Contents Uponor Financial Review 2019 Uponor’s Annual Report 2019 consists of an Annual Review and a Financial Review, which are Investor Relations at Uponor .......................................................................................................... 2 published as separate PDF documents and can be found on our website at investors.uponor.com. Why invest in Uponor ..................................................................................................................... 3 You are now reading the Financial Review 2019, which covers the Report by the Board of Information for shareholders........................................................................................................... 4 Directors, Financial Statements for 2019 and Auditor’s report. The Financial Review also includes Shareholder value development ..................................................................................................... 5 information for investors. Corporate Governance Statement and Remuneration Statement are published as separate PDF documents on our website. The Annual Review consists of the key Board of Directors........................................................................................................................... 6 topics of Uponor’s business and sustainability in 2019. Executive Committee...................................................................................................................... 7 Review by the Board of Directors ................................................................................................... 8 Group key financial figures ...................................................................................................... 16 Investor Relations at Uponor Items affecting comparability and reconciliations to IFRS ....................................................... 17 Enquiries Change of address Share-specific key figures ...................................................................................................... 18 [email protected] Shareholders are requested to notify their Definitions of key ratios ........................................................................................................... 19 custodian bank, their brokerage firm, or any Shares and shareholders ........................................................................................................ 20 Meeting requests other financial institution responsible for Consolidated financial statements (IFRS) ................................................................................... 21 Päivi Dahlqvist, Executive Assistant maintaining their book-entry securities account Consolidated statement of comprehensive income ................................................................. 21 Tel. +358 (0)20 129 2823 of any changes in their mailing address. [email protected] Consolidated balance sheet .................................................................................................... 22 Disclosure policy Consolidated cash flow statement ........................................................................................... 24 Other IR contacts Information on Uponor’s disclosure policy Statement of changes in shareholders’ equity ......................................................................... 25 Minna Yrjönmäki, CFO is available on our investor website at Notes to the consolidated financial statements ....................................................................... 26 Tel. +358 (0)20 129 2036 investors.uponor.com > Governance > Parent company financial statements (FAS) ................................................................................ 63 [email protected] Disclosure Policy. Income statement .................................................................................................................... 63 Susanna Inkinen, VP, Communications Group Communications Balance sheet .......................................................................................................................... 64 and Corporate Responsibility Uponor Corporation, Group Communications Cash flow statement ................................................................................................................ 65 Tel. +358 (0)20 129 2081 P.O. Box 37, Äyritie 20 Notes to the parent company financial statements .................................................................. 66 [email protected] FI-01511 Vantaa, Finland Proposal of the Board of Directors ............................................................................................... 72 Tel. +358 (0)20 129 2854 Shareholder enquiries [email protected] Auditor’s report ............................................................................................................................. 73 [email protected] Reetta Härkki, General Counsel Tel. +358 (0)20 129 2835 [email protected] 2 Uponor Financial Review 2019 Why invest in Uponor The business: sustainable building The company: an industry innovator building and infrastructure solutions on a century of experience • Safe drinking water delivery and energy-efficient heating and cooling continue to be essential • A leading supplier for residential and commercial construction for drinking water delivery and needs in built environments radiant heating and cooling systems; and a strong position in infrastructure piping systems in • Uponor mitigates the cyclicality of construction industry by operating in European and North northern Europe American markets and serving both new construction and renovation projects • Established brand with a broad and loyal customer base • Well maintained manufacturing network with capacity to grow • Continuous material and production technology development to support operational efficiency • Committed long-term key ownership with a clear understanding of the industry’s dynamics Read more at investors.uponor.com LONG-TERM FINANCIAL TARGETS (UPDATED ON 13 FEB 2019) Target 2019 2018 2017 2016 2015 Organic net sales growth* 2019E: 4.8% -0.4 4.9 6.5 2.0 5.2 Comparable EBIT margin >10% 8.4 8.3 8.3 8.2 7.2 Return on investment (ROI) >20% 14.4 17.2 16.3 14.1 15.5 Gearing (annual average of quarters) 40-80% 57.5 53.0 58.4 56.7 40.4 Dividend payout > 50% of earnings 73.6** 70.8 59.0 79.3 86.3 * > GDP +3ppts (GDP growth based on a weighted average growth in the top 10 countries) ** proposal by the Board of Directors SHARE-SPECIFIC KEY FIGURES 2019 2018 2017 2016 2015 Market value of share capital at year-end, M€ 852.9 631.0 1,228.4 1,208.6 995.6 Earnings per share (fully diluted), € 0.72 0.72 0.83 0.58 0.51 Dividend, total, M€ 38.7(1 37.2 35.8 33.6 32.2 Dividend per share, € 0.53(1 0.51 0.49 0.46 0.44 Effective share yield, % 4.5(1 5.9 2.9 2.8 3.2 Issue-adjusted share prices - highest, € 12.37 17.62 17.79 17.35 17.30 - lowest, € 8.52 8.13 13.3 11.13 10.42 Number of shareholders 18,907 20,341 19,191 16,113 14,539 1) proposal of the Board of Directors The definitions of key ratios are presented in the financial statements. Uponor Financial Review 2019 3 Information for shareholders Annual General Meeting Important dates in 2020 Uponor Corporation’s Annual General Meeting will be held on 16 March 2020 at 15:00 EET at Financial statements bulletin for 2019 12 February 08:00 EET Finlandia Hall, Mannerheimintie 13e, Helsinki, Finland. Annual report 2019 Week 8 A shareholder who is registered in the shareholders’ register of the company and who wants Annual General Meeting 16 March 15:00 EET to participate in the general meeting, shall register for the meeting no later than Wednesday Record date for dividend payment 1st instalment: 18 March* 11 March 2020 at 10:00 EET (Finnish time), by which time the registration shall arrive at the 2nd instalment: 17 September* company. The Registration can be done: Date for dividend payment 1st instalment: 25 March* • via our IR website at investors.uponor.com or 2nd instalment: 24 September* • by telephone +358 20 770 6883 on week days from 09:00 to 16:00 EET (Finnish time) or • by email to [email protected] or Interim report: January–March 29 April 12:30 EET • by mail addressed to Uponor Corporation, Legal Services, P.O. Box 37, FI-01511 Vantaa, Finland. Interim report: January–June 24 July 08:00 EET Interim report: January–September 28 October 08:00 EET Payment of dividends * Proposal of the Board of Directors The Board of Directors proposes to the Annual General Meeting that a dividend of €0.53 per share be distributed for the financial period 2019. The dividend shall be paid in two instalments. The first instal- Analysts covering Uponor ment of €0.26 per share shall be paid to a shareholder registered as a shareholder in the shareholder register maintained by Euroclear Finland Ltd on the record date of the dividend payment on 18 March According to the information available to us, at least the following analysts made investment 2020. The payment date proposed by the Board for this instalment is 25 March 2020. analyses of Uponor in 2019. These parties follow Uponor on their own initiative, and the company The second instalment of €0.27 per share shall be paid in September 2020. The second instalment is not responsible for their statements. Up-to-date analyst contact information available at shall be paid to a shareholder registered as a shareholder in the shareholders register maintained by investors.uponor.com. Euroclear Finland Ltd on the dividend record date, which, together with the payment date, shall