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Pealkiri

2009 I HALF YEAR CONSOLIDATED INTERIM REPORT (UNAUDITED)

Teade

DIRECTORS' REPORT                                                               

Financial review 
                                                               
Margins                                                                         
Nordecon International Group ended the first half of 2009 with a gross profit of
84.4 million kroons (5.4 million euros), 65% down from the 238.7 million kroons 
(15.3 million euros) earned in the first half of 2008.  The      decrease       
results largely from a decline in the profitability of construction contracts   
across all segments. In    ordinary circumstances, lower than average           
profitability in the first quarter results from seasonal factors that impact    
mainly the road construction business and are counteracted in the second        
quarter. This year, however, they have been accompanied by exceptionally weak   
demand in the buildings construction sector, which has triggered fierce         
competition and, accordingly, a steep decrease in relevant margins.             

Management set the Group the objective of ending the first half-year with an    
operating profit following the first quarter, which had ended with an operating 
loss mainly because of non-recurring restructuring and down-sizing expenses.    
Consolidated operating profit for the first half-year was 5.2 million kroons    
(0.3 million euros). The positive operating result is attributable, among other 
factors, to the reduction of administrative expenses. At period-end, the ratio  
of administrative expenses to revenue stood at 5.3% (I half 2008: 5.0%);        
considering one-off costs from the name change, the figure tallies with         
management's 5% target. The Group remains committed to its stated aim of        
reducing the cost base during 2009-2010 by up to 30% compared with 2007-2008 and
is prepared to act resolutely to achieve this.                                  

In the first half-year, the Group earned a net profit of 5.2 million kroons (0.3
million euros), a substantial decrease compared with the 110.8 million     
kroons (7.1 million euros) generated in the first half of 2008.                 
Consolidated net profit was significantly influenced by income tax expense of   
5.9 million kroons (0.4 million euros) recognised in the second quarter (mostly 
dividend tax).                                                                  

The key profitability ratios monitored by the Group's management are following  
the same trends that emerged in the last quarter of 2008 as a result of adverse 
changes in the operating environment. The Group's margins have dropped (in all  
markets) year-over-year primarily on account of a steep decline in demand. The  
main   sector-specific trend has been the increasing excess of construction     
capacities over the number of projects on offer. Low demand that is insufficient
for meeting the business needs of all market players has heightened pressure for
lowering the prices. To remain competitive, the Group was forced to lower the   
half-year's gross margin to 6.9%, a notable decrease from the 12.8% posted for  
the first half of 2008. In the light of the trends prevailing in the            
construction market, the Group will focus on redesigning its internal processes 
(improving the efficiency of purchase of services, cost cutting, etc) so as to  
maintain its gross margin at a level that would   ensure that the year will end 
in an operating profit.                                                         

Cash flows                                                                      
The Group's net operating cash flow was negative at 57.1 million kroons (3.6    
million euros), reflecting developments in the markets where the Group
operates. Contractual settlement terms have lengthened (particularly as regards
the public sector projects) and the overall economic situation is 
causing difficulties that cause settlement delays. Receipts from customers      
exceed disbursements to suppliers but not enough to render the net operating    
cash flow positive. The ability and speed of achieving a positive net operating 
cash flow depend on how quickly and effectively the Group will adjust to  
the new economic environment (settlement dates with subcontractors) and the     
extent to which operating costs can be cut.
                                     
Investing activities of the first half of 2009 resulted in a net outflow of 41.1
million kroons (2.6 million euros) compared with an outflow of 130.2 million    
kroons (8.3 million euros) for the first half of 2008. Acquisitions of          
investments in subsidiaries, associates and joint ventures (including disposals)
generated a net outflow of 30.2 million kroons (1.9 million euros) and lending  
activities (including interest received) resulted in a net outflow 7.0 million  
kroons (0.4 million euros). Corresponding figures for the first half of 2008    
were an outflow of 168.9 million kroons (10.8 million euros) for acquisitions   
and an inflow of 38.4 million kroons (2.5 million euros) for lending.           

Financing activities generated a net outflow of 39.9 million kroons (2.5 million
euros). The corresponding figure for the first half of 2008 was an inflow of    
109.0 million kroons (7.0 million euros). The result of financing cash flows has
changed because the Group has reduced borrowing but is continuing the servicing 
of existing debt. In the first half of 2009, net outflow from interest-bearing  
loans and borrowings was negative at 6.8 million kroons (0.4 million euros)     
against an inflow of 212.8 million kroons (13.6 million euros) in the first half
of 2008. The remainder of financing cash flows is made up of a dividend         
distribution of 31.9 million kroons (2.0 million euros) compared with 103.8     
million kroons (6.6 million euros) a year ago.                                  

Key financial figures and ratios                                                
--------------------------------------------------------------------------------
| Figure / ratio               | 1st half | 1st half |  1st half |        2008 |
|                              |     2009 |     2008 |      2007 |             |
--------------------------------------------------------------------------------
| Weighted average number of   | 30,756,7 | 30,756,7 | 30,756,72 |  30,756,728 |
| shares *                     |       28 |       28 |         8 |             |
--------------------------------------------------------------------------------
| Earnings per share (in       |     0.69 |     3.39 |      4.03 |        4.73 |
| kroons)                      |          |          |           |             |
--------------------------------------------------------------------------------
| Earnings per share (in       |     0.04 |     0.22 |      0.26 |        0.30 |
| euros)                       |          |          |           |             |
--------------------------------------------------------------------------------
| Revenue growth               |   -34.5% |    23.1% |     64.0% |        3.1% |
--------------------------------------------------------------------------------
| Average number of employees  |    1,174 |     1209 |      1113 |       1,232 |
--------------------------------------------------------------------------------
| Revenue per employee (in     |    1,044 |    1,547 |     1,365 |       3,140 |
| thousands of kroons)         |          |          |           |             |
--------------------------------------------------------------------------------
| Revenue per employee (in     |       67 |       98 |        87 |         201 |
| thousands of euros)          |          |          |           |             |
--------------------------------------------------------------------------------
| Personnel expenses to        |    15.4% |    12.4% |     11.6% |       12.7% |
| revenue, %                   |          |          |           |             |
--------------------------------------------------------------------------------
| Administrative expenses to   |     5.3% |     5.0% |      4.6% |        4.7% |
| revenue, %                   |          |          |           |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBITDA (in thousands of      |   41,125 |  179,579 |   176,310 |     281,161 |
| kroons)                      |          |          |           |             |
--------------------------------------------------------------------------------
| EBITDA (in thousands of      |    2,628 |   11,477 |    11,268 |      17,969 |
| euros)                       |          |          |           |             |
--------------------------------------------------------------------------------
| EBITDA margin, %             |     3.4% |     9.6% |     11.6% |        7.3% |
--------------------------------------------------------------------------------
| Gross margin, %              |     6.9% |    12.8% |     14.2% |        9.3% |
--------------------------------------------------------------------------------
| Operating margin, %          |     0.4% |     7.8% |      9.6% |        5.4% |
--------------------------------------------------------------------------------
| Operating margin excluding   |     0.3% |     7.6% |      9.2% |        5.3% |
| gains on asset sales, %      |          |          |           |             |
--------------------------------------------------------------------------------
| Net margin, %                |     0.4% |     5.9% |      8.6% |        4.4% |
--------------------------------------------------------------------------------
| Return on invested capital,  |     1.9% |    11.7% |     17.8% |       19.1% |
| %                            |          |          |           |             |
--------------------------------------------------------------------------------
| Return on assets, %          |     0.2% |     6.3% |      9.3% |        9.1% |
--------------------------------------------------------------------------------
| Return on equity, %          |     0.6% |    13.7% |     23.9% |       20.5% |
--------------------------------------------------------------------------------
| Equity ratio, %              |    35.8% |    33.0% |     33.7% |       36.5% |
--------------------------------------------------------------------------------
| Gearing, %                   |    31.7% |    27.4% |     32.5% |       18.2% |
--------------------------------------------------------------------------------
| Current ratio                |     1.36 |     1.45 |      1.45 |        1.33 |
--------------------------------------------------------------------------------
|                              |  30 June |  30 June |   30 June | 31 December |
|                              |     2009 |     2008 |      2007 |        2008 |
--------------------------------------------------------------------------------
| Order book (in thousands of  | 1,568,00 | 3,196,93 | 2,730,813 |   2,220,748 |
| kroons)                      |        4 |        7 |           |             |
--------------------------------------------------------------------------------
| Order book (in thousands of  |  100,214 |  204,322 |   174,531 |     141,932 |
| euros)                       |          |          |           |             |
--------------------------------------------------------------------------------
* For comparability, the weighted average number of shares is the number of     
shares after the bonus issues.
                                                  
--------------------------------------------------------------------------------
| Earnings per share (EPS) = net       | Operating margin excluding gains on   |
| profit attributable to equity        | asset sales = (operating profit -     |
| holders of the parent / weighted     | gains on sale of property, plant and  |
| average number of shares outstanding | equipment - gains on sale of real     |
| Revenue per employee = revenue /     | estate) / revenue                     |
| average number of employees          | Net margin = net profit for the       |
| Personnel expenses to revenue =      | period / revenue                      |
| personnel expenses / revenue         | Return on invested capital = (profit  |
| Administrative expenses to revenue = | before tax + interest expense) / the  |
| administrative expenses / revenue    | period's average (interest-bearing    |
| EBITDA = earnings before interest,   | liabilities + equity)                 |
| taxes, depreciation and              | Return on assets = operating profit / |
| amortisation                         | the period's average total assets     |
| EBITDA margin = EBITDA / revenue     | Return on equity = net profit for the |
| Gross margin = gross profit /        | period /the period's average total    |
| revenue                              | equity                                |
| Operating margin = operating profit  | Equity ratio = total equity / total   |
| / revenue                            | equity and liabilities                |
|                                      | Gearing = (interest-bearing           |
|                                      | liabilities - cash and cash           |
|                                      | equivalents) / (interest bearing      |
|                                      | liabilities + equity)                 |
|                                      | Current ratio = total current assets  |
|                                      | / total current liabilities           |
--------------------------------------------------------------------------------


Performance by geographical market                                              
In the first half of 2009, revenue earned outside Estonia accounted for         
approximately 16% of consolidated revenue against approximately 20% a year ago. 
The Group has expanded operations in Latvia - in the first six months of 2009,  
Latvian revenues accounted for around 13% of the total while in 2008 (full year)
the proportion was 6%.                                                          

At the same time, the contribution of Ukrainian revenues dropped to 2%. The     
downturn is attributable to the completion of major projects started in the     
previous period and the complexity of entering into new contracts during the    
steep recession. Lithuanian revenues decreased in line with the decisions made  
by the Group regarding the Lithuanian market (see Changes in the Group's        
management structure and operations in 2009 in Directors' report).              
Further information on developments in the Group's chosen markets can be found  
in Outlooks of the Group's geographical markets.                                
--------------------------------------------------------------------------------
|                       |   1st half |    1st half |    1st half |        2008 |
|                       |       2009 |        2008 |        2007 |             |
--------------------------------------------------------------------------------
| Estonia               |      83.9% |       80.1% |       90.0% |       80.3% |
--------------------------------------------------------------------------------
| Ukraine               |       2.3% |       14.9% |       10.0% |       11.4% |
--------------------------------------------------------------------------------
| Lithuania             |       0.9% |        2.2% |          0% |        2.4% |
--------------------------------------------------------------------------------
| Latvia                |      12.9% |        2.8% |          0% |        5.9% |
--------------------------------------------------------------------------------
Revenue distribution across different geographical areas is a consistently      
deployed strategy aimed at mitigating the risks arising from undue reliance on a
single market. In addition, increasing the proportion of revenue earned outside 
Estonia remains one of the Group's strategic objectives - in 2013 the Group     
expects to earn half of its revenue outside Estonia.                            


Performance by business line                                                    
The core business of Nordecon International Group is general contracting and    
project management in buildings and infrastructure construction. In addition,   
the Group is involved in road construction and maintenance, environmental       
engineering, concrete works and real estate development.                        

Consolidated revenue for the first half of 2009 was 1,225.1 million kroons (78.3
million euros), a 34.5% decrease from the 1,870.6 million kroons (119.6 million 
euros) generated in the first half of 2008. Revenue has decreased mainly on     
account of shrinkage in demand in all of the Group's markets. In addition, the  
absolute revenue figure has been impacted by stiff competition that has lowered 
the construction prices (see further commentary in Outlooks of the Group's      
geographical markets).                                                          

The Group aims to maintain the revenues generated by its main segments          
(Buildings and Infrastructure) in balance as this helps disperse risks and      
provides a more solid foundation under stressed circumstances when one segment  
experiences shrinkage in operating volumes. In view of estimates of demand for  
apartments, the proportion of housing construction revenue from apartment       
buildings will remain within the strategically defined 20%.                     
Segment revenue                                                                 

In contrast to previous years, in the first half of 2009 the revenue generated  
by the Infrastructure segment surpassed that of Buildings. This results mainly  
from the situation in the construction market (particularly in Estonia) that has
caused the order book of the Infrastructure segment to develop more favourably  
already since the second half of 2008.                                          

In the first half of 2009, the Buildings and Infrastructure segments generated  
revenue of 600.8 million kroons (38.4 million euros) and 616.4 million kroons   
(39.4 million euros) respectively. The corresponding figures for the first half 
of 2008 were 1,332.0 million kroons (85.1 million euros) and 534.2 million      
kroons (34.1 million euros) respectively. In response to market developments,   
the revenue of the Buildings segment has declined and that of Infrastructure has
grown. However, the approximately 80-million kroon (5.1-million euro) growth in 
the Infrastructure segment is not wholly organic but includes also Latvian      
revenues which in the first half of 2008 were not yet consolidated.             

Revenue distribution between segments*                                          
--------------------------------------------------------------------------------
| Business segments             | 1st half |  1st half |  1st half |      2008 |
|                               |     2009 |      2008 |      2007 |           |
--------------------------------------------------------------------------------
| Buildings                     |      49% |       72% |       54% |       63% |
--------------------------------------------------------------------------------
| Infrastructure                |      51% |       28% |       46% |       37% |
--------------------------------------------------------------------------------
* In connection with the entry into force of IFRS 8 Operating Segments during   
the reporting period, the Group has changed segment reporting in its financial  
statements. In the Directors' report the Ukrainian and EU Buildings segments    
which are disclosed separately in the financial statements are presented as a   
single segment. In addition, the segment information presented in the Directors'
report does not include the disclosures on “other segments” that are presented  
in the financial statements.                                                    

Management believes that because of the market situation the proportion of      
revenue generated by the Infrastructure segment will continue increasing        
compared with 2008. The assessment is supported by the Group's order book as at 
30 June 2009 where the contracts of the Infrastructure segment surpass those of 
the Buildings segment (see Order book in Director's report).                    
Revenue distribution within segments                                            

The distribution of the Group's buildings construction revenue has remained     
stable, with commercial buildings accounting for over 50% of the total. As      
anticipated, revenues from the construction of industrial and warehouse         
facilities and apartment buildings have decreased. On the other hand, the       
downturn in construction prices has triggered growth in the construction of     
public buildings thanks to municipal investments in schools, nurseries and other
public buildings. However, despite attractive construction prices, further      
growth in local government projects may be undermined by financing              
difficulties.			                                                                
--------------------------------------------------------------------------------
| Revenue distribution in the   | 1st half |  1st half |  1st half |      2008 |
| Buildings segment             |     2009 |      2008 |      2007 |           |
--------------------------------------------------------------------------------
| Commercial buildings          |      71% |       59% |       53% |       59% |
--------------------------------------------------------------------------------
| Industrial and warehouse      |      11% |       20% |       10% |       16% |
| facilities                    |          |           |           |           |
--------------------------------------------------------------------------------
| Public buildings              |      16% |       13% |       20% |       14% |
--------------------------------------------------------------------------------
| Apartment buildings           |       1% |        8% |       17% |       11% |
--------------------------------------------------------------------------------

Changes in the structure of the Group's infrastructure revenues are attributable
to the acquisition of subsidiaries (the subgroup of the Latvian subsidiary SIA  
Nordecon Infra). The contribution of other engineering projects has increased,  
year-over-year, largely on account of growth in pipeline and outdoor network    
construction, while environmental engineering revenues have expanded thanks to a
decline in construction prices that has increased investment by state and local 
government.                                                                     
--------------------------------------------------------------------------------
| Revenue distribution in the   | 1st half |  1st half |  1st half |      2008 |
| Infrastructure segment        |     2009 |      2008 |      2007 |           |
--------------------------------------------------------------------------------
| Road construction and         |      32% |       51% |       30% |       45% |
| maintenance                   |          |           |           |           |
--------------------------------------------------------------------------------
| Port construction             |      17% |       26% |       28% |       24% |
--------------------------------------------------------------------------------
| Other engineering             |      38% |       19% |       17% |        6% |
--------------------------------------------------------------------------------
| Environmental engineering     |      14% |        4% |       25% |       25% |
--------------------------------------------------------------------------------

Order book                                                                      
At 30 June 2009, the Group's order book was 1,560 million kroons (100 million   
euros), 50% down from the 3,197 million kroons (204 million euros) posted a year
ago.                                                                            
--------------------------------------------------------------------------------
|                               |  30 June |   30 June |   30 June |    31 Dec |
|                               |     2009 |      2008 |      2007 |      2008 |
--------------------------------------------------------------------------------
| Order book, in thousands of   | 1,568,00 | 3,196,937 | 2,730,813 | 2,220,748 |
| kroons                        |        4 |           |           |           |
--------------------------------------------------------------------------------
| Order book, in thousands of   |  100,214 |   204,322 |   174,531 |   141,932 |
| euros                         |          |           |           |           |
--------------------------------------------------------------------------------

In the Infrastructure segment, the order book has been growing year-over-year.  
At 30 June 2009 it accounted for 68% of the Group's total order book portfolio  
(30 June 2008: 53%), reflecting the situation in the construction market where  
shrinkage in the Buildings segment is outpacing growth in the Infrastructure    
segment. In absolute terms, the order book figures have been severely weakened  
by tumbling construction prices.                                                
Between the reporting date (30 June 2009) and the date of release of this       
report, Group companies have been awarded additional construction contracts of  
approximately 380 million kroons (24,3 million euros).                       

           
People and personnel expenses                                                   
In the first half of 2009 the Group (including the parent and the subsidiaries) 
employed, on average, 1,187 people including around 500 engineers and technical 
personnel. The proportion of engineers and technical personnel (ETP) has been   
expanding over the years due to business growth. In 2009, the acquisition of the
Latvian company SIA LCB increased the number of staff by more than 100. However,
since the end of 2008 personnel growth has been replaced by a decline because of
downsizing triggered by a significant decrease in the Group's operations.       
Average number of the Group's employees (including the parent and its           
subsidiaries):                                                                  
--------------------------------------------------------------------------------
|     Period      |        ETP         |     Workers      |   Total average    |
--------------------------------------------------------------------------------
|  1st half 2009  |        480         |       707        |       1,187        |
--------------------------------------------------------------------------------
|  1st half 2008  |        493         |       716        |       1,209        |
--------------------------------------------------------------------------------
| 1st half  2007  |        412         |       701        |       1,113        |
--------------------------------------------------------------------------------
|      2008       |        511         |       721        |       1,232        |
--------------------------------------------------------------------------------
The Group's personnel expenses for the first half of 2009, including associated 
taxes, totalled 188.4 million kroons (12.0 million euros), a 19% decrease       
compared with the 232.9 million kroons (14.9 million euros) incurred in the same
period in 2008.                                                                 

The Group has been able to reduce personnel expenses in a situation where the   
number of staff has remained more or less stable by cutting the basic pay.      
Employee salaries have been lowered at all Group entities; the average pay-cut  
for engineers and technical personnel was 15%. The performance pay of project   
staff that is linked the projects' profit margins has also declined.            
Owing to the overall economic situation and the slump in the construction       
market, in the first half of 2009 Group entities were forced to terminate       
employment relations with approximately 450 people. This however does not       
influence directly the total average number of employees of the period, taken   
also into account the additions.                                                

In the first half of 2009, the remuneration of the members of the council of    
Nordecon International AS including associated taxes amounted to 718 thousand   
kroons (46 thousand euros). The corresponding figure for the first half of 2008 
was 725 thousand kroons (46 thousand euros). The remuneration and benefits of   
the members of the board of Nordecon International AS including associated taxes
totalled 1,674 thousand kroons (107 thousand euros) compared with 8,257 thousand
kroons (528 thousand euros) a year ago. The differences in the remuneration of  
the board stem from the fact that since 5 January 2009 the board has had three  
members while in 2008 the number was five (see Changes in the Group's management
structure and operations in 2009). In addition, the figure has been impacted by 
a 15% reduction in board member remuneration across the Group.                  


Share and shareholders                                                          
Share information                                                               
ISIN code 	                   EE3100039496       
Short name of the security 	          NCN1T (until 3 April 2009 EEH1T) 
Nominal value	                   10.00 kroons / 0.64 euros          
Total number of securities issued 	30,756,728                                   
Number of listed securities 	30,756,728                                         
Listing date 		         18 May 2006                

The share capital of Nordecon International AS consists of 30,756,728 ordinary  
shares with a par value of 10 Estonian kroons each. Owners of ordinary shares   
are entitled to dividends as distributed from time to time. Each share carries  
one vote at general meetings of Nordecon International AS.                      

Summarised trading results                                                      
Share trading history (EEK)                                                     
--------------------------------------------------------------------------------
| Price                         |     1st half | 1st half 2008 | 1st half 2007 |
|                               |         2009 |               |               |
--------------------------------------------------------------------------------
| Open                          |        16.43 |         76.51 |        166.64 |
--------------------------------------------------------------------------------
| High                          |        20.34 |         76.51 |        224.53 |
--------------------------------------------------------------------------------
| Low                           |         8.61 |         50.85 |         96.54 |
--------------------------------------------------------------------------------
| Last closing price            |        13.61 |         53.98 |         93.88 |
--------------------------------------------------------------------------------
| Traded volume                 |    1,875,140 |     4,112,826 |     2,480,799 |
--------------------------------------------------------------------------------
| Turnover, millions            |         22.2 |         229.8 |         425.8 |
--------------------------------------------------------------------------------
| Listed volume (30 June),      |       30,757 |        30,757 |        15,378 |
| thousands                     |              |               |               |
--------------------------------------------------------------------------------
| Market capitalisation (30     |       418.60 |      1,650.44 |      1,443.69 |
| June), millions               |              |               |               |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

Share trading history (EUR)                                                     
--------------------------------------------------------------------------------
| Price                         |     1st half | 1st half 2008 | 1st half 2007 |
|                               |         2009 |               |               |
--------------------------------------------------------------------------------
| Open                          |         1.05 |          4.89 |         10.65 |
--------------------------------------------------------------------------------
| High                          |         1.30 |          4.89 |         14.35 |
--------------------------------------------------------------------------------
| Low                           |         0.55 |          3.25 |          6.17 |
--------------------------------------------------------------------------------
| Last closing price            |         0.87 |          3.45 |          6.00 |
--------------------------------------------------------------------------------
| Traded volume                 |      881,595 |       759,958 |     1,745,628 |
--------------------------------------------------------------------------------
| Turnover, millions            |         1.42 |         14.69 |         27.21 |
--------------------------------------------------------------------------------
| Listed volume (30 June),      |       30 757 |        30 757 |        15 378 |
| thousands                     |              |               |               |
--------------------------------------------------------------------------------
| Market capitalisation (30     |        26.75 |        105.48 |         92.27 |
| June), millions               |              |               |               |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

Shareholder structure                                                           
The largest shareholders of Nordecon International AS at 30 June 2009           
--------------------------------------------------------------------------------
| Shareholder                              |  Number of shares |     Ownership |
|                                          |                   |      interest |
--------------------------------------------------------------------------------
| AS Nordic Contractors                    |        18,807,464 |        61.15% |
--------------------------------------------------------------------------------
| ING Luxembourg S.A.                      |         1,111,853 |         3.61% |
--------------------------------------------------------------------------------
| Ain Tromp                                |           678,960 |         2.21% |
--------------------------------------------------------------------------------
| ASM Investments OÜ                       |           519,600 |         1.69% |
--------------------------------------------------------------------------------
| Skandinaviska Enskilda Banken Ab Clients |           456,758 |         1.49% |
--------------------------------------------------------------------------------
| State Street Bank & Trust Co.            |           355,199 |         1.15% |
--------------------------------------------------------------------------------
| The Bank of New York Mellon              |           353,323 |         1.15% |
--------------------------------------------------------------------------------
| Aivo Kont                                |           339,480 |         1.10% |
--------------------------------------------------------------------------------
| SEB Pank AS                              |           322,200 |         1.05% |
--------------------------------------------------------------------------------
| Raul Rebane                              |           316,104 |         1.03% |
--------------------------------------------------------------------------------

Shareholder structure at 30 June 2009                                           
--------------------------------------------------------------------------------
|                                          |         Number of |     Ownership |
|                                          |      shareholders |      interest |
--------------------------------------------------------------------------------
| Shareholders with interest exceeding 5%  |                 1 |        61.15% |
--------------------------------------------------------------------------------
| Shareholders with interest between 1%    |                 9 |        14.48% |
| and 5%                                   |                   |               |
--------------------------------------------------------------------------------
| Shareholders with interest below 1%      |             1,741 |        24.37% |
--------------------------------------------------------------------------------
| Total                                    |             1,751 |       100.00% |
--------------------------------------------------------------------------------

Shares controlled by members of the council of Nordecon International AS at 30  
June 2009                                                                       
--------------------------------------------------------------------------------
| Council                      |                |    Number of |     Ownership |
|                              |                |       shares |      interest |
--------------------------------------------------------------------------------
| Toomas Luman (AS Nordic      | Chairman of    |   19,059,144 |        61.97% |
| Contractors, OÜ Luman ja     | the Council    |              |               |
| Pojad)*                      |                |              |               |
--------------------------------------------------------------------------------
| Ain Tromp                    | Member of the  |      678,960 |         2.21% |
|                              | Council        |              |               |
--------------------------------------------------------------------------------
| Alar Kroodo (ASM Investments | Member of the  |      519,600 |         1.69% |
| OÜ)*                         | Council        |              |               |
--------------------------------------------------------------------------------
| Andri Hõbemägi               | Member of the  |       40,000 |         0.13% |
|                              | Council        |              |               |
--------------------------------------------------------------------------------
| Tiina Mõis                   | Member of the  |            0 |         0.00% |
|                              | Council        |              |               |
--------------------------------------------------------------------------------
| Meelis Milder                | Member of the  |            0 |         0.00% |
|                              | Council        |              |               |
--------------------------------------------------------------------------------
* Companies controlled by the individual                                        


Shares controlled by members of the board of Nordecon International AS at 30    
June 2009                                                                       
--------------------------------------------------------------------------------
| Board                       |               |    Number of |       Ownership |
|                             |               |       shares |        interest |
--------------------------------------------------------------------------------
| Jaano Vink                  | Chairman of   |       34,000 |           0.11% |
|                             | the Board     |              |                 |
--------------------------------------------------------------------------------
| Sulev Luiga                 | Member of the |        1,000 |           0.00% |
|                             | Board         |              |                 |
--------------------------------------------------------------------------------
| Priit Tiru                  | Member of the |            0 |           0.00% |
|                             | Board         |              |                 |
--------------------------------------------------------------------------------

Members of the board and council of Nordecon International AS and companies     
controlled by them have not been granted any share options under which they     
could acquire shares in Nordecon International AS in subsequent periods.        


Information on significant transactions with related parties                    
On 26 March 2009 Nordecon Ehitus AS, a wholly-owned subsidiary of Nordecon      
International AS, acquired a 50% stake in OÜ Unigate from AS Arealis, a         
subsidiary of the Group's controlling shareholder Nordic Contractors AS.        
OÜ Unigate is a housing developer incorporated in Estonia that has been         
developing properties belonging to it in Paekalda street in Tallinn. The        
investment was made in line with the Group's strategy according to which in     
2009-2010 the Group is to prepare for a potential rise of the Estonian real     
estate market that may take place after 2010. For this, the Group's subsidiaries
will acquire property portfolios that will allow launching housing construction 
projects as soon as the market situation changes.                               
In accordance with the terms of the transaction, AS Arealis was paid 20.0       
million kroons (1.3 million euros) including 1.5 million kroons (0.1 million    
euros) for an interest in the entity's share capital and 18.5 million kroons    
(1.2 million euros) for AS Arealis' loan receivables from OÜ Unigate. Depending 
on the success of the development operations, AS Arealis will also be paid a    
variable price component that will be calculated at 450 kroons (28.8 euros) per 
square metre sold. In February 2009 the market value of the properties belonging
to OÜ Unigate (the proportion acquired by Nordecon Ehitus AS) was approximately 
47.5 million kroons (3.0 million euros).                                        


Outlooks of the Group's geographical markets                                    
Estonia                                                                         
According to management's assessment, in 2009-2010 the Estonian construction    
market will be characterised by the following features:                         
- Total demand in the construction market will depend heavily on public 
procurement tenders and the number and pricing of infrastructure, environmental 
and other projects launched with the support of the European Union funds (the   
latter will be critically influenced by the administrative capabilities of the  
central and local governments). However, the more moderate decline in the       
infrastructure sector will not be able to compensate for the steep contraction  
of the buildings construction market that has currently been abandoned by most  
private sector corporates and individuals. The Group's management estimates that
by 2010 the total volumes of the construction market will have decreased 50%    
compared with 2008.                                                             

- The number of development and buildings construction companies will decrease 
(market consolidation). Companies focused on residential construction which in  
2008 began seeking opportunities to penetrate other market segments such as     
infrastructure will continue to do so, heightening competition in the segments  
involved. The continuing slump will lead to mergers, takeovers and bankruptcies.

- Owing to the global financial crisis, the amount of money circulating in the 
economy has decreased considerably. As a result, more and more private sector   
companies will have difficulty in raising debt to finance new construction      
projects. The steep decrease in demand may be somewhat alleviated by a          
competition-induced decrease in prices, which will render investment in         
construction projects more attractive than it was during the boom of 2006 and   
2007.                                                                           

- Building materials manufacturers that significantly increased their output 
during the growth phase of the market will be faced by shrinking demand and,    
consequently, greater strain in meeting the obligations taken for increasing    
capacities.                                                                     

- Real estate development companies' ability to service and repay existing
loans 
will weaken and their creditworthiness will decrease. For companies involved in 
general contracting and project management, this may mean an increase in        
doubtful and irrecoverable receivables.                                         

- The importance of infrastructure projects will increase and, accordingly, 
critical success factors will include specialised engineering expertise and     
experience as well as the availability of relevant resources.                   

- The deteriorating economic climate and fierce competition in the construction 
market along with falling demand will cause continuing unemployment for         
construction workers. The ensuing increase in the availability of labour will   
lower construction companies' personnel expenses although in the short term the 
decrease will be lessened by the disbursement of redundancy benefits.           

- The change in construction projects' financing schemes (customers' settlement 
terms will extend significantly) in combination with additional requirements to 
the financing provided by general contractors during the construction period    
will put pressure on contractors' liquidity.                                    

Nordecon International Group operates in accordance with its long-term          
objectives that are adjusted for changes in the external environment. Relevant  
strategic management is the responsibility of the Group's board (see The Group's
strategy and objectives for 2009-2013).                                         

The Group has prepared for changes in the economic environment by:              
- Setting the objective of reducing the cost base by 30% (by cutting personnel 
expenses by downsizing and lowering salaries, reducing the costs of goods and   
services purchased, etc)                                                        

- Restructuring the Group for better management of the business lines
(buildings 
and infrastructure construction) and maintaining the competitive advantages     

- Performing a more thorough preliminary analysis of the customers' solvency
and 
creditworthiness and dealing proactively with the collection of overdue         
receivables                                                                     

- Dispersing risks through portfolio design 

- Dispersing activities across geographical areas and business segments 

Latvia and Lithuania                                                            
Despite the difficulties of the Latvian political and monetary systems, the     
volumes of various infrastructure projects financed by the state and local      
government with the support of EU funding will remain stable or, hopefully, will
even increase (such as projects for the rehabilitation of the water supply and  
central heating systems). Construction activities will be mainly affected by the
situation of financing institutions, a significant decrease in private sector   
demand, still high inflation and heightening competition. The ability of the    
Latvian central and local governments to provide self-financing for projects    
financed with the support of the EU and, accordingly, their ability to pay to   
contractors, has also become dependent on whether Latvia will receive the loan  
agreed with IMF.                                                                

Recent economic developments in Lithuania have been similar to the ones in the  
other Baltic countries. Slowdown in investment both in the public and private   
sectors and similar factors directly influence the construction market. The     
commercial and residential construction (the Group as a general contractor not a
developer) markets have contracted visibly and the situation remains strained.  
Other relevant risks include the stability of banks, increasing competition and 
the impact of inflation on the construction prices.                             

The Group's management has suspended major decisions and remains alert to       
developments in Latvia and Lithuania because similarly to Estonia, their whole  
economy is in difficulty and this can also be felt in the construction sector.  
Management is analysing the Group's operation in the Latvian and Lithuanian     
markets in the light of developments in the external environment and is prepared
to revise current plans swiftly and decisively.                                 

The business operations of the Lithuanian-based UAB Nordecon Statyba (formerly  
UAB Eurocon LT) have been practically suspended and the Group is monitoring the 
market situation. The short-term decision will not change the Group's strategic 
objectives in the Lithuanian construction market and does not imply the sale or 
liquidation of the company.                                                     

The Group designs its activities in the Latvian and Lithuanian construction     
markets in accordance with its international expansion strategy (see The Group's
strategy and objectives for 2009-2013) and believes that in the long term the   
two markets will have a logical place in the Group's internationalisation.      

Ukraine                                                                         
In Ukraine, the Group will continue as a general contractor and project manager 
in the construction of commercial buildings and production facilities.          
Activities on development projects that require major investment (currently two)
have been suspended to minimise the risks until the situation in the Ukrainian  
and global financial markets has eased up.                                      

The main risks in the Ukrainian market are connected with the low administrative
efficiency of the central and local governments and the judicial system,        
inflation, and the availability of quality construction inputs. Demand is mainly
undermined by the lack of financing. Since October 2008 the Ukrainian monetary  
and banking systems have been under severe pressure. The Ukrainian national     
currency hryvna (UAH) has weakened significantly against both the US dollar and 
the euro, which is causing substantial foreign exchange losses for foreign      
companies operating in Ukraine that have not hedged their currency risk         
exposures. To date, the weakening of the currency has stopped and the Group's   
exposure to market-based currency risk has decreased considerably.              

Nevertheless, the Group believes that the construction market of a country with 
a population of 46 million will offer business opportunities also in the future.
The Group's main success factor is negligible competition in the project        
management sector (the Group offers flexible construction management along with 
European practices and competencies). The Group's management is confident that  
the current crisis in the Ukrainian construction market and economy as a whole  
will transform the local understanding and expectations of general contracting  
and project management in the construction business, which will improve the     
Group's position in the long-term perspective.                                  

Description of the main risks                                                   
Business risks                                                                  
To mitigate the risks arising from the seasonal nature of the construction      
business (primarily the weather conditions during the winter months), the Group 
has acquired road maintenance contracts that generate year-round business. In   
addition, Group companies are constantly seeking new technical solutions that   
would allow working more efficiently under changeable weather conditions.       
To manage their daily construction risks, Group companies purchase Contractors' 
All Risks insurance. Depending on the nature of the project, both general frame 
agreements and specially tailored project-specific contracts are used. In       
addition, as a rule, subcontractors are required to secure the performance of   
their obligations with a bank guarantee issued for the benefit of a Group       
company. To remedy builder-caused deficiencies which may be detected during the 
warranty period, all Group companies create warranties provisions. At 30 June   
2009 the provisions (including current and non-current ones) totalled 15.1      
million kroons (1.0 million euros). The corresponding figure at 30 June 2008 was
7.8 million kroons (0.5 million euros).                                         

Credit risks                                                                    
For credit risk management, a potential customer's settlement behaviour and     
creditworthiness are analysed already in the tendering stage. Subsequent to the 
signature of a contract, the customer's settlement behaviour is monitored on an 
ongoing basis from the making of an advance payment to adherence to the         
contractual settlement schedule, which usually depends on the documentation of  
the delivery of work performed. We believe that the system in place allows us to
respond to customers' settlement difficulties with sufficient speed. As at the  
end of the reporting period, our customers' settlement practice was good.       
However, the customers' settlement behaviour has changed. The proportion of     
overdue receivables has increased somewhat, increasing the probability of credit
losses in subsequent periods. In accordance with the Group's accounting         
policies, all receivables that are more than 180 days overdue are recognised as 
an expense.                                                                     
In the first half of 2009, net loss on doubtful receivables amounted to 9.2     
million kroons (0.6 million euros). In the first half of 2008, losses from the  
write-down of receivables totalled 7.1 million kroons (0.5 million euros).      

Liquidity risks                                                                 
Free funds are placed in overnight or fixed-interest term deposits with the     
largest banks of the markets where the Group operates. To ensure timely         
settlement of liabilities, approximately two weeks' working capital is kept in  
current accounts or overnight deposits. Where necessary, overdraft facilities   
are used. At the reporting date, the Group's current assets exceeded its current
liabilities 1.36-fold (30 June 2008: 1.45-fold) and available cash funds        
totalled 158.1 million kroons (10.1 million euros) (30 June 2008: 321.8 million 
kroons / 20.6 million euros), providing a sufficient liquidity buffer for       
operating in an economic environment that is more uncertain than in the previous
year.                                                                           

Interest rate risks                                                             
The loans taken by Group companies from banks operating in Estonia, Latvia and  
Ukraine have mainly fixed interest rates. Finance lease contracts have floating 
interest rates and are linked to EURIBOR. By 30 June 2009, the Group's          
interest-bearing loans and borrowings had decreased by 127.1 million kroons (8.1
million euros) year-over-year to 619.7 million kroons (39.6 million euros).     
Interest expense for the first half of 2009 amounted to 15.7 million kroons (1.0
million euros). Compared with the first half of 2008, interest expense has      
contracted by 2.7 million kroons (0.2 million euros) thanks to a decline in the 
EURIBOR base rate and a decrease in loans and borrowings.                       

Currency risks                                                                  
As a rule, construction contracts and subcontractors' service contracts are made
in the currency of the host country: in Estonia contracts are made in Estonian  
kroons (EEK), in Latvia in Latvian lats (LVL), in Lithuania in Lithuanian litas 
(LTL) and in Ukraine in Ukrainian hryvnas (UAH). A significant proportion of    
services purchased from other countries are priced in euros, which does not     
constitute a currency risk for the Group's Estonian, Latvian and Lithuanian     
entities.                                                                       

In the last quarter of 2008, the Ukrainian economy and its national currency    
(the Ukrainian hryvna / UAH) were seriously hit by the global financial crisis. 
The exchange rate of the local currency that was not officially pegged to any   
international currency was deeply impacted by a slump in exports and foreign    
investment and concerns about the general reliability of the Ukrainian banking  
system. Despite counter-measures, the local central bank was unable to maintain 
a stable exchange rate for the Ukrainian hryvna and in 2008 the latter weakened 
against the US dollar and the euro by more than 30% year-over-year.             
In 2009 the weakening of the Ukrainian hryvna against the euro has stopped and  
in the first half of 2009 the Group's exchange losses (including the ones       
recognised in finance expenses and other operating expenses) totalled 0.3       
million kroons (0.02 million euros). The net effect of exchange differences     
(including exchange gains) on the Group's net profit was gain of 1.1 million    
kroons (0.07 million euros).                                                    


Condensed consolidated interim statement of financial position                  
--------------------------------------------------------------------------------
| EEK ‘000                                |   30 June 2009 |  31 December 2008 |
--------------------------------------------------------------------------------
| ASSETS                                  |                |                   |
--------------------------------------------------------------------------------
| Current assets                          |                |                   |
--------------------------------------------------------------------------------
| Cash and cash equivalents               |        158,089 |           296,184 |
--------------------------------------------------------------------------------
| Trade receivables                       |        526,234 |           473,935 |
--------------------------------------------------------------------------------
| Other receivables and prepayments       |        357,663 |           408,541 |
--------------------------------------------------------------------------------
| Deferred tax assets                     |            776 |               776 |
--------------------------------------------------------------------------------
| Income tax assets                       |              0 |             3,207 |
--------------------------------------------------------------------------------
| Inventories                             |        475,653 |           386,733 |
--------------------------------------------------------------------------------
| Non-current assets held for sale        |          4,924 |                 0 |
--------------------------------------------------------------------------------
| Total current assets                    |      1,523,339 |         1,569,376 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets                      |                |                   |
--------------------------------------------------------------------------------
| Long-term investments                   |        134,013 |           112,605 |
--------------------------------------------------------------------------------
| Investment property                     |        116,783 |           116,783 |
--------------------------------------------------------------------------------
| Property, plant and equipment           |        238,057 |           263,295 |
--------------------------------------------------------------------------------
| Intangible assets                       |        332,253 |           305,188 |
--------------------------------------------------------------------------------
| Total non-current assets                |        821,105 |           797,871 |
--------------------------------------------------------------------------------
| TOTAL ASSETS                            |      2,344,444 |         2,367,247 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIES                             |                |                   |
--------------------------------------------------------------------------------
| Current liabilities                     |                |                   |
--------------------------------------------------------------------------------
| Interest-bearing loans and borrowings   |        253,486 |           235,948 |
--------------------------------------------------------------------------------
| Trade payables                          |        392,740 |           439,615 |
--------------------------------------------------------------------------------
| Taxes payable                           |         43,806 |            65,760 |
--------------------------------------------------------------------------------
| Other payables                          |        416,117 |           423,270 |
--------------------------------------------------------------------------------
| Provisions                              |         15,541 |            11,600 |
--------------------------------------------------------------------------------
| Total current liabilities               |      1,121,690 |         1,176,193 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities                 |                |                   |
--------------------------------------------------------------------------------
| Interest-bearing loans and borrowings   |        366,235 |           318,578 |
--------------------------------------------------------------------------------
| Other liabilities                       |         15,568 |             2,534 |
--------------------------------------------------------------------------------
| Provisions                              |          2,307 |             6,630 |
--------------------------------------------------------------------------------
| Total non-current liabilities           |        384,110 |           327,742 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES                       |      1,505,800 |         1,503,935 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY                                  |                |                   |
--------------------------------------------------------------------------------
| Share capital                           |        307,567 |           307,567 |
--------------------------------------------------------------------------------
| Statutory capital reserve               |         40,012 |            34,800 |
--------------------------------------------------------------------------------
| Translation reserve                     |         -2,813 |            -4,106 |
--------------------------------------------------------------------------------
| Retained earnings                       |        412,195 |           426,995 |
--------------------------------------------------------------------------------
| Equity attributable to owners of the    |        756,961 |           765,256 |
| parent                                  |                |                   |
--------------------------------------------------------------------------------
| Non-controlling interests               |         81,683 |            98,056 |
--------------------------------------------------------------------------------
| TOTAL EQUITY                            |        838,644 |           863,312 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES AND EQUITY            |      2,344,444 |         2,367,247 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| EUR ‘000                                 |  30 June 2009 |  31 December 2008 |
--------------------------------------------------------------------------------
| ASSETS                                   |               |                   |
--------------------------------------------------------------------------------
| Current assets                           |               |                   |
--------------------------------------------------------------------------------
| Cash and cash equivalents                |        10,104 |            18,930 |
--------------------------------------------------------------------------------
| Trade receivables                        |        33,632 |            30,290 |
--------------------------------------------------------------------------------
| Other receivables and prepayments        |        22,858 |            26,110 |
--------------------------------------------------------------------------------
| Deferred tax assets                      |            50 |                50 |
--------------------------------------------------------------------------------
| Income tax assets                        |             0 |               205 |
--------------------------------------------------------------------------------
| Inventories                              |        30,400 |            24,717 |
--------------------------------------------------------------------------------
| Non-current assets held for sale         |           315 |                 0 |
--------------------------------------------------------------------------------
| Total current assets                     |        97,359 |           100,301 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current assets                       |               |                   |
--------------------------------------------------------------------------------
| Long-term investments                    |         8,565 |             7,197 |
--------------------------------------------------------------------------------
| Investment property                      |         7,464 |             7,464 |
--------------------------------------------------------------------------------
| Property, plant and equipment            |        15,215 |            16,828 |
--------------------------------------------------------------------------------
| Intangible assets                        |        21,234 |            19,505 |
--------------------------------------------------------------------------------
| Total non-current assets                 |        52,478 |            50,993 |
--------------------------------------------------------------------------------
| TOTAL ASSETS                             |       149,837 |           151,295 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIES                              |               |                   |
--------------------------------------------------------------------------------
| Current liabilities                      |               |                   |
--------------------------------------------------------------------------------
| Interest-bearing loans and borrowings    |        16,201 |            15,080 |
--------------------------------------------------------------------------------
| Trade payables                           |        25,100 |            28,096 |
--------------------------------------------------------------------------------
| Taxes payable                            |         2,800 |             4,203 |
--------------------------------------------------------------------------------
| Other payables                           |        26,595 |            27,052 |
--------------------------------------------------------------------------------
| Provisions                               |           993 |               741 |
--------------------------------------------------------------------------------
| Total current liabilities                |        71,689 |            75,172 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities                  |               |                   |
--------------------------------------------------------------------------------
| Interest-bearing loans and borrowings    |        23,407 |            20,361 |
--------------------------------------------------------------------------------
| Other liabilities                        |           995 |               162 |
--------------------------------------------------------------------------------
| Provisions                               |           147 |               424 |
--------------------------------------------------------------------------------
| Total non-current liabilities            |        24,549 |            20,947 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES                        |        96,238 |            96,119 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY                                   |               |                   |
--------------------------------------------------------------------------------
| Share capital                            |        19,657 |            19,657 |
--------------------------------------------------------------------------------
| Statutory capital reserve                |         2,558 |             2,224 |
--------------------------------------------------------------------------------
| Translation reserve                      |          -180 |              -262 |
--------------------------------------------------------------------------------
| Retained earnings                        |        26,344 |            27,290 |
--------------------------------------------------------------------------------
| Equity attributable to owners of the     |        48,379 |            48,909 |
| parent                                   |               |                   |
--------------------------------------------------------------------------------
| Non-controlling interests                |         5,220 |             6,267 |
--------------------------------------------------------------------------------
| TOTAL EQUITY                             |        53,599 |            55,176 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES AND EQUITY             |       149,837 |           151,295 |
--------------------------------------------------------------------------------


Condensed consolidated interim statement of comprehensive income                
--------------------------------------------------------------------------------
|  EEK ‘000                | Q2 2009 | Q2 2008 |     1st | 1st half |     2008 |
|                          |         |         | half    |     2008 |          |
|                          |         |         |    2009 |          |          |
--------------------------------------------------------------------------------
| Revenue                  | 634,430 | 1,097,1 | 1,225,0 | 1,870,63 | 3,867,91 |
|                          |         |      25 |      94 |        5 |        7 |
--------------------------------------------------------------------------------
| Cost of sales            | 586,932 | 959,741 | 1,140,7 | 1,631,89 | 3,510,00 |
|                          |         |         |      41 |        7 |        6 |
--------------------------------------------------------------------------------
| Gross profit             |  47,498 | 137,384 |  84,353 |  238,738 |  357,911 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Distribution expenses    |   2,140 |   2,575 |   4,363 |    3,402 |    8,007 |
--------------------------------------------------------------------------------
| Administrative expenses  |  27,946 |  49,595 |  65,350 |   93,088 |  182,526 |
--------------------------------------------------------------------------------
| Other operating income   |  18,209 |  11,298 |  19,898 |   18,420 |   63,947 |
--------------------------------------------------------------------------------
| Other operating expenses |  26,950 |  12,577 |  29,373 |   15,690 |   22,845 |
--------------------------------------------------------------------------------
| Operating profit         |   8,671 |  83,935 |   5,165 |  144,978 |  208,480 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance income           |  12,128 |  18,868 |  30,903 |   23,427 |   96,877 |
--------------------------------------------------------------------------------
| Finance expenses         |   9,131 |   5,284 |  22,913 |   25,135 |   68,019 |
--------------------------------------------------------------------------------
| Net finance income /     |   2,997 |  13,584 |   7,990 |   -1,708 |   28,858 |
| expense                  |         |         |         |          |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share of profit of       |     777 |     -16 |     777 |        0 |       17 |
| equity accounted         |         |         |         |          |          |
| investees                |         |         |         |          |          |
--------------------------------------------------------------------------------
| Share of loss of equity  |     239 |    -381 |   2,883 |      347 |   24,770 |
| accounted investees      |         |         |         |          |          |
--------------------------------------------------------------------------------
| Net share of profit and  |     538 |     365 |  -2,106 |     -347 |  -24,753 |
| loss of equity accounted |         |         |         |          |          |
| investees                |         |         |         |          |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before income tax |  12,206 |  97,884 |  11,049 |  142,923 |  212,585 |
--------------------------------------------------------------------------------
| Income tax expense       |   6,513 |  32,005 |   5,895 |   32,150 |   41,269 |
--------------------------------------------------------------------------------
| Profit for the period    |   5,693 |  65,879 |   5,154 |  110,773 |  171,316 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive      |         |         |         |          |          |
| income:                  |         |         |         |          |          |
--------------------------------------------------------------------------------
| Exchange differences on  |    -231 |  -3,818 |  -1,711 |   -1,489 |   -6,371 |
| translating foreign      |         |         |         |          |          |
| operations               |         |         |         |          |          |
--------------------------------------------------------------------------------
| Total other              |    -231 |  -3,818 |  -1,711 |   -1,489 |   -6,371 |
| comprehensive income for |         |         |         |          |          |
| the period               |         |         |         |          |          |
--------------------------------------------------------------------------------
| TOTAL COMPREHENSIVE      |   5,462 |  62,061 |   3,443 |  109,284 |  164,945 |
| INCOME FOR THE PERIOD    |         |         |         |          |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|  Profit attributable to: |         |         |         |          |          |
--------------------------------------------------------------------------------
| - Owners of the parent   |  14,130 |  58,134 |  21,176 |  104,272 |  145,580 |
--------------------------------------------------------------------------------
| - Non-controlling        |  -8,437 |   7,745 | -16,022 |    6,501 |   25,736 |
| interests                |         |         |         |          |          |
--------------------------------------------------------------------------------
|                          |   5,693 |  65,879 |   5,154 |  110,773 |  171,316 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive      |         |         |         |          |          |
| income attributable to:  |         |         |         |          |          |
--------------------------------------------------------------------------------
| - Owners of the parent   |  14,031 |  52,669 |  22,469 |  101,025 |  139,120 |
--------------------------------------------------------------------------------
| - Non-controlling        |  -8,569 |   9,392 | -19,026 |    8,259 |   25,825 |
| interests                |         |         |         |          |          |
--------------------------------------------------------------------------------
|                          |   5,462 |  62,061 |   3,443 |  109,284 |  164,945 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share       |         |         |         |          |          |
| attributable to owners   |         |         |         |          |          |
| of the parent:           |         |         |         |          |          |
--------------------------------------------------------------------------------
| Basic earnings per share |    0.46 |    1.89 |    0.69 |     3.39 |     4.73 |
--------------------------------------------------------------------------------
| Diluted earnings per     |    0.46 |    1.89 |    0.69 |     3.39 |     4.73 |
| share                    |         |         |         |          |          |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| EUR ‘000                 | Q2 2009 | Q2 2008 |     1st | 1st half |     2008 |
|                          |         |         | half    |     2008 |          |
|                          |         |         |    2009 |          |          |
--------------------------------------------------------------------------------
| Revenue                  |  40,547 |  70,119 |  78,298 |  119,555 |  247,205 |
--------------------------------------------------------------------------------
| Cost of sales            |  37,512 |  61,339 |  72,907 |  104,297 |  224,330 |
--------------------------------------------------------------------------------
| Gross profit             |   3,036 |   8,780 |   5,391 |   15,258 |   22,875 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Distribution expenses    |     137 |     165 |     279 |      217 |      512 |
--------------------------------------------------------------------------------
| Administrative expenses  |   1,786 |   3,170 |   4,177 |    5,949 |   11,666 |
--------------------------------------------------------------------------------
| Other operating income   |   1,164 |     722 |   1,272 |    1,177 |    4,087 |
--------------------------------------------------------------------------------
| Other operating expenses |   1,722 |     804 |   1,877 |    1,003 |    1,460 |
--------------------------------------------------------------------------------
| Operating profit         |     554 |   5,364 |     330 |    9,266 |   13,324 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finance income           |    775, |   1,206 |   1,975 |    1,497 |    6,192 |
--------------------------------------------------------------------------------
| Finance expenses         |     584 |     338 |   1,464 |    1,606 |    4,347 |
--------------------------------------------------------------------------------
| Net finance income /     |     192 |     868 |     511 |     -109 |    1,844 |
| expense                  |         |         |         |          |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share of profit of       |      50 |      -1 |      50 |        0 |        1 |
| equity accounted         |         |         |         |          |          |
| investees                |         |         |         |          |          |
--------------------------------------------------------------------------------
| Share of loss of equity  |      15 |     -24 |     184 |       22 |    1,583 |
| accounted investees      |         |         |         |          |          |
--------------------------------------------------------------------------------
| Net share of profit and  |      34 |      23 |    -135 |      -22 |   -1,582 |
| loss of equity accounted |         |         |         |          |          |
| investees                |         |         |         |          |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before income tax |     780 |   6,256 |     706 |    9,134 |   13,587 |
--------------------------------------------------------------------------------
| Income tax expense       |     416 |   2,045 |     377 |    2,055 |    2,638 |
--------------------------------------------------------------------------------
| Profit for the period    |     364 |   4,210 |     329 |    7,080 |   10,949 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive      |         |         |         |          |          |
| income:                  |         |         |         |          |          |
--------------------------------------------------------------------------------
| Exchange differences on  |     -15 |    -244 |    -109 |      -95 |     -407 |
| translating foreign      |         |         |         |          |          |
| operations               |         |         |         |          |          |
--------------------------------------------------------------------------------
| Total other              |     -15 |    -244 |    -109 |      -95 |     -407 |
| comprehensive income for |         |         |         |          |          |
| the period               |         |         |         |          |          |
--------------------------------------------------------------------------------
| TOTAL COMPREHENSIVE      |     349 |   3,966 |     220 |    6,985 |   10,542 |
| INCOME FOR THE PERIOD    |         |         |         |          |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
|  Profit attributable to: |         |         |         |          |          |
--------------------------------------------------------------------------------
| - Owners of the parent   |     903 |   3,715 |   1,353 |    6,664 |    9,304 |
--------------------------------------------------------------------------------
| - Non-controlling        |    -539 |     495 |  -1,024 |      415 |    1,645 |
| interests                |         |         |         |          |          |
--------------------------------------------------------------------------------
|                          |     364 |   4,210 |     329 |    7,080 |   10,949 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive      |         |         |         |          |          |
| income attributable to:  |         |         |         |          |          |
--------------------------------------------------------------------------------
| - Owners of the parent   |     897 |   3,366 |   1,436 |    6,457 |    8,891 |
--------------------------------------------------------------------------------
| - Non-controlling        |    -548 |     600 |  -1,216 |      528 |    1,651 |
| interests                |         |         |         |          |          |
--------------------------------------------------------------------------------
|                          |     349 |   3,966 |     220 |    6,985 |   10,542 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share       |         |         |         |          |          |
| attributable to owners   |         |         |         |          |          |
| of the parent:           |         |         |         |          |          |
--------------------------------------------------------------------------------
| Basic earnings per share |    0.03 |    0.12 |    0.04 |     0.22 |     0.30 |
--------------------------------------------------------------------------------
| Diluted earnings per     |    0.03 |    0.12 |    0.04 |     0.22 |     0.30 |
| share                    |         |         |         |          |          |
--------------------------------------------------------------------------------


Condensed consolidated interim statement of cash flows                          
--------------------------------------------------------------------------------
|                                |      EEK ‘000       |       EUR ‘000        |
--------------------------------------------------------------------------------
|                                | 1st half | 1st half |  1st half |  1st half |
|                                |     2009 |     2008 |      2009 |      2008 |
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| Cash flows from operating      |          |          |           |           |
| activities                     |          |          |           |           |
--------------------------------------------------------------------------------
| Cash receipts from customers   | 1,448,84 | 2,235,72 |    92,598 |   142,889 |
|                                |        3 |        4 |           |           |
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| Cash paid to suppliers         | -1,271,9 | -1,828,4 |   -81,294 |  -116,860 |
|                                |       81 |       65 |           |           |
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| Cash paid to and for employees | -225,462 | -286,494 |   -14,410 |   -18,310 |
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| Income taxes paid              |   -8,538 |  -13,868 |      -546 |      -886 |
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| Net cash used in / from        |  -57,138 |  106,897 |    -3,652 |     6,832 |
| operating activities           |          |          |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flows from investing      |          |          |           |           |
| activities                     |          |          |           |           |
--------------------------------------------------------------------------------
| Acquisition of property, plant |     -839 |   -6,109 |       -54 |      -390 |
| and equipment                  |          |          |           |           |
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| Acquisition of intangible      |   -7,530 |        0 |      -481 |         0 |
| assets                         |          |          |           |           |
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| Proceeds from sale of          |    4,762 |    6,329 |       304 |       404 |
| property, plant and equipment  |          |          |           |           |
| and intangible assets          |          |          |           |           |
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| Acquisition of investment      |     -200 |        0 |       -13 |           |
| properties                     |          |          |           |           |
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| Acquisition of subsidiaries,   |  -11,720 | -211,254 |      -749 |   -13,502 |
| net of cash acquired           |          |          |           |           |
--------------------------------------------------------------------------------
| Proceeds from disposal of      |        0 |    9,800 |         0 |       626 |
| subsidiaries                   |          |          |           |           |
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| Acquisition of associates      |   -6,000 |        0 |      -383 |         0 |
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| Proceeds from disposal of      |    7,465 |   32,605 |       477 |     2,084 |
| associates                     |          |          |           |           |
--------------------------------------------------------------------------------
| Acquisition of interests in    |  -20,000 |        0 |    -1,278 |         0 |
| joint ventures                 |          |          |           |           |
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| Loans granted                  |  -54,803 |  -17,776 |    -3,502 |    -1,136 |
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| Repayment of loans granted     |   38,094 |   46,815 |     2,435 |     2,992 |
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| Interest received              |    9,707 |    9,357 |       620 |       598 |
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| Net cash used in investing     |  -41,064 | -130,233 |    -2,624 |    -8,323 |
| activities                     |          |          |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flows from financing      |          |          |           |           |
| activities                     |          |          |           |           |
--------------------------------------------------------------------------------
| Proceeds from loans received   |  141,095 |  332,686 |     9,018 |    21,263 |
--------------------------------------------------------------------------------
| Repayment of loans received    | -108,970 |  -78,279 |    -6,965 |    -5,003 |
--------------------------------------------------------------------------------
| Dividends paid                 |  -31,933 | -103,790 |    -2,041 |    -6,633 |
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| Payment of finance lease       |  -25,305 |  -29,295 |    -1,618 |    -1,872 |
| liabilities                    |          |          |           |           |
--------------------------------------------------------------------------------
| Interest paid                  |  -14,444 |  -12,465 |      -923 |      -797 |
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| Other payments made            |     -381 |      148 |       -24 |         9 |
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| Net cash used in / from        |  -39,938 |  109,005 |    -2,553 |     6,967 |
| financing activities           |          |          |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net cash flow                  | -138,140 |   85,669 |    -8,829 |     5,475 |
--------------------------------------------------------------------------------
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| Cash and cash equivalents at   |  296,184 |  236,112 |    18,930 |    15,090 |
| beginning of period            |          |          |           |           |
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| Effect of exchange rate        |       45 |      -13 |         3 |        -1 |
| fluctuations                   |          |          |           |           |
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| Decrease / increase in cash    | -138,140 |   85,669 |    -8,829 |     5,475 |
| and cash equivalents           |          |          |           |           |
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| Cash and cash equivalents at   |  158,089 |  321,768 |    10,104 |    20,565 |
| end of period                  |          |          |           |           |
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Nordecon International is a group of construction companies whose core business
is general contracting and construction management in the construction of
buildings and infrastructures in Estonia, Latvia, Lithuania and Ukraine. In
addition, in Estonia our companies act as independent contractors in road
construction and maintenance, environmental engineering, the assembly of
reinforced concrete elements, and the performance of cast-on-site concrete
works. The parent of the Group is Nordecon International AS, a company
registered and located in Tallinn, Estonia. In addition to the parent company,
there are more than 20 subsidiaries in the Group. The consolidated revenue of
the Group in 2008 was 3.9 billion kroons (247 million euros) and the
consolidated net profit was 171 million kroons (11 million euros). Nordecon
International Group employs more than 1,100 people. Since 18 May 2006, the
company's shares have been quoted in the main list of the NASDAQ OMX Tallinn
Stock Exchange. 

1 euro = 15.6466 kroons


Raimo Talviste
Nordecon International AS
Head of Investor Relations
Tel: +372 615 4445
Email: [email protected] 
www.nordecon.com