Conversion

During the year a total of 2 154 457 A shares were converted into R shares. The latest conversion was recorded in the Finnish Trade Register on 15 December 2004.

Authorisations for 2004

The AGM on 18 March 2004 authorised the Board of Directors to repurchase and dispose of not more than 9 000 000 A shares and not more than 32 700 000 R shares in the Company. The number of shares repurchased could not exceed 5% of the votes or the share capital. The authorisation is valid up to and including 17 March 2005. The Board of Directors currently has no authorisations to issue shares, convertible bonds or bonds with warrants.

Share Repurchases and Cancellations

The AGM on 18 March 2004 decided to lower the Company’s share capital by EUR 47 273 770 through the cancellation of 8 100 A shares and 27 800 000 R shares. The shares had been repurchased under the authorisation of the AGM 2003.

Repurchases under the AGM 2004 authorisation were initiated on 31 March 2004. By 31 December 2004, 12 300 A shares and 14 889 400 R shares had been repurchased, representing 0.1% and 45.5% of the target amounts respectively. The average price paid for the A shares was EUR 10.65 and for the R shares EUR 10.78.

Shares can be repurchased for the purpose of developing the capital structure of the Company, to be used in the financing of corporate acquisitions and other transactions or for the purpose of being sold or otherwise transferred or cancelled. The cancellation of shares requires a separate resolution by a shareholders’ meeting to reduce the share capital of the Company.

Changes in Share Capital 1998-2005