic and operational decisions – in addition to financial data prepared in accordance with IFRS – to attain a more transparent understanding of our past performance and our future results. The non-IFRS measures as defined below replaced the Non GAAP measures which we used until the termination of our US GAAP reporting. We use these non-IFRS measures consistently in our planning and forecasting, reporting, compensation and external communication. Specifically,

* Our management primarily uses these non-IFRS measures rather than IFRS measures as the basis for making financial, strategic and operating decisions.
* The variable remuneration components of our board members and employees are based on revenue and operating profit. However, the basis for the compensation is on non-IFRS revenue and non-IFRS operating profit rather than the respective IFRS measures.
* The annual budgeting process involving all management units is based on non-IFRS revenues and non-IFRS operating income numbers rather than IFRS numbers with costs such as share-based compensation and restructuring only being considered on corporate level.
* All monthly forecast and performance reviews with all senior managers globally are based on these non-IFRS measures, rather than IFRS numbers.
* Both, company-internal target setting and guidance provided to the capital markets are based on non-IFRS revenues and non-IFRS income measures rather than IFRS numbers.

We believe that our non-IFRS measures are useful to investors for the following reasons:

* The non-IFRS measures provide investors with insight into management’s decision-making since management uses these non-IFRS measures to run our business and make financial, strategic and operating decisions.
* The non-IFRS measures provide investors with additional information that enables a comparison of year-over-year operating performance by eliminating certain direct effects of acquisitions.

Our non-IFRS financial measures reflect adjustments based on the items below, as well as the related income tax effects:

Non-IFRS revenue:

Revenues in this document identified as non-IFRS revenue have been adjusted from the respective IFRS numbers by including the full amount of support revenue that would have been recorded by an entity acquired by SAP had it remained a stand-alone entity but which we are not permitted to record as revenue under IFRS due to fair value accounting for the support contracts in effect at the time of the respective acquisition.

Under IFRS, we record at fair value the support contracts in effect at the time an entity was acquired. Consequently, our IFRS support revenue, our IFRS software and software-related service revenue and our IFRS total revenue for periods subsequent to acquisitions do not reflect the full amount of support revenue that would have been recorded for these support contracts absent the acquisition by SAP. Adjusting revenue numbers for this revenue impact (if significant) provides additional insight into the comparability across periods of our ongoing performance.

Non-IFRS operating expense:

Operating expense figures in this report that are identified as non-IFRS operating expense have been adjusted by excluding the following acquisition-related charges:

* Acquisition related charges
o Amortization expense/impairment charges of intangibles acquired in business combinations and certain standalone acquisitions of intellectual property (including purchased in-process research and development)
o Restructuring expenses and settlements of pre-existing relationships incurred in connection with a business combination
o Acquisition-related third-party expenses
* Discontinued Activities: Results of the discontinued operations that qualify as such under IFRS in all respects except that they do not represent a major line of business

Non-IFRS operating income, non-IFRS operating margin, non-IFRS net income and non-IFRS earnings per share:

Operating income, operating margin, net income and earnings per share in this document identified as non-IFRS operating income, non-IFRS operating margin, non-IFRS net income and non-IFRS earnings per share have been adjusted from the respective operating income, operating margin, net income and earnings per share numbers as recorded under IFRS by adjusting for the above mentioned non-IFRS revenues and non-IFRS expenses.

We exclude the acquisition related expense adjustments for the purpose of calculating non-IFRS operating income, non-IFRS operating margin, non-IFRS net income and non-IFRS earnings per share when evaluating the continuing operational performance of the Company because these expenses generally cannot be changed or influenced by management after the relevant acquisition other than by disposing of the acquired assets. Since management at levels below the Executive Board has no influence on these expenses we generally do not consider these expenses for the purpose of evaluating the performance of management units.

We include the revenue adjustements outlined above and exclude the expense adjustements when making decisions to allocate resources, both on a Company level and at lower levels of the organization. In addition, we use these non-IFRS measures to gain a better understanding of the Company’s comparative operating performance from period to period. We believe that our non-IFRS financial measures described above have limitations, which include but are not limited to the following:

* The eliminated amounts may be material to us.
* Without being analyzed in conjunction with the corresponding IFRS measures the non-IFRS measures are not indicative of our present and future performance, foremost for the following reasons:
o While our non-IFRS income numbers reflect the elimination of certain acquisition-related expenses, no eliminations are made for the additional revenues and other revenues that result from the acquisitions.
o The acquisition-related charges that we eliminate in deriving our non-IFRS income numbers are likely to recur should SAP enter into material business combinations in the future.
o The acquisition-related amortization expense that we eliminate in deriving our non-IFRS income numbers is a recurring expense that will impact our financial performance in future years.
o The revenue adjustment for the fair value accounting of the acquired entities’ support contracts and the expense adjustment for acquisition-related charges do not arise from a common conceptual basis. This is because the revenue adjustment aims to improve the comparability of the initial post-acquisition period with future post-acquisition periods while the expense adjustment aims to improve the comparability between post-acquisition periods and pre-acquisition periods. This should particularly be considered when evaluating our non-IFRS operating income and non-IFRS operating margin numbers as these combine our non-IFRS revenue and non-IFRS expenses despite the absence of a common conceptual basis.

Additionally, our non-IFRS measures have been adjusted from the respective IFRS numbers for the results of the discontinued operations that qualify as such under IFRS in all respects except that they do not represent a major line of business. We refer to these activities as “discontinued activities.” Under our U.S. GAAP which we provided until 2009, we presented the results of operations of the TomorrowNow entities as discontinued operations. Under IFRS, results of discontinued operations may only be presented as discontinued operations if a separate major line of business or geographical area of operations is discontinued. Our TomorrowNow operations were not a separate major line of business and thus did not qualify for separate presentation under IFRS. We believe that this additional non-IFRS adjustment to our IFRS numbers for the results of our discontinued TomorrowNow activities is useful to investors for the following reasons:

* Despite the migration from U.S. GAAP to IFRS, we will continue to internally view the ceased TomorrowNow activities as discontinued activities and thus will continue to exclude potential future TomorrowNow results, which are expected to mainly comprise of expenses in connection with the Oracle lawsuit, from our internal management reporting, planning, forecasting, and compensation plans. Therefore, adjusting our non-IFRS measures for the results of the discontinued TomorrowNow activities provides insight into the financial measures that SAP will use internally beginning in 2010 with our migration to IFRS.
* By adjusting the non-IFRS numbers for the results from our discontinued TomorrowNow operations, the non-IFRS numbers are more comparable to the non-GAAP measures that SAP used through the end of 2009, which makes SAP’s performance measures before and after the full IFRS migration easier to compare.

We believe, however, that the presentation of the non-IFRS measures in conjunction with the corresponding IFRS measures as well as the relevant reconciliations, provides useful information to management and investors regarding present and future business trends relating to our financial condition and results of operations. We therefore do not evaluate our growth and performance without considering both non-IFRS measures and the relevant IFRS measures. We caution the readers of this document to follow a similar approach by considering our non-IFRS measures only in addition to, and not as a substitute for or superior to, revenues or other measures of our financial performance prepared in accordance with IFRS.

Free Cash Flow

We use our free cash flow measure to estimate the cash flow remaining after all expenditures required to maintain or expand the organic business have been paid off. This assists management with the supplemental information to assess our liquidity needs. We calculate free cash flow as net cash from operating activities minus additions to non-current assets, excluding additions from acquisitions. Free cash flow should be considered in addition to, and not as a substitute for or superior to, cash flow or other measures of liquidity and financial performance prepared in accordance with IFRS.

Constant Currency Period-Over-Period Changes

We believe it is important for investors to have information that provides insight into our sales. Revenue measures determined under IFRS provide information that is useful in this regard. However, both sales volume and currency effects impact period-over-period changes in sales revenue. We do not sell standardized units of products and services, so we cannot provide relevant information on sales volume by providing data on the changes in product and service units sold. To provide additional information that may be useful to investors in breaking down and evaluating changes in sales volume, we present information about our revenue and various values and components relating to operating income that are adjusted for foreign currency effects. We calculate constant currency year-over-year changes in revenue and operating income by translating foreign currencies using the average exchange rates from the previous year instead of the report year.

We believe that data on constant currency period-over-period changes has limitations, particularly as the currency effects that are eliminated constitute a significant element of our revenue and expenses and may severely impact our performance. We therefore limit our use of constant currency period-over-period changes to the analysis of changes in volume as one element of the full change in a financial measure. We do not evaluate our results and performance without considering both constant currency period-over-period changes in non-IFRS revenue and non-IFRS operating income on the one hand and changes in revenue, expenses, income, or other measures of financial performance prepared in accordance with IFRS on the other. We caution the readers of this document to follow a similar approach by considering data on constant currency period-over-period changes only in addition to, and not as a substitute for or superior to, changes in revenue, expenses, income, or other measures of financial performance prepared in accordance with IFRS.

Verizon posts loss but mobile impresses

(Reuters) – Verizon Communications (VZ.N) posted a quarterly loss due to a $2.3-billion charge for job cuts but wireless customer growth and landline profit margins were better than some analysts expected.

The company’s shares rose 3.7 percent after growth in valuable monthly bill-paying wireless customers came in ahead of expectations.

Verizon Wireless, a venture between Verizon and Vodafone Group Plc (VOD.L), added 665,000 postpaid subscribers compared with the average expectation for 570,000 from eight analysts contacted by Reuters.

“On the surface it appears things are going in the right direction.” said Piper Jaffray analyst Chris Larsen. Cost cuts appeared to help profit margins for the company’s landline business more than expected, he added.

Larsen said landline profit margins of 22.7 percent compared to his expectation for 22 percent.

Verizon posted a second-quarter loss of $198 million, or 7 cents per share, from a profit of $1.48 billion, or 52 cents per share, in the same quarter the year before.

But excluding items such as the charge, its earnings per share would have been 58 cents compared with analyst expectations for 56 cents, according to Thomson Reuters I/B/E/S.

It said the buyout offers would lead to about voluntary departures of 11,000 employees.

Verizon’s revenue fell 0.3 percent to $26.77 billion from $26.86 billion a year earlier.

The company said the revenue reduction was driven by a $268 million downward adjustment to properly defer previously recognized wireless data revenue that would be earned and recognized in future periods.

Including prepaid customers who pay for calls in advance but do not commit to a contract, Verizon Wireless had 1.4 million net wireless customer additions.

In comparison its biggest rival AT&T Inc (T.N) reported 1.6 million net customer additions for the quarter on July 22.

Verizon’s shares were up $1 to $28 in premarket trading.

(Reporting by Sinead Carew; editing by Derek Caney)

Coca-Cola FEMSA S.A.B. de C.V. Announces 2010 Second-Quarter and First Six-Month Results

MEXICO CITY, Jul 23 (MARKET WIRE) —
Coca-Cola FEMSA, S.A.B. de C.V. (NYSE: KOF) (BMV: KOFL) (“Coca-Cola
FEMSA” or the “Company”), the Largest Coca-Cola Bottler in Latin America
in Terms of Sales Volume, Announces Results for the Second Quarter of
2010.

– Total revenues reached Ps. 25,177 million in the second quarter of
2010, an increase of 4.1% compared to the second quarter of 2009;
mainly driven by double-digit total revenue growth in our Mercosur
division and a high single-digit total revenue growth in our Mexico
division. On a currency neutral basis and excluding the acquisition of
Brisa in Colombia, total revenues grew approximately 16%.
– Consolidated operating income grew 11.2% to Ps. 4,088 million for the
second quarter of 2010, driven by operating income growth recorded in
every division. Our operating margin was 16.2% in the second quarter
of 2010.
– Consolidated net controlling interest income increased 14.8% to Ps.
2,480 million in the second quarter of 2010, mainly reflecting higher
operating income, resulting in earnings per share of Ps. 1.34 in the
second quarter of 2010.

“Despite recent global economic volatility, our geographically
balanced portfolio of franchise territories across Latin America
delivered strong results for the quarter. Our Mexico and Mercosur
divisions achieved significant top-line growth, driven by solid volume
growth and tactical price increases implemented throughout our
operations. Demonstrating its continued strength and consumer popularity
throughout our territories, the Coca-Cola brand made a substantial
contribution to our Company’s incremental volumes. We are pleased to
serve a growing base of customers and consumers in one of the best
markets in which to sell beverages worldwide, Latin America. During the
quarter, we paid our shareholders a dividend of Ps. 2,612 million, an
important increase over the preceding year — which extended our track
record of rising dividend payments to seven years in a row. We believe
that our Company has the right tools, talents, and capabilities to
continue driving successfully our business going forward,” said Carlos
Salazar Lomelin, Chief Executive Officer of the Company.

CONFERENCE CALL INFORMATION
Our second-quarter 2010 Conference Call will
be held on: July 23, 2010, at 11:00 A.M. Eastern Time (10:00 A.M. Mexico
City Time). To participate in the conference call, please dial: Domestic
U.S.: 866-700-7477 or International: 617-213-8840. We invite investors to
listen to the live audio cast of the conference call on the Company’s
website, www.coca-colafemsa.com

If you are unable to participate live, an instant replay of the
conference call will be available through July 30, 2010. To listen to the
replay, please dial: Domestic U.S.: 888-286-8010 or International:
617-801-6888. Pass code: 23786500.

Coca-Cola FEMSA, S.A.B. de C.V. produces and distributes Coca-Cola,
Sprite, Fanta, Lift and other trademark beverages of The Coca-Cola
Company in Mexico (a substantial part of central Mexico, including Mexico
City and southeast Mexico), Guatemala (Guatemala City and surrounding
areas), Nicaragua (nationwide), Costa Rica (nationwide), Panama
(nationwide), Colombia (most of the country), Venezuela (nationwide),
Brazil (greater Sao Paulo, Campinas, Santos, the state of Mato Grosso do
Sul, part of the state of Goias and part of the state of Minas Gerais)
and Argentina (federal capital of Buenos Aires and surrounding areas),
along with bottled water, beer and other beverages in some of these
territories. The Company has 31 bottling facilities in Latin America and
serves over 1,500,000 retailers in the region. The Coca-Cola Company owns
a 31.6% equity interest in Coca-Cola FEMSA.

Please click on this link to view the full version of the Press Release
on our Web Site

http://www.coca-colafemsa.com

Roland Karig
Investor Relations KOF
+52-55-50-81-51-86
roland.karig@kof.com.mx
www.coca-colafemsa.com

Copyright 2010, Market Wire, All rights reserved.

Saab’s Result for January-June 2010

Defence and Security Company Saab Releases the Interim Report for January-June
2010
STOCKHOLM–(Business Wire)–
Saab (STO:SAABB):

Results January – June 2010:

* Order bookings amounted to MSEK 10,516 (8,096) and the order backlog at the
end of the period amounted to SEK 38.9 billion (42.4 billion)
* Sales decreased by 3 percent to MSEK 11,377 (11,695), also adjusted for
exchange rate effects
* Gross income amounted to MSEK 2,712 (3,037), corresponding to a gross margin
of 23.8 percent (26.0). Adjusted for non-recurring items, the gross margin was
24.4 percent (25.3)
* Operating income was MSEK 402 (622), corresponding to an operating margin of
3.5 percent (5.3). Adjusted for non-recurring items, the operating margin was
4.5 percent (4.9). Recurring figures included charges of MSEK 290, mainly
related to a terminated contract in Security and Defence Solutions
* Net income was MSEK 246 (265), with earnings per share after dilution of SEK
2.25 (2.46)
* Operating cash flow amounted to MSEK 2,233 (-243) • The outlook for 2010 has
changed

Changed outlook for 2010:

We remain cautious regarding order intake and foresee sales and profitability at
about the same level as 2009. Our long-term financial targets remain.

Previous outlook: We remain cautious regarding order intake and foresee sales on
the same level as 2009. Due to the effect of continued business improvement
activities we expect profitability to increase. Our long-term financial targets
remain.

Financial highlights

MSEK Jan-Jun Jan-Jun Change, Apr-Jun Apr-Jun Jan-Dec
2010 2009 % 2010 2009 2009
Order bookings 10,516 8,096 30 5,038 3,995 18,428
Order backlog 38,859 42,414 -8 -695** -1,744** 39,389
Sales 11,377 11,695 -3 5,993 6,283 24,647
Operating income (EBIT) 402 622 -35 276 472 1,374
Operating margin, % 3.5 5.3 4.6 7.5 5.6
Adjusted operating margin, * % 4.5 4.9 5.7 6.7 5.4
Net income 246 265 -7 174 292 699
Earnings per share before dilution, SEK 2.33 2.51 1.68 2.75 6.45
Earnings per share after dilution, SEK 2.25 2.46 1.62 2.69 6.28
Return on equity,*** % 6.5 -5.3 7.0
Operating cash flow 2,233 -243 – 2,306 213 1,447
Operating cash flow per share after dilution, SEK 20.46 -2.23 21.13 1.95 13.26
* Adjusted for non-recurring items impacting operating income, for more information see page 4 -110 50 -68 50 50
** Refers to quarterly change
*** The return on equity is measured over a rolling 12-month period

Statement by the president and CEO:

“Order bookings increased for several of our business areas during the first
half-year, even though we still see some delays in customer decision making
processes. Sales were at the expected level and the operating cash flow was
strong as a result of our business activities being delivered according to plan.

Profitability was negatively impacted by a terminated contract in our civil
security business and lower capacity utilization pending larger orders. As a
consequence, we change our outlook for 2010. Previously we estimated
profitability to increase compared to 2009, whereas now the profitability is
expected to remain at about the same level as in 2009.

Our strategy, focusing on value creation by delivering on our strategic
priorities to increase our market focus, create a more focused portfolio and
more efficient operations, remain firm,” says President and CEO Åke Svensson.

Press and analysts meeting

Press and analysts are invited to a presentation of the Interim Report by CEO
Åke Svensson and CFO Lars Granlöf. The meeting is held in Stockholm at World
Trade Center conference center, 4th floor, entrance from Klarabergsviadukten 70
or Kungsbron 1, friday, 23 July, 10.00 am C.E.T

Live webcast

If you are unable to attend in person, please visit
http://www.saabgroup.com/en/InvestorRelations where a live webcast will be
available together with the presentation material. All viewers will be able to
post questions to the presenters. The webcast will also be available at Saab`s
website afterwards.

For streaming and broadcast-standard video, please visit
www.thenewsmarket.com/saab. If you are a first-time user, please take a moment
to register. In case you have any questions, please e-mail
journalisthelp@thenewsmarket.com.

The information is that which Saab AB is required to declare by the Securities
Business Act and/or the Financial instruments Trading Act. The information was
submitted for publication on July 23 at 07.30.

Saab serves the global market with world-leading products, services and
solutions ranging from military defence to civil security. Saab has operations
and employees on all continents and constantly develops, adopts and improves new
technology to meet customers` changing needs.

This information was brought to you by Cision http://www.cisionwire.com

For further information, please contact:
Saab Press Centre, 46 (0)734 180 018
Saab Investor Relations, Ann-Sofi Jönsson, 46 (0)734 187 214
presscentre@saabgroup.com
www.saabgroup.com

Copyright Business Wire 2010

Cision: Interim Report January-June 2010

Continued improvement in profitability
STOCKHOLM–(Business Wire)–
April-June

* The Group`s operating revenue amounted to SEK 285 million (377). Organic
growth was negative at 5 percent, compared with negative 8 percent for
January-March 2010 and negative 12 percent for April-June 2009. Exchange rate
effects decreased revenue by SEK 11 million compared with the same period last
year.
* Operating profit excluding restructuring costs amounted to SEK 35 million
(30). Exchange rate effects had a negative impact on operating profit of SEK 1
million compared with the same period last year.
* Following mainly the successful divestment of loss-making businesses in
Europe, Cision`s operating margin excluding restructuring costs continued to
strengthen in the second quarter, reaching 12.2 percent compared with 10.4
percent in the first quarter of 2010 and 7.9 percent in the second quarter last
year.
* Cision US returned to organic growth of 3% in the second quarter, following
negative organic growth of 4% in the first quarter of 2010 and negative 10% for
2009.

January-June

* The Group`s operating revenue amounted to SEK 599 million (837). Organic
growth was negative at 7 percent (-10). Exchange rate effects decreased revenue
by SEK 45 million.
* Operating profit excluding restructuring costs amounted to SEK 68 million (48)
and the operating margin excluding restructuring costs was 11.3 percent (5.7).
Exchange rate effects had a negative impact on operating profit of SEK 6 million
compared with the same period last year.
* Operating profit including restructuring costs amounted to SEK 62 million (33)
and profit before tax was SEK 39 million (-14). Earnings per share were SEK 0.20
(-0.28).
* For the period January-June, operating cash flow amounted to SEK -3 million
(19) and free cash flow amounted to SEK -71 million (-56).

Comment by Cision CEO Hans Gieskes: “In the second quarter of 2010, we were
pleased to see continued improvement in profitability. Our EBITDA margin
exceeded 17 percent, up from 15 percent in the first quarter of 2010, indicating
that we are on track toward achieving our financial target of an EBITDA margin
exceeding 20 percent by 2012 at the latest. The improvement in profitability was
mainly driven by stronger performance in Cision Europe, where the EBITDA margin
increased significantly from 5 percent in the first quarter to 11 percent in the
second quarter of 2010. Our North American business also continued to do well,
delivering a very solid 25 percent EBITDA margin in the second quarter.

In the second quarter, we continued to see positive effects from the launch of
CisionPoint as our most important business, Cision US, returned to organic
growth. The share of customers on the CisionPoint platform in the US has now
reached 78 percent as of June 30, 2010, compared with 48 percent one year ago.
As we continue to roll out CisionPoint in our other markets, we remain confident
in the long-term growth prospects for Cision.”

Cision empowers businesses to make better decisions and improve performance
through its CisionPoint software solutions for corporate communication and PR
professionals. Powered by local experts with global reach, Cision delivers
relevant media information, targeted distribution, media monitoring, and precise
media analysis. Cision has offices in Europe, North America and Asia, and has
partners in 125 countries. Cision AB is quoted on the Nordic Exchange with a
turnover of SEK 1.5 billion in 2009.

This information was brought to you by Cision http://www.cisionwire.com

Hans Gieskes, President and CEO
telephone +46 (0)8 507 410 11
e-mail: hans.gieskes@cision.com
or
Erik Forsberg, CFO
telephone +46 (0)8 507 410 91
e-mail: erik.forsberg@cision.com
Cision AB (publ)
Corp Identity No. SE556027951401
Telephone: +46 (0)8 507 410 00

http://corporate.cision.com

Copyright Business Wire 2010

Net Insight AB: Interim report January – June 2010

NET INSIGHT
INTERIM REPORT JANUARY – JUNE 2010

Net Insight AB [publ] Corporate Reg. No 556533-4397

Second Quarter 2010

· Net sales of SEK 71.5 million (62.6).

· Software license and support revenue of SEK 19.0 million (15.3).

· Gross Margin of 74.3% (78.7) applying the same accounting treatment as in
previous years.

· Gross Margin of 66.4% (78.7).

· Operating earnings of SEK 11.9 million (11.0), corresponding to an operating
margin of 16.6% (17.6).

· Net income of SEK 8.7 million (7.9).

· Net profit margin of 12.2% (12.7).

· Earnings per share of SEK 0.02 (0.02).

· Total cash flow of SEK 3.3 million (-34.5).

January – June 2010

· Net sales of SEK 132.0 million (123.1).

· Software license and support revenue of SEK 34.8 million (32.2).

· Gross Margin of 74.5% (77.2) applying the same accounting treatment as in
previous years.

· Gross Margin of 66.1% (77.2).

· Operating earnings of SEK 18.1 million (21.3), corresponding to an operating
margin of 13.7% (17.3).

· Net income of SEK 72.7 million (15.1). The improvement is a one-time effect
related to the IPR transaction in Q1.

· Net profit margin of 55.1% (12.3).

· Earnings per share of SEK 0.19 (0.04).

· Total cash flow of SEK 56.4 million (-13.5).

A strong quarter with revenue growth of 14%

We are delivering a strong second quarter both from a financial and strategic
perspective.
Revenue is up with 14% compared to last year and 18% from the first quarter 2010. We
also see a healthy operating margin of 17%.

For the first half of the year, the operating earnings are slightly down compared to
last year, as a result of increased investments in sales and marketing. This in turn has
led to an increased order flow and more business opportunities.

The company is progressing well towards our strategic objectives to leverage our DTT
leadership, to expand our business in broadcast and media as well as finding new
business in the area of CATV/IPTV.

I am very proud to count six important DTT wins over the past six months. We just
recently, in the middle of July, announced a very significant win in Poland where a
combined offering of Ericsson and Net Insight was the winning solution for a new DTT
network. Earlier in the quarter we won what I regard as a very significant and strategic
project when Teracom of Sweden selected Net Insight for the world’s first all IP-based
DVB-T2 network.

During the end of the quarter we have been greatly involved with the FIFA World Cup live
transmissions from South Africa. The Nimbra platform was used by nine different
customers to bring live TV signals to over 80 countries. For the first time ever our
customer ESPN transmitted live 3D feeds from South Africa to viewers across the United
States. I can also mention that our participation was successful and we have received
positive feedback from our customers which holds us in good stead for the future.

In regards to the CATV/IPTV business area we received an order with a large cable
operator in Canada, a new customer to Net Insight, which is encouraging for future
opportunities in the cable TV market.

Geographical expansion is of strategic importance to us and during the second quarter we
have entered new markets with new partners and reached new customers successfully. The
new markets entered during the second quarter are the Philippines and South Africa. I am
satisfied with the first half of the year and at the moment I see no lack of business
opportunities for the quarters ahead.

The full report can be found below.

Net Insight AB discloses the information provided herein pursuant to the Securities
Market Act and/or the Financial Instruments Trading Act. The information was submitted
for publication on July 22nd, 2010 at 08.30 am CET.

Stockholm, July 22nd, 2010

Fredrik Trägårdh
Chief Executive Officer

For more information, please contact:

Fredrik Trägårdh, CEO Net Insight AB
Tel: +46 (0) 8-685 0400, fredrik.tragardh@netinsight.net

Thomas Bergström, CFO, Net Insight AB
Tel.: +46 (0) 8-685 04 00, email:thomas.bergstrom@netinsight.net

Net Insight AB
Net Insight AB (publ)
Box 42093
126 14 Stockholm
Tel +46 (0) 8 685 04 00
www.netinsight.net http://www.netinsight.net/
Corporate Reg. No. 556533-4397

HUG#1433345

Interim report January – June 2010 http://hugin.info/130084/R/1433345/379218.pdf

Outokumpu Oyj: Outokumpu’s second quarter 2010 – return to profits in improved markets

PRESS RELEASE
July 22, 2010 at 9.10 am

Highlights

- Operating profit EUR 71 million, underlying operational result some EUR 16 million
- Deliveries and prices improved clearly from the second quarter of 2009
- Third-quarter underlying operational result expected to be somewhat negative due to
seasonality, underlying demand continues to recover
- Investments in ferrochrome and quarto plate production decided

Group key figures, EUR million II/10 II/09 I/10

Sales 1110 617 916
Operating profit 71 -94 -22
Profit before taxes 63 -105 -33
Net profit for the period 44 -87 -21
Earnings per share, EUR 0.24 -0.48 -0.12
Net cash generated from operating activities -314 21 -86

Stainless steel deliveries, 1000 tonnes 339 268 333
Stainless steel base price, EUR/t 1) 1 317 1 117 1 235
Stainless steel transaction price, EUR/t 3 018 1 751 2 329

1) CRU: German base price (2mm cold rolled 304 sheet)

1) CRU: German base price (2mm cold rolled 304 sheet)

Underlying demand for standard grades continues to recover and this is expected to
continue also after the holiday season. Demand for special grades is still lagging.
However, commercial activity in the investment-driven customer segments continues and is
expected to generate orders within the next 6-12 months. Currently the holiday season
and the declined nickel price are causing some hesitance among the stainless
distributors to place orders.

Outokumpu’s deliveries of stainless steel increased by 26% to 339 000 tonnes in the
second quarter compared to the same quarter in 2009. Base prices improved by 18%.
Transaction prices, which also include raw material costs, were as much as 72% higher
than a year ago. Out of the raw material prices, the average nickel price was 74% higher
and ferrochrome 97% higher than in 2009. As a result, Outokumpu’s sales grew as much as
80% to EUR 1 110 million in the second quarter.

Compared to the first quarter of 2010 Outokumpu’s second-quarter deliveries were at
about the same level and the Group’s capacity utilisation remained around 75%. This
combined with the positive price development, however enabled Outokumpu to return to
profit after seven loss-making quarters. The underlying operational result was positive
at EUR 16 million compared with a loss of EUR 32 million in the first quarter of 2010
and a loss of EUR 94 million a year ago. Additionally, Outokumpu recorded some EUR 55
million of raw material-related inventory gains increasing the operating profit to EUR
71 million (EUR -94 million in 2009). The increase in working capital due to higher
inventory levels and raw material prices resulted in strongly negative cash flow for the
quarter.

The slow-down in demand during the holiday season and annual maintenance breaks at the
Group’s mills will result in stainless delivery volumes for the third quarter to be
10-20% lower than in the second quarter. The underlying operational result in the third
quarter is expected to be somewhat negative. Operative cash flow in the quarter is
expected to turn positive subject to metal price development.

In June, Outokumpu decided on two strategic investments amounting to EUR 550 million.
The production capacity of ferrochrome in Tornio, Finland will be doubled and the
production capability of quarto plates will be improved in Degerfors, Sweden. In July,
the Finnish Parliament gave Fennovoima a permit to build a nuclear power plant in
Finland. Fennovoima is a Finnish energy company that was established in 2007 with an aim
to construct a new nuclear power plant in the country. Outokumpu owns about 10% of
Fennovoima.

CEO Juha Rantanen:

“After several loss-making quarters it is gratifying to present Outokumpu’s return to
profits in the second quarter. A clear recovery in the standard grades business and
improved prices have been the main factors, while business in capital investment-driven
special grades is still lagging. As always, the third quarter is expected to be
seasonally weak. We are confident that underlying demand continues to improve and we are
making preparations to take full advantage of a recovery in demand after the holiday
season.

Outokumpu made some major news announcements during the second quarter. The market
recovery and our financial performance enabled us to embark on two important strategic
investments. The expansion in ferrochrome production is not only about raw material
self-sufficiency but also about growth. The investment in quarto plate production
solidifies our leading position in the tailor-made plate business, strongly supporting
our special grades strategy.”

This press release is a summary of Outokumpu’s official second quarter 2010 report.

For further information, please contact:

Päivi Lindqvist, SVP – Communications and IR
tel. +358 9 421 2432, mobile +358 40 708 5351
paivi.lindqvist@outokumpu.com

Ingela Ulfves, VP – Investor Relations and Financial Communications
tel. +358 9 421 2438, mobile +358 40 515 1531
ingela.ulfves@outokumpu.com

Esa Lager, CFO
tel +358 9 421 2516
esa.lager@outokumpu.com

OUTOKUMPU OYJ

Outokumpu is a global leader in stainless steel with the vision to be the undisputed
number one. Customers in a wide range of industries use our stainless steel and services
worldwide. Being fully recyclable, maintenance-free, as well as very strong and durable
material, stainless steel is one of the key building blocks for sustainable future.
Outokumpu employs some 7 500 people in more than 30 countries. The Group’s head office
is located in Espoo, Finland. Outokumpu is listed on the NASDAQ OMX Helsinki.
www.outokumpu.com

Alma Media Oyj: Alma Media Corporation’s Interim Report for April-June 2010: Net sales at comparison period level, operating profit slightly down

Alma Media Corporation Interim Report July 22, 2010 at 9:00am (EEST)

ALMA MEDIA CORPORATION’S INTERIM REPORT FOR APRIL-JUNE 2010:

NET SALES AT COMPARISON PERIOD LEVEL, OPERATING PROFIT SLIGHTLY DOWN

April-June 2010 in brief:

- Net sales MEUR 78.7 (79.3) declined 0.7% (-11.2%). Comparable net sales exceeded that
of the comparison period by MEUR 1.6 or 2.1%.

- Operating profit MEUR 10.9 (11.9), 13.8% (15.1%) of net sales, operating profit
without one-time items was MEUR 11.3 (12.2), declined 7.5%.

- Profit before taxes MEUR 11.0 (11.5), profit before taxes without one-time items MEUR
11.4 (11.8).

- Financial result for the period MEUR 7.8 (8.3), declined 5.2% (-29.9%).

- Earnings per share EUR 0.10 (0.11).

Outlook for 2010:

- Alma Media estimates its comparable net sales to increase moderately from the 2009
level as a result of gradual growth in media advertising. Comparable operating profit is
expected to remain close to the previous year’s level.

Kai Telanne, President and CEO:

No significant change for the better took place in the media advertising market in the
second quarter even though the market picked up somewhat toward the summer. During the
first six months of the year, the newspaper advertising market shrunk by 0.3% from the
comparison period. Online advertising continued to grow strongly, by 25.3%.

The advertising sales of Alma Media’s Newspapers segment grew only a little from the
comparison period figures despite the good sales results of Aamulehti and Lapin Kansa.
The circulation net sales of Newspapers decreased only slightly from the previous year’s
level thanks to price increases. The advertising sales of the Kauppalehti group picked
up clearly. The net sales of the Marketplaces segment continued to grow during the
second quarter as home sales and recruitment advertising increased.

In the second quarter, online advertising sales developed positively from the comparison
period. Growth was particularly strong in Kauppalehti.fi and Iltalehti.fi, as well as
Etuovi.com and Monster.fi. The share of online business grew to 16.1% of Alma Media’s
net sales.

The company’s second-quarter operating profit fell slightly behind that of the
comparison period due to net sales growth being slower than targeted, as well as an
increase in total costs. Total costs were pushed up by an increase in personnel costs,
due to salary agreements, and an IT expense of MEUR 0.3 recorded during the second
quarter but partly concerning earlier periods.

The company’s ongoing development projects, such as the preparations for the printing
facility investment in Tampere, the formation of the printing and distribution unit into
a new company, Alma Manu Oy, and the product and service reforms progressed as planned.
Alma Media and Arena Partners Oy, a newspaper development company operating in Central
Finland, started cooperation in the nationwide marketplace business. The competition
authority approved the arrangement on July 14, 2010.

More information:

Kai Telanne, President and CEO, telephone +358 10 665 3500

Tuomas Itkonen, CFO, telephone +358 10 665 2244

Conference, webcast and conference call:

The company will hold a conference in Finnish concerning its April-June results in the
“Carl” conference room of the Scandic Marski hotel at the address Mannerheimintie 10,
Helsinki, from 11:00am to 12:00 (EEST) on July 22, 2010. The results will be presented
by Kai Telanne, President and CEO, and Tuomas Itkonen, CFO. Presentation materials for
the event will be available on www.almamedia.fi/calendar from 11:00am.

A webcast and conference call in English will start at 2:00pm (EEST) on July 22, 2010.
To participate, please call +44 (0) 20 7806 1956 (confirmation code 7467715) or follow
the event online at www.almamedia.fi/investors.

Rauno Heinonen

Vice President Corporate Communications and IR

Alma Media Corporation

DISTRIBUTION: NASDAQ OMX Helsinki, principal media

ALMA MEDIA CORPORATION INTERIM REPORT APRIL 1-JUNE 30, 2010

The text part of this report focuses on the April-June results. The figures are compared
in accordance with the International Financial Reporting Standards (IFRS) with those of
the corresponding period in 2009, unless otherwise stated. The figures in the tables are
independently rounded.

GROUP KEY FIGURES

KEY FIGURES 2010 2009 Change 2010 2009 Change 2009 2008
MEUR Q2 Q2 % Q1-Q2 Q1-Q2 % Q1-Q4 Q1-Q4
Revenue 78,7 79,3 -0,7 153,1 155,8 -1,7 307,8 341,2
Operating profit 10,9 11,9 -9,1 19,1 18,5 3,5 41,4 48,3
% of revenue 13,8 15,1 12,5 11,8 13,5 14,2
Operating profit without one-time items 11,3 12,2 -7,5 19,6 19,7 -0,6 42,6 47,7
% of revenue 14,3 15,3 12,8 12,6 13,9 14,0
Profit before tax 11,0 11,5 -5,0 19,5 18,1 8,2 40,8 52,4
Profit without one-time items 11,4 11,8 -3,3 20,0 19,3 3,7 42,0 49,9
Profit for the period 7,8 8,3 -5,2 14,1 12,9 9,1 29,3 39,0
Return on Equity/ROE (Annual)* 46,7 52,6 -11,2 33,9 33,4 1,5 31,8 37,7
Return on Invets/ROI (Annual)* 45,0 38,3 17,5 33,1 28,7 15,3 29,1 34,8
Net financial expenses 0,0 0,0 -84,6 0,0 0,1 58,6 0,3 0,4
Net financial expenses, % of revenue 0,0 0,0 0,0 0,1 0,1 0,1
Share of profit of equity accounted investees 0,1 -0,4 -128,2 0,4 -0,3 -236,5 -0,3 4,5
Balance sheet total 151,6 156,0 151,6 156,0 -2,8 155,5 166,9
Gross capital expenditure 2,9 1,4 102,4 5,9 3,0 97,0 8,2 14,5
Gross capital expenditure, % of revenue 3,7 1,8 0,0 1,9 2,7 4,2
Equity ratio 64,9 58,4 64,9 58,4 67,2 57,2
Gearing, % -17,4 0,4 -17,4 0,4 -17,1 6,5
Interest-bearing net debt -14,5 0,3 -14,5 0,3 -4976,7 -16,5 5,8
Interest-bearing liabilities 4,3 14,7 4,3 14,7 -70,6 4,6 19,1
Non-interest-bearing liabilities 64,0 63,3 64,0 63,3 1,2 54,9 59,3
Average no. of personnel, calculated as full-time employees, excl. delivery staff 1 830 1 930 -5,2 1 784 1 932 -7,6 1 888 1 981
Average no. of delivery staff 1 001 998 0,3 970 968 0,3 969 968
Earnings/share, EUR (basic) 0,10 0,11 -7,2 0,19 0,17 7,8 0,39 0,51
Earnings/share, EUR (diluted) 0,10 0,11 -7,4 0,19 0,17 7,5 0,39 0,51
Cash flow from operating activities/share, EUR 0,09 0,05 62,8 0,39 0,40 -2,7 0,58 0,63
Shareholders’ equity/share, EUR 1,11 1,05 1,11 1,05 1,28 1,18
P/E Ratio 34,3 28,0 34,3 28,0 19,1 9,6
Market capitalization 480,3 362,6 480,3 362,6 32,5 558,1 369,3
Average no. of shares (1,000 shares)
– basic 74 852 74 613 74 733 74 613 74 613 74 613
– diluted 75 022 74 613 74 961 74 613 74 859 74 764
No. of shares at end of period (1,000 shares) 75 053 74 613 75 053 74 613 74 613 74 613

*see Main accounting principles of the Interim Report

GROUP NET SALES AND RESULT APRIL-JUNE 2010

The Group’s net sales from April to June 2010 totalled MEUR 78.7 (79.3), down 0.7% (down
11.2%). The comparable net sales exceeded the previous year’s level by MEUR 1.6 or 2.1%.
Online business accounted for 16.1% (12.8%) of consolidated net sales, MEUR 12.7 (10.1).
The operating profit in the period April-June was MEUR 10.9 (11.9). The second-quarter
operating profit without one-time items was MEUR 11.3 (12.2), declined 7.5% (- 15.3%)
from the comparison period. The operating margin was 13.8% (15.1%), operating margin
without one-time items declined to 14.3% (15.3%).

GROUP NET SALES AND RESULT JANUARY-JUNE 2010

The Group’s net sales from January to June 2010 totalled MEUR 153.1 (155.8), decline
1.7% (-10.1%). The comparable net sales exceeded the comparison period level by MEUR 1.9
or 1.3%. Online business accounted for 15.7% (13.3%) of consolidated net sales, being
MEUR 24.1 (20.6). The operating profit in January-June amounted to MEUR 19.1 (18.5). The
operating profit without one-time items was MEUR 19.6 (19.7), decline 0.6% (-24.2%) from
the comparison period. The operating margin was 12.5% (11.8%), operating margin without
one-time items rose slightly to 12.8% (12.6%).

The operating profit for January-June includes one-time items in the amount of MEUR 0.5
(1.2). The current year’s one-time expenses mainly consist of business restructuring
costs.

Net sales of the Newspapers segment in January-June were MEUR 107.6 (107.9). Net sales
of the segment’s advertising sales grew 0.7% (declined 13.8%) to MEUR 52.0 (51.7).
Circulation net sales for Newspapers decreased slightly to MEUR 54.0 (54.2). The
operating profit for Newspapers in January-June was MEUR 16.0 (14.5) and operating
profit without one-time items MEUR 16.1 (15.3).

Net sales of the Kauppalehti group were MEUR 28.5 (32.3). The decline in net sales was
mainly due to the comparison period’s figures including the net sales of MEUR 4.2 of
Kauppalehti 121 Oy, sold in November 2009. The segment’s advertising sales grew by MEUR
0.4 from the comparison period to MEUR 8.7 (8.3). Circulation sales remained almost at
the comparison period level, MEUR 7.3 (7.4). The operating profit for the Kauppalehti
group in January-June was MEUR 4.0 (2.1) and operating profit without one-time items
MEUR 4,0 (2,5).

Net sales of the Marketplaces segment were MEUR 15.8 (14.2). The operating profit of
Marketplaces was MEUR -0.7 (-0.4), without one-time items MEUR 0.0 (-0.4).

CHANGES IN GROUP STRUCTURE APRIL-JUNE 2010

The business operations of Tyrvään Sanomat Oy were transferred to Suomen
Paikallissanomat Oy, part of the Alma Media Group, in April 2010. The deal comprised two
local papers, Tyrvään Sanomat and Paikallissanomat, as well as the business operations
of the advertising agency Idea-Mainos.

Alma Media’s ownership in Kotikokki.net Oy rose from 40% to 65% in June, after which
this company will be reported as a subsidiary company under the Newspapers segment in
the consolidated financial statements.

In connection with the centralisation of the delivery and printing organisation a new
subsidiary Kiinteistö Oy Uusi Paino Oy was founded.

On March 29, 2010, Alma Media announced a restructuring measure concerning the
Marketplaces segment. According to the plan, Alma Media Corporation and the business
development company Arena Partners Oy, owned jointly by newspaper publishers operating
in Central Finland, will start cooperation in the national marketplaces business. The
cooperation will involve Arena Partners buying a 35% share of the Alma Media subsidiary
operating in the home sales, vehicle and consumer advertising marketplace businesses.
Simultaneously, Alma Media will purchase a 35% share of Arena Interactive, a subsidiary
of Arena Partners. The competition authority approved the arrangement on July 14, 2010.

OUTLOOK FOR 2010

Alma Media expects the single-copy sales of afternoon papers to continue their decline.
The circulations of regional and local papers are expected to decline moderately. The
circulation of Kauppalehti is expected to remain at the present level or decline
slightly. Advertising in newspapers is expected to grow moderately in 2010 in comparison
with the previous year. Online advertising is expected to clearly increase from the
previous year.

Alma Media expects its comparable net sales to increase moderately from the 2009 level
as a result of gradual growth in media advertising. Operating profit is expected to
remain close to the previous year’s level.

MARKET CONDITIONS

The Finnish GNP continued to shrink during the first quarter in 2010. As the previous
quarter’s growth figure was also preceded by a minus sign, the Finnish economy is
technically still in a recession. Estimates for the Finnish GNP growth in 2010 vary
widely. Estimates published during the second quarter predict GNP growth of 0 to 2.7% in
2010. According to preliminary information by Statistics Finland, the output of the
Finnish national economy grew by 2.9% in April 2010.

In the first quarter of 2010, the total volume of advertising increased by 0.7%. In the
first quarter, advertising decreased 1.5% in newspapers and increased 17.7% in online
media from the comparison period. In the second quarter, total advertising volume
increased 4.5%. Advertising in newspapers continued to decline, now -0.2%, and increased
32.9% in online media from the comparison period. The cumulative total volume of
advertising grew 2.7% during the first half of the year. Advertising in newspapers
declined 0.3% and in online media grew 25.3% in comparison with the same period in 2009.

BUSINESS SEGMENTS

The business segments are reported according to the Group’s new internal organisational
structure in this interim report. The segment structure was changed from the beginning
of 2010 when Alma Media’s printing and distribution operations were combined in a new
group unit. The new printing and distribution unit is reported separately from the
segments Newspapers, Kauppalehti group and Marketplaces as part of the Other operations
business segment.

After the change in the segment structure and composition, Alma Media has adjusted the
segments’ items for the comparison period 2009 according to the IFRS 8 Operating
Segments standard. These changes are detailed in the appendix to this interim report.
The stock exchange release “Change in the structure and composition of Alma Media’s
business segments” on April 27, 2010 presents the segments’ net sales and operating
profits, key indicators, the segments’ assets, liabilities and investments as well as a
summary of the effects of the changes regarding the financial years 2008 and 2009 for
the Newspapers, Kauppalehti group and Marketplaces segments according to both the old
and new segment compositions.

NET SALES AND OPERATING PROFIT BY SEGMENT

REVENUE BY SEGMENT, 2010 2009 Change 2010 2009 Change 2009
MEUR Q2 Q2 % Q1-Q2 Q1-Q2 % Q1-Q4
Newspapers
External 54,4 54,9 105,6 106,9 213,4
Inter-segments 1,0 0,6 2,1 1,0 2,1
Newspapers total 55,4 55,5 -0,1 107,6 107,9 -0,2 215,5

Kauppalehti Group
External 14,1 16,0 28,1 32,2 62,5
Inter-segments 0,3 0,0 0,4 0,1 0,3
Kauppalehti Group total 14,4 16,0 -10,0 28,5 32,3 -11,8 62,8

Marketplaces
External 8,3 7,1 16,0 14,2 27,0
Inter-segments -0,1 0,0 -0,1 0,0 0,0
Marketplace total 8,2 7,0 16,6 15,8 14,2 11,1 27,0

Others
External 1,8 1,4 3,5 2,6 4,8
Inter-segments 17,5 17,0 35,1 34,0 67,8
Others total 19,3 18,4 5,1 38,6 36,6 5,5 72,7

Elimination -18,7 -17,6 -37,4 -35,3 -70,2
Total 78,7 79,3 -0,7 153,1 155,8 -1,7 307,8

OPERATING PROFIT/LOSS BY SEGMENT, 2010 2009 Change 2010 2009 Change 2009
MEUR * Q2 Q2 % Q1-Q2 Q1-Q2 % Q1-Q4
Newspapers 9,2 9,2 -0,9 16,0 14,5 11,0 29,7
Kauppalehti Group 2,5 1,4 72,0 4,0 2,1 93,0 6,7
Marketplaces -0,7 -0,2 -200,3 -0,7 -0,4 -64,8 -0,7
Other operations -0,1 1,5 -108,4 -0,3 2,3 -111,4 5,7
Total 10,9 11,9 -9,1 19,1 18,5 3,5 41,4

*) incl. one-time items

NEWSPAPERS

NEWSPAPERS 2010 2009 Change 2010 2009 Change 2009
Key figures, MEUR Q2 Q2 % Q1-Q2 Q1-Q2 % Q1-Q4
Revenue 55,4 55,5 -0,1 107,6 107,9 -0,2 215,5
Circulation revenue 27,2 27,2 -0,1 54,0 54,2 -0,3 109,9
Media advertising revenue 27,4 27,3 0,5 52,0 51,7 0,7 101,3
Other revenue 0,8 1,0 -17,5 1,6 2,0 -23,4 4,4
Operating profit 9,2 9,2 -0,9 16,0 14,5 11,0 29,7
Operating profit, % 16,5 16,7 14,9 13,4 13,8
Operating profit without one-time items 9,2 9,4 -1,9 16,1 15,3 5,4 30,8
Operating profit without one-time items, % 16,5 16,8 15,0 14,2 14,3
Average no. of personnel, calculated as full-time employees excl. delivery staff 989 1 015 -3 953 1 015 -6 1 002
Average no. of delivery staff * 98 370 -74 98 370 -73 370
* Delivery operations of Satakunnan Kansa sold January 1 2010 to Aamujakelu Oy, which is reported in Other operations

2010 2009 2010 2009 2009
Operational key figures Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
Audited circulation
Iltalehti 112 778
Aamulehti 135 293

Online services, unique visitors, weekly

2010 2009 2010 2009 2009

4-6
4-6
1-6
1-6
1-12
Iltalehti.fi 2 140 489 1 695 372 2 160 850 1 702 838 1 762 615
Telkku.com 601 926 569 955 620 390 582 994 580 989
Aamulehti.fi 263 980 183 412 269 479 188 915 207 978

The Newspapers segment reports the publishing activities of 35 newspapers. The largest
titles are Aamulehti and Iltalehti.

The second-quarter net sales for the Newspapers segment stayed at almost the previous
year’s level at MEUR 55.4 (55.5). Advertising sales in this segment increased 0.5% to
MEUR 27.4 (27.3). During the second quarter, advertising sales in printed media
increased for Aamulehti and Lapin Kansa while the advertising sales for other Alma Media
newspapers declined slightly due to the weak market development. Advertising sales for
the segment’s online business grew well from the comparison period. Advertising sales
for Iltalehti.fi had strong development and grew 56.4% (35.5%) from the comparison
period. Circulation net sales for Newspapers stayed at the comparison period’s level
during the second quarter, assisted by price increases. Single-copy sales of Iltalehti
declined approximately 8.6% (3.6%) during the second quarter, with the entire afternoon
paper market declining approximately 5.6% (4.6%).

The Newspapers segment’s second-quarter operating profit was MEUR 9.2 (9.2). Operating
profit without one-time items for the segment was MEUR 9.2 (9.4).

The business operations of Tyrvään Sanomat Oy were transferred to Suomen
Paikallissanomat Oy, part of Alma Media Corporation, in April 2010. The deal included
two local papers, Tyrvään Sanomat and Paikallissanomat, as well as the business
operations of the advertising agency Idea-Mainos. Since June 1, 2010, the acquired
newspapers are consolidated into one paper, the twice-weekly Tyrvään Sanomat. In June,
Alma Media increased its shareholding in Kotikokki.net Oy to 65%, and the company will
in future be reported as a subsidiary company in the Newspapers segment in Alma Media’s
consolidated financial statements.

KAUPPALEHTI GROUP

Kauppalehti group 2010 2009 Change 2010 2009 Change 2009
key figures, MEUR Q2 Q2 % Q1-Q2 Q1-Q2 % Q1-Q4
Revenue 14,4 16,0 -10,0 28,5 32,3 -11,8 62,8
Revenue without sold operations * 14,4 14,2 1,8 28,5 28,3 0,7 56,2
Circulation revenue 3,5 3,5 -0,7 7,3 7,4 -0,5 15,4
Media advertising revenue 4,5 4,0 12,9 8,7 8,3 4,4 16,3
Other Revenue 6,4 8,6 -25,8 12,5 16,7 -25,5 31,0
Operating profit 2,5 1,4 72,0 4,0 2,1 93,0 6,7
Operating profit, % 17,3 9,0 14,2 6,5 119,6 10,7
Operating profit without one-time items 2,5 1,6 60,2 4,0 2,5 64,2 6,7
Operating margin without one-time items, % 17,3 9,6 14,2 7,6 86,9 10,7
Average no. of personnel, calculated as full-time employees 441 490 -10 434 489 -11 477
* Kauppalehti 121 Oy sold at November 2009

2010 2009 2010 2009 2009
Operational key figures Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
Audited circulation
Kauppalehti 78 731

Online services, unique visitors, weekly
Kauppalehti.fi 561 783 537 302 594 508 540 683 544 533

The Kauppalehti group specialises in the production of business and financial
information. Its best known title is Finland’s leading business paper, Kauppalehti. The
group also includes the contract publishing company Lehdentekijät, Suomen Business
Viestintä and the news agency and media monitoring unit BNS Group that operates in the
Baltic countries.

The net sales of the Kauppalehti group were MEUR 14.4 (16.0) in the second quarter. The
comparison period’s net sales include those of the sold Kauppalehti 121 Oy in the amount
of MEUR 2.0. Thanks to the stronger B-to-B advertising market, the advertising sales of
the Kauppalehti group grew to MEUR 4.5 (4.0) or 12.9%. Online advertising sales grew
29.1% (6.6%) from the comparison period. The segment’s circulation net sales remained at
the previous year’s level at MEUR 3.5 (3.5). In 2010, the circulation in number of
copies is expected to remain unchanged or decline slightly.

The number of visitors to the online service Kauppalehti.fi averaged 561,783 (537,302)
unique weekly visitors in the second quarter.

The operating profit for the Kauppalehti group was MEUR 2.5 (1.4). Operating profit
without one-time items was MEUR 2.5 (1.6).

MARKETPLACES

Marketplaces 2010 2009 Change 2010 2009 Change 2009
key figures, MEUR Q2 Q2 % Q1-Q2 Q1-Q2 % Q1-Q4
Revenue 8,2 7,0 16,6 15,8 14,2 11,1 27,0
Operations in Finland 7,0 5,9 19,1 13,5 11,9 13,5 22,4
Operations outside Finland 1,3 1,2 4,8 2,4 2,4 -0,1 4,7
Operating profit -0,7 -0,2 -200,3 -0,7 -0,4 -64,8 -0,7
Operating margin, % -8,2 -3,2 -4,4 -3,0 -48,4 -2,5
Operating profit without one-time items -0,1 -0,2 44,8 0,0 -0,4 92,8 -0,5
Operating margin without one-time items, % -1,5 -3,2 -0,2 -2,9 93,5 -2,0
Average no. of personnel, calculated as full-time employees 182 202 -10 181 216 -16 200

2010 2009 2010 2009 2009
Operational key figures Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
Online services, unique visitors, weekly
Etuovi.com 412 600 348 487 411 381 350 077 354 826
Autotalli.com 90 192 92 106 95 282 96 705 96 872
Monster.fi 85 416 70 158 90 810 77 037 74 473
Mikko.fi 61 662 70 973 70 830 74 676 76 854
Mascus.com 179 611 118 392 190 258 122 972 135 272
City24 176 190 220 867 190 842 258 350 232 648
Bovision 91 685 112 875 104 387 109 895 110 266

The Marketplaces segment reports classified services produced on the internet and
supported by printed products. The services in Finland are Etuovi.com, Monster.fi,
Autotalli.com, Mascus.fi and Mikko.fi. The services outside Finland are Mascus and
Bovision, as well as City24 whose operations are being downsized.

In the second quarter of 2010, the net sales of Marketplaces was MEUR 8.2 (7.0) and grew
16.6% (-25.0%). The net sales growth mainly came from the increased net sales of the
Etuovi.com, Monster.fi and Mascus services.

The operating profit of the Marketplaces segment was MEUR -0.7 (-0.2). The operating
profit without one-time items was MEUR -0.1 (-0.2). The segment’s second-quarter
profitability was weakened by investments in product and service development.

Alma Media and the newspaper development company Arena Partners Oy operating in Central
Finland will start cooperation in the nationwide marketplaces business. The cooperation
will in future cover the Etuovi.com, Vuokraovi.com, Autotalli.com and Mikko.fi services.
The competition authority approved the arrangement on July 14, 2010.

The cooperation will have only a minor short-term effect on Alma Media’s financial
indicators. The 2009 total net sales of the services to be transferred to the new
company were MEUR 16.9.

OTHER OPERATIONS

Other operations 2010 2009 Change 2010 2009 Change 2009
key figures, MEUR Q2 Q2 % Q1-Q2 Q1-Q2 % Q1-Q4
Revenue 19,3 18,4 5,1 38,6 36,6 5,5 72,7
External 1,8 1,4 35,1 3,5 2,6 35,9 4,8
Inter-segments 17,5 17,0 2,7 35,1 34,0 3,2 67,8
Operating profit -0,1 1,5 -108,4 -0,3 2,3 -111,4 5,7
Operating profit, % -0,6 8,0 -0,7 6,4 -110,8 7,8
Operating profit without -0,3 1,5 -119,1 -0,6 2,3 -123,5 5,7
one-time items
Operating margin without -1,5 8,0 -1,4 6,4 -122,4 7,8
one-time items, %
Average no. of personnel, calculated as full-time employees 219 211 4 216 213 1 210
Average no. of delivery staff 903 623 45 872 598 46 599

The Other operations segment reports the operations of the Group’s parent company as
well as those of the printing and distribution unit. The financial characteristics of
both are similar as they primarily provide services for the other business segments. The
Group’s financial items and income taxes are not allocated to the segments.

ASSOCIATED COMPANIES

Share of profit of equity accounted investees 2010 2009 2010 2009 2009
MEUR Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
Newspapers 0,1 0,0 0,1 0,0 0,1
Kauppalehti group
Talentum Oyj 0,1 -0,6 0,2 -0,7 -1,4
Marketplaces -0,0 -0,0
Other operations
Other equity accounted investeees -0,1 0,2 0,1 0,4 0,9
Total 0,1 -0,4 0,4 -0,3 -0,3

Alma Media Group holds a 32.14% stake in Talentum Oyj, which is reported under the
Kauppalehti group. The company’s own shares in the possession of Talentum are here
included in the total number of shares. In the consolidated financial statements of Alma
Media the own shares held by Talentum itself are not included in the total number of
shares. Alma Media’s shareholding in Talentum is stated as 32.64% in its consolidated
financial statements of December 31, 2009 and in this interim report.

BALANCE SHEET AND FINANCIAL POSITION

The consolidated balance sheet at the end of June 2010 stood at MEUR 151.6 (156.0). The
corporation’s equity ratio at the end of June was 64.9% (58.4%) and equity per share was
EUR 1.11 (1.05).

The consolidated cash flow from operations in January-June was MEUR 28.9 (29.5). Cash
flow before financing was MEUR 25.6 (27.7). Cash flow for capital expenditure was
affected primarily by the share acquisitions of Marknadspriser i Sverige AB, Kateetti Oy
and Kotikokki.net Oy, as well as the purchase of the business operations of Tyrvään
Sanomat.

The Group’s net debt at the end of June stood at MEUR -14.5 (0.3).

The Group currently has a MEUR 100.0 commercial paper programme in Finland under which
it is permitted to issue papers to a total amount of MEUR 0-100. The unused part of the
programme was MEUR 100.0 on June 30, 2010. In addition, the Group has a credit limit in
the amount of MEUR 50 for the period August 6, 2009-August 6, 2011, which on June 30,
2010 was totally unused.

CAPITAL EXPENDITURE

Alma Media Group’s capital expenditure in April-June totalled MEUR 2.9 (1.4). The
second-quarter capital expenditure comprised normal operational and replacement
investments, as well as share purchases.

Alma Media Corporation announced on December 17, 2009 that it had initiated preparations
for an investment aiming at the modernisation of its printing facilities in Tampere. The
Board of Directors decided to proceed with the initiative to the execution phase on
March 11, 2010. The total value of the investment will be EUR 50 million maximum. Most
of the investment will be carried out in 2011 and 2012. The new printing facility is
estimated to be operational in 2013. Due to the investment decision, the annual
depreciation on the existing printing press for the remainder of its estimated usage
will rise by MEUR 1.0 in the financial year 2010 and MEUR 1.2 in the financial years
2011 and 2012.

RISKS AND RISK MANAGEMENT

The purpose of Alma Media Corporation’s risk management activities is to continuously
evaluate and manage all opportunities, threats and risks in conjunction with the
company’s operations to enable the company to reach its set objectives and to secure
business continuity.

The risk management process identifies the risks, develops appropriate risk management
methods and regularly reports on risk issues to the risk management organisation. Risk
management is part of Alma Media’s internal audit function and thereby part of good
corporate governance. Written limits and processing methods are set for quantitative and
qualitative risks by the corporate risk management system.

The most critical strategic risks for Alma Media are a significant drop in the
readership of its publications, a decline in advertising sales and a significant
increase in distribution and delivery costs. Fluctuating economic cycles are reflected
on the development of advertising sales, which accounts for approximately half of the
corporation’s net sales. Developing businesses outside Finland, such as the Baltic
countries and other East European countries, include country-specific risks relating to
market development and economic growth.

In the long term, the media business will undergo changes along with the changes in
media consumption and technological developments. The Group’s strategic objective is to
meet this challenge through renewal and the development of new business operations in
online media. The most important operational risks are disturbances in information
technology systems and telecommunication, and an interruption of printing operations.

ADMINISTRATION

Alma Media Corporation’s ordinary Annual General Meeting (AGM) held on March 11, 2010
elected Lauri Helve, Kai Seikku, Erkki Solja, Kari Stadigh, Harri Suutari, Catharina
Stackelberg-Hammarén and Seppo Paatelainen members of the company’s Board of Directors.
In its constitutive meeting held after the Annual General Meeting, the Board of
Directors elected Kari Stadigh its Chairman and Seppo Paatelainen its Deputy Chairman.

The Board also elected the members of its committees. Kai Seikku, Erkki Solja, Catharina
Stackelberg-Hammarén and Harri Suutari as chairman were elected members of the Audit
Committee. Seppo Paatelainen and Lauri Helve, as well as Kari Stadigh as chairman, were
elected members of the Nomination and Compensation Committee.

Except for Kari Stadigh, the Board of Directors has evaluated the persons elected to the
Board of Directors to be independent of the company and its major shareholders. Kari
Stadigh is evaluated to be independent of the company but not independent of a
significant shareholder.

Mikko Korttila, General Counsel of Alma Media Corporation, was appointed secretary to
the Board of Directors.

The AGM appointed Ernst & Young Oy as the company’s auditors.

Oy Herttaässä Ab, a company holding more than 10% of the shares in Alma Media, proposed
to the AGM that a special audit should be conducted regarding the operations of the
Nomination and Compensation Committee of the Board of Directors of Alma Media
Corporation for the last five years. The AGM considered the proposal, and as the
shareholding of Oy Herttaässä Ab exceeds 10%, the proposal was recorded in the meeting
minutes. On April 15, 2010, Alma Media received notification that Oy Herttaässä Ab has
submitted an application for the special audit to the Regional State Administrative
Agency of Southern Finland. Alma Media has submitted its answer to the Regional State
Administrative Agency of Southern Finland.

In April, the shareholder Oy Herttaässä Ab requested the company to convene an
extraordinary general meeting. The Board of Directors received the request on April 23,
2010 and published a stock exchange release on the request on the same date. On May 21,
2010, Alma Media published a notice to the Extraordinary General Meeting to be held in
Helsinki on August 19, 2010. On June 30, 2010, Oy Herttaässä Ab owned 12.95% of Alma
Media Corporation’s shares.

Oy Herttaässä Ab has requested that the EGM consider the decision upon the printing
facility investment, as well as increasing the number of the members of and
complementing the Board of Directors. The letter of request is available in its entirety
on Alma Media Corporation’s website at www.almamedia.fi/egm.

Alma Media Corporation applies the Finnish Corporate Governance Code for listed
companies, issued by the Securities Market Association on October 20, 2008, in its
unaltered form. The statement on the company’s administration and control system, as
required by Recommendation 51 of the Code, is published separately.

DIVIDENDS

The Annual General Meeting on March 11, 2010 resolved to distribute a dividend of EUR
0.40 per share for the financial year 2009 in accordance with the proposal of the Board
of Directors. The dividend was paid on March 25, 2010 to shareholders who were
registered in Alma Media Corporation’s shareholder register maintained by Euroclear
Finland Oy on the record date, March 16, 2010.

The company paid a total of MEUR 29.8 (22.4) in dividends to its shareholders in March.

THE ALMA MEDIA SHARE

In April-June , altogether 2,092,057 Alma Media shares were traded at NASDAQ OMX
Helsinki Stock Exchange, representing 2.8% of the total number of shares. The closing
price of the Alma Media share at the end of the last trading day of the review period,
June 30, 2010, was EUR 6.40. The lowest quotation during the review period was EUR 6.36
and the highest EUR 7.49. Alma Media Corporation’s market capitalisation at the end of
the review period was MEUR 480.3.

The Annual General Meeting on March 11, 2010 decided to authorise the Board of Directors
to repurchase a maximum of 3,730,600 of the company’s shares, representing approximately
5% of all shares. The authorisation is valid until the next ordinary general meeting,
however no later than June 30, 2011.

OPTION RIGHTS

Option programme 2006

The annual general meeting held on March 8, 2006 decided on a stock option programme
under which a maximum of 1,920,000 options may be granted and these may be exercised to
subscribe to a maximum of 1,920,000 Alma Media Corporation’s shares with a book
countervalue of EUR 0.60 per share. The programme is an incentive and commitment system
for the company’s management. Of the total number of options, 640,000 were marked 2006A
(ALN1VEW106), 640,000 were marked 2006B (ALN1VEW206) and 640,000 were marked 2006C
(ALN1VEW306).

Share subscription periods and subscription prices:

2006A April 1, 2008-April 30, 2010, trade-weighted average share price Apr 1-May 31,
2006

2006B April 1, 2009-April 30, 2011, trade-weighted average share price Apr 1-May 31,
2007 and

2006C April 1, 2010-April 30, 2012, trade-weighted average share price Apr 1-May 31,
2008.

As authorised by the Annual General Meeting, the Board of Directors has granted 515,000
of the 2006A options. Altogether 75,000 of the 2006A options have been returned to the
company owing to the termination of employment contracts. In 2007 and 2008, Alma Media’s
Board of Directors decided to annul the 200,000 2006A option rights in the company’s
possession. By June 30, 2010, all of the 440,000 options had been either sold (242,263)
or used for share subscription (197.737). The subscription price of the A options was
EUR 4.88.

In 2007, the Board of Directors decided to issue a total of 515,000 options under the
2006B scheme to Group management. Altogether 50,000 of the 2006B options have been
returned to the company owing to the termination of employment contracts. After the
returned options, corporate management possesses a total of 465,000 2006B options. The
share subscription price under the 2006B option, EUR 9.85 per share was determined by
the trade-weighted average share price in public trading between April 1 and May 31,
2007. The subscription price of the 2006B options was reduced by the amount of dividend
payment in March 2008 (EUR 0.90 per share), by dividend payment in March 2009 (EUR 0.30
per share) to EUR 8.65 per share and by dividend payment in March 2010 (EUR 0.40 per
share) to EUR 8.25 per share. All of the 175,000 2006B option rights in the company’s
possession have been annulled. The options in the 2006B programme are traded in NASDAQ
OMX Helsinki Stock Exchange since April 1, 2009. No shares have been subscribed to by
June 30, 2010.

In 2008, the Board of Directors decided to issue 520,000 options under the 2006C
programme to Group management. Altogether 50,000 of the 2006C options have been returned
to the company owing to the termination of employment contracts. After the returned
options, corporate management possesses a total of 470,000 2006C options. The share
subscription price under the 2006C option, EUR 9.06 per share, was determined by the
trade-weighted average share price in public trading between April 1 and May 31, 2008.
The subscription price of the 2006C options was reduced by the amount of dividend
payment in March 2009 (EUR 0.30 per share) to EUR 8.76 per share and by dividend payment
in March 2010 (EUR 0.40 per share) to EUR 8.36 per share. All of the 170,000 2006C
option rights in the company’s possession have been annulled. The options in the 2006C
programme are traded in NASDAQ OMX Helsinki Stock Exchange since April 1, 2010.

If all the subscription rights are exercised, the programme will dilute the holdings of
the earlier shareholders by 1.25%.

Option programme 2009

The Annual General Meeting of Alma Media on March 11, 2009 decided, in accordance with
the proposal by the Board of Directors, to continue the incentive and commitment system
for Alma Media management through an option programme according to earlier principles
and decided to grant stock options to the key personnel of Alma Media Corporation and
its subsidiaries in the period 2009-2011. Altogether 2,130,000 stock options may be
granted, and these may be exercised to subscribe to a maximum of 2,130,000 Alma Media
shares, either new or in possession of Alma Media. Of the total number of options,
710,000 were marked 2009A (ALN1VEW309), 710,000 were marked 2009B (ALN1VEW209) and
710,000 were marked 2009C (ALNVEW109).

Share subscription periods and subscription prices:

2009A April 1, 2012-March 31, 2014, trade-weighted average share price Apr 1-30, 2009

2009B April 1, 2013-March 31, 2015, trade-weighted average share price Apr 1-30, 2010
and

2009C April 1, 2014-March 31, 2016, trade-weighted average share price Apr 1-30, 2011.

The Board of Directors of Alma Media Corporation decided in May 2009 to grant 640,000
option rights to corporate management under the 2009A programme. The company is in
possession of 70,000 2009A options. The subscription price of a 2009A option, EUR 5.21
per share, was determined by the trade-weighted average share price in public trading
between April 1 and April 30, 2009. The subscription price of the 2009A options was
reduced by the amount of dividend payment in March 2010 (EUR 0.40 per share) to EUR 4.81
per share.

The Board of Directors of Alma Media Corporation decided in April 2010 to grant 595,000
option rights to corporate management under the 2009B programme. The company is in
possession of 115,000 2009B options. The subscription price of a 2009B option, EUR 7.33
per share, was determined by the trade-weighted average share price in public trading
between April 1 and April 30, 2010.

If all the subscription rights are exercised, the programme will dilute the holdings of
the earlier shareholders by 2.84%.

The Board of Directors has no other current authorisations to raise convertible loans
and/or to raise the share capital through a new issue.

MARKET LIQUIDITY GUARANTEE

There is no market liquidity guarantee in effect for the Alma Media corporation share.

FLAGGING NOTICES

In April-June 2010, Alma Media has not received notices of changes in shareholdings
pursuant to Chapter 2, Section 9 of the Securities Markets Act.

EVENTS AFTER THE REVIEW PERIOD

Alma Media’s printing and distribution service unit was renamed Alma Manu Oy on July 1,
2010.

The district prosecutor of Helsinki has on July 1, 2010 decided to charge Mr Kai
Telanne, President and CEO of Alma Media, on suspicion of discrimination at work in
connection with the termination of the director contract of Ms Johanna Korhonen.

Alma Media and the newspaper development company Arena Partners Oy operating in Central
Finland will start cooperation in the nationwide marketplaces business. The competition
authority approved the arrangement on July 14, 2010.

Appendix 1. – SUMMARY OF FINANCIAL STATEMENT AND NOTES

2010 2009 Change 2010 2009 Change 2009
COMPREHENSIVE INCOME STATEMENT, MEUR Q2 Q2 % Q1-Q2 Q1-Q2 % Q1-Q4
REVENUE 78,7 79,3 -0,7 153,1 155,8 -1,7 307,8
Other operating income 0,3 0,1 201,6 0,3 0,2 73,6 0,9
Materials and services -22,5 -23,9 5,8 -45,0 -47,3 4,8 -93,1
Employee benefits expense -29,5 -28,5 -3,5 -58,1 -58,1 0,1 -112,3
Depreciation, amortization and -2,6 -2,2 -18,7 -4,8 -4,4 -9,7 -8,9
impairment
Other operating expenses -13,6 -12,9 -5,3 -26,3 -27,7 4,8 -53,0
OPERATING PROFIT 10,9 11,9 -9,1 19,1 18,5 3,5 41,4
Finance income 0,2 0,1 28,0 0,4 0,5 -11,3 0,6
Finance expenses -0,2 -0,1 -38,6 -0,4 -0,6 35,3 -1,0
Share of profit of equity accounted investees 0,1 -0,4 128,2 0,4 -0,3 236,5 -0,3
PROFIT BEFORE TAX 11,0 11,5 -5,0 19,5 18,1 8,2 40,8
Income tax -3,1 -3,3 4,3 -5,4 -5,1 -6,0 -11,4
PROFIT FOR THE PERIOD 7,8 8,3 -5,2 14,1 12,9 9,1 29,3

OTHER COMPREHENSIVE INCOME
Exchange difference on translation of foreign operations 0,2 -0,1 369,5 0,1 -0,1 255,6 0,5
Share of equity accounted investees’ other comprehensive income 0,1 0,5 -0,7 166,6 -0,4
Income tax relating to components of other comprehensive income
Other comprehensive income for the period, net of tax 0,4 -0,1 528,2 0,6 -0,8 0,2
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 8,2 8,2 0,3 14,7 12,1 21,1 29,5

Profit for the period attributable to
Parent company shareholders 7,7 8,3 14,0 12,9 29,2
Non-controlling interest 0,1 -0,0 0,1 -0,0 0,1

Total comprehensive income for the period attributable to
Parent company 8,1 8,2 14,6 12,1 29,3
shareholders
Non-controlling interest 0,1 -0,0 0,1 -0,0 0,1

Earning/share calculated from the profit for the period
attributable to the parent company shareholders
Earnings/share, EUR 0,10 0,11 0,19 0,17 0,39
Earnings/share (diluted), EUR 0,10 0,11 0,19 0,17 0,39

BALANCE SHEET, MEUR 30 Jun 2010 30 Jun 2009 31 Dec 2009
ASSETS
NON-CURRENT ASSETS
Goodwill 30,3 32,9 28,2
Other intangible assets 10,6 11,8 10,4
Tangible assets 29,9 33,3 32,0
Investments in equity accounted investees 31,2 28,7 30,5
Other financial assets 5,2 4,4 4,5
Deferred tax assets 0,7 1,1 0,7

CURRENT ASSETS
Inventories 0,9 1,4 1,5
Current tax assets 0,3 1,6 0,0
Accounts receivable and other receivables 23,0 24,4 25,3
Other current financial assets 0,6 1,8 1,2
Cash and cash equivalents 18,8 14,4 21,1
ASSETS CLASSIFIED AS HELD FOR SALE 0,0 0,0 0,0
TOTAL ASSETS 151,6 156,0 155,5

BALANCE SHEET, MEUR 30 Jun 2010 30 Jun 2009 31 Dec 2009
SHAREHOLDERS’ EQUITY AND LIABILITIES
Share capital 45,0 44,8 44,8
Share premium fund 4,7 2,8 2,8
Foreign currency translation reserve -0,2 -0,9 -0,3
Retained earnings 33,4 31,3 48,5
Parent company shareholders’ equity 83,0 78,0 95,8
Non-controlling interest 0,2 0,0 0,2
TOTAL SHAREHOLDERS’ EQUITY 83,2 78,0 96,0

LIABILITIES
Non-current liabilities
Interest-bearing liabilities 2,7 3,3 2,8
Deferred tax liabilities 2,9 2,4 2,5
Pension obligations 2,9 3,5 3,1
Provisions 0,2 0,1 0,1
Other long-term liabilities 1,7 0,5 0,4
Current liabilities
Interest-bearing liabilities 1,7 11,3 1,8
Advances received 23,3 22,4 12,6
Current tax liabilities 0,0 0,0 1,6
Provisions 0,4 0,6 1,0
Accounts payable and other liabilities 32,7 33,8 33,7
TOTAL LIABILITIES 68,4 77,9 59,5
TOTAL EQUITY AND LIABILITIES 151,6 156,0 155,5

STATEMENT OF CHANGE IN EQUITY

Attributable to equity holders of the Parent
STATEMENT OF CHANGE IN EQUITY Jan 1 – 30 Jun 2010 A B C D E F G
MEUR
Equity Jan 1 2010 44,8 2,8 -0,3 48,5 95,8 0,2 96,0
Profit for the period 14,0 14,0 0,1 14,1
Other comprehensive income 0,1 0,5 0,6 0,6
Transactions with equity holders of the parent and non-controlling interest
Dividends paid by parent -29,8 -29,8 -29,8
Dividends paid by -0,2 -0,2
subsidiaries
Share-based payments 0,3 0,3 0,3
Excercised share options 0,3 1,9 2,1 2,1
Business combinations 0,1 0,1
Equity 30 Jun 2010 45,0 4,7 -0,2 33,4 83,0 0,2 83,2

Attributable to equity holders of the Parent
STATEMENT OF CHANGE IN EQUITYJan 1 – 30 Jun 2009 A B C D E F G
MEUR
Equity Jan 1 2009 44,8 2,8 -0,8 41,1 87,9 0,6 88,5
Profit for the period 12,9 12,9 12,9
Other comprehensive income -0,1 -0,7 -0,8 -0,8
Transactions with equity holders of the parent and non-controlling interest
Dividends paid by parent -22,4 -22,4 -22,4
Dividends paid by -0,6 -0,6
subsidiaries
Share-based payments 0,3 0,3 0,3
Equity 30 Jun 2009 44,8 2,8 -0,9 31,2 78,0 0,0 78,0

Column headings in Statement of Change in Equity

A = Share capital

B = Share premium fund

C = Translation difference

D = Retained earnings

E = Total

F = Non-controlling interest

G = Equity total

CASH FLOW STATEMENT

2010 2009 2010 2009 2009
CASH FLOW STATEMENT, MEUR Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
Cash flow from operating activities
Profit for the period 7,8 8,3 14,1 12,9 29,3
Adjustments 5,0 5,3 9,1 9,3 19,5
Change in working capital -2,0 -6,9 12,1 9,1 -0,8
Dividend received 0,8 1,5 0,9 2,3 1,8
Interest received 0,0 0,1 0,1 0,5 0,4
Interest paid and other financial expenses -0,2 -0,1 -0,3 -0,6 -1,0
Income taxes paid -5,0 -4,1 -7,1 -3,9 -6,2
Net cash provided by operating activities 6,5 4,0 28,9 29,5 43,1

Cash flow from investing activities
Acquisitions of tangible and intangible assets -0,9 -0,9 -1,3 -1,7 -4,2
Proceeds from sale of tangible and intangible assets 0,0 0,0 0,0 0,0 0,0
Other investments 0,0 -0,1 0,0 -0,1 0,0
Proceeds from sale of other investments 0,0 0,1 0,0 0,1 2,0
Acquisition of subsidiary -1,2 0,0 -1,7 0,0 -0,8
Acquisition of equity accounted investees -0,2 -0,2 -0,3 -0,2 -2,5
Proceeds from sale of subsidiary 0,0 0,0 0,0 0,0 6,2
Net cash used in investing activities -2,3 -1,0 -3,3 -1,9 0,7

Cash flow before financing activities 4,2 2,9 25,6 27,7 43,9

Cash flow from financing activities
Proceeds from exercise of share options 2,1 0,0 2,1 0,0 0,0
Repayment of non-current loans 0,0 0,0 0,0 0,0 0,0
Current loans raised 0,0 0,0 0,0 17,8 17,8
Repayment of current loans -0,4 -21,0 -0,8 -22,5 -32,7
Change in interest-bearing receivables 0,5 1,1 0,7 1,1 1,7
Dividends paid 0,0 -0,6 -30,0 -23,0 -23,0
Cash flow from financing activities total 2,3 -20,4 -28,0 -26,6 -36,1

Change in cash and cash equivalent funds 6,4 -17,5 -2,4 1,1 7,7
(increase + / decrease -)
Cash and cash equivalents at start of period 12,3 31,8 21,1 13,3 13,3
Effect of change in foreign exchange rates 0,0 0,0 -0,1 0,0 -0,1
Cash and cash equivalents at end of period 18,8 14,4 18,8 14,4 21,1

ACQUIRED BUSINESSES APRIL 1-JUNE 30, 2010

During the review period, Alma Media acquired the business operations of Tyrvään Sanomat
and increased its shareholding in Kotikokki.net Oy from 40% to 65%. Kotikokki.net Oy has
earlier been consolidated as an associated company. The fair value of this earlier share
at time of purchase was MEUR 0.5 and the proceeds, MEUR 0.2, have been recorded in Other
income from business operations. The fair value of the total consideration transferred
from the companies in cash at time of purchase was MEUR 1.4, and there are no
conditional later considerations. Non-controlling interest at time of purchase was
recorded in the amount of MEUR 0.1, valued at an amount corresponding to the
proportional share of the non-controlling interest of the identifiable net assets of the
purchased company.

The fair value and gross amount of receivables acquired totalled MEUR 0.1. The most
important other assets and liabilities acquired comprised intangible assets, including
customer relations trademarks and technology at MEUR 0.8, cash at MEUR 0.2, and accounts
payable and other short-term liabilities at MEUR 0.1. The goodwill generated by the
acquisition, MEUR 1.2, was influenced by expected synergy benefits. Of the goodwill,
MEUR 0.6 is expected to be deductable from taxes. If the acquisition had been carried
out at the beginning of the year 2010, the Group’s revenue would be MEUR 0.6 more.

REVENUE BY GEOGRAPHICAL AREA

REVENUE BY GEOGRAPHICAL AREA, 2010 2009 2010 2009 2009
MEUR Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
Finland 75,6 76,1 146,9 149,2 295,4
Rest of EU countries 2,9 3,1 5,7 6,2 11,9
Rest of other countries 0,2 0,1 0,5 0,3 0,5
Total 78,7 79,3 153,1 155,8 307,8

INFORMATION BY SEGMENT

The business segments of Alma Media are Newspapers, Kauppalehti group, Marketplaces and
Other operations. The descriptive section of the financial statements presents the
revenue and operating profits of the segments and the allocation of the associated
companies’ results to the reporting segments. Financial items and income taxes are not
allocated to the segments.

The following table presents the assets and liabilities by segment as well as the
non-allocated asset and liability items.

ASSETS BY SEGMENT, MEUR 30 Jun 2010 30 Jun 2009 31 Dec 2009
Newspapers 43,7 43,7 45,4
Kauppalehti Group 41,1 47,3 41,3
Marketplaces 14,2 13,3 13,0
Other operations 26,4 33,0 29,9
Non-allocated assets and 26,1 18,6 25,9
eliminations
Total 151,6 156,0 155,5

LIABILITIES BY SEGMENT, MEUR 30 Jun 2010 30 Jun 2009 31 Dec 2009
Newspapers 33,7 32,1 24,9
Kauppalehti Group 11,0 13,2 9,8
Marketplaces 5,1 3,5 3,5
Other operations 11,4 12,1 12,6
Non-allocated liabilities and 7,2 16,9 8,7
eliminations
Total 68,4 77,9 59,5

2010 2009 2010 2009 2009
GROUP CAPITAL EXPENDITURE, MEUR Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4
Newspapers 1,5 0,5 2,1 0,9 1,8
Kauppalehti Group 0,3 0,3 0,4 0,6 2,6
Marketplaces -1,3 0,3 0,5 0,5 0,7
Others 2,4 0,5 2,8 1,0 3,0
Total 2,9 1,5 5,9 3,0 8,2

PROVISIONS

The company’s provisions on June 30, 2010 totalled MEUR 0.5 (0.7). The major part of the
provisions concern restructuring provisions. It has not been necessary to change the
estimates made when the provisions were entered.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES, MEUR 30 Jun 2010 30 Jun 2009 31 Dec 2009
Other commitments
Commitments based on agreements 0,1 0,1 0,1

Minimum lease payments on other lease agreements:
Within one year 5,9 7,5 6,3
Within 1-5 years 13,1 18,8 15,2
After 5 years 25,0 26,5 19,9
Total 44,0 52,8 41,4

The Group also has purchase
agreements which based on IFRIC 4 which include a lease component per IAS 17. Minimum payments based on these agreements: 2,0 0,4

GROUP DERIVATIVE CONTRACTS, MEUR 30 Jun 2010 30 Jun 2009 31 Dec 2009
Commondity derivate contracts, electricity
derivatives
Fair value * 0,1 -0,1 -0,0
Nominal value 1,0 0,9 0,8
* The fair-value represents the return that would have arisen if the derivative had been cleared on the balance sheet date.

RELATED PARTIES

Alma Media Group’s related parties are associated companies and companies owned by them.
The following table summarises the business operations undertaken between Alma Media and
its associated companies and the status of their receivables and liabilities:

2010 2009 2010 2009 2009
RELATED PARTY TRANSACTIONS, MEUR Q2 Q2 Q1-Q2 Q1-Q2 Q1-Q4

Sales of goods and services 0,1 0,0 0,1 0,1 0,2
Purchases of goods and services 0,8 1,0 1,7 1,9 3,7
Accounts receivable, loan and other 0,0
receivables at the end of reporting period
Accounts payable at the reporting date 0,1 0,1 0,1

Related parties also include the company’s senior management (members of the Board of
Directors, presidents and the Group Executive Team). The section The Alma Media Share -
Option Rights of this report presents information on changes to the current option
programme intended to motivate and secure the long-term commitment of the Group’s senior
management.

MAIN ACCOUNTING PRINCIPLES (IFRS)

This interim report has been prepared according to IFRS standards (IAS 34).

The report applies the same accounting principles and calculation methods as the
previous annual accounts dated December 31, 2009, with the exception of the standards
and interpretations applied from January 1, 2010 as listed below. The interim report
does not, however, contain all the information or notes to the accounts included in the
annual financial statements. This interim report should therefore be read in conjunction
with the company’s annual report.

The key indicators are calculated using the same formulae as applied in the previous
annual financial statements. The quarterly percentages of Return on Investment (ROI) and
Return on Equity (ROE) have been annualised using the formula ((1+quarterly
return)4)-1). The figures in this interim report are independently rounded.

The accounting principles of the financial years 2010 and 2009 are comparable. The
company has no discontinued operations to report in the 2009-2010 financial periods. The
appendices summarise the information for the comparison periods by segment according to
both the new and the old segment structure.

The Group has applied the following standards and interpretations from January 1, 2010:

IFRS 3 (2008) Business Combinations

IAS 27 (2008) Consolidated and Separate Financial Statements

IAS 39 Financial Instruments: Recognition and Measurement – Eligible Hedged Items,
amended

IFRIC 17 Distributions of Non-cash Assets to Owners

IFRIC 18 Transfers of Assets from Customers

IFRS – Improvements to IFRSs (April 2009)

IFRS 2 Share-based Payment – Group Cash-settled Share-based Payment Transactions,
amended

The impact of the above new standards and IFRIC interpretations on the Group has been
marginal. The amendments to IFRS 3 have affected the accounting of corporate
acquisitions during the 2010 financial period, such as goodwill and costs related to the
acquisitions.

New accounting standards to be adopted from the beginning of 2011 or later are:

IFRS 9 Financial Instruments, Phase 1

IAS 24 Related Party Disclosures (new)

IAS 32 Financial Instruments: Presentation – Classification of Rights Issues (amendment)

IFRIC 14 IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and
their Interaction

IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments

The Group preliminarily expects that the above new standards and interpretations will
have only a minor effect.

The figures in this interim report are unaudited.

SEASONALITY

The Group recognises its circulation revenues as paid. For this reason circulation
revenues accrue in the income statement fairly evenly during the four quarters of the
year. The bulk of circulation invoicing takes place at the beginning of the year and
therefore the cash flow from operating activities is strongest in the first and second
quarters. This also affects the company’s balance sheet position in different quarters.

GENERAL STATEMENT

This report contains certain statements that are estimates based on the management’s
best knowledge at the time they were made. For this reason they contain a certain amount
of risk and uncertainty. The estimates may change in the event of significant changes in
the general economic conditions.

NEXT INTERIM REPORT

Alma Media will publish its financial statements for the first nine months of the year
on October 29, 2010 at 9:00am (EEST).

ALMA MEDIA CORPORATION

Board of Directors

ADJUSTMENT OF THE BUSINESS SEGMENT INFORMATION REGARDING FINANCIAL YEAR 2009

1 REVENUE AND OPERATING PROFIT/LOSS BY SEGMENT UNDER NEW SEGMENT STRUCTRE

REVENUE AND OPERATING PROFIT/LOSS BY SEGMENT
UNDER NEW SEGMENT STRUCTRE

2009

REVENUE BY SEGMENT, 2009 2009 2009 2009 2009
MEUR Q1 Q2 Q3 Q4 Q1-Q4
Newspapers
External 52.0 54.9 51.2 55.4 213.4
Inter-segments 0.4 0.6 0.5 0.5 2.1
Newspapers total 52.4 55.5 51.7 55.9 215.5

Kauppalehti Group
External 16.2 16.0 14.5 15.9 62.5
Inter-segments 0.1 0.0 0.1 -0.1 0.3
Kauppalehti Group total 16.2 16.0 14.6 15.8 62.8

Marketplaces
External 7.2 7.1 6.3 6.5 27.0
Inter-segments 0.0 0.0 0.0 0.0 0.0
Marketplace total 7.2 7.0 6.2 6.5 27.0

Others
External 1.2 1.4 1.1 1.1 4.8
Inter-segments 17.0 17.0 16.6 17.2 67.8
Others total 18.2 18.4 17.7 18.3 72.7

Elimination -17.6 -17.6 -17.2 -17.6 -70.2
Total 76.4 79.3 73.0 79.0 307.8

OPERATING PROFIT/LOSS BY SEGMENT, 2009 2009 2009 2009 2009
MEUR * Q1 Q2 Q3 Q4 Q1-Q4
Newspapers 5.2 9.2 6.5 8.8 29.7
Kauppalehti Group 0.6 1.4 2.3 2.3 6.7
Marketplaces -0.2 -0.2 0.0 -0.3 -0.7
Other operations 0.9 1.5 2.4 1.0 5.7
Total 6.5 12.0 11.1 11.8 41.4
*) incl. one-time items

REVENUE AND OPERATING PROFIT/LOSS BY SEGMENT
UNDER OLD SEGMENT STRUCTRE

2009

REVENUE BY SEGMENT, 2009 2009 2009 2009 2009
MEUR Q1 Q2 Q3 Q4 Q1-Q4
Newspapers
External 52.8 56.0 51.9 56.2 216.9
Inter-segments 1.1 1.1 1.1 1.1 4.4
Newspapers total 53.9 57.1 53.0 57.3 221.3

Kauppalehti Group
External 16.2 16.0 14.5 15.9 62.5
Inter-segments 0.1 0.1 0.1 -0.1 0.3
Kauppalehti Group total 16.2 16.0 14.6 15.8 62.8

Marketplaces
External 7.2 7.1 6.3 6.5 27.0
Inter-segments 0.0 0.0 0.0 0.0 0.0
Marketplace total 7.2 7.0 6.2 6.5 27.0

Others
External 0.4 0.3 0.4 0.3 1.4
Inter-segments 3.6 3.9 3.5 3.5 14.5
Others total 4.0 4.2 3.9 3.8 15.9

Elimination -4.9 -5.0 -4.7 -4.5 -19.2
Total 76.4 79.3 73.0 79.0 307.8

OPERATING PROFIT/LOSS BY SEGMENT, 2009 2009 2009 2009 2009
MEUR * Q1 Q2 Q3 Q4 Q1-Q4
Newspapers 6.9 11.1 8.8 10.5 37.3
Kauppalehti Group 0.6 1.4 2.3 2.3 6.7
Marketplaces -0.2 -0.2 0.0 -0.3 -0.7
Other operations -0.8 -0.3 0.0 -0.7 -1.9
Total 6.5 11.9 11.1 11.8 41.4
*) incl. one-time items

CHANGES IN REVENUE AND OPERATING PROFIT/LOSS
BY SEGMENT

2009

REVENUE BY SEGMENT, 2009 2009 2009 2009 2009
MEUR Q1 Q2 Q3 Q4 Q1-Q4
Newspapers
External -0.8 -1.1 -0.7 -0.8 -3.4
Inter-segments -0.7 -0.5 -0.5 -0.6 -2.3
Newspapers total -1.5 -1.6 -1.2 -1.4 -5.8

Kauppalehti Group
External 0.0 0.0 0.0 0.0 0.0
Inter-segments 0.0 0.0 0.0 0.0 0.0
Kauppalehti Group total 0.0 0.0 0.0 0.0 0.0

Marketplaces
External 0.0 0.0 0.0 0.0 0.0
Inter-segments 0.0 0.0 0.0 0.0 0.0
Marketplace total 0.0 0.0 0.0 0.0 0.0

Others
External 0.8 1.1 0.7 0.8 3.4
Inter-segments 13.4 13.1 13.1 13.7 53.3
Others total 14.2 14.2 13.8 14.5 56.7

Elimination -12.7 -12.6 -12.5 -13.1 -51.0
Total 0.0 0.0 0.0 0.0 0.0

OPERATING PROFIT/LOSS BY SEGMENT, 2009 2009 2009 2009 2009
MEUR * Q1 Q2 Q3 Q4 Q1-Q4
Newspapers -1.7 -1.8 -2.4 -1.7 -7.5
Kauppalehti Group 0.0 0.0 0.0 0.0 0.0
Marketplaces 0.0 0.0 0.0 0.0 0.0
Other operations 1.7 1.8 2.4 1.7 7.5
Total 0.0 0.0 0.0 0.0 0.0

1 KEY FIGURES BY SEGMENT

KEY FIGURES BY SEGMENT UNDER NEW SEGMENT STRUCTURE

2009

NEWSPAPERS 2009 2009 2009 2009 2009
Key figures, MEUR Q1 Q2 Q3 Q4 Q1-Q4
Revenue 52.4 55.5 51.7 55.9 215.5
Circulation revenue 26.9 27.2 28.5 27.2 109.9
Media advertising revenue 24.4 27.3 22.2 27.4 101.3
Other revenue 1.0 1.0 1.1 1.3 4.4
Operating profit 5.2 9.2 6.5 8.8 29.7
Operating profit, % 9.9 16.7 12.5 15.8 13.8
Operating profit without one-time items 5.9 9.4 6.9 8.6 30.8
Operating profit without one-time items, % 11.3 16.8 13.4 15.4 14.3
Average no. of personnel, 1,002 1,015 1,021 1,002 1,002
calculated as full-time
employees excl. delivery
staff
Average no. of delivery 365 370 377 370 370
staff

KAUPPALEHTI GROUP 2009 2009 2009 2009 2009
Key figures, MEUR Q1 Q2 Q3 Q4 Q1-Q4
Revenue 16.2 16.2 14.6 15.8 62.8
Circulation revenue 3.8 3.5 4.0 4.0 15.4
Media advertising revenue 4.3 4.0 3.0 5.0 16.3
Other Revenue 8.1 8.6 7.5 6.8 31.0
Operating profit 0.6 1.4 2.3 2.3 6.7
Operating profit, % 4.0 9.0 15.5 14.8 10.7
Operating profit without one-time items 0.9 1.6 2.3 2.0 6.7
Operating margin without one-time items, % 5.6 9.6 15.5 12.5 10.7
Average no. of personnel, 488 490 477 453 477
calculated as full-time
employees

MARKETPLACES 2009 2009 2009 2009 2009
Key figures, MEUR Q1 Q2 Q3 Q4 Q1-Q4
Revenue 7.2 7.0 6.2 6.5 27.0
Operations in Finland 6.0 5.9 5.2 5.4 22.4
Operations outside Finland 1.2 1.2 1.1 1.1 4.7
Operating profit -0.2 -0.2 0.0 -0.3 -0.7
Operating margin, % -2.8 -3.2 0.7 -4.3 -2.5
Operating profit without -0.2 -0.2 0.2 -0.3 -0.5
one-time items
Operating margin without -2.6 -3.2 2.4 -4.5 -2.0
one-time items, %
Average no. of personnel, 230 202 189 178 200
calculated as full-time
employees

KEY FIGURES BY SEGMENT UNDER OLD SEGMENT STRUCTURE

2009

NEWSPAPERS 2009 2009 2009 2009 2009
Key figures, MEUR Q1 Q2 Q3 Q4 Q1-Q4
Revenue 53.9 57.1 53.0 57.3 221.3
Circulation revenue 26.9 27.2 28.5 27.2 109.9
Media advertising revenue 24.4 27.3 22.2 27.4 101.3
Other revenue 2.5 2.6 2.3 2.7 10.2
Operating profit 6.9 11.1 8.8 10.5 37.3
Operating profit, % 12.8 19.4 16.7 18.3 16.8
Operating profit without one-time items 7.6 11.2 9.3 10.3 38.4
Operating profit without one-time items, % 14.1 19.6 17.5 17.9 17.3
Average no. of personnel, 1,152 1,176 1,185 1,084 1,149
calculated as full-time
employees excl. delivery
staff
Average no. of delivery 937 998 1,045 894 969
staff

KAUPPALEHTI GROUP 2009 2009 2009 2009 2009
Key figures, MEUR Q1 Q2 Q3 Q4 Q1-Q4
Revenue 16.2 16.0 14.6 15.8 62.8
Circulation revenue 5.9 5.6 5.9 6.1 23.5
Media advertising revenue 4.3 4.0 3.0 5.0 16.3
Other Revenue 6.0 6.4 5.6 4.7 23.0
Operating profit 0.6 1.4 2.3 2.3 6.7
Operating profit, % 4.0 9.0 15.5 14.8 10.7
Operating profit without 0.9 1.6 2.3 2.0 6.7
one-time items
Operating margin without 5.6 9.6 15.5 12.5 10.7
one-time items, %
Average no. of personnel, 488 490 477 453 477
calculated as full-time
employees

MARKETPLACES 2009 2009 2009 2009 2009
Key figures, MEUR Q1 Q2 Q3 Q4 Q1-Q4
Revenue 7.2 7.0 6.2 6.5 27.0
Operations in Finland 6.0 5.9 5.2 5.4 22.4
Operations outside Finland 1.2 1.1 1.1 1.1 4.7
Operating profit -0.2 -0.2 0.0 -0.3 -0.7
Operating margin, % -2.8 -3.2 0.7 -4.3 -2.5
Operating profit without -0.2 -0.2 0.2 -0.3 -0.5
one-time items
Operating margin without -2.8 -3.2 2.4 -4.5 -2.0
one-time items, %
Average no. of personnel, 230 202 189 178 200
calculated as full-time
employees

CHANGES IN KEY FIGURES BY SEGMENT

2009

NEWSPAPERS 2009 2009 2009 2009 2009
Key figures, MEUR Q1 Q2 Q3 Q4 Q1-Q4
Revenue -1.5 -1.6 -1.2 -1.4 -5.8
Circulation revenue 0.0 0.0 0.0 0.0 0.0
Media advertising revenue 0.0 0.0 0.0 0.0 0.0
Other revenue -1.5 -1.6 -1.2 -1.4 -5.8
Operating profit -1.7 -1.8 -2.4 -1.7 -7.5
Operating profit without one-time items -1.7 -1.8 -2.4 -1.7 -7.5
Average no. of personnel, -151 -161 -164 -82 -147
calculated as full-time
employees excl. delivery
staff
Average no. of delivery -573 -628 -668 -525 -599
staff

KAUPPALEHTI GROUP 2009 2009 2009 2009 2009
Key figures, MEUR Q1 Q2 Q3 Q4 Q1-Q4
Revenue 0.0 0.0 0.0 0.0 0.0
Circulation revenue -2.0 -2.2 -1.9 -2.1 -8.1
Media advertising revenue 0.0 0.0 0.0 0.0 0.0
Other Revenue 2.0 2.2 1.9 2.1 8.1
Operating profit 0.0 0.0 0.0 0.0 0.0
Operating profit without 0.0 0.0 0.0 0.0 0.0
one-time items
Average no. of personnel, 0 0 0 0 0
calculated as full-time
employees

MARKETPLACES 2009 2009 2009 2009 2009
Key figures, MEUR Q1 Q2 Q3 Q4 Q1-Q4
Revenue 0.0 0.0 0.0 0.0 0.0
Operations in Finland 0.0 0.0 0.0 0.0 0.0
Operations outside Finland 0.0 0.0 0.0 0.0 0.0
Operating profit 0.0 0.0 0.0 0.0 0.0
Operating profit without 0.0 0.0 0.0 0.0 0.0
one-time items
Average no. of personnel, 0 0 0 0 0
calculated as full-time
employees

1 ASSETS, LIABILITIES AND CAPITAL EXPENDITURE BY SEGMENT

ASSETS, LIABILITIES AND CAPITAL EXPENDITURE BY SEGMENT
UNDER NEW SEGMENT STRUCTRE

2009

ASSETS BY SEGMENT, MEUR Mar 31 2009 Jun 30 2009 Sep 30 2009 Dec 31 2009
Newspapers 44.0 43.7 43.6 45.4
Kauppalehti Group 53.7 47.3 49.6 41.3
Marketplaces 14.3 13.3 13.2 13.0
Other operations and 33.5 33.0 32.1 29.9
eliminations
Non-allocated assets 35.2 18.6 16.9 25.9
Total 180.7 156.0 155.4 155.5

LIABILITIES BY SEGMENT, MEUR Mar 31 2009 Jun 30 2009 Sep 30 2009 Dec 31 2009
Newspapers 36.8 32.1 27.2 24.9
Kauppalehti Group 15.9 13.2 11.4 9.8
Marketplaces 4.1 3.5 3.2 3.5
Other operations and 14.3 12.1 12.1 12.6
eliminations
Non-allocated liabilities 39.2 17.0 14.6 8.7
Total 110.4 77.9 68.6 59.5

GROUP CAPITAL EXPENDITURE, MEUR 2009 2009 2009 2009
Q1 Q2 Q3 Q4
Newspapers 0.5 0.5 0.7 0.2
Kauppalehti Group 0.3 0.3 0.1 1.9
Marketplaces 0.2 0.3 0.1 0.1
Others 0.6 0.5 1.2 0.8
Total 1.5 1.4 2.2 3.0

ASSETS, LIABILITIES AND CAPITAL EXPENDITURE BY SEGMENT
UNDER OLD SEGMENT STRUCTRE

2009

ASSETS BY SEGMENT, MEUR Mar 31 2009 Jun 30 2009 Sep 30 2009 Dec 31 2009
Newspapers 65.3 64.1 63.4 65.3
Kauppalehti Group 53.7 47.3 49.6 41.3
Marketplaces 14.3 13.3 13.2 13.0
Other operations and 12.2 12.6 12.3 10.0
eliminations
Non-allocated assets 35.2 18.6 16.9 25.9
Total 180.7 156.0 155.4 155.5

LIABILITIES BY SEGMENT, MEUR Mar 31 2009 Jun 30 2009 Sep 30 2009 Dec 31 2009
Newspapers 43.9 38.6 33.3 31.7
Kauppalehti Group 15.9 13.2 11.4 9.8
Marketplaces 4.1 3.5 3.2 3.5
Other operations and 7.3 5.6 6.1 5.8
eliminations
Non-allocated liabilities 39.2 17.0 14.6 8.7
Total 110.4 77.9 68.6 59.5

GROUP CAPITAL EXPENDITURE, MEUR 2009 2009 2009 2009
Q1 Q2 Q3 Q4
Newspapers 0.9 0.6 1.0 0.8
Kauppalehti Group 0.3 0.3 0.1 1.9
Marketplaces 0.2 0.3 0.1 0.1
Others 0.1 0.3 1.0 0.2
Total 1.5 1.4 2.2 3.0

CHANGES IN ASSETS, LIABILITIES AND CAPITAL EXPENDITURE
BY SEGMENT

2009

ASSETS BY SEGMENT, MEUR Mar 31 2009 Jun 30 2009 Sep 30 2009 Dec 31 2009
Newspapers -21.2 -20.4 -19.8 -19.9
Kauppalehti Group 0.0 0.0 0.0 0.0
Marketplaces 0.0 0.0 0.0 0.0
Other operations and 21.2 20.4 19.8 19.9
eliminations
Non-allocated assets 0.0 0.0 0.0 0.0
Total 0.0 0.0 0.0 0.0

LIABILITIES BY SEGMENT, MEUR Mar 31 2009 Jun 30 2009 Sep 30 2009 Dec 31 2009
Newspapers -7.1 -6.5 -6.0 -6.8
Kauppalehti Group 0.0 0.0 0.0 0.0
Marketplaces 0.0 0.0 0.0 0.0
Other operations and 7.1 6.5 6.0 6.8
eliminations
Non-allocated liabilities 0.0 0.0 0.0 0.0
Total 0.0 0.0 0.0 0.0

GROUP CAPITAL EXPENDITURE, MEUR 2009 2009 2009 2009
Q1 Q2 Q3 Q4
Newspapers -0.4 -0.2 -0.2 -0.6
Kauppalehti Group 0.0 0.0 0.0 0.0
Marketplaces 0.0 0.0 0.0 0.0
Others 0.4 0.2 0.2 0.6
Total 0.0 0.0 0.0 0.0

HUG#1433382

Alma Media Corporation’s Interim Report Q2 2010

http://hugin.info/3000/R/1433382/379248.pdf

Syngenta 2010 Half Year Results

Syngenta 2010 Half Year Results
Volume upturn in Q2; strong emerging market performance

PR Newswire

BASEL, Switzerland, July 22

BASEL, Switzerland, July 22 /PRNewswire-FirstCall/ –

* Sales up 1 percent at $6.7 billion: 3 percent lower at constant exchange rates(1)
* Q2: volume growth offsetting lower Crop Protection prices, notably NAFTA
* Seeds growth accelerating, increased margin
* Investments driving emerging market growth: sales up 15 percent(1)
* Earnings per share(2) $13.95, 9 percent lower
* Earnings per share $13.39 after restructuring and impairment, 10 percent lower

Reported Financial Highlights

Excluding Restructuring, Impairment

H1 2010
$m

H1 2009
$m

Actual
%

H1 2010
$m

H1 2009
$m

Actual

%

CER(1)
%

Sales

6,740

6,655

+ 1

6,740

6,655

+ 1

- 3

Crop Protection

4,996

5,000

-

4,996

5,000

-

- 4

Seeds

1,763

1,676

+ 5

1,763

1,676

+ 5

+ 2

Operating Income

1,558

1,783

- 13

1,652

1,833

- 10

Net Income(3)

1,254

1,402

- 11

1,307

1,440

- 9

Earnings per share

$13.39

$14.96

- 10

$13.95

$15.36

- 9

Mike Mack, Chief Executive Officer, said:

“After a slow first quarter start, demand for our products has increased significantly in 2010, following a 2009 season characterized by low pest pressure and credit constraint. This is evidenced by solid volume growth in the second quarter, leading to a reduction in the high level of channel inventories which resulted in a competitive pricing environment in developed markets, notably North America. In the emerging markets we saw a strong performance throughout the first half, particularly in Latin America, as growers continued to invest in new technology. Our longstanding focus on operational efficiency is enabling us to confront a challenging short term environment while continuing to expand our platforms for future growth.

“The first half of 2010 saw many successes for our business. Sales of new Crop Protection products increased by 14 percent with two pipeline products being launched this year. We opened new capacity for the fungicide AMISTAR® in May and are seeing immediate demand for the increased output. The profitability of our Seeds business improved with excellent grower response to our expanded triple stack offer. We will build on our growing corn seed franchise with the launch of AGRISURE VIPTERA™ in the fall, and we will also be the first company bringing to market a water optimization solution in corn.”

Financial Performance 1st Half 2010

Sales $6.7 billion

Reported sales were up one percent reflecting a positive contribution from exchange rates. At constant exchange rates, sales were three percent lower. Crop Protection sales* were four percent lower, with three percent volume growth partly offsetting lower prices. Seeds sales were two percent higher, driven by volume growth of three percent.

EBITDA margin 28.6 percent

EBITDA was nine percent lower (CER) at $1.9 billion. Gross margin was maintained despite lower prices due to the favorable evolution of raw material costs and to portfolio enhancement in Seeds. The Seeds EBITDA margin increased, while in Crop Protection profitability reflected lower prices and higher operating expenses linked to investments in emerging markets and in R&D. Currency movements including hedging made a positive contribution of $57 million to EBITDA.

Earnings per share $13.95

Earnings per share excluding restructuring and impairment were nine percent lower. After charges for restructuring and impairment, earnings per share were $13.39 (2009: $14.96).

Business Highlights

Crop Protection

A slow start to the northern hemisphere season due to cold weather was followed by significant volume growth in the second quarter. High channel inventories, built up in the course of 2009, were progressively drawn down in the second quarter but resulted in a competitive first half price environment, notably in NAFTA. As a consequence some of the price gains implemented by Syngenta in the first half of 2009 were reversed. Emerging markets saw a generally robust performance with limited impact from price.

In Europe, Africa and the Middle East grower sentiment was affected by the lower wheat price, particularly in France, where the business was also affected by high channel inventory, government credit reforms and the phasing of oilseed rape herbicide sales. In Eastern Europe, our customers began to resume investment in high value inputs and we were able to ease credit constraints in an improved economic environment. In NAFTA, the season progressed well leading to a rapid recovery in consumption in the second quarter, although price competition remained intense in certain segments, notably glyphosate and fungicides. Sales in Latin America surpassed the record level of 2008, with higher soybean acreage in both Brazil and Argentina and increased disease pressure. We reinforced our market-leading position notably for fungicides. Growth in Asia Pacific was strong in the emerging markets, particularly China and Vietnam, more than offsetting a decline in the largest market Japan.

Selective herbicide sales were lower with declines concentrated in older products. Sales of corn and soybean herbicides showed good growth notably in the USA, where their importance in dealing with glyphosate-resistant weeds is increasingly being recognized. A significant reduction in Non-selective herbicides mainly reflected developments in the glyphosate market, with US prices coming down sharply from mid-2009. Fungicide sales increased by six percent, with the lead product AMISTAR® up 17 percent despite lower US pricing in the second quarter. Two other major fungicides, RIDOMIL GOLD® and SCORE®, also showed double digit growth with stable pricing. Insecticide sales were unchanged with strong growth in newer products offsetting declines in older chemistries. Seed care sales were lower owing largely to high inventories of treated seed in the USA.

Professional products benefited from signs of recovery in consumer markets, notably in the Garden & Ornamentals area.

New products: Sales of new products (defined as those launched since 2006) increased by 14 percent (CER) to $295 million. Sales of the nematicide seed treatment AVICTA® doubled following its launch on corn in the USA. The cereal herbicide AXIAL® showed strong growth in Eastern Europe and further expansion in its largest market Canada. The insecticide DURIVO® grew rapidly on rice and vegetables across Asia. The fungicide REVUS®, used on vegetables and vines, expanded outside Europe and is now sold in all regions. Isopyrazam, a broad spectrum fungicide with a new mode of action, was launched on barley in the UK.

Capacity expansion: New capacity for AMISTAR® was opened at Grangemouth, UK in May. The opening will result in a production increase of approximately 20 percent in 2010, with immediate demand for the increased output.

R&D pipeline: The combined peak sales potential of our Crop Protection pipeline is in excess of $2 billion. An initial launch in granular form of INVINSA™, a unique product for crop stress protection in field crops, is scheduled for later this year. The late development pipeline also includes sedaxane, a seed treatment fungicide; bicyclopyrone, a corn and sugar cane herbicide; and an insecticide cyantraniliprole.

EBITDA was 13 percent lower (CER) at $1.6 billion with a margin (CER) of 31.8 percent (2009: 35.2 percent).

Seeds

Growth in Seeds was broad-based with a noticeable acceleration in the second quarter.

Corn & Soybean saw growth of eight percent after adjusting for a one off change in US sales terms, which brought sales forward from the first quarter of 2010 to the fourth quarter of 2009. Sales of our proprietary triple stack corn in the US market expanded significantly to represent around 60 percent of total, approaching market penetration rates. Sales grew rapidly in Latin America and Eastern Europe.

Diverse Field Crops showed solid internal growth supplemented by the acquisition of the Monsanto sunflower business in August 2009. The main driver was Eastern Europe, where sales increased by more than 30 percent as growers resumed investment in high quality hybrids and varieties.

Growth in Vegetables accelerated, led by NAFTA where sales of watermelon and sweet corn, for which capacity has recently been expanded, grew strongly. Sales in Latin America and the emerging markets of Asia Pacific also grew strongly.

Flowers sales were slightly lower owing to weakness in the US market, although in Europe sales showed a significant upturn reflecting an enhanced portfolio and more favorable consumer sentiment.

R&D pipeline: Our broad spectrum lepidoptera trait AGRISURE VIPTERA™ received approval from the U.S. Department of Agriculture and from the Japanese regulatory authorities in the first half of the year. The trait will be launched in the USA as part of a multi-stack offer in the fourth quarter and will provide growers with a new standard for pest control and yield performance. Also this year Syngenta will bring to market AGRISURE ARTESIAN™, the industry’s first water optimization solution, based on native traits. Over the next two years a complete range of refuge reduction options in corn will be launched, including AGRISURE E-Z REFUGE™ (refuge in a bag).

EBITDA of $352 million was up seven percent (CER), driven by gross margin expansion. The EBITDA margin (CER) reached 20.1 percent (2009: 19.1 percent) and remains on track to reach the full year target of 15 percent in 2011.

Net financial expense

Net financial expense at $55 million was slightly higher compared with the first half of 2009 ($46 million).

Taxation

The underlying tax rate for the period was 19 percent, unchanged compared with the first half of 2009. In the second half of the year the tax rate is likely to be higher than in the same period last year; over the medium term a tax rate in the low to mid-twenties is expected.

Cash flow

Free cash flow was $74 million (2009: $79 million). Fixed capital expenditure of $266 million (2009: $364 million) reflected the concluding phase of capacity expansion projects for key active ingredients. Average trade working capital as a percentage of sales was 43 percent (2009: 40 percent) reflecting an increase in inventories in the second half of 2009. We continue to target a reduction in trade working capital as a percentage of sales as continued volume growth reduces inventories.

Dividend and share repurchase

A dividend of CHF 6.00 per share (2009: CHF 6.00) was paid in the second quarter, representing a total payout of $524 million. In line with Syngenta’s objective of returning around $750 million to shareholders in 2010, 288,700 shares were repurchased in the first half at a total cost of $67 million. The total cash return to shareholders in the first half was $591 million.

Outlook

Mike Mack, Chief Executive Officer, said:

“In the second half of 2010 we expect positive volume momentum to continue. As we approach the main season in Latin America, we are assuming that the current favorable fundamentals will support further growth in our business there. This, coupled with careful control of costs and increasing profitability in Seeds, should allow us to achieve full year operating income around last year’s level. As indicated earlier in the year, the evolution of earnings per share** will reflect increased net financial expense and a higher tax rate.

“Looking ahead, our focus will be on achieving further market share gains in developed markets while building on our track record of operational efficiency. This will enable us to continue investing in emerging markets, which represent the main growth driver for our business and where we have established leadership positions. We remain firmly committed to our investments in R&D, which will accelerate new product launches and build on our ability to deliver integrated solutions to growers worldwide.”

Crop Protection

For a definition of constant exchange rates, see Appendix A of full English version.

1st Half

Growth

2nd Quarter

Growth

Product line

2010
$m

2009
$m

Actual
%

CER
%

2010
$m

2009
$m

Actual
%

CER
%

Selective Herbicides

1,620

1,615

-

- 4

877

814

+ 8

+ 5

Non-selective Herbicides

548

691

- 21

- 25

316

362

- 13

- 16

Fungicides

1,488

1,356

+ 10

+ 6

681

634

+ 7

+ 5

Insecticides

700

673

+ 4

-

349

318

+ 10

+ 8

Seed Care

369

392

- 6

- 10

130

135

- 4

- 6

Professional Products

242

225

+ 7

+ 4

122

115

+ 6

+ 4

Others

29

48

- 38

- 39

11

37

-68

- 68

Total

4,996

5,000

-

- 4

2,486

2,415

+ 3

-

Selective Herbicides: major brands AXIAL®, CALLISTO® family, DUAL®/BICEP® MAGNUM, FUSILADE®MAX, TOPIK®

Sales volume was slightly higher with a substantial increase in Latin America, partially offset by lower volumes in Europe due to the phasing of oilseed rape herbicides in France and Germany, which reduced sales by $47 million. The decline in total sales (CER) was due to lower prices, mainly in NAFTA, in a more competitive environment. The CALLISTO® range showed growth in a strong pre-emergence corn herbicide market in the USA.

Non-selective Herbicides: major brands GRAMOXONE®, TOUCHDOWN®

In non-selectives, TOUCHDOWN® sales decreased significantly in NAFTA due to lower prices affecting the first half comparison. Volume was also lower reflecting high channel inventories. GRAMOXONE® sales were lower with some related weakness, notably in Latin America and Asia Pacific.

Fungicides: major brands ALTO®, AMISTAR®, BRAVO®, REVUS®, RIDOMIL GOLD®, SCORE®, TILT®, UNIX®

Fungicide sales were six percent higher on strong volume growth in Latin America, NAFTA and Asia Pacific. Volume growth was partially offset by price declines, mainly in NAFTA due to high channel inventory and a competitive environment. AMISTAR® sales increased significantly with volume 31 percent higher, characterized by increased usage intensity and growers’ focus on plant performance in key crops including rice and vegetables in Asia Pacific, soybean in Latin America and corn in NAFTA. REVUS® continued to show strong growth, with launches in nine new countries. Our new fungicide, isopyrazam, was introduced in the United Kingdom on barley with first sales in the second quarter. Additional launches in further countries are planned in key cereals and fruit and vegetable markets.

Insecticides: major brands ACTARA®, DURIVO®, FORCE®, KARATE®, PROCLAIM®, VERTIMEC®

Insecticide sales were flat with strong growth in DURIVO® and ACTARA® offset by a more competitive environment in some of the older chemistries. DURIVO® continued to perform strongly in rice and vegetables in Asia Pacific and continued its expansion into new markets, notably with successful launches in Latin America and Japan. ACTARA® sales growth was broad based with strong gains in Latin America and Asia Pacific.

Seed Care: major brands AVICTA®, CRUISER®, DIVIDEND®, MAXIM®

Seed care sales were 10 percent lower owing largely to high inventories of treated seed in the USA. The decline in the USA was partially offset by growth in CRUISER® in Latin America and Asia Pacific.

Professional Products: major brands FAFARD®, HERITAGE®, ICON®

Professional product sales were four percent higher as the consumer-led areas of our Lawn & Garden business showed signs of recovery. Both Western and Eastern Europe showed double digit growth and the emerging Latin America business expanded rapidly.

1st Half

Growth

2nd Quarter

Growth

Crop Protection
by region

2010
$m

2009
$m

Actual
%

CER
%

2010
$m

2009
$m

Actual
%

CER
%

Europe, Africa, Mid. East

1,790

1,810

- 1

- 5

831

823

+ 1

-

NAFTA

1,662

1,882

- 12

- 15

942

989

- 5

- 8

Latin America

710

550

+ 29

+ 29

330

262

+ 26

+ 26

Asia Pacific

834

758

+ 10

+ 2

383

341

+ 12

+ 5

Total

4,996

5,000

-

- 4

2,486

2,415

+ 3

-

Europe, Africa and the Middle East: Sales were lower due to a prolonged winter in Western Europe which delayed the start of the season as well as the phasing of oilseed rape herbicides. In France, overall consumption of crop protection products was lower as a result of high channel inventory. Declines in Western Europe were partially offset by growth in Eastern Europe where the credit situation in most countries eased. This supported a return to investment in high value inputs, notably in the Ukraine where sales increased almost 60 percent. Africa and the Middle East showed strong growth in selective herbicides, fungicides and seed care.

NAFTA: Sales were lower in NAFTA due to a more competitive environment. High channel inventory and a more cautious stance by distributors, as well as marketing actions to speed technology adoption, contributed to price pressure. Excluding glyphosate, price was 11 percent lower while volume was slightly higher primarily on an expanded fungicide market. TOUCHDOWN® accounted for more than 40 percent of the sales decline in NAFTA.

Latin America: Latin America completed an excellent season with significantly higher sales; slightly higher than the record first half level of 2008. Soybean acreage in the region expanded and increased disease pressure resulted in greater usage intensity and a reinforcement of Syngenta’s market leading position. Liquidity also improved markedly and soybean prices were supported by Chinese demand. Growth was led by PRIORI Xtra®, our leading fungicide for the treatment of soybean rust.

Asia Pacific: Growth in Asia Pacific continued as strong government support for agriculture enabled growers to continue investing in yield improvement, notably in rice and vegetables. Growth was primarily due to increased demand for fungicides, led by AMISTAR®, with sales up 12 percent.

Seeds

For a definition of constant exchange rates, see Appendix A of full English version.

1st Half

Growth

2nd Quarter

Growth

Product line

2010
$m

2009
$m

Actual
%

CER
%

2010
$m

2009
$m

Actual
%

CER
%

Corn & Soybean

806

843

- 4

- 7

253

213

+ 19

+ 16

Diverse Field Crops

386

304

+ 27

+ 19

193

155

+ 24

+ 19

Vegetables

360

322

+ 12

+ 9

200

180

+ 11

+ 11

Flowers

211

207

+ 2

- 1

81

74

+ 9

+ 8

Total

1,763

1,676

+ 5

+ 2

727

622

+ 17

+ 14

Corn & Soybean: major brands AGRISURE®, GARST®, GOLDEN HARVEST®, NK®

Corn and Soybean sales were up by eight percent adjusting for the impact of advanced sales in the fourth quarter of 2009. Growth occurred across all regions, led by a strong season in the US and good growth in Latin America and Eastern Europe. Sales of our proprietary triple stack corn AGRISURE® 3000 GT in the USA showed a significant advance, representing around 60 percent of our portfolio.

Diverse Field Crops: major brands NK® oilseeds, HILLESHOG® sugar beet

Diverse Field Crops sales increased significantly on good underlying growth supplemented by acquisitions. Sales expanded in Eastern Europe, with significant growth in Russia and the Ukraine on higher sunflower acreage. The acquisition of Monsanto’s sunflower business added 12 percent to product line sales.

Vegetables: major brands DULCINEA®, ROGERS®, S&G®, Zeraim Gedera

Vegetables continued to show excellent growth with sales up nine percent. Underlying growth excluding acquisitions and divestments was 10 percent, with double digit expansion in all regions with the exception of Europe, where sales were unchanged. Growth continued to reflect the ongoing progress of high value products in our strategic crops, notably tomato, watermelon and sweet corn.

Flowers: major brands Fischer, Goldfisch, Goldsmith Seeds, S&G®, Yoder

Flowers sales were down slightly due to NAFTA where the market was characterized by lower consumer demand in a subdued economic environment. The decline in NAFTA was partially offset by growth in Europe and Asia Pacific as those markets began to show signs of recovery.

1st Half

Growth

2nd Quarter

Growth

Seeds by region

2010
$m

2009
$m

Actual
%

CER
%

2010
$m

2009
$m

Actual
%

CER
%

Europe, Africa, Mid. East

762

659

+ 16

+ 9

297

251

+ 18

+ 15

NAFTA

826

880

- 6

- 7

329

300

+ 9

+ 8

Latin America

62

41

+ 52

+ 52

31

14

+ 122

+ 122

Asia Pacific

113

96

+ 18

+ 11

70

57

+ 24

+ 16

Total

1,763

1,676

+ 5

+ 2

727

622

+ 17

+ 14

Announcements and Meetings

Third quarter trading statement 2010

October 14, 2010

Announcement of 2010 Full Year Results

February 9, 2011

First quarter trading statement 2011

April 15, 2011

AGM

April 19, 2011

Syngenta is one of the world’s leading companies with more than 25,000 employees in over 90 countries dedicated to our purpose: Bringing plant potential to life. Through world-class science, global reach and commitment to our customers we help to increase crop productivity, protect the environment and improve health and quality of life. For more information about us please go to www.syngenta.com.

Note to the editor:

Further information, documents and images will be available on our website www.syngenta.com/hyr2010.

Cautionary Statement Regarding Forward-Looking Statements

This document contains forward-looking statements, which can be identified by terminology such as ‘expect’, ‘would’, ‘will’, ‘potential’, ‘plans’, ‘prospects’, ‘estimated’, ‘aiming’, ‘on track’ and similar expressions. Such statements may be subject to risks and uncertainties that could cause the actual results to differ materially from these statements. We refer you to Syngenta’s publicly available filings with the U.S. Securities and Exchange Commission for information about these and other risks and uncertainties. Syngenta assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors. This document does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer, to purchase or subscribe for any ordinary shares in Syngenta AG, or Syngenta ADSs, nor shall it form the basis of, or be relied on in connection with, any contract therefor.

(1)

Growth at constant exchange rates, see Appendix A of full English version.

(2)

EPS on a fully-diluted basis, excluding restructuring and impairment.

(3)

Net income to shareholders of Syngenta AG.

(*)

Crop Protection sales include $24 million of inter-segment sales.

(**)

Fully diluted, excluding restructuring and impairment

Syngenta International AG

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UPDATE 1-Saudi Dar Al-Arkan Q2 net falls on lower land sales

RIYADH, July 20 (Reuters) – Saudi-based real estate developer Dar al-Arkan 4300.SE said second-quarter earnings fell by almost 30 percent on declining sales of building-ready land, its main revenue source.

Second-quarter net profit was broadly in line with analysts forecasts at 437 million riyals ($117 million), down 29.3 percent from 618.3 million riyals a year earlier, Saudi Arabia’s largest property developer by market value said in a statement to the Saudi bourse.

Analysts surveyed by Reuters had expected on average net profit of 431 million riyals.

“The decline in second-quarter net profit… is due to a decrease in the areas of sold land,” the company said without giving any figures.

Land sales generate the the bulk of revenues and profit for the firm: They accounted for 90 percent of its revenues during the first quarter and 96 percent of its gross profit for the period.

The repercussions of the global financial crisis have led to a drop in the amount of liquidity that goes into land speculation in Saudi Arabia, resulting mainly in a decline in the volume of transactions, industry sources say.

By end-June, earnings per share fell to 0.77 riyals down from 0.97 riyals a year earlier while net operating income fell 26.4 percent to 492 million riyals. (Reporting by Souhail Karam; Editing by Andrew Callus)