2009-11-12 08:00:00 CET

2009-11-12 08:00:03 CET


REGULATED INFORMATION

English Finnish
Neomarkka - Interim report (Q1 and Q3)

Q3 Turnover at Q2 Level, Operating Result Shows a Loss


NEOMARKKA PLC	INTERIM REPORT 12.11.2009	at 9.00	1(13)                           


NEOMARKKA PLC INTERIM REPORT 1.1. - 30.9.2009                                   

Q3 Turnover at Q2 Level, Operating Result Shows a Loss                          

--------------------------------------------------------------------------------
| KEY FIGURES                           |    7-9 |     7-9 |     1-9 |     1-9 |
|                                       |  /2009 |   /2008 |   /2009 |   /2008 |
--------------------------------------------------------------------------------
| Turnover, EUR million, of which       |   17.7 |    31.2 |    52.7 |    91.0 |
--------------------------------------------------------------------------------
| - Cable business                      |   17.7 |    31.2 |    52.7 |    91.0 |
--------------------------------------------------------------------------------
| - Other operations                    |    0.0 |     0.0 |     0.0 |     0.0 |
--------------------------------------------------------------------------------
| Operating result, EUR million, of     |   -1.9 |    -0.3 |    -2.8 |     4.1 |
| which                                 |        |         |         |         |
--------------------------------------------------------------------------------
| - Cable business                      |   -1.2 |    -0.1 |    -1.8 |     4.9 |
--------------------------------------------------------------------------------
| - Other operations                    |   -0.7 |    -0.2 |    -1.0 |    -0.9 |
--------------------------------------------------------------------------------
| Profit or loss for the period, EUR    |   -1.2 |    -0.8 |    -2.5 |     0.4 |
| million                               |        |         |         |         |
--------------------------------------------------------------------------------
| Earnings per share, EUR               |  -0.19 |   -0.12 |   -0.40 |    0.07 |
--------------------------------------------------------------------------------

Return on investment (ROI) during the nine months under review was -1.2% (3.5%).
The equity ratio was 49.1% (48.7%).                                             

MAJOR EVENTS DURING THE REVIEW PERIOD                                           

Industrial Investments: Cable Business                                          

Turnover from cable operations in the third quarter was at the same level as in 
the second quarter, EUR 17.7 million. This was EUR 13.4 million lower than in   
Q3/2008. The third-quarter operating loss was EUR 1.8 million compared with an  
operating profit of EUR 4.9 million in Q3/2008.                                 

The result of the period under review was strongly influenced by the ongoing    
construction sector slump, which held down demand for cables. The volume of     
industrial investment also continued to be weak. Aluminium and copper prices    
rose throughout the period but their price level is still significantly lower   
than last year. Because of tough competition, the increase in raw material      
prices could not be fully passed on in sales prices.                            

In Russia the financial crisis has continued to postpone purchasing decisions by
customers. At the end of the quarter, cautious signs were visible of a revival  
in cable demand. Demand from the oil and gas sector was moderate throughout the 
third quarter. The rouble exchange rate remained weak, at the same level as in  
the second quarter.                                    

The company continued austerity measures, begun in the spring to improve        
profitability. Layoffs, begun in the second quarter, were in effect throughout  
the third quarter.                                                              

Reka Cables announced in August that it was continuing to reorganise its        
production structure by expanding its Keuruu cable plant and concentrating the  
manufacture of copper wire at Keuruu. Wire production at Keuruu is due to begin 
in February 2010.                                                               

Nestor Cables turnover continued to rise but the result for the period under    
review was still negative.                                                      

OTHER OPERATIONS                                                                

Neomarkka operations other than industrial investments consist mainly of        
investing cash funds. Its holdings in unquoted companies have remained unchanged
but their relative share of all investments is small.                           
The company has invested directly in corporate and government bonds as well as  
in bonds with a credit default swap agreement. The swap contracts are for under 
a year and concern financially sound companies. Funds have also been invested in
time deposits.                                                                  

SHARE PRICES                                                                    

Neomarkka Plc B-shares are quoted on the main market of the Helsinki Stock      
Exchange, NASDAQ OMX. Their price at the end of the period was EUR 5.61 per     
share (EUR 9.00 on the same date in 2008). Their price at the end of 2008 was   
EUR 5.80 per share. B-share turnover in the review period was 175 563 shares    
(339 309), which was 2.9% (5.6%) of listed B-shares. Their lowest price during  
the period was EUR 4.45 (EUR 7.90) and their highest EUR 6.70 (EUR 10.50). On   
30.9.2009 the market capitalisation of the company was EUR 33.7 million (EUR    
54.3m).                                                                         

RESULT, FINANCIAL POSITION                                                      

This report has been drawn up in accordance with IAS 34 requirements for interim
reports. The same principles have been followed as in the financial statement   
for 2008 except for changes in IAS and IFRS standards in effect for financial   
periods beginning 1 January 2009 and later.                                     
Additionally, changes in the values of derivative instruments are now presented 
differently in the income statement. Derivatives that protect turnover are      
entered in Turnover and changes in metal derivatives related to customer orders 
are entered in Materials (previously in Other operating income and expenses).   
Also derivatives under 12 months that protect raw material purchases are entered
in Materials. Those over 12 months continue to be recorded under Financial      
income and/or expenses.                                                         

Since Neomarkka withdrew from its securities investment segment in 2009, profits
and losses from securities investments in the Income Statement have no longer   
been recorded under Turnover but under Financial items. Investments are         
presented in the Statement of Financial Position under Other financial assets.  

The effects of exchange rate changes on long-term intra-group loans are handled 
as translation differences in the Consolidated Statement of Comprehensive Income
and in the Statement of Shareholders' Equity in accordance with IAS 1. The      
interim report is unaudited.                                                    

RESULT                                                                          

Consolidated turnover in the review period was EUR 52.7 million (EUR 91m in     
2008).                                                                          

Operating profit in the period was EUR -2.8 million (EUR 4.1m), of which cable  
operations generated EUR -1.8 million (EUR 4.9m). The remaining loss of EUR 1.0 
million came mostly from common administrative costs of the quoted Neomarkka    
company. The net result of the review period was EUR -2.5 million (EUR 0.4m).   
Earnings per share were EUR -0.40 (EUR 0.07).                                   

FINANCIAL POSITION                                                              

In the consolidated statement of financial position, total assets at the end of 
the period were EUR 92.7 million (EUR 117.1m).                                  
At the end of the period, net assets per share were EUR 7.55 (EUR 9.49) and the 
equity ratio was 49.1% (48.7%).                                                 
For financing of working capital, Reka Cables has revolving bank credit of EUR  
6.0 million and factoring credit of EUR 7.5 million.                            
The Group's liquidity is good.                                                  

INVESTMENTS                                                                     

Investments made in the review period were in the cable business and totalled   
EUR 2.0 million (EUR 16.1m). Long-term leases have been recognised as fixed     
assets in line with IFRS.                                                       

SHAREHOLDERS' MEETING AND GOVERNANCE                                            

Neomarkka's annual general meeting on 10 June 2009 confirmed the number of board
members as six and reappointed the following directors: Matti Lainema as        
chairman; Pekka Soini as vice-chairman; Ilpo Helander, Taisto Riski, Risto      
Kyhälä and Matti Lappalainen as members.                                        

In accordance with the Board's proposal, the meeting authorised the board to buy
back shares and to decide on distributing new B-shares and transferring existing
B-shares held by the company, with or without payment. The meeting also         
authorised the board to decide on a script issue to the company itself.         
During the third quarter, the company did not exercise its right to buy back    
shares.                                                                         

Neomarkka Plc's book entry account with Euroclear Finland Oy holds company      
B-shares for which no registration has been demanded although the ten-year      
period for their registration came to a close of 29.9.2007. The meeting decided 
that ownership of the shares and the rights carried by them have been forfeited 
and that they will pass to the company in 2016, when the new Finnish Companies  
Act has been in force for ten years.                                            
The company's authorised public accountants are Ernst & Young Oy. The           
responsible auditor is Heikki Ilkka.                                            

The Board has appointed its members Taisto Riski, Pekka Soini and Ilpo Helander 
as members of its audit committee.                                              

The managing director of Neomarkka Plc is Markku E. Rentto.                     

PERSONNEL                                                                       

The Group employed an average 505 people (367). On 30 September 2009 Group      
personnel numbered 517, of whom 514 were in the cable business.                 

GROUP STRUCTURE AND SHAREHOLDERS                                                

Neomarkka Plc is the parent company of a group that includes wholly-owned       
subsidiaries Novalis Plc and Alnus Ltd and their subsidiaries. The domicile of  
the parent company is Hyvinkää.                                                 

At the end of the review period, Neomarkka Plc had 12 685 shareholders (12 705).
Its largest shareholder Reka Ltd held 50.76% of shares (unchanged) and 65.77% of
votes (unchanged) at the end of the period. Neomarkka Plc is thus part of the   
Reka Group. Reka Ltd's domicile is Hyvinkää.                                    

At the end of the period, the combined holdings of the ten largest shareholders 
were 60.60% (60.05%) of all shares and 72.61% (72.18%) of all votes.            

MAJOR EVENTS AFTER THE REVIEW PERIOD                                            

Company management is not aware of events after the review period that have a   
significant effect on business operations.                                      

NEAR-TERM RISKS AND HEDGING MEASURES                                            

Neomarkka's main financial risks are currency, interest rate, commodity,        
liquidity, credit and investment market risks. Financial risks and measures to  
offset them are described in more detail in the notes to the financial statement
for 2008.                                                                       

With the strategy revision of 2007, future risk factors are tied to the         
development of business operations by portfolio companies. At present there is  
only one portfolio business line, cables.                                       

The main risks in the business of Reka Cables and OAO Expokabel relate to       
changes in market conditions, fluctuating raw material prices and exchange rate 
movements. Reka Cables has carried out extensive risk analysis to chart these   
risks and hedge them.                                                           

The company believes that the Russian cable market will grow and develop, and   
has made substantial investments to exploit business opportunities there. The   
investments contain the risk that growth in Russia will not live up to          
expectations.                                                                   

Nestor Cables faces cable business risks and start-up risks.                    

NEAR-TERM PROSPECTS                                                             

The near-term outlook for the cable sector is weak. The upcoming winter and the 
generally low level of construction will curb demand for the rest of the year.  
In the Russian market the sales outlook, particularly on the power network side,
is distinctly better than in the previous quarter. However the result from      
cables for the rest of the year is expected to be negative.                     

SUMMARISED FINANCIAL STATEMENT AND NOTES                                        

--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT (IFRS)                                         |
--------------------------------------------------------------------------------
| EUR 1,000                     |   1.7. - |    1.7. - |    1.1. - |    1.1. - |
|                               | 30.9.200 | 30.9.2008 | 30.9.2009 | 30.9.2008 |
|                               |        9 |           |           |           |
--------------------------------------------------------------------------------
| TURNOVER                      |   17,736 |    31,178 |    52,707 |    90,981 |
--------------------------------------------------------------------------------
| Change in inventories of      |     -663 |    -1,700 |       -67 |     4,245 |
| finished products and         |          |           |           |           |
| production in progress        |          |           |           |           |
--------------------------------------------------------------------------------
| Production for own use        |       18 |        58 |        26 |       116 |
--------------------------------------------------------------------------------
| Materials and services        |  -11,497 |   -21,750 |   -31,767 |   -69,845 |
--------------------------------------------------------------------------------
| Personnel expenses            |   -3,358 |    -3,916 |   -11,028 |   -11,269 |
--------------------------------------------------------------------------------
| Depreciation and impairment   |   -1,034 |      -972 |    -3,500 |    -2,776 |
--------------------------------------------------------------------------------
| Other operating income and    |   -3,057 |    -3,171 |    -9,122 |    -7,402 |
| expenses                      |          |           |           |           |
--------------------------------------------------------------------------------
|                               |  -19,591 |   -31,451 |   -55,458 |   -86,931 |
--------------------------------------------------------------------------------
| Operating result              |   -1,855 |      -273 |    -2,751 |     4,050 |
--------------------------------------------------------------------------------
| Financial income              |      900 |       314 |     1,998 |     1,192 |
--------------------------------------------------------------------------------
| Financial expenses            |     -138 |      -457 |    -1,464 |    -3,341 |
--------------------------------------------------------------------------------
| Share of the result of        |        0 |      -279 |      -202 |      -566 |
| associates                    |          |           |           |           |
--------------------------------------------------------------------------------
| Profit or loss before taxes   |   -1,092 |      -695 |    -2,418 |     1,335 |
--------------------------------------------------------------------------------
| Taxes                         |     -106 |      -105 |       -46 |      -908 |
--------------------------------------------------------------------------------
| Profit or loss for the period |   -1,198 |      -800 |    -2,464 |       427 |
--------------------------------------------------------------------------------
| Profit or loss attributable   |          |           |           |           |
| to                            |          |           |           |           |
--------------------------------------------------------------------------------
| Equity holders of the parent  |   -1,162 |      -710 |    -2,389 |       420 |
--------------------------------------------------------------------------------
| Minority interest             |      -36 |       -90 |       -75 |         7 |
--------------------------------------------------------------------------------
|                               |   -1,198 |      -800 |    -2,464 |       427 |
--------------------------------------------------------------------------------
| Earnings per share (belonging to equity holders of the parent) (EUR)         |
--------------------------------------------------------------------------------
| Before dilution               |    -0.19 |     -0.12 |     -0.40 |      0.07 |
--------------------------------------------------------------------------------
| After dilution                |    -0.19 |     -0.12 |     -0.40 |      0.07 |
--------------------------------------------------------------------------------
| Number of shares              | 6,014,47 | 6,020,360 | 6,014,476 | 6,020,360 |
|                               |        6 |           |           |           |
--------------------------------------------------------------------------------
|                               |          |           |           |           |
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (IFRS)                        |
--------------------------------------------------------------------------------
| Profit or loss                |   -1,198 |      -800 |    -2,464 |       427 |
--------------------------------------------------------------------------------
| Other comprehensive items     |          |           |           |           |
--------------------------------------------------------------------------------
| Translation differences       |       73 |        -8 |      -730 |        12 |
| related to foreign units      |          |           |           |           |
--------------------------------------------------------------------------------
| Direct book entry to equity   |      -38 |           |       -48 |        91 |
--------------------------------------------------------------------------------
| Total                         |       35 |        -8 |      -778 |       103 |
--------------------------------------------------------------------------------
| Total comprehensive income    |   -1,163 |      -808 |    -3,242 |       530 |
--------------------------------------------------------------------------------
| Total comprehensive income attributable to                                   |
--------------------------------------------------------------------------------
| Equity holders of the parent  |   -1,127 |      -808 |    -3,153 |       523 |
--------------------------------------------------------------------------------
| Minority interest             |      -36 |         0 |       -89 |         7 |
--------------------------------------------------------------------------------
|                               |   -1,163 |      -808 |    -3,242 |       530 |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION (IFRS)                          |
--------------------------------------------------------------------------------
| EUR 1,000                                     |    30.9.2009 |    31.12.2008 |
--------------------------------------------------------------------------------
| ASSETS                                        |              |               |
--------------------------------------------------------------------------------
| Non-current assets                            |              |               |
--------------------------------------------------------------------------------
| Goodwill                                      |        3,517 |         4,587 |
--------------------------------------------------------------------------------
| Other intangible non-current assets           |        6,565 |         6,461 |
--------------------------------------------------------------------------------
| Tangible non-current assets                   |       31,359 |        33,753 |
--------------------------------------------------------------------------------
| Holdings in associates                        |          202 |           202 |
--------------------------------------------------------------------------------
| Receivables                                   |          338 |           414 |
--------------------------------------------------------------------------------
| Deferred tax assets                           |        1,616 |           947 |
--------------------------------------------------------------------------------
| Total non-current assets                      |       43,596 |        46,365 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets                                |              |               |
--------------------------------------------------------------------------------
| Inventories                                   |       16,897 |        17,903 |
--------------------------------------------------------------------------------
| Available-for-sale financial assets           |        3,733 |         3,733 |
--------------------------------------------------------------------------------
| Sales receivables and other receivables       |       16,278 |        13,831 |
--------------------------------------------------------------------------------
| Tax receivables from the profit               |           98 |         1,975 |
--------------------------------------------------------------------------------
| Other financial assets                        |        4,970 |             0 |
--------------------------------------------------------------------------------
| Cash and cash equivalents                     |        7,092 |        22,319 |
--------------------------------------------------------------------------------
| Total current assets                          |       49,068 |        59,761 |
--------------------------------------------------------------------------------
| Total Assets                                  |       92,664 |       106,125 |
--------------------------------------------------------------------------------
|                                               |              |               |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND LIBILITIES           |              |               |
--------------------------------------------------------------------------------
| Capital and reserves attributable to equity holders of the parent            |
--------------------------------------------------------------------------------
| Share capital                                 |       24,082 |        24,082 |
--------------------------------------------------------------------------------
| Premium fund                                  |           66 |            66 |
--------------------------------------------------------------------------------
| Reserve fund                                  |        1,221 |         1,221 |
--------------------------------------------------------------------------------
| Translation differences                       |       -2,413 |        -1,683 |
--------------------------------------------------------------------------------
| Retained profit                               |        1,111 |         5,090 |
--------------------------------------------------------------------------------
| Other unrestricted equity                     |       21,327 |        21,327 |
--------------------------------------------------------------------------------
| Total equity attributable to equity holders   |       45,394 |        50,103 |
| of the parent                                 |              |               |
--------------------------------------------------------------------------------
| Minority interest                             |           57 |           159 |
--------------------------------------------------------------------------------
| Total shareholders´ equity                    |       45,452 |        50,262 |
--------------------------------------------------------------------------------
| Non-current liabilities                       |              |               |
--------------------------------------------------------------------------------
| Deferred tax liabilities                      |        2,936 |         4,056 |
--------------------------------------------------------------------------------
| Provisions                                    |          629 |           802 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities                  |       19,533 |        21,193 |
--------------------------------------------------------------------------------
| Current liabilities                           |              |               |
--------------------------------------------------------------------------------
| Tax liabilities from the profit               |          817 |           497 |
--------------------------------------------------------------------------------
| Reserves                                      |          163 |           163 |
--------------------------------------------------------------------------------
| Short-term interest-bearing liabilities       |        8,682 |        11,950 |
--------------------------------------------------------------------------------
| Accounts payable and other liabilities        |       14,452 |        17,202 |
--------------------------------------------------------------------------------
| Total liabilities                             |       47,212 |        55,863 |
--------------------------------------------------------------------------------
| Shareholders´ equity and liabilities          |       92,664 |       106,125 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS´ EQUITY (IFRS)             |
--------------------------------------------------------------------------------
| EUR   | Share | Pre | Rese | Trans | Other  | Retain | Total  | Mino | Share |
| 1,000 | capit | miu | rve  | latio | unrest | ed     |        | rity | holde |
|       | al    | m   | fund | n     | ricted | profit |        |      | rs´   |
|       |       | fun |      | diffe | equity |        |        |      | equit |
|       |       | d   |      | rence |        |        |        |      | y     |
|       |       |     |      | s     |        |        |        |      | total |
--------------------------------------------------------------------------------
| Share | 24,08 |  66 | 1,22 |  -145 | 21,327 | 13,056 | 59,607 |   68 | 59,67 |
| holde |     2 |     |    1 |       |        |        |        |      |     5 |
| rs'   |       |     |      |       |        |        |        |      |       |
| equit |       |     |      |       |        |        |        |      |       |
| y     |       |     |      |       |        |        |        |      |       |
| 31.12 |       |     |      |       |        |        |        |      |       |
| .2007 |       |     |      |       |        |        |        |      |       |
--------------------------------------------------------------------------------
| Total |       |     |      |    12 |        |    370 |    382 |    7 |   389 |
| compr |       |     |      |       |        |        |        |      |       |
| ehens |       |     |      |       |        |        |        |      |       |
| ive   |       |     |      |       |        |        |        |      |       |
| incom |       |     |      |       |        |        |        |      |       |
| e     |       |     |      |       |        |        |        |      |       |
--------------------------------------------------------------------------------
| Divid |       |     |      |       |        | -3,010 | -3,010 |      | -3,01 |
| ends  |       |     |      |       |        |        |        |      |     0 |
| paid  |       |     |      |       |        |        |        |      |       |
--------------------------------------------------------------------------------
| Acqui |       |     |      |       |        |        |      0 |      |     0 |
| sitio |       |     |      |       |        |        |        |      |       |
| n of  |       |     |      |       |        |        |        |      |       |
| own   |       |     |      |       |        |        |        |      |       |
| share |       |     |      |       |        |        |        |      |       |
| s     |       |     |      |       |        |        |        |      |       |
--------------------------------------------------------------------------------
| Other |       |     |      |       |        |        |      0 |   11 |    11 |
| chang |       |     |      |       |        |        |        |      |       |
| es    |       |     |      |       |        |        |        |      |       |
--------------------------------------------------------------------------------
| Share | 24,08 |  66 | 1,22 |  -133 | 21,327 | 10,416 | 56,979 |   86 | 57,06 |
| holde |     2 |     |    1 |       |        |        |        |      |     5 |
| rs'   |       |     |      |       |        |        |        |      |       |
| equit |       |     |      |       |        |        |        |      |       |
| y     |       |     |      |       |        |        |        |      |       |
| 30.9. |       |     |      |       |        |        |        |      |       |
| 2008  |       |     |      |       |        |        |        |      |       |
--------------------------------------------------------------------------------
| EUR   | Share | Pre | Rese | Trans | Other  | Retain | Total  | Mino | Share |
| 1,000 | capit | miu | rve  | latio | unrest | ed     |        | rity | holde |
|       | al    | m   | fund | n     | ricted | profit |        |      | rs´   |
|       |       | fun |      | diffe | equity |        |        |      | equit |
|       |       | d   |      | rence |        |        |        |      | y     |
|       |       |     |      | s     |        |        |        |      | total |
--------------------------------------------------------------------------------
| Share | 24,08 |  66 | 1,22 | -1,68 | 21,327 |  5,091 | 50,104 |  159 | 50,26 |
| holde |     2 |     |    1 |     3 |        |        |        |      |     3 |
| rs'   |       |     |      |       |        |        |        |      |       |
| equit |       |     |      |       |        |        |        |      |       |
| y     |       |     |      |       |        |        |        |      |       |
| 31.12 |       |     |      |       |        |        |        |      |       |
| .2008 |       |     |      |       |        |        |        |      |       |
--------------------------------------------------------------------------------
| Total |       |     |      |  -730 |        | -2,438 | -3,167 |  -76 | -3,24 |
| compr |       |     |      |       |        |        |        |      |     3 |
| ehens |       |     |      |       |        |        |        |      |       |
| ive   |       |     |      |       |        |        |        |      |       |
| incom |       |     |      |       |        |        |        |      |       |
| e     |       |     |      |       |        |        |        |      |       |
--------------------------------------------------------------------------------
| Divid |       |     |      |       |        | -1,504 | -1,504 |      | -1,50 |
| ends  |       |     |      |       |        |        |        |      |     4 |
| paid  |       |     |      |       |        |        |        |      |       |
--------------------------------------------------------------------------------
| Acqui |       |     |      |       |        |    -38 |    -38 |      |   -38 |
| sitio |       |     |      |       |        |        |        |      |       |
| n of  |       |     |      |       |        |        |        |      |       |
| own   |       |     |      |       |        |        |        |      |       |
| share |       |     |      |       |        |        |        |      |       |
| s     |       |     |      |       |        |        |        |      |       |
--------------------------------------------------------------------------------
| Other |       |     |      |       |        |        |      0 |  -26 |   -26 |
| chang |       |     |      |       |        |        |        |      |       |
| es    |       |     |      |       |        |        |        |      |       |
--------------------------------------------------------------------------------
| Share | 24,08 |  66 | 1,22 | -2,41 | 21,327 |  1,111 | 45,394 |   57 | 45,45 |
| holde |     2 |     |    1 |     3 |        |        |        |      |     2 |
| rs'   |       |     |      |       |        |        |        |      |       |
| equit |       |     |      |       |        |        |        |      |       |
| y     |       |     |      |       |        |        |        |      |       |
| 30.9. |       |     |      |       |        |        |        |      |       |
| 2009  |       |     |      |       |        |        |        |      |       |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| STATEMENT OF CASH FLOWS (IFRS)                |              |               |
--------------------------------------------------------------------------------
| EUR 1,000                                     |       1.1. - |        1.1. - |
|                                               |    30.9.2009 |     30.9.2008 |
--------------------------------------------------------------------------------
| Operating activities                          |              |               |
--------------------------------------------------------------------------------
| Payments received from operating activities   |       52,134 |       117,945 |
--------------------------------------------------------------------------------
| Payments paid on operating activities         |      -54,469 |      -102,515 |
--------------------------------------------------------------------------------
| Paid interests and other financial expenses   |       -2,305 |        -2,808 |
--------------------------------------------------------------------------------
| Interests received and other financial        |          521 |           545 |
| incomes                                       |              |               |
--------------------------------------------------------------------------------
| Direct taxes paid                             |        1,394 |        -1,502 |
--------------------------------------------------------------------------------
| Total operating activities                    |       -2,725 |        11,666 |
--------------------------------------------------------------------------------
|                                               |              |               |
--------------------------------------------------------------------------------
| Investing activities                          |              |               |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries and new business  |          -11 |        -7,110 |
--------------------------------------------------------------------------------
| Change in acquisition price of subsidiaries   |        1,200 |             0 |
--------------------------------------------------------------------------------
| Investments in tangible non-current assets    |       -2,291 |        -7,362 |
--------------------------------------------------------------------------------
| Loan notes                                    |       -4,970 |             0 |
--------------------------------------------------------------------------------
| Repayment of loan receivables                 |            0 |        20,000 |
--------------------------------------------------------------------------------
| Proceeds from ale of intangible assets        |           84 |             0 |
--------------------------------------------------------------------------------
| Total investing activities                    |       -5,988 |         5,528 |
--------------------------------------------------------------------------------
|                                               |              |               |
--------------------------------------------------------------------------------
| Financing activities                          |              |               |
--------------------------------------------------------------------------------
| Acquisition of own shares                     |          -33 |             0 |
--------------------------------------------------------------------------------
| Increase in loans                             |        1,142 |         7,084 |
--------------------------------------------------------------------------------
| Decrease in loans                             |       -5,509 |        -1,307 |
--------------------------------------------------------------------------------
| Payments of financial leasing                 |         -562 |          -464 |
--------------------------------------------------------------------------------
| Dividends paid                                |       -1,504 |        -2,956 |
--------------------------------------------------------------------------------
| Total financing activities                    |       -6,465 |         2,357 |
--------------------------------------------------------------------------------
|                                               |              |               |
--------------------------------------------------------------------------------
| Cash flow for the period                      |      -15,178 |        19,551 |
--------------------------------------------------------------------------------
| Liquid funds at beginning of the period       |       22,319 |         3,086 |
--------------------------------------------------------------------------------
| Exchange rate differences                     |          -48 |            22 |
--------------------------------------------------------------------------------
| Liquid funds at end of period                 |        7,092 |        22,659 |
--------------------------------------------------------------------------------


NOTES                                                                           

This report has been drawn up in accordance with IAS 34 requirements for interim
reports.                                                                        

PRINCIPLES USED                                                                 

The interim report applies the same principles as in the financial statement for
2008 except for changes in IAS and IFRS standards in effect for financial       
periods beginning 1 January 2009 and later. Additionally, changes in the value  
of derivative instruments are now presented differently in the consolidated     
income statement. Derivatives that protect turnover are entered in Turnover and 
the changes in metal derivatives related to customer orders are entered in      
Materials (previously in Other operating income and expenses). Also derivatives 
under 12 months that protect raw material purchases are entered in Materials.   
Those over 12 months continue to be recorded under Financial income and/or      
expenses.                                                                       

Since Neomarkka withdrew from its securities investment segment in 2009, profits
and losses from securities investments in the Income Statement have no longer   
been recorded under Turnover but under Financial items. Investments are         
presented in the Statement of Financial Position under Other financial assets.  

The change in the IAS 1 standard affects the consolidated income statement, the 
consolidated statement of changes in shareholders' equity and the presentation  
of equity in the consolidated statement of financial position. According to the 
new IFRS 8 standard, segment reporting is based on the management's internal    
reporting. The accounting principles have not changed but assets and liabilities
can be allocated more precisely. The distribution of turnover by product group  
and by sales area are presented as additional information. The reference data   
has been changed to correspond to changes that came into effect on 1 January    
2009.                                                                           

Changes have also been made in IAS 23, IAS 27, IFRS 2 and IAS 32 standards with 
effect from financial periods beginning 1 January 2009, but these have no       
significant impact on the Group's figures.                                      

--------------------------------------------------------------------------------
| SEGMENT INFORMATION                                                          |
--------------------------------------------------------------------------------
| 30.9.2009       |    Industrial |        Other |   Eliminations |      Group |
| EUR 1,000       |   Investment; |   operations |           and  |      total |
|                 |         Cable |              |      balancing |            |
|                 |      business |              |                |            |
--------------------------------------------------------------------------------
| Turnover        |        52,707 |           61 |            -61 |     52,707 |
--------------------------------------------------------------------------------
| Segment         |        -1,745 |              |                |     -1,745 |
| operating       |               |              |                |            |
| profit          |               |              |                |            |
--------------------------------------------------------------------------------
| Unallocated     |               |       -1,006 |                |     -1,006 |
| items           |               |              |                |            |
--------------------------------------------------------------------------------
| Operating       |        -1,745 |       -1,006 |                |     -2,751 |
| profit          |               |              |                |            |
--------------------------------------------------------------------------------
| Share of the    |          -202 |              |                |       -202 |
| result of       |               |              |                |            |
| associates      |               |              |                |            |
--------------------------------------------------------------------------------
| Unallocated     |               |              |            489 |        489 |
| items           |               |              |                |            |
--------------------------------------------------------------------------------
| Profit or loss  |               |              |                |     -2,464 |
| for the period  |               |              |                |            |
--------------------------------------------------------------------------------
| Assets          |               |              |                |            |
--------------------------------------------------------------------------------
| Segment assets  |        77,936 |              |              0 |     77,936 |
--------------------------------------------------------------------------------
| Unallocated     |               |       15,462 |           -734 |     14,728 |
| items           |               |              |                |            |
--------------------------------------------------------------------------------
| Total assets    |        77,936 |       15,462 |           -734 |     92,664 |
--------------------------------------------------------------------------------
| Liabilities     |               |              |                |            |
--------------------------------------------------------------------------------
| Segment         |        52,368 |              |                |     52,368 |
| liabilities     |               |              |                |            |
--------------------------------------------------------------------------------
| Unallocated     |               |       12,166 |        -17,322 |     -5,156 |
| items           |               |              |                |            |
--------------------------------------------------------------------------------
| Total           |        52,368 |       12,166 |        -17,322 |     47,212 |
| liabilities     |               |              |                |            |
--------------------------------------------------------------------------------
| Assets -        |        25,568 |        3,296 |         16,588 |     45,452 |
| liabilities     |               |              |                |            |
--------------------------------------------------------------------------------
| Investments     |         2,034 |              |              0 |      2,034 |
--------------------------------------------------------------------------------
| Depreciations   |        -3,499 |              |              0 |     -3,499 |
--------------------------------------------------------------------------------
|                 |               |              |                |            |
--------------------------------------------------------------------------------
| 30.9.2008       |    Industrial |        Other |   Eliminations |      Group |
| EUR 1,000       |   Investment; |   operations |           and  |      total |
|                 |         Cable |              |      balancing |            |
|                 |      business |              |                |            |
--------------------------------------------------------------------------------
| Turnover        |        90,980 |           66 |            -66 |     90,980 |
--------------------------------------------------------------------------------
| Segment         |         4,921 |            0 |                |      4,921 |
| operating       |               |              |                |            |
| profit          |               |              |                |            |
--------------------------------------------------------------------------------
| Unallocated     |               |         -937 |             66 |       -871 |
| items           |               |              |                |            |
--------------------------------------------------------------------------------
| Operating       |         4,921 |         -937 |                |      4,050 |
| profit          |               |              |                |            |
--------------------------------------------------------------------------------
| Share of the    |          -566 |              |                |       -566 |
| result of       |               |              |                |            |
| associates      |               |              |                |            |
--------------------------------------------------------------------------------
| Unallocated     |               |              |         -3,057 |     -3,057 |
| items           |               |              |                |            |
--------------------------------------------------------------------------------
| Profit or loss  |               |              |                |        427 |
| for the period  |               |              |                |            |
--------------------------------------------------------------------------------
| Assets          |               |              |                |            |
--------------------------------------------------------------------------------
| Segment assets  |        91,444 |              |              0 |     91,444 |
--------------------------------------------------------------------------------
| Unallocated     |               |       25,690 |              0 |     25,690 |
| items           |               |              |                |            |
--------------------------------------------------------------------------------
| Total assets    |        91,444 |       25,690 |              0 |    117,134 |
--------------------------------------------------------------------------------
| Liabilities     |               |              |                |            |
--------------------------------------------------------------------------------
| Tax liabilities |            26 |              |                |         26 |
--------------------------------------------------------------------------------
| Long term debt  |        11,826 |       12,467 |                |     24,293 |
--------------------------------------------------------------------------------
| Short term debt |        44,768 |          622 |         -9,639 |     35,751 |
--------------------------------------------------------------------------------
| Segment         |        56,620 |              |                |     56,620 |
| liabilities     |               |              |                |            |
--------------------------------------------------------------------------------
| Unallocated     |               |       13,089 |         -9,639 |      3,450 |
| items           |               |              |                |            |
--------------------------------------------------------------------------------
| Total           |        56,620 |       13,089 |         -9,639 |     60,070 |
| liabilities     |               |              |                |            |
--------------------------------------------------------------------------------
| Assets -        |        34,824 |       12,601 |          9,639 |     57,064 |
| liabilities     |               |              |                |            |
--------------------------------------------------------------------------------
| Investments     |         5,653 |            0 |              0 |      5,653 |
--------------------------------------------------------------------------------
| Depreciations   |        -3,499 |           -1 |              0 |     -3,500 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Cable business turnover per product group   |       1-9/2009 |      1-9/2008 |
--------------------------------------------------------------------------------
| EUR million                                 |           20.4 |          29.4 |
--------------------------------------------------------------------------------
| LV energy                                   |           32.3 |          61.3 |
--------------------------------------------------------------------------------
| Power cable                                 |            0.0 |           0.3 |
--------------------------------------------------------------------------------
| Others                                      |           52.7 |          91.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cable business turnover per sales area      |       1-9/2009 |      1-9/2008 |
--------------------------------------------------------------------------------
| EUR million                                 |           47.2 |          78.6 |
--------------------------------------------------------------------------------
| EU-countries                                |            5.5 |          12.4 |
--------------------------------------------------------------------------------
| Non-EU-countries                            |           52.7 |          91.0 |
--------------------------------------------------------------------------------

The three largest customer groups for cable are Onninen, Rexel and Sonepar, each
of which accounts for more than 10% of turnover.     

--------------------------------------------------------------------------------
| CHANGE IN NON-CURRENT ASSETS            |                 |                  |
--------------------------------------------------------------------------------
| EUR 1,000                               |       1-09/2009 |        1-12/2008 |
--------------------------------------------------------------------------------
| Book value at the beginning of the      |          33,753 |           23,916 |
| period                                  |                 |                  |
--------------------------------------------------------------------------------
| Investment                              |           1,367 |           14,784 |
--------------------------------------------------------------------------------
| Increase through company acquisition    |             101 |            4,942 |
--------------------------------------------------------------------------------
| Decrease                                |               0 |           -5,471 |
--------------------------------------------------------------------------------
| Depreciations                           |          -2,985 |           -3,449 |
--------------------------------------------------------------------------------
| Impairments                             |                 |                0 |
--------------------------------------------------------------------------------
| Translation differences                 |            -877 |             -969 |
--------------------------------------------------------------------------------
| Book value at the end of the period     |          31,359 |           33,753 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| CONTINGENT LIABILITIES                            |            |             |
--------------------------------------------------------------------------------
| 1 000 EUR                                         |  30.9.2009 |  31.12.2008 |
--------------------------------------------------------------------------------
| Debts, on behalf corporate mortgages are given    |            |             |
--------------------------------------------------------------------------------
| Loans from financial institutions                 |      3,536 |       8,467 |
--------------------------------------------------------------------------------
| Granted corporate mortgages                       |     15,000 |      15,000 |
--------------------------------------------------------------------------------
| Debts, on behalf of securities or guarantees are  |            |             |
| given                                             |            |             |
--------------------------------------------------------------------------------
| Loans from financial institutions                 |     11,333 |      11,900 |
--------------------------------------------------------------------------------
| Book value of pledged securities                  |     25,787 |      26,987 |
--------------------------------------------------------------------------------
| Granted guarantees                                |     11,333 |      11,900 |
--------------------------------------------------------------------------------
| Other collaterals                                 |            |             |
--------------------------------------------------------------------------------
| Bond guarantees                                   |          0 |       1,326 |
--------------------------------------------------------------------------------
| Gaurantees and payment commitments                |        608 |       1,058 |
--------------------------------------------------------------------------------

Payment commitments                                                             

Sales receivables, which were EUR 5.3 million on 30.9.2009 (EUR 3.9m on         
31.12.2008), are surety for factoring credit, which was EUR 4.7 million on      
30.9.2009 (EUR 3.5m on 31.12.2008).                                             

Investment commitments                                                          

Investment commitments on tangible non-current assets were EUR 0.6 million on   
30.9.2009 (EUR 0.9m on 30.9.2008).                                              

--------------------------------------------------------------------------------
| DERIVATIVE CONTRACTS                    |                   |                |
--------------------------------------------------------------------------------
| EUR 1,000                               |         30.9.2009 |     31.12.2008 |
--------------------------------------------------------------------------------
| Nominal values                          |                   |                |
--------------------------------------------------------------------------------
| Interest derivatives                    |                 0 |              0 |
--------------------------------------------------------------------------------
| Interest rate swaps                     |                 0 |         14,590 |
--------------------------------------------------------------------------------
| Interest rate ceiling derivatives       |             9,800 |          9,800 |
--------------------------------------------------------------------------------
| Foreign exchange derivatives            |                   |                |
--------------------------------------------------------------------------------
| Currency options                        |             1,500 |          2,500 |
--------------------------------------------------------------------------------
| Credit derivatives                      |                   |                |
--------------------------------------------------------------------------------
| Credit default swaps                    |            20,000 |              0 |
--------------------------------------------------------------------------------
| Raw material derivatives                |                   |                |
--------------------------------------------------------------------------------
| Price hedging for metals                |             3,508 |          3,655 |
--------------------------------------------------------------------------------
|                                         |                   |                |
--------------------------------------------------------------------------------
| Fair values                             |                   |                |
--------------------------------------------------------------------------------
| Interest derivatives                    |                 0 |              0 |
--------------------------------------------------------------------------------
| Interest rate swaps                     |                 0 |           -315 |
--------------------------------------------------------------------------------
| Interest rate ceiling derivatives       |                 0 |             28 |
--------------------------------------------------------------------------------
| Foreign exchange derivatives            |                   |                |
--------------------------------------------------------------------------------
| Currency options                        |               -37 |            -21 |
--------------------------------------------------------------------------------
| Credit derivatives                      |                   |                |
--------------------------------------------------------------------------------
| Credit default swaps                    |                18 |              0 |
--------------------------------------------------------------------------------
| Raw material derivatives                |                   |                |
--------------------------------------------------------------------------------
| Price hedging for metals                |               375 |         -1,433 |
--------------------------------------------------------------------------------


The Group's loans are partly hedged with interest rate ceiling derivatives. The 
nominal and fair values of these derivatives are given above. The derivative    
contracts will expire in June 2010.                                             

--------------------------------------------------------------------------------
| RELATED PARTY EVENTS (REKA GROUP)                   |           |            |
--------------------------------------------------------------------------------
| EUR 1,000                                           |  1-9/2009 |   1-9/2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sales to Reka Group                                 |        26 |         91 |
--------------------------------------------------------------------------------
| Dividends to Reka Group                             |      -614 |     -1,528 |
--------------------------------------------------------------------------------
| Other purchases from Reka Group                     |      -899 |       -796 |
--------------------------------------------------------------------------------
| Sales receivables and other receivables at end of   |       999 |        348 |
| period                                              |           |            |
--------------------------------------------------------------------------------
| Non-current debts (financial leases) at end of      |    -8,675 |     -8,155 |
| period                                              |           |            |
--------------------------------------------------------------------------------
| Other debts at end of period                        |       -23 |        -34 |
--------------------------------------------------------------------------------
| Guarantees received                                 |         0 |      1,327 |
--------------------------------------------------------------------------------


OAO EXPOKABEL                                                                   

In 2009 Neomarkka increased its holding in OAO Expokabel with a public purchase 
offer. Before the offer it owned 81.27% and afterwards 83.34%. Below is the     
updated purchase price allocation after the public purchase offer.              

--------------------------------------------------------------------------------
| PURCHASE PRICE ALLOCATION        |       Acquiree's |         Fair |    Fair |
| EUR 1,000                        |         carrying |        value |   value |
|                                  |    amount before |  adjustments |         |
|                                  |      combination |              |         |
--------------------------------------------------------------------------------
| Net assets acquired              |                  |              |         |
--------------------------------------------------------------------------------
| Intangible assets                |                0 |        3,995 |   3,995 |
--------------------------------------------------------------------------------
| Tangible assets                  |              175 |        4,892 |   5,067 |
--------------------------------------------------------------------------------
| Inventories                      |              685 |            0 |     685 |
--------------------------------------------------------------------------------
| Current receivables              |              244 |            0 |     244 |
--------------------------------------------------------------------------------
| Cash in hand and at bank         |              133 |            0 |     133 |
--------------------------------------------------------------------------------
| Short-term liabilities           |             -884 |            0 |    -884 |
--------------------------------------------------------------------------------
| Deferred tax liability           |                0 |       -2,133 |  -2,133 |
--------------------------------------------------------------------------------
| Net assets acquired              |                  |              |   7,107 |
--------------------------------------------------------------------------------
| Goodwill arising on acquisition  |                  |              |     236 |
--------------------------------------------------------------------------------
| Total consideration, satisfied   |                  |              |   7,343 |
| by cash                          |                  |              |         |
--------------------------------------------------------------------------------
| Net cash flow arising on         |                  |              |         |
| acquisition:                     |                  |              |         |
--------------------------------------------------------------------------------
| Cash consideration, expert fees  |                  |              |  -7,343 |
| and taxes                        |                  |              |         |
--------------------------------------------------------------------------------
| Cash and cash equivalents        |                  |              |     133 |
| acquired                         |                  |              |         |
--------------------------------------------------------------------------------
| Net cash flow arising on         |                  |              |  -7,210 |
| acquisition                      |                  |              |         |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| AVAILABLE-FOR-SALE FINANCIAL ASSETS         |    Book value |     Book value |
--------------------------------------------------------------------------------
| EUR 1,000                                   |     30.6.2009 |     31.12.2008 |
--------------------------------------------------------------------------------
| Available-for-sale financial assets         |               |                |
--------------------------------------------------------------------------------
| Oulun Puhelin Holding Plc                   |         2,813 |          2,813 |
--------------------------------------------------------------------------------
| Lännen Teletieto Ltd                        |           920 |            920 |
--------------------------------------------------------------------------------
| Total available-for-sale financial assets   |         3,733 |          3,733 |
--------------------------------------------------------------------------------

CALCULATION OF KEY FIGURES                                                      

Return on investment (ROI) %                                                    
(Profit before taxes + interest and other financial expenses/                   
[Balance sheet total - obligatory provisions and non-interest bearing           
liabilities] (average)) x 100                                                   

Equity ratio, %                                                                 
(Shareholders' equity + minority interest minus deferred tax liabilities/       
Balance sheet total - advances received) x 100                                  

Earnings per share (EPS), EUR                                                   
Profit for the period belonging to equity holders of the parent/                
Number of shares adjusted for share issues (average)                            

Equity/share, EUR                                                               
Shareholders´ equity-minority interest minus deferred tax liabilities/          
Number of shares adjusted for share issues at the end of the financial period   


Helsinki 12.11.2009                                                             
Neomarkka Plc                                                                   
Board of Directors        



Sari Tulander                                                                   
CFO                                                                             


Neomarkka Plc is an investment company that invests mainly in industrial        
companies with similar synergic benefits. The aim of investments is with active 
ownership to develop the purchased companies and establish additional value.    
Returns are sought both through dividend flow and an increase in value. The     
company may also invest in listed and unlisted securities and in real estates.  
Neomarkka's B shares are listed on the NASDAQ OMX Helsinki Oy main market.      

Comments made in this report that do not refer to actual facts that have already
taken place are future estimates. Such estimates include expectations concerning
market trends, growth and profitability, and statements that include the terms  
‘believe', ‘assume', ‘will be', or a similar expression. Since these estimates  
are based on current plans and estimates, they involve risks and uncertainty    
factors which may lead to results differing substantially from current          
statements. Such factors include 1) operating conditions, e.g. continued success
in production and consequent efficiency benefits, availability and cost of      
production inputs, demand for new products, changing circumstances in respect of
the acquisition of capital under acceptable conditions; 2) circumstances in the 
sector such as the intensity of demand for products, the competition, current   
and future market prices for the Group's products and related pricing pressures,
the financial situation of the Group's customers and competitors, competitors'  
possible new competing products and 3) the general economic situation such as   
economic growth in the Group's main geographical market areas or changes in     
exchange rates and interest rates.