Tikkurila Oyj - Financial Statement Release

Tikkurila's Financial Statement Release, January 1-December 31, 2011 - Profitability on previous year's level in a challenging market environment

Tikkurila Oyj
Stock Exchange Release
February 16, 2012 at 9:00 a.m. (CET+1)

Full year 2011 highlights

  * Revenue for 2011 increased by 9.4 percent to EUR 643.7 million (2010: EUR
    588.6 million). Comparable revenue growth was 7.7 percent.
  * Operating profit (EBIT) excluding non-recurring items was EUR 62.7 (59.7)
    million, i.e. 9.7 (10.1) percent of revenue. Comparable operating profit
    (excluding non-recurring items and the impact of mergers and acquisitions
    and exchange rates) was EUR 63.7 (59.5) million, i.e. 10.1 (10.1) percent of
    revenue.
  * Non-recurring items in the review period totaled EUR -1.5 (1.0) million.
  * EPS was EUR 0.80 (0.83).
  * The Board proposes a dividend of EUR 0.73 (0.70) per share, which
    corresponds to about 90.7 (84.5) percent of the Group's 2011 earnings per
    share.
  * Cash flow after capital expenditure was EUR 13.3 (51.4) million.
  * In 2012, Tikkurila expects the revenue growth to exceed the average GDP
    growth in Tikkurila's main market areas. Tikkurila expects EBIT in euro to
    stay at the same level as in 2011.

October-December 2011 highlights
  * Revenue for the last quarter increased by 5.2 percent to EUR 119.1 million
    (10-12/2010: EUR 113.3 million).
  * Operating loss (EBIT) excluding non-recurring items was EUR -2.3 (-1.4)
    million, i.e. -1.9 (-1.2) percent of revenue.
  * EPS was EUR -0.11 (-0.10).



Key Figures

(EUR million)        10-12/2011 10-12/2010 Change % 1-12/2011 1-12/2010 Change %
--------------------------------------------------------------------------------
Income statement

Revenue                   119.1      113.3     5.2%     643.7     588.6     9.4%

Operating profit
(EBIT),

excluding non-
recurring items            -2.3       -1.4   -63.7%      62.7      59.7     5.0%

Operating profit
(EBIT) margin,
excluding non-
recurring items, %        -1.9%      -1.2%               9.7%     10.1%

Operating profit
(EBIT)                     -3.8       -1.0  -260.6%      61.2      60.8     0.7%

Operating profit
(EBIT) margin, %          -3.2%      -0.9%               9.5%     10.3%

Profit before taxes        -5.3       -3.8   -38.7%      50.7      52.0    -2.5%

Net profit                 -5.0       -4.4   -13.5%      35.5      36.5    -2.8%

Other key indicators

EPS*, EUR                 -0.11      -0.10   -10.0%      0.80      0.83    -3.6%

ROCE, % rolling           19.4%      19.2%              19.4%     19.2%

Cash flow after
capital expenditure         0.8       14.0   -94.2%      13.3      51.4   -74.2%

Net interest-bearing
debt at
period-end                                               99.4      78.6    26.5%

Gearing, %                                              51.9%     41.4%

Equity ratio, %                                         44.1%     41.1%

Personnel at period-
end                                                     3,551     3,468     2.4%


* As calculated by using the amount of shares outstanding of 44,108,252.

Comments by Erkki Järvinen, President and CEO:"Our market areas responded in different ways to the weakening outlook of the
world economy in the second half of 2011. In the developed markets in
Scandinavia and Finland, the increasing uncertainty was reflected in consumer
behavior fairly quickly. In the emerging markets, in Russia in particular, the
situation remained more stable and sales volumes continued to grow at the end of
the year as well, although slower than at the beginning of the year.

On the whole, 2011 was a good year for Tikkurila even though regional
differences in the financial performance were quite considerable. Our revenue
grew as targeted, by nearly 10 percent, particularly driven by sales price
increases and our eastern market area. The pressure on raw material cost
increases started to ease at the end of the year.

Our operating profit increased slightly and relative profitability remained
close to the previous year's level. An operating profit margin of nearly 10
percent was a good achievement in the prevailing uncertain and rapidly changing
market conditions. Operating profit was negatively affected by the widespread
cost inflation that particularly affected the prices of raw materials and
personnel expenses. We also stepped up our marketing efforts in many of our
markets at the beginning of the year.

Currently it seems that a clear strengthening of the markets may still be far in
the future. According to the most recent statistics, economic recession has
already reached some of the European countries. Through the restructuring of our
business operations and organization, which is currently under way, we are
seeking a more flexible cost structure and better agility in the uncertain
market situation. Furthermore, our objective is to improve our competitiveness
and profitability in the long term."

Outlook for 2012

In 2012, the GDP is expected to remain close to the 2011 levels or the GDP
growth is expected to be low in the key market areas of Tikkurila. Further raw
material cost increases are predicted, even though it is assumed that the raw
material and packaging material cost inflation will be clearly lower than in
2011.

In 2012, Tikkurila expects the revenue growth to exceed the average GDP growth
in Tikkurila's main market areas. As far as the profitability is concerned,
Tikkurila expects EBIT in euro to stay at the same level as in 2011.

The estimates presented above are based on internal assessment reflecting
management's most recent forecasts for full-year 2012 financial performance.
These estimates are based on the assumption that foreign exchange rates would
stay at the same level as the actual exchange rates on December 31, 2011. The
estimates are also based on Tikkurila's current distribution network and
business structure. The main market areas referred above include Russia, Sweden,
Finland and Poland. Moreover, as announced during the fourth quarter of 2011, a
group-wide efficiency program aiming at increasing competitiveness was launched
in 2011 and it will be continued in 2012, and therefore the impact of the non-
recurring expenses linked to the implementation of the efficiency program or of
any potential major restructuring actions, regardless of their timing, are not
taken into account in the guidance.

Board of Directors' proposal for the distribution of profit

Tikkurila Oyj's retained earnings totaled EUR 80.0 million on December
31, 2011. The Board proposes to the Annual General Meeting that a dividend of
EUR 0.73 per share will be distributed for the year ended on December 31, 2011,
and that the rest be retained in the unrestricted equity. The proposed dividend
totals EUR 32.2 million, which corresponds to approximately 90.7 percent of the
Group's net profit for 2011. It is proposed that the record date for the payment
of the dividend will be April 2, 2012, and that the dividend will be paid on
April 11, 2012.

Disclosing procedures of financial reviews

Tikkurila Oyj follows the disclosure procedure enabled by Standard 5.2b
published by the Finnish Financial Supervision Authority, and discloses relevant
information (i.e. information likely to have a material effect on the value of
Tikkurila's share price) related to its Financial Statement Release with this
Stock Exchange Release. Tikkurila's Financial Statement Release for 2011 is
attached to this release and is also available on company's website at
www.tikkurilagroup.com/fi.

Press conference and conference call

Tikkurila will hold a press conference regarding its Financial Statement Release
for 2011 for the media and analysts today on February 16, 2012, at 12:00 p.m.
(CET+1) in the Akseli Gallén-Kallela Cabinet at the Hotel Kämp, (address
Pohjoisesplanadi 29, 00100 Helsinki). The conference will be held in Finnish
language. Attendees will be served lunch at the conference premises starting at
11:30 (CET+1). The Financial Statements will be presented by Erkki Järvinen,
President and CEO, and Jukka Havia, CFO.

A conference call in English will be held at 3:00 p.m. Finnish time.
Participants will be asked for their full name and conference ID, which is
44472842. To participate in the conference call, please dial one of the
following numbers 5-10 minutes before the conference:

From Finland (free call): 0800 112 363 or (local call): 09 2319 5187
From Russia (free call): 8108 002 097 2044
From Sweden (free call): 0200 890 171 or (local call): 0850 336 434
From USA (free call): 1866 966 9439 or (local call): 1631 510 7498
From UK (fee call): 0800 694 0257 or (local call): 0844 493 3800
UK Standard International (all countries): +44 (0) 1452 555 566

The stock exchange release and presentation materials will be available before
the event at www.tikkurilagroup.com/investors. A recording of the conference
call will be available at the same address after the conference.

Tikkurila Oyj
Erkki Järvinen, President and CEO


For further information, please contact:

Erkki Järvinen, President and CEO
Mobile +358 400 455 913,erkki.jarvinen@tikkurila.com

Jukka Havia, CFO
Mobile +358 50 355 3757,jukka.havia@tikkurila.com

Minna Avellan, Manager, IR
Mobile +358 40 533 7932,minna.avellan@tikkurila.com


For 150 years already, Tikkurila has provided consumers and professionals with
user-friendly and sustainable solutions for surface protection and decoration.
Tikkurila wants to be the leading paint company in the Nordic area as well as in
Russia and other selected Eastern European countries. - Tikkurila inspires you
to color your life.

www.tikkurilagroup.com


[HUG#1586189]

Attachments:

Tikkurila Financial Statement Release 2011.pdf