Financial Statements 2014

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Translation: Crockford Communications OyPainotuote441 042

VALUEIS AT THE HEART OF EVERYTHING

Knowledge of materials is a skill that has enabled us to develop our expertise, technologies and efficiency . continuously. We cover the entire spectrum of recyc-

ling, from collecting and processing materials to manufactu-ring foundry products that support the business activities of our customers. We give waste materials a new chance. The value that they deserve.

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Financial Statements 2014Recycling and Foundry Operations 4

Report of the Board of Directors 8

Consolidated Income Statement and Balance Sheet 20

Consolidated Statement of Changes in Financial Position 20

Notes to the Consolidated Financial Statements 21

Parent Company Income Statement and Balance Sheet 24

Key Figures 25

Accounting Principles 26

Proposal of the Board 27

Auditor’s Report 27

Boards of Directors, Management and Auditors 28

Contact Information 30

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5

As a result of the reorganisation measures introduced at the end

of 2013, we were able to improve our profitability and competi-

tiveness despite an extremely challenging market situation in

2014. Following an operating loss in 2013, the recycling group managed to

post an operating profit in 2014 amounting to EUR 4.5 million. The improve-

ment in our result was achieved largely in our domestic markets in Finland

and Sweden.

Falling global market prices and strong fluctuations in the prices of raw

materials had a negative impact on both the availability of recycled me-

tals and Kuusakoski Recycling’s revenues. Despite this, we were able to

increase the amount of deliveries to all our key customers. No significant

price increases are expected in raw material prices in 2015, and this will

impact the earnings performance of our Baltic and Polish operations in

particular in the near future. In our day-to-day operations we have indeed

focussed on managing price risks among raw materials.

Our core business strategy was updated at the start of 2014. Accor-

dingly we concentrated our activities in Finland and Sweden. In Finland we

discontinued our demolition operations at the end of 2014. In Sweden we

are seeking a strategic partner for our demolition subsidiary Borrkompa-

niet Sverige AB.

While updating our strategy we reassessed the opportunities of all

our units in Finland and Sweden to operate profitably in the future. As a

result of this reassessment the decision was taken to discontinue our

units in Rauma and Karjaa, Finland, as well as in Karlstad, Sweden. Their

functions were transferred to larger units within these regions. The posi-

tive effects of concentrating our operations shall be realised in full du-

ring the course of 2015.

BACK TO BASICS

Atte KekkonenPresident and CEO, Kuusakoski Oy

Our operations in Russia achieved profitability in 2014. The ongoing crisis

in Russia is not expected to have a significant impact on our operations

there in 2015, although growth is very unlikely. In the USA we concluded

our investments in Chicago and Peoria. Kuusakoski also redeemed the re-

maining shares in Vinta-

ge Tech, LLC. In Great Bri-

tain, SWEEEP Kuusakoski

Ltd restarted operations

following the fire in 2013.

As a result of the in-

vestments and the mea-

sures that have been taken, we are cautiously positive about our profit

development in all of the above-mentioned markets despite the challen-

ging market situation.

The focus of our continuous R&D work is on improving our processes

and practices, and the aim is to further improve our recovery efficiency,

especially in the processing of electronic equipment. To support our con-

tinuous R&D work, the company’s own material laboratory was completed

in 2014, allowing raw materials and end products to be analysed much

faster than before.

We shall continue to improve our operational efficiency in all our

markets in 2015. Despite the difficult market situation, we believe that

we will be able to improve our relative profitability and competitiveness

over the long term. With the right investments and improvements to our

competitiveness, we are preparing to return to growth during the course

of 2015–2016.

Despite the difficult market situation, we believe that we will be able to improve our relative profitability and competitive-ness over the long term.

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Demand for our products grew rapidly at the start of 2014, especi-

ally in China. Production was increased by hiring more employees

and expanding our network of subcontractors, which saw revenue

develop favourably by Q2.

In August there was an accident in the vicinity of our China plant, which

temporarily halted also our production when the authorities deman-

ded changes in safety regulations. Alteams

reacted quickly in anticipation of the requi-

red changes, and some production processes

were transferred to different production faci-

lities. Compliance with the new safety regula-

tions generated additional costs and increased inventory levels. Towards

the end of the year the decision was taken to initiate a plant expansion

project. This project, once completed, will enable us to relocate all produc-

tion processes, once again, to the same facilities.

Revenues in 2014 increased by approximately 19% compared to the

previous year. Growth was particularly fast in the telecommunications net-

work components segment, while the mechatronics segment also develo-

ped positively. In line with our strategy, our focus continued to be on wor-

king with customers who we can supply with advanced applications using

cast aluminium products.

The Chinese plant continued to account for a significant share of total

production and profits, with deliveries were almost evenly split between

the Asian and European markets. The new Polish plant began deliveries

in February, but additional time is required before the expected volumes

are reached. The project has been delayed, in particular, due to official

permits, product certifications by customers and problems relating to the

ramp-up of our own production processes and our subcontractors. The

A YEAR OF GROWTH

Asko NevalaPresident and CEO, Alteams Oy

at Alteams despite ongoing uncertainty in the global economy

Polish plant will play an extremely important role in the future and these

initial problems are being rectified. The profitability of our Finnish plants

improved significantly compared to the previous year due to dedicated

development work.

The strategic importance of India, as part of our telecommunications

network components segment, was further clarified in 2014. We succee-

ded in attracting several new product projects to

India, with the decision being taken to continue

substantial investments in improving the profitabi-

lity of our Indian operations.

In line with our strategy, the focus of R&D acti-

vities at Alteams is on finding superior technical solutions and produc-

tion methods for customer products. The efficiency of our own processes

is being improved in keeping with the principle of continuous develop-

ment. Several projects were implemented during the year under review.

For example, we have sought to improve the transfer of waste heat from

electronics by developing raw materials, cast components and foundry

processes. In India we expanded our production range by reintroducing

coating. In China the focus has been on improving the efficiency and qua-

lity assurance capabilities of the foundry and its processes, in particular

through the “World Class Foundry” project.

We expect overall demand to remain at a strong level also in 2015. In

particular, we expect volumes in the mechatronics segment to grow furt-

her, making it an even more solid cornerstone of our business. Ongoing

investments in developing the operations of our plants and the ramp-up

of the Polish plant in 2015 will create a good basis for continued success

in the forthcoming years.

We expect overall demand to remain at a strong level also in 2015.

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A YEAR OF GROWTHat Alteams despite ongoing uncertainty in the global economy

8

Kuusakoski Group Oy

Group’s operating environment and financial result

No major changes occurred in the Group’s operating environment

compared to the previous year. The uncertainty in the global

economy continued, and competition for recycled metals inten-

sified. It was also a year of strong price fluctuations. The price of scrap iron

fell by 20% during the year under review.

The foundry business enjoyed a year of growth. Demand for Alteams

Oy’s products grew especially in the telecommunications network compo-

nents segment. Revenues for the foundry business increased by 19% over

the previous year.

Kuusakoski Group Oy posted

revenues in 2014 of EUR 655.5

million, which is 7.9% less than in

2013. The consolidated operating

profit was EUR 6.9 million (operating

result -12.3 million in 2013), which

represents 1 .0% of revenues (-1.7% in 2013). The return on investment (ROI)

was 2.0% (-4.3% in 2013). The net result was EUR 2.8 million (-20.0 million

in 2013), which represents 0.4 % of revenues (-2.8% in 2013). The Group’s

operating result in 2013 included non-recurring costs, including the loss

posted by the bioenergy business and the costs related to its discontinua-

tion amounting to approximately EUR 20 million.

Revenues from recycling operations accounted for approximately

83.5% of the Group’s revenues.

Kuusakoski Group comprises the recycling operations of Kuusakoski Oy, the foundry operations of Alteams Oy and property companies, which are Jokirantakiinteistöt Oy and Kiinteistö Oy Lahden Norokatu 5. The parent company of Kuusakoski Group is Kuusakoski Group Oy, which is owned in its entirety by the Kuusakoski family. Kuusakoski Oy and its subsidiaries form the recycling group and Alteams Oy and its subsidiaries the foundry group.

The Group’s financial result for the year under review was better than for the previous year but remained unsatisfactory.

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Kuusakoski has always wanted to do things better. Everything we do starts with new solutions and .innovativeness, attributes that we have always

valued. Our own R&D activities ensure that our recycling and sorting expertise is the best in the industry. With the competitive advantages offered by technology in our own hands, we are able to react fast and be on the front line in responding to future challenges. Our technological superiority enhances our efficiency, profitability and ability to serve customers.

VALUE FOR INNOVATIONS

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Financing and capital expenditure

Kuusakoski Group Oy’s cash flow from operating activities before invest-

ments totalled EUR 15.1 million (EUR 54.6 million in 2013) and after invest-

ments EUR -5.5 million (EUR 21.6 million in 2013). The amount of working

capital tied to Group activities increased by EUR 13.8 million. Working capi-

tal was added primarily as inventories and current receivables.

The Group’s investments totalled EUR 20.5 million (33.0 million in 2013),

which represents 3.1% of revenues (4.6% in 2013). Kuusakoski Oy’s invest-

ments focused on developing existing processes and recovery efficien-

cy, as well as on strengthening strategic growth areas, particularly waste

electrical and electronic equipment recycling. Geographically investments

in the recycling business focused on the USA. The biggest investment pro-

ject in the foundry business was the new production plant in Poland.

The Group’s liquidity was good. The Group’s long-term financing has

been covered by committed revolving credit facilities issued by banks. At

the end of the year under review the Group had a total of EUR 50 million of

unused revolving credit facilities. The funds required for operating activi-

ties were acquired primarily from the commercial paper markets.

Kuusakoski Oy participated in a bond issue guaranteed by the Garantia

Insurance Company. Kuusakoski Oy’s share of this issue amounted to EUR

10 million.

The Group’s equity ratio at the end of the year under review was 48.0%

(53.4% in 2013). The net gearing ratio was 53.0% at the end of the year

(41.3% in 2013). The amount of net liabilities increased during the year un-

der review by approximately EUR 18 million.

The Finance Department of the Group’s Parent Company manages

centrally the Group’s assets and fund raising.

Personnel

The number of personnel employed by the Group increased by 706 during

the year under review. At the end of the year under review, the Group had

3,275 employees.

Number of personnel employed by Kuusakoski Group at the end of the year

2014 2013 2012In Finland 725 746 846Outside Finland 2,550 1,823 1,946Total 3,275 2,569 2,792

The number of personnel outside Finland increased in both the recycling

and foundry groups. The number of personnel in the recycling group in-

creased in the USA primarily as a result of the acquisition of Vintage Tech,

LLC at the end of the year. The number of personnel in the foundry group

increased in Poland.

The total sum of salaries and rewards paid to personnel during the

year under review in Kuusakoski Group was EUR 74.3 million (69.5 million

in 2013).

Risks and risk management

The purpose of the Group’s risk management is to identify any significant

risk factors considering the special characteristics of its business opera-

tions and business environment and to optimally manage them in such a

way that the Group’s strategic and financial goals are achieved.

The main risks within the recycling business in the current market situ-

ation are connected with the price risk of metals, the credit risk, changes

in demand and production capacity, structural changes in the operating

environment and the group’s own ability to implement the measures re-

quired by the changes in the business environment, as well as by new ac-

quisitions and the start-up of new operations. All of these are protected

against by operational measures.

The risks within the foundry business are the major fluctuations in

demand, price fluctuations among raw materials, unpredictability in the

number of orders and the large dependency on a few large customers, as

well as the challenges related to the start-up of new units.

The Group regularly monitors its insurance cover as part of its risk ma-

nagement. Insurance is used to cover all the risks that are appropriate to

manage for financial or other reasons through insurance policies.

A risk management policy has been defined for the Group and appro-

ved by the Board of Directors that is used to manage risks connected with

the Group’s business operations, personnel and financing. Currency and

metal derivatives that are used to hedge against risks are measured at

their fair value, and the fair value is recorded as a gain or loss.

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Kuusakoski increased its holding in Sweeep Kuusakoski Ltd in Great Britain. .Kuusakoski acquired an additional 11%

shareholding in the joint venture on 28 Janua-ry 2014, increasing its ownership to 61%. The other shareholders are Patrick and Pamela Watts, who continue respectively as Managing Director and Financial Director.

Kuusakoski and the Finnish chapter of the World Wide Fund for Nature (WWF) .signed a co-operation agreement on

28 February 2014 aimed at promoting recycling and reuse in Finland. The agreement makes Kuusakoski one of the main partners of WWF Finland. Plans for 2015 include a campaign to set up recycle bins for small electronic items at companies and offices.

Kuusakoski fully updated its customer extranet service with new functions and a fresh appearance under the

name Kuusakoski eService. The comprehen-sive ordering and information service offers customers real-time reporting and makes it easy for them to order transportation servi-ces and track their orders in real time.

In June, CLEEN Oy kicked off its four-year Material Value Chains Project after receiving a positive financing decision from Tekes, the Finnish Funding Agency for Innovation, in April. Kuusakoski is one of the owners of CLEEN Oy and a key partner in the Material

Value Chains Project. The aim of the project is to enable 20% annual growth in recycling operations and double the revenues of recycling companies by 2020.

In May, Kuusakoski redeemed the remai-ning 20% shareholding in its Danish joint venture Averhoff A/S. The acquisition will

increase co-operation between Denmark, Sweden and Finland.

An audit performed by Bureau Veritas Certifications in November 2013 con-firmed that Kuusakoski’s operations

comply with the requirements of the ISO 9001 quality management system and the ISO 14001 environmental management system. New certificates were issued in January 2014 and are valid until January 2017.

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Recycling operationsKuusakoski Oy and its subsidiaries form the recycling group.

Market situation and business performance

The year under review remained challenging for the recycling bu-

siness. Due to the slowdown in the global economy, particularly

in the Chinese economy, as well as to intense price competition

among ore producers, the prices of iron ore and basic metals decreased

significantly in 2014. The price of scrap iron fell by 20% during the year

under review.

Demand among customers using recycled metals as a raw material re-

mained at a healthy level, especially in Finland.

In accordance with its strategy, Kuusakoski increased deliveries to Fin-

land and Sweden, and it also enhanced its price and material manage-

ment controls.

The revenues of the recycling business amounted to EUR 548.6 million,

which is 1 1.8% less than in 2013. The operating profit from the recycling

business amounted to EUR 4.5 million (operating loss -17.0 million in 2013),

which represents 0.8% of revenues (-2.7% in 2013). The return on invest-

ment (ROI) was 1 .1% (-7.3% in 2013). The net result was EUR 1 .8 million (-21.2

million in 2013), which represents 0.3% of revenues (-3.4% in 2013).

The operating result for the recycling business in 2014 does not include

any significant restructuring costs. In 2013 the recycling business had non-

recurring restructuring costs amounting to approximately EUR 20 million.

The decrease in revenues was due to lower volumes and lower recycled

metal prices.

In addition to the company’s traditional metal recycling operations,

the focus areas continued to be WEEE recycling (Waste Electrical and

Electronic Equipment), sales of recycling services and solutions, and the

construction waste business in accordance with its strategy.

Construction of the new R&D analysis laboratory for recycling technolo-

gy in Lahti, Finland, was completed in the summer, and sampling facilities

including crushers and smelters were completed by the end of the year.

The new R&D centre will allow the company to respond even better to the

growing demands for recycling technology.

At the end of the year under review Kuusakoski Oy took the decision to

discontinue its demolition operations in Finland.

The ERP system that was introduced already in 2013 in Sweden was

successfully introduced also in Finland at the beginning of the year un-

der review.

Finland retained its strong and important position in terms of genera-

ting results in the recycling business in 2014.

The operating result in Sweden improved significantly over the pre-

vious year. Steps that were taken in 2013 to adjust to the changed market

situation and focus even more on sourcing and recycling complex metals

that require technological expertise had a positive impact on the Swedish

subsidiary’s operating result.

In the Baltic markets, the operating results of Kuusakoski’s Estonian

and Lithuanian subsidiaries improved significantly. Operations in Poland

were also profitable.

In Great Britain, the joint venture Kuusakoski Ltd that specialises in

processing stainless steel in Sheffield continued to perform strongly.

The WEEE joint venture Sweeep Kuusakoski Ltd in Kent posted a negati-

ve operating result. The production line that was destroyed by fire in sum-

mer 2013 was restarted at the beginning of 2014.

In Denmark, the WEEE joint venture Averhoff A/S posted a negative

operating result. Kuusakoski redeemed all the remaining shares held by

minority shareholders in accordance with the shareholders’ agreement in

spring 2014.

Russia’s importance to the recycling group’s business is currently mi-

nimal. During the year under review, the company had operations only in

Moscow. In accordance with the strategy, the Moscow location focuses on

developing WEEE operations and recycling complex metals. The operating

result of Kuusakoski’s Russian subsidiary improved significantly compa-

red to the previous year.

13

The new ERP system that was introduced already in 2013 in Sweden was success-fully introduced also in Finland at the

beginning of the year. Originally introduced in 2010, the comprehensive ERP project officially concluded on 30 September 2014, but work continues on implementing the changes, mo-nitoring processes and developing efficient work practices.

Kuusakoski acquired a 49% sharehol-ding in Suomen Erityisjäte Oy. The .agreement with former owner Skanska

Infra Oy was signed in August. The remaining shares in Suomen Erityisjäte Oy are owned by LHJ Group (Loimi-Hämeen Jätehuolto).

Kuusakoski Oy opened a unique re-search laboratory and development centre in Lahti, Finland, in the summer

with the aim of finding new material streams. The activities at the new analysis laboratory focus on complex materials and separation technology for precious metals.

In order to strengthen its global position, Alteams established a new production unit in Lebork, Poland, at the end of 2012. The

new plant began deliveries in February 2014. Once production is in full swing, the plant is expected to employ between 200 and 300 people.

Preprocessing operations for waste electrical and electronic equipment were expanded within Finland to La-

pua, Oulu, Turku and Tampere.

Special attention was paid during the year to occupational and fire safety. An extensive fire safety training pro-

gramme began in the summer.

In December, Kuusakoski redeemed the remaining 60% shareholding in Vintage Tech Recyclers in the USA. Vintage Tech

Recyclers had been a joint venture since No-vember 2011 and is now the leading electronics recycling company in the USA operating on the basis of producer responsibility funding.

Kuusakoski celebrated its 100th anni-versary in the autumn. The event was .celebrated among personnel in all

our markets in a festive yet informal manner.

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Even in large corporations, teamwork and trustworthiness are the products of the work put in by numerous individuals. Our activities, from customer service to innovations, demand enthusiastic emplo-

yees who are dedicated to the values of the recycling business. Promises are made and kept among people. Even the best technologies cannot work and produce results without the human factor. In this way, the importance of skilled employees can be felt throughout the entire value chain.

In the USA, Kuusakoski continued investments according to the strategy

and to develop WEEE processes. Construction of the new recycling plant in

Chicago was completed and production began in spring 2014. At the end

of the year Kuusakoski redeemed the remaining shares in Vintage Tech,

LLC. Vintage Tech is the leading electronics recycling company in the USA

operating on the basis of producer responsibility funding. The transaction

strengthened Kuusakoski’s position in the electronics recycling market in

the USA. Kuusakoski’s operating result in the USA remained negative in 2014.

Research and development, environmental protection, and occupational health and safety

Kuusakoski Oy’s R&D department focused on research into the value and

processing chains of various material flows. The aim of the research was

to improve the recovery and sorting efficiency of materials, as well as the

recyclability and usability of waste flows created in processes.

Following a review of the processing chain, the manual dismantling and

preliminary handling processes were harmonised. A new operating model

for projects was introduced within the R&D organisation to facilitate more

organised and systematic operations.

The new R&D analysis laboratory for recycling technology in Lahti, Fin-

land, was completed in the summer, and sampling facilities including crus-

hers and smelters were completed by the end of the year. Other important

projects include the introduction of an electrostatic separator, cyclone se-

paration experiments with several equipment manufacturers, fluff testing

at the Ekopark Lahti recycling plant, and the development of new noble

metal processes at Kauklahti in Espoo, Finland.

During the year under review, research co-operation was undertaken with

several universities and research institutes. Testing began with Poly-XRF

equipment that has been developed in collaboration with the VTT Technical

Research Centre of Finland and that uses X-ray fluorescence technology to

distinguish between different metal fractions. Kuusakoski played a key role

in initiating the nationwide CLEEN Material Value Chains Project in Finland.

Four thesis projects were also initiated at Aalto University.

In the field of environmental protection, a lot of work continued to go into

permits and notifications, partly due to the changes in the company’s ope-

rations. ISO 14001 environmental audits were carried out according to plan.

In the field of occupational health and safety, systematic training was

continued, internal safety auditing was enhanced, and work continued on

occupational safety plans. Kuusakoski’s mission statement and operating

policy were also updated in line with the strategy. The operating policy now

includes a new occupational health and safety policy. Special attention

was paid to occupational safety in connection with the work on updating

the strategy.

The condition and age of radiation detection equipment was evalua-

ted. Based on the results, preliminary plans for updating equipment were

drawn up, and the need for additional equipment was assessed.

Changes in group structure

In January, Kuusakoski Oy acquired an additional 11% shareholding in Swee-

ep Kuusakoski Ltd. As a result of this transaction, Kuusakoski Oy’s ownership

of Sweeep Kuusakoski Ltd increased to 61%.

In May, Kuusakoski Oy redeemed all the remaining shares in Aver-

hoff A/S in accordance with the shareholders’ agreement. In December,

Kuusakoski Oy also redeemed all the remaining shares in VTKK and Vinta-

ge Tech, LLC in the USA. As a result of these transactions, Kuusakoski Oy’s

ownership in these companies increased to 100%.

In September, Kuusakoski Oy acquired a 49% shareholding in Suomen

Erityisjäte Oy, which specialises in processing hazardous solid waste, con-

taminated soils and slag from waste incineration plants.

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VALUE FOR EMPLOYEES

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Market situation and business performance

The foundry group’s revenues increased by approximately 19% over

the previous year. Growth was particularly fast in the telecommu-

nications network components segment, while the mechatronics

segment (mechanical engineering, electrical engineering and commer-

cial vehicle industries) also developed favourably. The operating result for

2014 was weaker compared to the previous year mainly due to the start-

up costs in Poland and changes in official regulations in China.

The revenues of the foundry group amounted to EUR 108.4 million,

which is 19.1% more than in 2013. The operating profit amounted to EUR

2.8 million (4.0 million in 2013), which represents 3.7% of revenues (4.4%

in 2013). The return on investment (ROI) was 6.6% (7.7% in 2013). The net

result was EUR 0.9 million (1.2 million in 2013), which represents 0.8% of

revenues (1.4% in 2013).

Production in China was temporarily halted in the autumn due to an ex-

plosion near the production unit and the resulting changes in official regu-

lations. Production costs increased, as some of the production processes

had to be transferred to separate production facilities.

India is considered a strategically important country for production. The

sales volumes and profitability of the group’s joint venture in India develo-

ped favourably during the year under review.

Construction of the new production unit in Poland was completed at

the start of 2014, but the ramp-up to mass production was slower than

anticipated. This subsequently had a negative impact on the group’s ope-

rating result.

Research and development

The group’s R&D activities were based on its strategy of meeting custo-

mer needs. Research activities focused on heat transfer projects. Rese-

arch into die-casting processes focused on developing special processes,

as well as on studying and improving heat transfer in aluminium alloys.

Development activities focused on introducing metal coatings in India

and Poland. Several R&D projects related to heat transfer were also car-

ried out with customers during the year under review.

Our ERP system is based on international standards (ISO 9001 and TS

16949), and our environmental management system is based on the ISO

14001 standard.

Changes in group structure

There were no changes in the structure of the Alteams group during the

year under review.

Foundry operationsAlteams Oy and its subsidiaries form the foundry group.

17

Group prospects

Regarding the recycling business, no significant changes are ex-

pected in the market situation. The general economic uncertainty

will continue to have an impact on the availability of and demand

for recycled metals. Volumes are expected to be lower than in the year

under review.

The company shall continue to focus attention on operational efficien-

cy in all its markets, on increasing value added and on risk management.

Revenues for the recycling business are expected to decrease slightly,

while the operating result is expected to improve compared to 2014.

Regarding the foundry business, revenues are expected to be slight-

ly higher and profitability to be better than in 2014. Growth in demand is

expected in both the telecommunications network components segment

and in the mechatronics segment. Geographically we expect demand to

be distributed more evenly between Asia and Europe with the importance

of production in Europe increasing.

The Board expects Kuusakoski Group’s revenues for 2015 to decrease

slightly from the level in 2014.

Dividend proposal

The Board proposes to the Annual General Meeting that a dividend of EUR

10,500,000 be paid from the total distributable funds and that the remain-

der be retained in shareholders’ equity.

for 2015

18

VALUE FOR THE ENVIRONMENT

19

Through our own activities we demonstrate how we value nature and the environment. Just as the efficient reco-very of recycled materials improves profitability, it also

lessens environmental loads. A vanishingly small percentage of waste these days is sent to landfills for final disposal, while the amount of waste that is sent for recycling and energy utilisation is growing all the time thanks to state-of-the-art technology and the introduction of new methods.

VALUE FOR THE ENVIRONMENT

20

EUR MILLION 2014 2013

REVENUES 1) 655.5 712.0

Production for own use 1.8 3.8

Other operating income 2) 4.6 4.7

Materials and services 3) 451.1 531.6

Personnel expences 4) 88.9 86.7

Depreciation and writedowns 5) 31.7 37.3

Other operating expenses 83.4 77.2

655.0 732.8

OPERATING PROFIT 6.9 -12.3

Financial income and expenses 7) -1.7 -6.5

PROFIT BEFORE TAXES 5.2 -18.8

Income taxes 8) -2.6 -1.5

Minority interest 0.2 0.3

NET PROFIT FOR THE FINANCIAL YEAR 2.8 -20.0

EUR MILLION€ 2014 2013

ASSETS

Non-current assets 9)

Intangible assets 9.0 4.3

Goodwill 11.7 10.4

Tangible assets 165.0 175.5

Investments 2.7 2.7

188.4 193.0

Current assets

Inventories 10) 80.1 69.2

Current receivables 11) 118.5 104.2

Cash and cash equivalents 10.3 10.0

209.0 183.4

Total 397.4 376.4

SHAREHOLDERS´ EQUITY AND LIABILITIES

Equity and reserves 12)

Share capital 0.1 0.1

Share premium fund 0.2 0.2

Retained earnings 183.0 215.6

Net profit for the financial year 2.8 -20.0

186.1 195.8

Minority interest 3.2 4.3

Obligatory provisions 13) 12.1 13.0

Liabilities 14)

Non-current liabilities 44.9 26.7

Current liabilities 151.0 136.5

195.9 163.2

Total 397.4 376.4

EUR MILLION€ 2014 2013

CASH FLOW FROM OPERATIONS

Profit before extraordinary items 5.2 -18.8

Adjustments:

Depreciation according to plan 31.7 37.3

Unrealised exchange rate profits and losses -3.4 1.6

Other non-cash items 0.0 -0.1

Financial income and expenses 3.3 4.9

Cash flow before change in working capital 36.9 24.9

Change in working capital::

Increase (-), decrease (+) in current trade receivables -4.4 12.0

Increase (-), decrease (+) in loans receivable 0.0 1.3

Increase (-), decrease (+) in inventories -10.0 28.2

Increase (+), decrease (-) in current liabilities 0.5 -4.0

Cash flow from operations before financial items and taxes 23.0 62.4

Interest paid and other financial expenses -4.6 -5.5

Interest received 0.2 0.2

Taxes -3.5 -2.6

Cash flow from operations 15.1 54.6

CASH FLOW FROM INVESTMENTS

Investments in tangible and intangible assets, net -11.3 -26.6

Subsidiaries acquired -4.0 -6.0

Associated companies acquired -4.4 -0.4

Increase (+), decrease (-) in other investments -0.8 0.0

Cash flow from investments -20.5 -33.0

CASH FLOW FROM FINANCING

Increase (+), decrease (-) in current liabilities 14.8 7.2

Increase (+), decrease (-) in non-current liabilities 3.0 -14.7

Dividend distribution -12.0 -12.1

Cash flow from financing 5.8 -19.5

Change in cash and cash equivalents 0.4 2.0

Cash and cash equivalents 1 Jan 10.0 7.9

Cash and cash equivalents 31 Dec 10.3 10.0

Consolidated Income Statement Consolidated Balance Sheet Consolidated Statement of Changes in Financial Position

21

EUR MILLION€ 2014 2013

INCOME STATEMENT

1. Revenues by business sector and market area Revenues by business sector:

Recycling 547.1 621.0

Foundries 108.4 91.0

Total 655.5 712.0

Revenues by market area Finland 153.7 169.5

Other Europe 278.4 286.8

Asia 202.5 244.1

Other areas 20.9 11.6

Total 655.5 712.0

2. Other operating income Gains on sale of fixed assets 1.8 0.4

Other operating income 2.8 4.3

Total 4.6 4.7

3. Materials and servicesMaterials, goods and supplies

Purchased during the financial year 350.4 383.1

Increase(-),decrease (+) in inventories -11.6 26.2

338.8 409.3

Outside services 112.3 122.3

Total 451.1 531.6

4. Personnel expencesWages and salaries 74.3 69.5

Pension expenses 8.8 9.0

Other personnel expences 5.7 8.2

Total 88.9 86.7

Salaries and remuneration to senior management

Managing Directors and Members of the Board of Directors 2.7 2.8

The Group has a supplementary pension insurance affecting one person. Group management had no loans from the parent company.

Notes to the Consolidated Financial Statements

M€€ 2014 2013

Average number of personnelWage earners 2,189 1,927

Salaried employees 701 748

Total 2,889 2,675

5. Depreciation and writedownsPlanned depreciation, intangible 1.5 0.7

Planned depreciation, goodwill 4.2 4.5

Planned depreciation, tangible 26.1 27.1

Writedowns 0.0 4.9

31.7 37.3

6. Auditor’s feesAuditing 0.3 0.4

Other services 0.1 0.1

Total 0.4 0.4

7. Financial income and expences Income from associated companies -1.3 -1.5

Other interest and financial income, from others 0.2 0.2

Total financial income 0.2 0.2

Other interest and financial expenses, to others 0.6 5.3

Total financial expenses and expenses -1.7 -6.5

Foreign currency exchange differences included in total financial income and expenses

2.4 -1.6

8. Income taxes

Income taxes payable from current and previous tax years 5.3 3.4

Change in deferred tax liability -2.7 -1.9

2.6 1.5

22

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BALANCE SHEET, ASSETS

9. Non-current assets

Intangible assets

Intangible rights 3.2 0.0 0.4 0.0 -1.5 0.0 0.0 -0.2 0.0 1.8

Other long-term expenditure 11.0 0.1 4.6 -1.4 -8.4 0.0 1.4 -1.2 0.0 6.0

Capital work in progress 0.0 0.1 1.0 0.0 0.0 0.0 0.0 0.0 0.0 1.1

Total intangible assets 14.2 0.2 6.0 -1.4 -9.9 0.0 1.4 -1.5 0.0 9.0

Goodwill 68.3 0.4 5.3 0.0 -57.9 -0.2 0.0 -4.2 0.0 11.7

Tangible assets

Land 9.7 -0.2 0.3 -1.4 0.0 0.0 0.0 0.0 0.0 8.4

Buildings and structures 93.4 0.8 17.9 -4.7 -44.3 -0.3 3.5 -5.2 0.0 61.1

Machinery and equipment 258.1 4.2 14.8 -13.2 -165.2 -2.2 10.8 -20.3 0.0 87.0

Other tangible assets 6.5 0.5 0.7 -0.1 -3.6 -0.2 0.0 -0.6 0.0 3.3

Capital work in progress 21.7 0.2 11.7 -28.3 0.0 0.0 0.0 0.0 0.0 5.2

Total tangible assets 389.4 5.5 45.4 -47.7 -213.1 -2.8 14.3 -26.1 0.0 165.0

Investments

Shares in associated companies 2.5 -0.8 4.4 -3.6 0.0 0.0 0.0 0.0 0.0 2.5

Other shares and shareholdings 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2

Total investments 2.7 -0.8 4.4 -3.6 0.0 0.0 0.0 0.0 0.0 2.7

Total non-current assets 474.7 5.2 61.1 -52.7 -280.9 -3.0 15.7 -31.7 0.0 188.4

23

EUR MILLION€ 2014 2013

10. Inventories

Materials and supplies 32.5 38.1

Finished goods 47.4 30.5

Advance payments 0.2 0.7

80.1 69.2

11. Current receivables

Short-term receivables

Trade receivables 94.6 86.3

Loan receivables 0.1 0.1

Deferred tax liabilities 7.6 0.0

Other receivables 7.5 5.7

Accured income 8.8 12.2

118.5 104.2

BALANCE SHEET, ASSETS

12. Shareholders´equity

Share capital 0.1 0.1

Share premium fund 0.2 0.2

0.3 0.3

Retained earnings 1 Jan 195.5 228.4

Dividends paid -10.5 -10.5

Translation adjustment -2.0 -2.3

Retained earnings 31 Dec 183.0 215.6

Net profit for the financial year 2.8 -20.0

Total retained earnings 185.8 195.5

Total 186.1 195.8

13. Provisions

Environmental provisions 4.9 4.8

Other provisions 7.3 8.3

Total 12.1 13.0

EUR MILLION€ 2014 2013

14. Liabilities

Non-current liabilities

Deferred tax liabilities and receivables

Deferred tax receivables 3.7

Deferred tax liabilities

From accruals 1.1 1.1

From appropriations 6.8 5.6

Total 7.8 6.6

Net deferred tax liabilities 2.9

Loans from financial institutions 36.1 20.3

Other non-current liabilities 0.9 3.5

Total non-current liabilities 44.9 26.7

Loans maturing after 5 years or more

Loans from financial institutions 0.0 0.0

Current liabilities

Loans from financial institutions 62.8 55.1

Advances received 2.9 1.8

Trade payables 51 .1 46.7

Other interest bearing debt 10.8 13.8

Other non-interest bearing debt 4.5 1.7

Accrued expenses 18.9 17.3

Total current liabilities 151.0 136.5

Main items in accrued expenses

Salaries and social security costs 9.3 8.8

Taxes 0.3 0.4

Accrued financial expenses 0.2 0.2

Other 9.0 7.9

18.9 17.3

EUR MILLION€ 2014 2013

OTHER NOTES

15. Collateral given

Liabilities for which collateral given

Loans from financial intitutions 29.8 34.5

Mortgages given as collateral

Mortgages on property 9.3 12.7

Business mortgages 57.1 53.7

Total mortgages 66.4 66.4

16. Contingent liabilities

Leasing and rental liabilities

Payable within one year 6.4 9.1

Payable after one year 31.6 24.6

Total leasing and rental liabilities 38.0 33.6

Other guarantees 4.0 4.7

Total contingent liabilities 42.0 38.4

17. Derivative instruments

Open derivative intruments 31 Dec 2014

Currency options

Fair value 0.0 0.1

Change in value marked to the Income Statement -0.1 0.1

Metal options

Fair value 0.1 0.1

Change in value marked to the Income Statement 0.0 -0.2

Electricity derivatives

Fair value -0.6 -0.7

Contract amounts 3.0 3.8

Forward foreign exchange contracts have been made for hedgign purposes, and they have been booked in the financial statements at their fair value. Exercised and terminated electricity derivatives have been booked in the income statement upon their termination. The values of open agreements are not booked in the balance sheet but are instead listed here. At the end of the financial year the Group had open currency option, forward foreign exchange contracts and electricity derivatives.

24

CountryShare-

holding %

18. Group holdings in other companies

GROUP COMPANIES

Alteams Oy Finland 100

Jokirantakiinteistöt Oy Finland 100

Kiinteistö Oy Lahden Norokatu 5 Finland 100

Kivikolmio Oy Finland 100

Kuusakoski Oy Finland 100

Suomen Hissipurku Oy Finland 100

Alteams Dispensing AB Sweden 100

Alteams Eesti Oü Estonia 100

Alteams Poland Sp. Z o.o Poland 100

Alteams Stilexo AB Sweden 100

Alteams Suzhou Co. Ltd. China 100

Averhoff A/S Denmark 100

Bjästa Återvinning AB Sweden 100

Borrkompaniet Sverige AB Sweden 100

Crown Works Ltd Great Britain 50

KS Recycling AB Sweden 50

Kuusakoski AS Estonia 100

Kuusakoski Glass Recycling LLC USA 100

Kuusakoski Inc USA 100

Kuusakoski Ltd Great Britain 50

Kuusakoski Philadelphia LLC USA 100

Kuusakoski SIA Latvia 100

Kuusakoski Spolka Zo.o Poland 100

Kuusakoski Sverige AB Sweden 100

Kuusakoski UAB Lithuania 100

Kuusakoski US LLC USA 100

Petromax ZAO Russia 100

SWEEEP Kuusakoski Ltd Great Britain 61

Vintage Tech LLC USA 100

VTKK LLC USA 100

ASSOCIATED COMPANIES

Suomen Erityisjäte Oy Finland 49

Sähkö-Saarnikannas Oy Finland 20

Ashley Alteams India Private Limited

India 50

EUR MILLION 2014 2013

Revenues 1.6 1.6Other operating income 0.7 0.7

Personnel expenses 1.0 1.0

Other operating expenses 1.6 1.6

Operating profit -0.4 -0.3

Financial income and expenses 13.7 15.6

Profit before extraordinary items 13.3 15.3

Extraordinary expenses 0.0 -0.1

Group contribution 0.2 0.0

Profit before taxes 13.5 15.2

Income taxes 0.0 0.0

Net profit for the financial year 13.5 15.2

Note To Parent Company Financial Statement

Specification of shareholders´ equity

Share capital 0.1 0.1

Share premium fund 0.2 0.2

Retained earnings on 1 Jan 87.2 82.5

Dividends paid -10.5 -10.5

Retained earnings on 31 Dec 76.7 72.0

Net profit for the financial year 13.5 15.2

Total retained earnings on 31 Dec 90.2 87.2

Total 90.5 87.5

Parent company´s distributable funds 90.2 87.2

EUR MILLION 2014 2013

ASSETS

Fixed assets and other long-term investments

Non-current assets 0.3 0.0

Tangible assets 1.2 1.4

Investments 72.9 72.9

74.4 74.3

Current assets

Long-term receivables 9.1 9.5

Short-term receivables 26.7 24.1

35.8 33.6

SHAREHOLDERS´EQUITY AND LIABILITIES

110.2 107.9

Shareholders´equity

Share capital 0.1 0.1

Share premium fund 0.2 0.2

Retained earnings 76.7 72.0

Netprofit for the year 13.5 15.2

90.5 87.5

Liabilities

Non-Current liabilities 5.9 6.4

Current liabilities 13.9 14.0

19.7 20.4

110.2 107.9

Parent Company Balance SheetParent Company Income Statement

25

EUR MILLION 2014 2013 2012 2011 2010

Group key financial indicators

Revenues, MEUR 655.5 712.0 842.2 977.8 809.9

Exports and sales outside Finland, MEUR 501.8 542.5 672.8 778.3 639.6

% of revenues 76.6 76.2 79.9 79.6 79.0

Operating profit, MEUR 6.9 -12.3 19.1 56.1 62.1

% of revenues 1 .0 -1 .7 2.3 5.7 7.7

Net financing expences (excluding exhange rate differences), MEUR

3.0 3.7 5.4 5.2 5.1

% of revenues 0.5 0.5 0.6 0.5 0.6

Profit berore taxes, MEUR 5.2 -18.8 9.6 46.9 56.4

% of revenues 0.8 -2.6 1 .1 4.8 7.0

Return on equity (ROE), % 1.3 -9.3 2.5 14.3 20.9

Return on investment (ROI), % 2.0 -4.3 5.4 14.2 21.6

Equity ratio, % 48.0 53.4 55.7 56.4 52.0

Interest-bearing debt, MEUR 110.7 92.7 100.6 88.0 102.5

Net Gearing, % 53.0 41.3 39.5 26.5 42.4

Investments, MEUR 20.5 33.0 35.1 37.2 41.5

% of revenues 3.1 4.6 4.2 3.8 5.1

Number of personnel (average) 2,889 2,675 2,996 3,222 2,953

Information per share

Number of shares 60,000 60,000 60,000 60,000 60,000

Net profit per share, EUR 46.6 -334.1 69.7 500.8 665.2

Equity per share, EUR 3,102.1 3,263.6 3,799.3 3,887.8 3,522.2

Dividend per share, EUR 1 75.0 1 75.0 1 75.0 1 75.0 1 75.0

Dividend as % of net profit 375.3 -52.4 251.0 34.9 26.3

Key Figures

26

Consolidated Financial StatementsThe consolidated financial statements and those of the parent company Kuusakoski Group Oy have been prepared in accordance with the Finnish Accounting Act. The consolidated financial statements include the parent company, as well as companies in which the parent company directly or indirectly held more than 50 percent of the voting rights at the end of the financial year or in which the parent company has the power to exercise control. All inter-company receivables and liabilities, internal margins and the effects of other internal transac-tions have been eliminated. Share ownership has been eliminated using the acquisition cost method. The difference between the acquisition cost and the equity of subsidiary companies at the time of acquisition is presented as goodwill. Goodwill is depreciated on a straight-line basis over 5 years. Minority interests are separated from the Group’s result and shareholders’ equity and presented as se-parate items in the consolidated income statement and balance sheet. The financial information of associated companies is included in the consolidated financial state-ments using the equity method. The Group’s share of the results in associated companies is presented in the financial items. Similarly, the Group’s share of the shareholders’ equity of associated companies is presented in the balance sheet as the value of the shares and any possible goodwill. Associated compa-nies are companies in which the parent company held 20 to 50 percent of the voting rights at the end of the financial year.

Foreign Currency ItemsForeign currency receivables, liabilities and commitments are valued according to the European Central Bank’s average exchange rates on the closing date. Foreign currency receivab les and liabilities in curren-cies hedged with forward exchange agreements on the closing date are valued at the forward rate. Foreign exchange profits and losses are charged to the appropriate items in the income statement. The balance sheets of non-Finnish subsidiaries are translated into euros at the average exchange rate on the closing date and their income statement at the average of the monthly average exchange rates for the financial year. Exchange rate differences arising from translating shareholders’ equity are presented in retained earnings.

Research and Development CostsResearch and development costs are charged to the income statement as annual costs.

InventoriesInventories are presented in the balance sheet at the lower of cost or net realisable value; they are calcu-lated using the FIFO method as the amount of the variable costs arising from acquisition and manufactu-ring, or the probable sales price. In addition to variable costs, the value of inventories includes fixed costs arising from acquisition and manufacturing.

Fixed Assets and DepreciationThe balance sheet values of tangible and intangible fixed assets are based on their original acquisition costs, less accumulated depreciation. The acquisition cost of assets manufactured by the company inclu-des variable manufacturing costs. Straight-line depreciation is made according to the plan for depreciation, which is based on the estima-ted useful economic life of the assets.

Estimated useful economic life of fixed assets: Intangible asset 3 – 5 years Goodwill 5 – 10 years Other long-term expenditure 5 years

Buildings and structures 10 – 30 years Machinery and equipment 5 – 12 years Other tangible assets 5 – 20 years

Financial AssetsFinancial assets are valued according to their acquisition cost or the probable sales price.

Recognition of ProjectsThe revenues of long-term projects are entered according to the percentage of completion, which in turn is calculated according to costs incurred and total estimated costs. The anticipated loss from unprofitab-le projects is entered in total as a cost.

Pension ArrangementsPension costs for Group companies outside Finland are calculated in accordance with local legislation and practice and recorded in the consolidated financial statements. Pension obligations for Group per-sonnel in Finland are covered through payments to pension insurance institutions.

Deferred TaxesDeferred tax liabilities and assets in the consolidated financial statements are calculated for temporary differences between the tax basis of assets and liabilities and their carrying amounts for financial repor-ting purposes using the official tax rate confirmed on the balance sheet date for the following financial periods. In the financial statements for 2014, the method of presenting deferred taxes has been changed. Previously, the balance sheet presented the deferred tax liabilities and assets as net deferred tax liabilities.Now, the deferred tax liabilities and assets are presented separately. The comparative information for the-se has not changed. Deferred tax liabilities are recorded in full, whereas deferred tax assets are entered at their estimated realisable amounts.

Taxation requirements in Finland and certain other countries allow companies to reduce or increase their taxable income through appropriations. Any increase or reduction in these is recorded in the income statement as a change in appropriations, with the counter-entry in the balance sheet appropriations. In the consolidated financial statements, appropriations are divided between the result for the year, accumula-ted reserves and deferred tax liability.

Recognition and Measurement of Derivative InstrumentsDerivative instruments include currency options, forward foreign exchange contracts, interest rate swaps and commodity derivatives as part of an overall risk management policy. Currency options and forward foreign exchange contracts are used to reduce anticipated foreign currency risks related to sales and purchases. Currency-based receivables and liabilities in the balance sheet are valued at the forward rate of the forward foreign exchange contracts. Commodity derivatives and interest rate swaps are valued at market prices on the closing date.

Environmental ProvisionsWhen acquiring new areas of land, an environmental provision is recorded with mandatory provisions about any possible contaminated soil of which the company is aware.

Kuusakoski Oy’s location-specific environmental permit regulations are complied with closely and mo-nitored continuously throughout the financial year. Upcoming environmental investments and any pos-sible soil cleaning provisions for land on which operations are to be discontinued are recorded in the fi-nancial statements as mandatory provisions.

Accounting Principles

27

We have audited the accounting records, the financial statements, the report of the Board of Directors, and the administration of Kuusakoski Group Oy for the year ended 31 December 2014. The financial state-ments comprise the consolidated balance sheet, income statement and cash flow statement and notes to the consolidated financial statements, as well as the parent company’s balance sheet, income statement, cash flow statement and notes to the financial statements.

Responsibility of the Board of Directors and the Managing Director The Board of Directors and the Managing Director are responsible for the preparation of financial statements and report of the Board of Directors that give a true and fair view in accordance with the laws and regulations governing the preparation of the financial statements and the report of the Bo-ard of Directors in Finland. The Board of Directors is responsible for the appropriate arrangement of the control of the company’s accounts and finances, and the Managing Director shall see to it that the accounts of the company are in compliance with the law and that its financial affairs have been arranged in a reliable manner.

Auditor’s ResponsibilityOur responsibility is to express an opinion on the financial statements, on the consolidated financial statements and on the report of the Board of Directors based on our audit. The Auditing Act requires that we comply with the requirements of professional ethics. We conducted our audit in accordance with good auditing practice in Finland. Good auditing practice requires that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and the report of the

Board of Directors are free from material misstatement, and whether the members of the Board of Directors of the parent company or the Managing Director are guilty of an act or negligence which may result in liability in damages towards the company or have violated the Limited Liability Compa-nies Act or the articles of association of the company. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements and the report of the Board of Directors. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material mis-statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of financial statements and report of the Board of Directors that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of accounting po-licies used and the reasonableness of accounting estimates made by management, as well as eva-luating the overall presentation of the financial statements and the report of the Board of Directors.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the financial statements and the report of the Board of Directors give a true and fair view of both the consolidated and the parent company’s financial performance and financial posi-tion in accordance with the laws and regulations governing the preparation of the financial state-ments and the report of the Board of Directors in Finland. The information in the report of the Board of Directors is consistent with the information in the financial statements.

Auditor’s report

Helsinki, 24 March 2015KPMG OY ABJukka Rajala, Authorized Public Accountant

The distributable funds of the Kuusakoski Group Oy amount to EUR 90.2 million, of which

the net profit for the financial year accounts for EUR 13.5 million.

The Board of Directors proposes to the Annual General Meeting that the distributable

funds be used as follows:

• for payment of a divided of EUR 175.00 per share or total of EUR 10.5 million

• to be retained in shareholders´ equity EUR 79.7 million

• Total EUR 90.2 million

No significant changes have occurred in the company´s financial position after the end of

the financial year. The company´s liquidity is good, and in the view of the Board of the pro-

posed distribution of finds does not risk the company´s financial standing.

Proposal of the Board

We submit these financial statements and the report of the

Board of Directors for the financial period 1 January – 31 December

2014 for the approval of the Annual General Meeting.

Espoo, 24 March 2015Veikko Kuusakoski, Chairman of the Board, President

Mariella Kuusakoski-ToivolaArno PelkonenOlli VaartimoOssi VirolainenPetteri Walldén

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28

Boards of Directors, Management and Auditors

Board of Directors of Kuusakoski Group OyVeikko Kuusakoski, Chairman of the BoardMariella Kuusakoski-ToivolaArno PelkonenOlli VaartimoOssi VirolainenPetteri Walldén

Deputy members:Timo KuusakoskiMikko KuusakoskiTiina ToivolaMarianne KuusakoskiLauri PeltonenRisto Kuusakoski

President of Kuusakoski Group OyVeikko Kuusakoski, MSc (Law)

Management Group of Recycling operations Atte Kekkonen ........... President and CEOLeena Salo ................... CFOPetri Virtanen ............. Vice President, North Europe (until 31 Jan 2015)Ville Pasanen ............. Vice President, Business ControllingJyri Talja ......................... Vice President, Technology Timo Kuusakoski ...... Vice President, WEEE and Precious Metals

Board of Directors of Kuusakoski OyVeikko Kuusakoski, Chairman of the Board Olli VaartimoMariella Kuusakoski-ToivolaArno PelkonenOssi VirolainenMikko Kuusakoski

President and CEO of Kuusakoski OyAtte Kekkonen, M.Sc. (Econ)

Board of Directors of Alteams OyArno Pelkonen, Chairman of the BoardMariella Kuusakoski-ToivolaPetteri WalldénTapio KuusakoskiMarianne KuusakoskiTimo Kuusakoski

President and CEO of Alteams OyAsko Nevala, MSc (Eng)

Management Group of Foundry Operations Asko Nevala .................President and CEO Petteri Kiili .....................Financial Director Susanne van Tol ........Executive Vice President, MET CBU (until 28 Feb 2015)Kimmo Pesonen ........Executive Vice President, Technology and Global Accounts Matti Huttunen ...........President and CEO, Alteams Poland Sp. z.o.o. Daniel Eklund ..............Vice President, Global Accounts, NET CBU David Twomey ............President and CEO, Alteams (Suzhou) Ltd., Co. Stephan Krieg .............Executive Vice President, Quality and Management Processes

AuditorsKPMG OY AB

Jukka Rajala, APA

29

Board of Directors of Kuusakoski Group Oy

MSc (Econ), LL.M

Ossi VirolainenMSc (Law), Chairman of the Board

Veikko Kuusakoski

Commercial College Graduate

Mariella Kuusakoski-Toivola

Petteri WalldénMSc (Eng)

Chairman of the Board of Nokian Tyres Plc,Vice President of the Board of Tikkurila Oy,Member of the Board of SE Mäkinen Logistics Oy,Teleste Oyj,StaffPoint Oy

Olli VaartimoMSc (Econ)

Vice Chairman of the Board ofOutokumpu OyjMember of the Board ofValmet Automotive Inc.

Arno PelkonenMSc (Econ)

Partner: Taito Capital Partners OyPresident and CEO of Valucast Oy

Timo Kuusakoski MSc (Econ)Member of the Board ofKS Recycling AB,Suomen Erityisjäte Oy

Mikko KuusakoskiMsc (Eng), MRICS

Tiina Toivola BBA

Members

Deputy membersMarianne KuusakoskiLL.M, BBA

Lauri Peltonen MD, PhDVice Chairman of theBoard of Music InstituteNurmijärvi

Risto KuusakoskiMA (Education)

30

Group management

Kuusakoski Group OyP.O. Box 25 / Metsänneidonkuja 12FI-02131 EspooT +358 20 781 781F +358 20 781 7200firstname.lastname@kuusakoski.com

Recycling operations

Kuusakoski OyHead OfficeP.O. Box 25 / Metsänneidonkuja 12FI-02131 EspooT +358 20 781 781 /switchboardT +358 800 3 0880 /customer serviceF +358 20 781 7200firstname.lastname@kuusakoski.comwww.kuusakoski.com

Finland

EspooEkopark EspooÄmmässuonkuja 1FI-02820 EspooT +358 20 781 781F +358 20 781 7371

Espoo - KauklahtiP.O. Box 6 / Lasihytti 4FI- 02781 EspooT +358 20 781 781F +358 20 781 7335

HeinolaP.O. Box 96 / Kuusakoskentie 5FI-18101 HeinolaT +358 20 781 781F +358 20 781 7411

HeinolaRecycling Technologies (RecTec)P.O. Box 97 / Kymintie 1FI-18101 HeinolaT +358 20 781 781F +358 20 781 7741

Helsinki - KivikkoP.O. Box 205 / Kivikonlaita 5FI-00941 HelsinkiT +358 20 781 781F +358 20 781 7302

HyvinkääUudenkyläntie 28FI-05950 HyvinkääT +358 20 781 7368

IisalmiParkatinkuja 8FI-74120 IisalmiT +358 20 781 7530F +358 20 781 7531

ImatraPilarikuusenkatu 5FI-55610 ImatraT +358 20 781 7540

JoensuuLylykoskentie 35FI-80130 JoensuuT +358 20 781 7550F +358 20 781 7551

JyväskyläRuokomäentie 50FI-40530 JyväskyläT +358 20 781 7560F +358 20 781 7561

KajaaniNuaskatu 6FI-87400 KajaaniT +358 20 781 7580F +358 20 781 7581

KalajokiSatamatie 422FI-85180 RahjaT +358 20 781 7590F +358 20 781 7591

KotkaJänskäntie 9FI-48310 KotkaT +358 20 781 7622F +358 20 781 7060

Kuopio Romulantie 75FI-71490 AirakselaT +358 20 781 7500F +358 20 781 7501

LahtiEkopark Lahti Norokatu 5FI-15170 LahtiT +358 20 781 7144

LahtiSapelikatu 8FI-15160 LahtiT/F +358 20 781 7699

LapuaKalliotie 1FI-62100 LapuaT 020 781 7718

OuluRuskonniityntie 4FI-90630 OuluT +358 20 781 7640F +358 20 781 7641

PoriMäntyluotoFI-28880 PoriT +358 20 781 7660F +358 20 781 7661

TampereLastikankatu 10FI-33730 TampereT +358 20 781 7700F +358 20 781 7701

TurkuRavurinkatu 32FI-20380 TurkuT +358 20 781 7720

VantaaHanskalliontie 3FI-01760 VantaaT +358 20 781 781F +358 20 781 7341

Kivikolmio OyTuotekatu 8 b FI-21200 Raisio

Suomen Erityisjäte OyKiimassuontie 127FI-30420 ForssaT +358 440 242 700 F +358 3 424 2630

Suomen Hissipurku OyHylliläntie 14FI-33730 Tampere

China

Office in Hong KongRowena ZhangLeval 18, Wheelock House,20 Pedder Street, Central, Hong KongT +86 1350 180 1625rowena.zhang@kuusakoski.com

Denmark

Averhoff A/SVejlbjergvej 5-15 DK-8240 RisskovT +45 86 24 38 44F +45 86 24 38 54

Estonia

Kuusakoski ASMain OfficeBetooni 12EE-11415 TallinnT +372 625 8600 /officeT +372 625 8666 /customer serviceF +372 601 2745firma@kuusakoski.com

JõhviKaasiku 32Jõhvi valdEE-41533 Ida-VirumaaT +372 33 27 977F +372 33 27 397johvi@kuusakoski.com

NarvaPuuvilla 21EE-20207 NarvaT +372 356 2211F +372 356 2055narva@kuusakoski.com

PaideMündi 49 (Paide jäätmejaam)EE-72719 PaideT +372 53 027 188paide@kuusakoski.com

PaldiskiRae põik 14 Paldiski LõunasadamEE-76806 PaldiskiT +372 674 1090F +372 674 1089paldiski@kuusakoski.com

PärnuSavi 30EE-80010 PärnuT +372 443 7748F +372 443 7764parnu@kuusakoski.com

RakvereRaua 2EE-44317 RakvereT +372 322 5310F +372 322 5311rakvere@kuusakoski.com

RaplaMäepere jäätmejaamÜlejõe küla, Rapla valdT +372 57 501 937rapla@kuusakoski.com

TartuTeguri 53EE-51013 TartuT +372 736 7772F +372 736 7499tartu@kuusakoski.com

Viljandi Vaksali 44EE-71012 ViljandiT +372 43 49 665F +372 43 49 668viljandi@kuusakoski.com

VõruJaama 22EE-65604 VõruT +372 78 200 74F +372 78 20 076voru@kuusakoski.com

Great Britain

Kuusakoski LtdCrown WorksFaraday RoadUK-S9 3XZ SheffieldT +44 114 244 8448F +44 114 242 5930

Sweeep Kuusakoski LtdGas RoadSittingbourneKentUK-ME10 2QBT +44 1795 434 125F +44 1795 420 339

Lithuania Kuusakoski UABMain OfficeMinijos g. 162LT- 93263 KlaipėdaT +370 46 397 040F +370 46 397 050info.lt@kuusakoski.com

Alytus Pramonės g. 15LT-62175 AlytusT/F +370 315 77981

KaunasT. Masiulio g. 18LLT-52460 KaunasT/F +370 37 380 267

KėdainiaiS.Dariaus ir S.Girėno g. 21B LT-57153 KėdainiaiT/F +370 347 54 325

PanevėžysTinklų g. 33LT-35115 PanevėžysT/F +370 455 81 878

ŠiauliaiPramonės g. 26LT-78151 ŠiauliaiT/F +370 414 50 020

VilniusPramonės g. 97LT-11115 VilniusT/F +370 5 267 2897

Poland

Kuusakoski Sp. z o.o. Ul. Polska 1dPL-81339 GdyniaT +48 58 660 7043F +48 58 660 7044info-poland@kuusakoski.com

Russia

Petromax ZAO, Moscow Ulitsa Industrialnaja 9RUS-141730 LobnjaMoscovskaya oblastT +7 495 995 4754F +7 495 995 4756petromax@kuusakoski.com

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Sweden

Kuusakoski Sverige ABMain Office StockholmSpånga CenterStormbyvägen 2-4SE-163 29 SpångaT +46 20 566 566kundtjanst@kuusakoski.com

Administrative OfficeSvedjevägen 6SE-931 36 SkellefteåT +46 20 566 566F +46 910 771 793ekonomi@kuusakoski.com

GällivareExportvägen 8SE-982 38 GällivareT +46 970 137 61F +46 970 130 22gallivare@kuusakoski.com

GävleGävle hamn, FredriksskansSE-805 95 GävleT +46 26 123 702F +46 26 123 752gavle@kuusakoski.com

KirunaLastvägen 39SE-981 38 KirunaT +46 980 144 60F +46 980 144 62kiruna@kuusakoski.com

LuleåCementvägen 3SE-973 45 LuleåT +46 920 248 240F +46 920 250 363lulea@kuusakoski.com

LyckseleSandåsvägen 3SE-921 45 LyckseleT +46 950 104 75F +46 950 145 10lycksele@kuusakoski.com

OxelösundStegeluddenSE-613 31 OxelösundT +46 155 296 226F +46 155 296 224oxelosund@kuusakoski.com

SkelleftehamnJärnvägsleden 91SE-932 33 SkelleftehamnT +46 020 566 566F +46 910 711 798skelleftehamn@kuusakoski.com

Skellefteå Svedjevägen 6SE-931 36 SkellefteåT +46 020 566 566F +46 910 711 793skelleftea@kuusakoski.com

Spånga, Stockholm Bromstensvägen 176 SE-163 55 SpångaT +46 8 564 722 40F +46 8 564 722 49spanga@kuusakoski.com

Timrå, SundsvallÅrvältsvägen 11SE-861 36 TimråT +46 60 515 580F +46 60 572 930timra@kuusakoski.com

Umeå Tegelbruksvägen 5SE-907 42 UmeåT +46 90 708 890F +46 90 708 899umea@kuusakoski.com

Vetlanda/KorsbergaStockatorpSE-570 10 KorsbergaT +46 383 202 08F +46 383 202 61vetlanda@kuusakoski.com

Örnsköldsvik/Bjästa Sales officeT +46 660 294 730 ovik@kuusakoski.com

Borrkompaniet Sverige AB Elektravägen 10SE-126 30 HägerstenT +46 8 744 50 65F +46 8 744 50 64info@borrkompaniet.se

KS Recycling ABSvartögatan 2SE-211 24 MalmöT +46 40 680 66 40F +46 40 937 722info@ksrecycling.se

Taiwan

Alfred Huang6F-3, No. 26, Lane 296, Section 6, Ming Chuen East Road, Taiwan, ROC.T+886 2 2632 8402F +886 2 2632 8525alfred.huang@kuusakoski.com.tw

USA

Kuusakoski, Inc235 West 48th St # 42BNY 10036, USA

Kuusakoski US, LLC13543 U.S. 30Plainfield, IL 60544, USAT +1 815 782 7125

VTKK, LLC13543 U.S. 30Plainfield, IL 60544, USAT +1 815 782 7125

Kuusakoski Philadelphia, LLC 3150 Orthodox Street Philadelphia, PA 19137, USAT +1 215 533 8323F +1 215 533 8325

Kuusakoski Glass Recycling, LLC2022 W. Townline RdPeoria, IL 61615, USAT +1 309 691 5015

Vintage Tech, LLC1105 Windham ParkwayRomeoville, IL 60446, USAT +1 866 435 9223

Foundry operations

Alteams GroupHead Office/ Sales & Engineering OfficeP.O. Box 91 / Yritystie 1FI-40351 JyväskyläT +358 201 339 500F +358 201 339 505firstname.lastname@alteams.cominfo@alteams.com

Finland

Alteams Oy

LaihiaLänsitie 61FI-66400 LaihiaT +358 201 339 500F +358 201 339 401

LoppiP.O. Box 55 / Valutie 2FI-12701 Loppi T +358 201 339 500F +358 201 339 351

OuluLogistics CenterSälpätie 8FI-90620 OuluT +358 201 339 500F +358 201 339 471

RuovesiTeollisuuskuja 3FI-34600 RuovesiT +358 201 339 500F +358 201 339 381

China

Alteams (Suzhou) Co., Ltd.Pressure Die CastingsNo. 388, Chao Hong RoadFengqiang Industrial ParkSuzhou New DistrictP.R. China 215129T +86 512 6665 8400F +86 512 6665 8401firstname.lastname@cn.alteams.com

Alteams Hitech ToolsBuilding 12, 369 Lushan RoadSND NEPSuzhou, JiangsuP.R. China 215129T +86 512 6662 7500F +86 512 6662 7501

Estonia

Alteams Eesti OÜ, Logistics CenterPeterburi tee 75AEE-11415 TallinnT +372 6 209 570F +372 6 209 571firstname.lastname@ee.alteams.com

India

Ashley Alteams India Limited, OfficeAD-61, New No. 3First Floor, 3rd StreetAnna NagarChennai - 600 040T +91 44 4261 5323F +91 44 2620 0224marketing@ashleyalteams.com

FactoryNo.8, SIPCOT Industrial ParkChellaperumpulimedu VillageSozhavaram Post, Akkur (via)Cheyyar Taluk - 631 701Thiruvannamalai DistrictT +91 4182 221 500F +91 4182 221 512

Poland

Alteams Poland Sp. z.o.o.ul. Abrahama 1084-300 LęborkT +48 59 714 0650firstname.lastname@alteams.com

Sweden

Alteams Stilexo ABSales and Engineering OfficeP.O. Box 50 / Fabriksgatan 49-51SE-56822 SkillingarydT +46 370 79570 F +46 370 71220firstname.lastname@se.alteams.com

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