NURMINEN LOGISTICS PLC’S INTERIM REPORT 1 JANUAR

Nurminen Logistics Plc                              Interim report 31 October 2013 at 1:00 p.m.

Nurminen Logistics key figures 1 January – 30 September 2013

• Net sales were EUR 49.4 million (2012: EUR 60.0 million).
• Reported operating result was EUR 1.1 million (EUR 4.7 million).
• Operating margin was 2.2% (7.9%).
• Operating result excluding non-recurring items was EUR 1.5 million (EUR 4.7 million).
• EBT was EUR -1.2 million (EUR 3.9 million).
• Net result was EUR -1.9 million (EUR 2.8 million).
• Earnings per share, undiluted: EUR -0.17 (EUR 0.08).
• Earnings per share, diluted: EUR -0.17 (EUR 0.08).

Third quarter 1 July – 30 September 2013

• Net sales were EUR 16.7 million (2012: EUR 20.5 million).
• Reported operating result was EUR -0.3 million (EUR 2.0 million).
• Operating margin was -2.1% (9.9%).
• Operating result excluding non-recurring items was EUR -0.2 million (EUR 2.0 million).
• EBT was EUR -1.0 million (EUR 1.9 million).
• Net result was EUR -1.1 million (EUR 1.5 million).
• Earnings per share, undiluted: EUR -0.09 (EUR 0.07).
• Earnings per share, diluted: EUR -0.09 (EUR 0.07).

Topi Saarenhovi, President and CEO:

“The market situation in all of our main market areas continued to be more challenging than last year, which is reflected in the unsatisfactory profitability of our business operations. The only exception was the Forwarding and Value Added Services unit that improved its profitability. The sustained weak market situation and demand in Russia and its neighbouring areas had a particular impact on the net sales and profitability of Finnish rail exports and transit logistics in the Baltic countries. However, the Russian railway logistics market showed signs of the slowdown bottoming out and even improving slightly towards the end of the review period.   We are confident that markets in Russia and its neighbouring countries will develop positively in the coming years and we will continue the implementation of our strategic future development projects, such as investments in rolling stock.

Due to the prolonged weakened market situation and structural changes in the Finnish market, we launched a profit improvement programme in order to improve our profitability, competitiveness and operational requirements. The profit improvement programme will take place in 2013-2014 and it aims at annual savings of EUR 2 million in fixed expenses as of 2014. As part of the profit improvement programme, we began co-determination negotiations in our Finnish units. In addition to the efficiency improvement measures, we are focusing on business development in each of our units in order to improve profitability. The profitability of our Finnish operations is currently at an unsatisfactory level, and in addition to the efficiency improvement measures we are seeking structural solutions to improve the profitability of our Finnish business operations.

The third quarter of the year also saw the company announce positive news related to service sales. We signed a significant contract with the paper and pulp company Sappi to handle paper products at our terminal at Vuosaari Harbour. Sappi will consolidate all of its shipping through the Port of Helsinki to our terminal in Vuosaari. We also signed a two-year extension contract with Metsä Board for handling paper and cardboard at Vuosaari Harbour. The combined annual sales from the two contracts will be in excess of EUR 5 million. In addition, the mechanical engineering group Andritz chose Nurminen Logistics to handle the transport logistics of delivering pulp mill machinery to Svetlogorsk in Belarus. Nurminen Logistics’ project delivery is the largest project in Belarus carried out by a Finnish logistics company to date, with a logistics value in excess of EUR 2 million.

M ARKET SITUATION IN THE REVIEW PERIOD

The Russian and CIS area market, which is of high importance to Nurminen Logistics’ operations, remained largely unchanged from the previous quarter. The market situation and demand in Finland weakened slightly from the previous quarter, although there were differences between business segments and services.

In railway logistics, demand in the Russian market remained lower year-on-year and on a par with the previous quarter, but improved slightly towards the end of the period under review. In Finnish rail exports, the demand for transport services was slightly weaker than in the previous quarter, except for deliveries of machinery and equipment, which saw improved demand. Lower consignment sizes led to the demand for road transport increasing in relation to rail transport. The demand for import transport of raw wood remained at a good level during the period under review.

The demand for special transports and projects remained weak. Demand in Russia and the CIS area was better than in other markets. Price levels in the market fluctuated considerably and competition remained intense.

In transit logistics, the demand on routes between the Baltic countries and Russia weakened slightly compared to the previous quarter. The demand for transport from the Baltic countries to Central Asia declined substantially from the high level seen in the comparison period, and weakened slightly compared to the previous quarter.The demand for services at the Kotka and Hamina terminals declined slightly compared to the second quarter, but remained better than in the corresponding period last year. Market demand for transit logistics remained variable and price competition was intense.

The forwarding and value-added services market in Southern Finland and at Vuosaari Harbor remained challenging, particularly with regard to imports. The volumes of goods handled fluctuated considerably during the review period. Among the main customer groups, volumes in the pulp, paper and forest industry increased, while those of the engineering and metal industries showed a decline.

NET SALES AND FINANCIAL PERFORMANCE 1 JANUARY – 30 SEPTEMBER 2013

The net sales for the review period amounted to EUR 49.4 million (2012: EUR 60.0 million), which represents a decrease of 17.6% compared to 2012. The reported operating result was EUR 1,108 (4,737) thousand. The operating result includes non-recurring items of EUR -391 (69) thousand. The comparative operating result was therefore EUR 1,499 (4,669) thousand, which is a decrease of 67.9% compared to 2012. The operating result was improved by the sale of used rolling stock.

The non-recurring items in the review period were related to restructuring and reductions in personnel implemented by the company. The non-recurring profit of the corresponding period in the 2012 financial year resulted from a partial payment of a receivable written down in the 2010 financial statements.

The depreciation of the Russian rouble during the review period decreased the company’s financial result by EUR 0.9 million. This exchange rate loss had no cash flow impact.

Railway Logistics

The Railway Logistics business unit’s net sales for the review period amounted to EUR 25,667 (2012: 33,274) thousand and the operating result was EUR 3,987 (4,819) thousand. The operating result includes non-recurring items of EUR -252 (69) thousand. The comparative operating result was therefore EUR 4,239 (4,751) thousand.

The decline in net sales was due to weakened export volumes from Finland to Russia and a decrease in railway tariffs passed on to customers. The operating result was weakened by the export volume from Finland to Russia being lower than in the comparison period, as well as a temporary weakening of demand in the Russian market, and increased price competition. Traffic problems on certain Russian railway routes and challenges related to wagon operations were additional factors that had a negative impact on the operating result. The unit launched a programme to develop wagon operations and traffic, which began to be reflected in improved wagon traffic towards the end of the period under review. As part of the implementation of the Railway Logistics unit’s strategy, the fleet of rolling stock was streamlined by selling certain wagon types. The proceeds from these sales had a positive effect on the operating result in the second quarter.

Special Transports and Projects

The Special Transports and Projects business unit’s net sales for the review period amounted to EUR 7,036 (2012: 6,856) thousand and the operating result was EUR 26 (376) thousand. The operating result includes non-recurring items of EUR -26 (0) thousand. The comparative operating result was therefore EUR 52 (376) thousand. Net sales increased despite the weakened demand for special transport, mainly due to project deliveries to Russia and the CIS area. The price level for orders remained unsatisfactory due to intense competition.

Transit Logistics

The Transit Logistics business unit’s net sales for the review period amounted to EUR 7,604 (2012: 11,148) thousand and the operating result was EUR -530 (2,204) thousand. The operating result includes non-recurring items of EUR -48 (0) thousand. The comparative operating result was therefore EUR -482 (2,204) thousand.

In transit logistics, the result of the company’s units in the Baltic countries was weakened in particular by changes in the demand for transport to Central Asia. At the Hamina and Kotka units, new customer relationships, the improved utilisation rate of terminals, the favourable development in the sale of value added services and the continued reasonably good demand for export logistics improved the result compared to the review period and helped balance out the effect of the weakened transit logistics market.

Forwarding and Value Added Services

The net sales of the Forwarding and Value Added Services business unit for the review period amounted to EUR 9,478 (2012: 8,977) thousand and the operating result was EUR -2,375 (-2,662) thousand. The operating result includes non-recurring items of EUR -65 (0) thousand. The comparative operating result was therefore EUR -2,310 (-2,662) thousand. The business unit’s net sales and operating result for the review period improved compared to the corresponding period in 2012. The operating result was improved by an increase in volume at the Vuosaari terminal, the development of the customer base and efficiency improvement measures implemented in order to increase profitability. The operational loss of the Vuosaari logistics centre was EUR 1.5 (1.9) million in January-September.

NET SALES AND FINANCIAL PERFORMANCE 1 JULY – 30 SEPTEMBER 2013

The net sales for the third quarter amounted to EUR 16.7 million (2012: EUR 20.5 million), which represents a decrease of 18.3% compared to 2012. The reported operating result was EUR -346 (2,035) thousand. The operating result includes non-recurring items of EUR -189 (0) thousand. The comparative operating result was therefore EUR -157 (2,035) thousand, which is a decrease of 107.7% compared to 2012.

The depreciation of the Russian rouble during the review period decreased the company’s financial result by EUR 0.3 million. This exchange rate loss had no cash flow impact.

The net sales of the Railway Logistics unit increased in the third quarter compared to the second quarter. However, the unit’s net sales and operating result decreased in the third quarter compared to the corresponding period in the previous year. This was due to a decrease in transport volumes between Finland and Russia, the traffic congestion of Russian railways and challenges related to wagon operations. Supported by measures initiated by the company to develop operations and traffic, wagon traffic and the profitability of operations improved towards the end of the review period. Demand for railway transport in Russia and the CIS area improved slightly near the end of the review period.

The net sales of the Special Transports and Projects unit grew substantially in the third quarter of the year compared to the second quarter and the corresponding period in the previous year. Net sales were boosted by project deliveries to Belarus, Germany and Russia. The profitability of the unit’s operations improved compared to the previous quarter, but declined year-on-year.

The net sales and operating result of the Transit Logistics unit weakened in the third quarter compared to the corresponding period in the previous year, mainly due to a decrease in container volumes transported via the Baltic countries. The development of the handling volumes and profitability of the Kotka and Hamina units also fell short of expectations due to lower market volumes.

In the Forwarding and Value Added Services business unit, net sales in the third quarter were slightly lower than in the corresponding period in 2012. Increased terminal volumes at the Vuosaari logistics centre, the development of the customer base and measures implemented to improve profitability helped to improve the unit’s operating result compared to the corresponding period last year. The operational loss of the Vuosaari logistics centre was EUR 0.6 (0.7) million in the third quarter.

OUTLOOK

The company adjusted its outlook in a stock exchange release published on 20 September 2013:

Prolonged lower demand, slowing down of rail traffic in Russia and challenges in wagon operations will impair the profitability of Nurminen Logistics’ Railway Logistics unit. The company has launched a programme to develop wagon operations and traffic. Furthermore, the volume of transit traffic via the Baltic countries will fall short of the previous estimates due to a decrease in demand. Nurminen Logistics is therefore updating its future outlook. The company expects both its net sales and operating result to be clearly lower than 2012 level.

In its previous estimate (Interim Report 1 August 2013), the company expected both its net sales and operating result to be lower than 2012 level.

The company’s long-term goal is to grow at a faster rate than the market, on average by over 15% per year. Going forward, over 50% of net sales will come from the growth markets of Russia and its neighbouring countries. The company’s further long-term goals are to improve profitability, achieve an operating profit level of 10% and return on equity of 20%.

SHORT-TERM RISKS AND UNCERTAINTIES

Uncertainty in the world economy may result in lower industrial production volumes and, as a consequence, weaker demand for the company’s services and the cancellation of orders. Unfavourable market development in Russia and its neighbouring countries, in particular, would have a negative effect on the development of the company’s net sales and result.

Overcapacity in Finnish ports keeps price competition intense. The company operates in Vuosaari, Kotka and Hamina harbours and therefore the variation in volume development of these ports has an effect on the company’s result.

Sudden changes to railway tariffs in different countries may have a significant effect on the price competitiveness of rail transport and/or the company. Price competition may also burden the company’s profitability in the future. Structural changes in the Finnish export industry and weaker than expected development of foreign trade would have a negative impact on the development of the company's net sales and profitability.

The company has received a total of 32 subsequent levy decisions from the National Board of Customs’ Eastern District Office in Lappeenranta, which state that the company and VG Cargo Plc, which has filed for bankruptcy, are liable to pay import taxes from the year 2009. The company’s liability for the import taxes is, at a maximum, EUR 0.5 million. The company does not consider itself liable for the aforementioned import taxes and has not recorded provisions for the associated costs. If there is a case for subsequent levy, the company’s view is that the levy should primarily be directed at the bankruptcy estate of VG Cargo Plc and be paid from its valid customs guarantee. The company has filed an appeal with the Helsinki District Court against the subsequent levy decisions made by the National Board of Customs.

The company has received notification of an adjustment decision pertaining to the taxation of the pre-demerger John Nurminen Ltd for the financial year 2007. The former John Nurminen Ltd was demerged on 1 January 2008 according to a demerger plan dated 7 September 2007, with the two receiving companies being the new John Nurminen and Kasola Plc. Kasola Plc subsequently changed its name to Nurminen Logistics Plc. According to the adjustment decision, the tax due is EUR 0.4 million. The allocation of the tax liability between the new John Nurminen Ltd and Nurminen Logistics Plc will be determined in arbitration proceedings.

FINANCIAL POSITION AND BALANCE SHEET

The company’s cash flow from operations was EUR 1,400 thousand. Cash flow from investments was EUR 3,242 thousand. Cash flow from financing activities amounted to EUR -4,946 thousand.

At the end of the review period, cash and cash equivalents amounted to EUR 4,449 thousand. Liquidity was satisfactory in the period under review. Financing negotiations related to the company’s continuing business operations are planned to be held in the fourth quarter. The management is confident that the negotiations will reach a positive outcome.

The Group’s interest-bearing debt totalled EUR 27.0 million and net interest-bearing debt amounted to EUR 22.6 million.

The balance sheet total was EUR 61.0 million and the equity ratio was 38.5%.

CHANGES IN THE TOP MANAGEMENT

On 17 September 2013, the company announced that Risto Miettinen, Senior Vice President responsible for IT and Quality and member of Nurminen Logistics Plc’s Executive Board, would leave his post on 30 September 2013. Risto Miettinen was a member of the Executive Board since 2012 and in the service of the company since 1994. Paula Kupiainen, CFO and member of the Executive Board, has assumed responsibility for IT in addition to her own duties as of 1 October 2013. Forwarding Manager Mika Eloranta has assumed responsibility for Nurminen Logistics’ quality and environmental systems in addition to his own duties as of 1 October 2013. The size of Nurminen Logistics’ Executive Board decreased from six members to five as a result of the change.

As of 1 October 2013, Nurminen Logistics’ Executive Board consists of the following members:

Topi Saarenhovi, President and CEO Paula Kupiainen, CFO Fedor Larionov, Senior Vice President, Railway Logistics Janne Lehtimäki, Senior Vice President, Forwarding and Value Added Services Hannu Vuorinen, Senior Vice President, Special Transports and Projects.

The company issued a stock exchange release on 27 July 2013 to announce that Fedor Larionov, 42, has been appointed the new Senior Vice President of Nurminen Logistics’ Railway Logistics business unit as well as a member of the Group’s Executive Board. Larionov is based in St. Petersburg and reports to Topi Saarenhovi, President and CEO. Before joining Nurminen Logistics, Larionov had been the Director of the St. Petersburg branch of Daher CIS since 2011. Larionov joined Nurminen Logistics on 29 July 2013.

Artur Poltavtsev, the previous Senior Vice President of Railway Logistics and member of the Executive Board, decided to leave the company on June 30, 2013. Railway Logistics business unit reported directly to CEO Topi Saarenhovi until 28 July 2013.

CAPITAL EXPENDITURE

The Group’s gross capital expenditure during the review period amounted to EUR 290 (585) thousand, accounting for 0.6% of net sales. Depreciation totalled EUR 2.7 (3.0) million, or 5.6% of net sales.

GROUP STRUCTURE

The company turned its operations in Finland into independent companies at the end of 2012. In the transformation, Nurminen Logistics Plc’s Forwarding and Value Added Services, Railway Logistics and Transit Logistics business units formed one independent company, named Nurminen Logistics Services Oy, and the Special Transports and Projects business unit was transformed into another independent company, named Nurminen Logistics Heavy Oy. The new Finnish companies started operating under the new structure on 1 January 2013. The companies responsible for the Estonian and Lithuanian operations of Nurminen Logistics Plc were transferred directly under the parent company in 2012. The Russian operations will continue as a separate company directly under the parent company. These implemented structural changes have no impact on Group reporting.

The Group comprises the parent company, Nurminen Logistics Plc, as well as the following subsidiaries and associated companies, owned directly or indirectly by the parent (ownership, %): RW Logistics Oy (100%), Nurminen Logistics Services Oy (100%), Nurminen Logistics Heavy Oy (100%), Nurminen Logistics Finland Oy (100%), OOO John Nurminen, St. Petersburg (100%), Nurminen Maritime Latvia SIA (51%), Pelkolan Terminaali Oy (20%), ZAO Irtrans (100%), OOO Nurminen Logistics (100%), OOO John Nurminen Terminal (100%), ZAO Terminal Rubesh (100%), Nurminen Logistics LLC (100%), UAB Nurminen Maritime (51%), Nurminen Maritime Eesti AS (51%), Team Lines Latvia SIA (23%) and Team Lines Estonia Oü (20.3%).

PERSONNEL       

At the end of the review period the Group’s number of personnel stood at 297, compared to 341 on 31 December 2012. The number of employees working abroad was 66.

The Railway Logistics unit’s personnel stood at 106, Special Transports and Projects 26, Transit Logistics 89 and Forwarding and Value Added Services at 51. Management and administrative staff numbered 25.

The company issued a stock exchange release on 20 September 2013 to announce that the company is launching a profit improvement programme in order to improve its profitability, competitiveness and operational requirements in a challenging business environment. As part of the programme, the company started co-determination negotiations in its Finnish units. The co-determination negotiations concern all employees in Finland. According to preliminary estimates, the need for personnel cuts is estimated to be maximum 40 employees. The measures and the impacts on personnel will be specified in the negotiations with the employees.

The company issued a stock exchange release on 12 June 2013 to announce that it will commence co-determination negotiations pertaining to terminal and forwarding personnel in Nurminen Logistics Services Oy’s Railway Logistics business unit. The reasons for starting co-determination negotiations were to adjust costs and operations to match the prevailing market and competitive conditions. On 25 June 2013, the company announced that the negotiations have come to a close and as a result, the terminal and forwarding personnel of the Railway Logistics business unit will be laid off for a maximum of 90 days. The layoffs will take effect before the end of the second quarter of 2014. In addition, the company is looking into other options for the reorganisation of work, which may lead to the dismissal of a maximum of 10 persons. The measures agreed on in the negotiations affect a total of 67 employees. The cost savings associated with the adjustments implemented as a result of the co-determination negotiations are estimated at approximately EUR 200,000 in 2013.

The company issued a stock exchange release on 22 April 2013 to announce that Nurminen Logistics Services Oy and Transval Handling Oy have signed an agreement for the outsourcing of goods handling at Nurminen Logistics’ Vuosaari terminal. The agreement took effect on 1 May 2013, with 20 employees previously employed by Nurminen Logistics Services Oy transferring to Transval Handling Oy on the same date. The change did not involve any reductions in personnel and the employees transferred to the new employer as existing employees.

The company issued a stock exchange release on 19 March 2013 announcing the conclusion of co-determination negotiations held during the review period. As a result of the negotiations, the company decided to reorganise and improve the efficiency of processes, streamline its management structure and consolidate operations. This requires a reduction in personnel of approximately 23 employees and the cost savings are estimated at roughly EUR 700 thousand in 2013 and approximately EUR 1,100 thousand from 2014 onwards. The non-recurring costs associated with this, approximately EUR 200 thousand, were lower than expected and recorded in the first quarter of the year.

SHARES AND SHAREHOLDERS

The trading volume of Nurminen Logistics Plc’s shares was 190,092 during the period from 1 January to 30 September 2013. This represented 1.45% of the total number of shares. The value of the turnover was EUR 369,328. The lowest price during the review period was EUR 1.79 per share and the highest EUR 2.20 per share. The closing price for the period was EUR 1.86 per share and the market value of the entire share capital was EUR 24,203,691 at the end of the period.

At the end of the review period the company had 539 shareholders.

On 13 May 2013, the Board of Directors of Nurminen Logistics Plc decided on a directed share issue without consideration by authorisation of the company’s Annual General Meeting of Shareholders held on 15 April 2013. A total of 124,339 shares were issued in the directed share issue without consideration, comprising 16,330 in own shares held by the company and 108,009 in new shares.

The issued shares were used for reward payments associated with Nurminen Logistics Group’s Share-based Incentive Plan 2011–2012 for key personnel according to the achievement of targets established for the earnings criteria approved by the Board of Directors as well as for the Board’s remuneration payments for the term ending at the 2014 Annual General Meeting.

The newly issued shares, numbering 108,009, were entered in the Trade Register on 12 June 2013. The shares give their holder the right to dividends and other shareholder rights as of the date of registration.

After the registration of the new shares, the total number of Nurminen Logistics Plc’s shares stood at 13,012,737. The shares entered in the Trade Register were subject to public trading as of 13 June 2013.

Stock exchange releases on the matter were published on 14 May and 12 June 2013.

After the share issue without consideration announced by Nurminen Logistics on 14 May 2013, the company did not hold any of its own shares. The company issued a stock exchange release on 27 June 2013 to announce changes in its Executive Board. As a result of the changes, the number of shares paid as incentives to key personnel decreased from 80,005 to 69,760.

After the return of the shares, the company holds 10,245 of its own shares, corresponding to 0.079% of votes.

In accordance with the decision of the Board of Directors, the company distributed on 31 May 2012 as repayment of equity EUR 0.08 per share from the reserves for invested unrestricted equity.

DECISIONS MADE BY THE ANNUAL GENERAL MEETING OF SHAREHOLDERS

The decisions of the Nurminen Logistics Plc's Annual General Meeting of Shareholders were published in stock exchange release on 15 April 2013.

DIVIDEND POLICY

The company’s Board of Directors has on 14 May 2008 determined the company’s dividend policy, according to which Nurminen Logistics Plc aims to annually distribute as dividends approximately one third of its net profit, provided that the company’s financial position allows this.

AUTHORISATIONS GIVEN TO THE BOARD

Authorising the Board of Directors to decide on the repurchase of the company's own shares

Annual General Meeting authorised the Board to decide on the repurchasing a maximum of 50,000 of the company's shares. The authorisation will be used for the paying of remuneration of the Board members. The own shares may be repurchased pursuant to the authorisation only by using unrestricted equity. The price payable for the shares shall be based on the price of the company's shares in public trading. The own shares may be repurchased in deviation from the proportional shareholdings of the shareholders (directed repurchase). The authorisation includes the right whereby the Board is authorised to decide on all other matters related to the acquisition of own shares.

The authorisation remains in force until 30 April 2014.

Authorising the Board of Directors to decide on the issuance of shares as well as the issuance of options and other special rights entitling to shares

Annual General Meeting authorised the Board to decide on issuance of shares and/or special rights entitling to shares pursuant to chapter 10 section 1 of the Finnish Companies Act.

Based on the aforesaid authorisation the Board is entitled to release or assign, either by one or several resolutions, shares and/or special rights up to a maximum equivalent of 20,000,000 new shares so that aforesaid shares and/or special rights can be used, e.g., for the financing of company and business acquisitions corporate and business trading or for other business arrangements and investments, for the expansion of owner structure, paying of remuneration of the Board members and/or for the creating incentives for, or encouraging commitment in, personnel.

The authorisation gives the Board the right to decide on share issue with or without payment. The authorisation for deciding on a share issue without payment also includes the right to decide on the issue for the company itself, so that the authorisation may be used in such a way that in total no more than one tenth (1/10) of all shares in the company may from time to time be in the possession of the company and its subsidiaries.

The authorisation includes the right whereby the Board is entitled to decide of all other issues of shares and special rights. Furthermore, the Board is entitled to decide on share issues, option rights and other special rights in every way similarly as the Annual General Meeting could decide on these. The authorisation also includes right to decide on directed issues of shares and/or special rights.

The authorisation remains in force until 30 April 2014.

OTHER EVENTS DURING THE REVIEW PERIOD Nurminen Logistics Plc issued a stock exchange release on 20 September 2013 to announce that the company is launching a profit improvement programme in order to improve its profitability, competitiveness and operational requirements in a challenging business environment. As part of the programme, the company started co-determination negotiations in its Finnish units. The profit improvement programme will take place in 2013 - 2014. The programme aims at annual savings of EUR 2 million in fixed expenses as of 2014. The programme may include restructuring and other efficiency measures in order to improve profitability. The co-determination negotiations concern all employees in Finland. According to preliminary estimates, the need for personnel cuts is estimated to be approximately 40 employees. The measures and the impacts on personnel will be specified in the negotiations with the employees.The non-recurring expenses arising from the need for personnel reduction amount to approximately EUR 600 thousand, which will be recognised for the last quarter of 2013. Nurminen Logistics had a total of 246 employees in Finland on 30 June 2013. The efficiency programme will have no impact on the company’s business or service portfolio.

The company issued a stock exchange release on 17 January 2013 announcing the end of market making on 18 February 2013 in accordance with the liquidity providing agreement between Nurminen Logistics Plc and Evli Bank Plc for the share of Nurminen Logistics Plc.

EVENTS AFTER THE REVIEW PERIOD

There are no important events after the review period.

Disclaimer

Certain statements in this bulletin are forward-looking and are based on the management's current views. Due to their nature, they involve risks and uncertainties and are susceptible to changes in the general economic or industry conditions.

Nurminen Logistics Plc Board of Directors

For more information, please contact: Topi Saarenhovi, President and CEO, tel. +358 10 545 2431.

DISTRIBUTION                                                                                                                  NASDAQ OMX Helsinki Major media www.nurminenlogistics.com

Nurminen Logistics provides high-quality logistics services, such as railway transport, terminal services, forwarding, special and heavy transport and value-added services. The company has gathered logistics know-how from three centuries, starting in 1886. Nurminen Logistics’ main market areas are Finland, the Baltic Sea region, Russia and other Eastern European countries. The company’s share is listed on NASDAQ OMX Helsinki.

TABLES

A= Share capital B= Share premium reserve C= Legal reserve D= Reserve for invested unrestricted equity E= Translation differences F= Retained earnings G= Non-controlling interest H= Total

RELATED PARTY TRANSACTIONS

The related parties comprise the members of the Board of Directors and Executive Board of Nurminen Logistics and companies in which these members have control. Related parties are also deemed to include shareholders with direct or indirect control or substantial influence.

KEY FIGURES

OTHER LIABILITIES AND COMMITMENTS

Accounting policies

The interim financial information has been prepared in accordance with IAS 34 'Interim Financial Reporting'. The IFRS recognition and measurement principles as described in the annual financial statements for 2012 have also been applied in the preparation of the interim financial information, with the changes mentioned below. Other adopted new and amended IFRS-standards and interpretations have not had significant impact on reported figures.

The Group has applied the following revised and amended standards as of 1 January 2013:

Amendments to IAS 1 Presentation of financial statements

Amendments to IFRS 7 Financial Instruments: Disclosures

All figures have been rounded and consequently the sum of individual figures can deviate from the presented sum figure. Key figures have been calculated using exact figures. This interim report is unaudited.

Calculation of Key Figures

Equity ratio (%) =

Equity 

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Balance sheet total – advances received 

Earnings per share (EUR) =

Result attributable to equity holders of the parent company 

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Weighted average number of ordinary shares outstanding

Equity per share (EUR) =

Equity attributable to equity holders of the parent company

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Undiluted number of shares outstanding at the end of the financial year

Gearing (%) =

Interest-bearing liabilities - cash and cash equivalents

____________________________________________ X 100

Equity