2007-08-16 07:30:00 CEST

2007-08-16 07:30:00 CEST


REGULATED INFORMATION

English Finnish
Marimekko - Quarterly report

BRISK GROWTH IN EXPORTS CONTINUES, SALES IN FINLAND FALL SLIGHTLY


MARIMEKKO CORPORATION'S INTERIM REPORT, 1 JANUARY - 30 JUNE 2007                
BRISK GROWTH IN EXPORTS CONTINUES, SALES IN FINLAND FALL SLIGHTLY

In the January-June period of 2007, the Marimekko Group's net sales rose by 3%  
to EUR 33.9 million (EUR 32.9 million). Net sales in Finland decreased by 2%,   
while exports and income from international operations rose by 20%. Operating   
profit fell by 13% to EUR 3.1 million (EUR 3.6 million). Profit after taxes     
amounted to EUR 2.3 million (EUR 2.6 million). Earnings per share were EUR 0.29 
(EUR 0.33).                                                                     

The trend in net sales and earnings for the first half of the year was weaker   
than expected due to slowed sales in Finland. However, the Group's full-year    
growth estimate remains unchanged, as the Group racks up its strongest earnings 
and net sales growth in the last two quarters of the financial year. This       
estimate is based on a favourable growth outlook for exports and a solid order  
book, whose deliveries will be made during the second half of the year.         

Growth in the Marimekko Group's full-year net sales for 2007 is forecast to stay
at the same level as in 2006. Profitability is estimated to remain good,        
although slightly weaker than in the previous year.                             

NET SALES                                                                       

April-June                                                                      
In the April-June period of 2007, the Marimekko Group's net sales rose by 1.5%  
to EUR 16,997 thousand (EUR 16,751 thousand). Net sales in Finland fell by 1.2% 
to EUR 12,834 thousand (EUR 12,993 thousand). Exports and income from           
international operations increased by 10.8% and totalled EUR 4,163 thousand (EUR
3,758 thousand). Five Marimekko concept stores were opened abroad during the    
corresponding period of 2006 and their opening purchases significantly increased
sales during the comparison period.                                             

January-June                                                                    
In the January-June period of 2007, the Marimekko Group's net sales rose by 3.0%
to EUR 33,909 thousand (EUR 32,925 thousand). Net sales in Finland fell by 2.4% 
to EUR 24,443 thousand (EUR 25,037 thousand). Exports and income from           
international operations increased by 20.0% and totalled EUR 9,466 thousand     
(EUR 7,888 thousand). Growth was good in almost all export markets. The         
proportion of the Group's net sales accounted for by exports and income from    
international operations increased to 27.9% (24.0%).                            

The breakdown of the Group's net sales by product line was as follows: clothing,
44.5%, interior decoration, 40.8%, and bags, 14.7%. Net sales by market area    
were: Finland, 72.1%, the other Nordic countries, 11.4%, the rest of Europe,    
7.1%, North America, 5.1%, and other countries (Japan and other regions outside 
Europe and North America), 4.3%.                                                

In the January-June period of 2007, sales in Marimekko's own retail shops in    
Finland rose by 2.1% (3.1%). Sales to retailers in Finland fell by 5.8% (-1.3%).
This fall was primarily due to a reduction in certain retailers' promotional    
purchases.                                                                      

MARKET SITUATION                                                                

Strong growth in the world economy has continued in 2007. The briskest growth   
has been seen in Asia. Growth in Europe has picked up noticeably on the         
corresponding period of the previous year. The economic outlook in the United   
States has weakened slightly. Growth in Finland during the first half of the    
year has been faster than expected. Consumers' confidence in their own finances 
has remained strong and maintained a high level of consumption demand. In the   
January-June period of 2007, retail sales in Finland were up by 7.5% on the     
corresponding period of the previous year (Statistics Finland, Retail trade     
quick estimate 2007, June). In the January-May period of 2007, retail sales of  
clothing increased by 1.9% in Finland (Association of Textile and Footwear      
Importers and Wholesalers). Sales of womenswear rose by 3.1% and menswear by    
0.9%. Sales of childrenswear fell by 0.7%. Sales of bags increased by 8.8%.     
Exports of textile products (SITC 65) rose by 5% and imports by 2%. Exports of  
clothing (SITC 84) increased by 7% and imports by 3% (National Board of Customs,
monthly review, May 2007).                                                      

REVIEWS BY BUSINESS UNIT                                                        

Clothing                                                                        
In the January-June period of 2007, net sales of clothing decreased by 1.2% to  
EUR 15,102 thousand (EUR 15,279 thousand). The fall was due to slowed sales in  
Finland. However, brisk growth in exports continued everywhere except the market
area referred to as "other countries", which saw a fall in sales. The most      
notable sales growth was seen in the United States and the market area referred 
to as “the rest of Europe”. Exports and income from international operations    
accounted for 22.8% of net sales of clothing.                                   

Interior decoration                                                             
Net sales of interior decoration products rose by 5.4% to EUR 13,827 thousand   
(EUR 13,124 thousand). Sales in Finland rose slightly. Growth was good in all   
export markets except the market area referred to as “other countries”, where   
sales fell. The briskest increases in sales were seen in the market areas       
referred to as “other Nordic countries” and “the rest of Europe”. Exports and   
income from international operations accounted for 31.9% of net sales of        
interior decoration products.                                                   

Bags                                                                            
Net sales of bags increased by 10.1% to EUR 4,980 thousand (EUR 4,522 thousand).
In Finland, sales grew slightly. A good growth rate was maintained in exports   
with a brisk increase in sales in all markets. Exports and income from          
international operations accounted for 32.3% of net sales of bags.              

Business gifts and contract sales                                               
Sales of business gifts and contract sales fell by 15.5%.                       

Exports and international operations                                            
Buoyant growth in the Group's exports and income from international operations  
continued in the January-June period of 2007. Net sales rose by 20.0% to EUR    
9,466 thousand (EUR 7,888 thousand). Growth was vigorous in almost all markets. 
The major export countries were Sweden, the United States, Japan, Denmark,      
Germany, Norway and Great Britain.                                              

Sales growth remained good in the market area referred to as "other Nordic      
countries". Net sales rose by 16.1% to EUR 3,865 thousand (EUR 3,328 thousand). 
Sales increased in all product lines. Growth was fastest in Norway and Denmark. 

Sales picked up noticeably on the comparison period in the market area referred 
to as "the rest of Europe". Net sales rose by 41.1% to EUR 2,424 thousand (EUR  
1,718 thousand). Sales increased vigorously in all product lines. Especially    
favourable growth was seen in Germany, Great Britain, Italy and Switzerland. A  
retailer-established Marimekko concept store opened in Graz, Austria at the end 
of June 2007.                                                                   

Growth was extremely brisk in North America and all product lines showed a      
significant improvement in sales. Net sales rose by 33.0% to EUR 1,713 thousand 
(EUR 1,288 thousand). The greatest increase was seen in sales of clothing and   
bags. The Marimekko concept stores opened in 2006 were partly responsible for   
this boost. At the end of the review period, there were a total of four         
retailer-established Marimekko concept stores in the United States. The newest  
one was opened in May 2007 in Silver Spring, metropolitan Washington DC.        

Net sales decreased by 5.8% to EUR 1,464 thousand (EUR 1,554 thousand) in the   
market area referred to as "other countries". Licensing operations ceased in    
Japan at the end of 2006, which reduced sales of interior decoration products   
and was partly responsible for the overall decline in net sales. Clothing sales 
were also down on the corresponding period of the previous year; then sales were
significantly boosted by the opening purchases of three Japanese concept stores.
At the end of June, there were a total of eight Marimekko concept stores in     
Japan. The newest one opened in Yokohama in March 2007.                         

Licensing                                                                       
Royalty earnings from sales of licensed products were up on the corresponding   
period of the previous year. Growth was good in Finland and the Netherlands,    
while royalty earnings in the United States contracted noticeably. Earnings from
licensed products were also significantly reduced as licensing operations in    
Japan ceased at the end of 2006.                                                

Production                                                                      
The production volume of the Herttoniemi textile printing factory increased by  
6% on the comparison period. Production volumes at the factories in Kitee and   
Sulkava remained at the same level as in the corresponding period of the        
previous year.                                                                  

EARNINGS                                                                        

April-June                                                                      
In the April-June period of 2007, the Group's operating profit fell by 23.4% on 
the comparison period and totalled EUR 1,643 thousand (EUR 2,144 thousand). The 
operating result was weakened by slower than expected sales in Finland and      
increased fixed costs. Earnings per share were EUR 0.15 (EUR 0.20).             

January-June                                                                    
In the January-June period of 2007, the Group's operating profit fell by 12.7%  
to EUR 3,140 thousand (EUR 3,596 thousand). Operating profit as a percentage of 
net sales amounted to 9.3% (11.0%). The Group's marketing expenses for the      
period totalled EUR 2,067 thousand (EUR 2,003 thousand), representing 6.1%      
(6.1%) of net sales.                                                            

The Group's depreciation amounted to EUR 655 thousand (EUR 549 thousand), or    
1.9% (1.7%) of net sales. Net financial expenses totalled EUR 4 thousand (EUR 40
thousand), representing 0.0% (0.1%) of net sales.                               

The Group's profit before taxes fell by 11.8% to EUR 3,136 thousand (EUR 3,556  
thousand). Profit after taxes decreased by 11.9% to EUR 2,319 thousand (EUR     
2,631 thousand), or 6.8% (8.0%) of net sales. Earnings per share were EUR 0.29  
(EUR 0.33).                                                                     

Earnings for the period under review were weakened by slower than expected sales
in Finland and increased fixed costs.                                           

INVESTMENTS                                                                     

The Group's gross investments amounted to EUR 1,024 thousand (EUR 1,202         
thousand), representing 3.0% (3.6%) of net sales. The major investments focused 
on production equipment renewal at the Herttoniemi textile printing factory and 
the construction of new premises for Marimekko's Joensuu shop.                  

EQUITY RATIO AND FINANCING                                                      

Equity ratio was 62.9% at the end of the period (62.2% on 30 June 2006, 70.5% on
31 December 2006). The ratio of interest-bearing liabilities minus financial    
assets to shareholders' equity (gearing) was 9.9%, while it was 11.6% at the    
same time in the previous year (-11.7% on 31 December 2006).                    

At the end of the period, the Group's interest-bearing liabilities amounted to  
EUR 5,712 thousand (EUR 5,740 thousand). The Group's financing from operations  
was EUR 2,974 thousand (EUR 3,180 thousand) and its financial assets amounted to
EUR 3,343 thousand (EUR 3,233 thousand).                                        

SHARES AND SHARE PRICE TREND                                                    

At the end of the review period, the company's fully paid-up share capital, as  
recorded in the Trade Register, amounted to EUR 8,040,000 and the number of     
shares totalled 8,040,000. The accounting countervalue of a share is one (1)    
euro.                                                                           

According to the book-entry register, the company had 5,266 registered          
shareholders at the end of the period. 17.4% of the shares were registered in a 
nominee's name and 2.3% were in foreign ownership. The number of shares owned   
either directly or indirectly by members of the Board of Directors and the      
president of the company was 1,610,200, representing 20.0% of the total votes   
conferred by the company's shares.                                              

At the end of the review period, the Board of Directors had no valid            
authorisations to carry out a share issue or issue of convertible bonds or bonds
with warrants, or to acquire or dispose of the company's shares.                

During the January-June period of 2007, a total of 1,271,020 Marimekko shares   
were traded, representing 15.8% of the shares outstanding. The total value of   
share turnover was EUR 19,958,658. In the review period, the lowest price of the
Marimekko share was EUR 14.00, the highest was EUR 17.00 and the average price  
was EUR 15.70. At the end of the review period, the share price was EUR 14.70.  
On 30 June 2007, the company's market capitalisation was EUR 118,188,000 (EUR   
115,052,400 on 30 June 2006, EUR 117,786,000 on 31 December 2006).              
                                                                                
Flagging notifications                                                          

Morgan Stanley & Co International Plc's share of Marimekko Corporation's share  
capital and voting rights rose to 5.08%, or 408,689 shares, as a result of a    
transaction made on 12 April 2007; and then fell to 4.77%, or 383,689 shares, as
a result of a transaction made on 20 April 2007.                                

Grantham, Mayo, Van Otterloo & Co. LLC's share of Marimekko Corporation's share 
capital and voting rights fell to 4.75%, or 382,200 shares, as a result of a    
transaction made on 27 June 2007.                                               

Largest shareholders according to the book-entry register on 31 July 2007       

                               Percentage of holding and votes                  

1.  Workidea Oy                                    20.00                        
2.  Varma Mutual Employment                                                     
    Pension Insurance Company                       4.34                        
3.  ODIN Forvaltning AS                             2.53                        
4.  Säästöpankki Kotimaa                            2.09                        
5.  Evli Nordic Dividend                            1.62                        
6.  Nordea Nordic Small Cap Fund                    1.33                        
7.  Evli Select                                     1.18                        
8.  Nordea Life Assurance Finland Ltd               1.13                        
9.  Neste Oil Eläkesäätiö                           1.12                        
10. Nordea Stable Return Fund                       1.04                        
11. Nordea Pro Finland Fund                         0.86                        
12. SEB Gyllenberg Small Firm                       0.73                        
13. Ilmarinen Mutual Pension                                                    
    Insurance Company                               0.70                        
14. Foundation for Economic Education               0.62                        
15. Miettinen Kari Veikko Sakari                    0.60                        
Total                                              39.89                        
Nominee-registered                                 17.94                        
Others                                             42.17                        
                                                  100.00                        

PERSONNEL                                                                       

During the period under review, the number of Group personnel averaged 402      
(392). At the end of June, the Group employed 400 (396) people, of whom 17 (12) 
worked abroad. Kirsi Räikkönen was appointed the Group's marketing and          
development director as of 16 April 2007, when she also became a member of the  
management group.                                                               

RISK MANAGEMENT AND MAJOR RISKS                                                 

The major risks to Marimekko's business operations have been detailed in the    
company's 2006 Annual Report. No change in these risks occurred during the      
period under review.                                                            

ANNUAL GENERAL MEETING                                                          

Marimekko Corporation's Annual General Meeting, held on 12 April 2007, adopted  
the company's accounts for 2006 and approved the Board of Directors' proposal   
for payment of a dividend for 2006 of EUR 0.65 per share, totalling EUR         
5,226,000.00. The record date was 17 April 2007 and the dividend payout date 24 
April 2007.                                                                     

The Annual General Meeting resolved that the Board of Directors shall consist of
three members. Mr Matti Kavetvuo, M.Sc. (Eng.), B.Sc. (Econ.), and Mrs Kirsti   
Paakkanen, President, were re-elected and Mrs Tarja Pääkkönen, Ph.D. (Eng.,     
Business Strategies), was elected as a new member of the Board of Directors     
until the end of the next Annual General Meeting. At its organisation meeting   
held after the Annual General Meeting, the Board of Directors elected Matti     
Kavetvuo as Chairman of the Board.                                              

The Annual General Meeting also decided that Nexia Tilintarkastus Oy, Authorised
Public Accountants, will continue as regular auditor, with Mr Seppo Tervo,      
Authorised Public Accountant, as chief auditor, and Mr Matti Hartikainen,       
Authorised Public Accountant, as deputy auditor of the company.                 

OUTLOOK FOR THE REMAINDER OF 2007                                               

Strong growth in the world economy is forecast to continue. The fastest growth  
is expected in Asia. The business climate outlook has also improved             
significantly in the EU and economic growth is expected to accelerate. In the   
United States, economic uncertainty has increased and growth is expected to slow
slightly. In Finland, the continuing boom in industry and strong consumption    
demand support buoyant growth (Confederation of Finnish Industries/Business     
cycle barometer/May 2007). Based on the business climate outlook and market     
situation, growth in the Marimekko Group's net sales in 2007 is estimated to    
remain at the same level as in 2006. Profitability is forecast to remain good,  
although slightly weaker than in the previous year.                             

The Group racks up its strongest earnings and net sales growth in the last two  
quarters of the financial year. The estimate of the improved trend for the      
remainder of the year is based on a favourable growth outlook for exports and a 
solid order book, whose deliveries will be made during the second half of the   
year.                                                                           

Helsinki, 16 August 2007                                                        

MARIMEKKO CORPORATION                                                           
Board of Directors                                                              

The company's interim report for the January-September period of 2007 will be   
published on 31 October.                                                        

For additional information, contact:                                            
Kirsti Paakkanen, President, tel. +358 9 758 71                                 
Thomas Ekström, CFO, tel. +358 9 758 7261                                       

MARIMEKKO CORPORATION                                                           
Group Communications                                                            

Marja Korkeela                                                                  
Tel. +358 9 758 7238                                                            
Fax  +358 9 759 1676                                                            
Email: marja.korkeela@marimekko.fi                                              

APPENDICES TO THE INTERIM REPORT                                                
Consolidated income statement                                                   
Consolidated balance sheet                                                      
Consolidated cash flow statement                                                
Consolidated statement of changes in shareholders' equity                       
Key indicators                                                                  
Consolidated net sales by market area and product line                          
Segment information                                                             
Quarterly trend in net sales and earnings                                       

The information presented in this interim report has not been audited.          

Marimekko's stock exchange releases are available on the company's website at   
www.marimekko.com under Investors/Stock Exchange Releases.                      

DISTRIBUTION:   Helsinki Stock Exchange                                         
                Principal media                                                 
                Marimekko's website www.marimekko.com                           

---------------                                                                 

APPENDICES                                                                      

This interim report has been prepared in accordance with IAS 34: Interim        
Financial Reporting. The same accounting policy has been applied as in the 2006 
financial statements. In addition the following new or amended standards and    
interpretations have been adopted as from 1 January 2007:                       

IFRS 7 Financial Instruments: Disclosures. The Group estimates that the adoption
of this standard primarily affects the scope of the notes to the annual         
financial statements.                                                           

IAS 1 (amended) Presentation of Financial Statements: Capital Disclosures. The  
amendment does not affect this interim report.                                  

IFRIC 9 Reassessment of Embedded Derivatives. The application of the            
interpretation does not affect this interim report.                             

IFRIC 10 Interim Financial Reporting and Impairment. The application of the     
interpretation does not affect this interim report.                             

CONSOLIDATED INCOME STATEMENT                                                   

(EUR 1,000)             4-6/     4-6/     1-6/     1-6/    1-12/                
                        2007     2006     2007     2006     2006                

NET SALES             16,997   16,751   33,909   32,925   71,424                
Other operating                                                                 
 income                   17       16       35       34       60                
Increase or decrease                                                            
 in inventories of                                                              
 completed and                                                                  
 unfinished products      67   -1,221      924      314      -33                
Raw materials and                                                               
 consumables           9,073    7,815   14,045   13,383   27,868                
Employee benefit                                                                
 expenses              4,194    3,823    8,240    7,619   15,407                
Depreciation and                                                                
 impairment              333      291      655      549    1,158                
Other operating                                                                 
 expenses              1,838    1,473    8,788    8,126   16,154                

OPERATING PROFIT       1,643    2,144    3,140    3,596   10,864                

Financial income          36       24       82       54      124                
Financial expenses       -56      -54      -86      -94     -192                
                         -20      -30       -4      -40      -68                

PROFIT BEFORE TAXES    1,623    2,114    3,136    3,556   10,796                

Income taxes             428      544      817      925    2,806                

NET PROFIT FOR                                                                  
THE PERIOD             1,195    1,560    2,319    2,631    7,990                

Distribution                                                                    
 To equity holders of                                                           
 the parent company    1,195    1,560    2,319    2,631    7,990                

Earnings per share                                                              
 calculated on the                                                              
 profit attributable                                                            
 to equity holders of                                                           
 the parent                                                                     
 company, EUR           0.15     0.20     0.29     0.33     1.00                

CONSOLIDATED BALANCE SHEET                                                      

(EUR 1,000)                  30.6.2007    30.6.2006    31.12.2006               

ASSETS                                                                          

NON-CURRENT ASSET                                                               
Tangible assets                 10,402        9,292         9,992               
Intangible assets                  306          403           348               
Available-for-sale                                                              
 investments                        20           20            20               
                                10,728        9,715        10,360               

CURRENT ASSETS                                                                  
Inventories                     17,422       16,095        16,304               
Trade and other                                                                 
 receivables                     6,022        5,279         5,717               
Tax receivables                    627          343             -               
Cash and cash equivalents        3,343        3,233         5,789               
                                27,414       24,950        27,810               

ASSETS, TOTAL                   38,142       34,665        38,170               

SHAREHOLDERS' EQUITY                                                            
AND LIABILITIES                                                                 

EQUITY ATTRIBUTABLE TO EQUITY                                                   
HOLDERS OF THE PARENT COMPANY                                                   
Share capital                    8,040        8,040         8,040               
Retained earnings               15,958       13,505        18,861               
Shareholders' equity, total     23,998       21,545        26,901               

NON-CURRENT LIABILITIES                                                         
Deferred tax liabilities          637           549           614               
Interest-bearing liabilities      841         1,371           841               
                                1,478         1,920         1,455               
CURRENT LIABILITIES                                                             
Trade and other payables        7,795         6,831         7,803               
Tax liabilities                                               210               
Interest-bearing liabilities    4,871         4,369         1,801               
                               12,666        11,200         9,814               

Liabilities, total             14,144        13,120        11,269               

SHAREHOLDERS' EQUITY AND                                                        
LIABILITIES, TOTAL             38,142        34,665        38,170               

The Group has no liabilities resulting from derivative contracts, and there are 
no outstanding guarantees or any other contingent liabilities which have been   
granted on behalf of the management of the company or its shareholders.         

CONSOLIDATED CASH FLOW STATEMENT                                                

(EUR 1,000)                    1-6/2007     1-6/2006     1-12/2006              
                                                                                
CASH FLOW FROM OPERATING                                                        
ACTIVITIES                                                                      

Net profit for the period         2,319        2,631         7,990              
Adjustments                                                                     
 Depreciation and impairment        655          549         1,158              
 Financial income and expenses       -4          -40           -68              
 Taxes                              817          925         2,806              
Cash flow before change                                                         
 in working capital               3,795        4,145        12,022              
Change in working capital        -1,490       -2,378        -2,069              
Cash flow from operating                                                        
 activities before                                                              
 financial items and taxes        2,305        1,767         9,953              
Paid interest and payments                                                      
 on other financial expenses        -83          -77          -194              
Interest received                   105           57           101              
Taxes paid                       -1,592       -1,603        -2,958              

CASH FLOW FROM                                                                  
OPERATING ACTIVITIES                735          144         6,902              

CASH FLOW FROM                                                                  
INVESTING ACTIVITIES                                                            

Investments in tangible                                                         
 and intangible assets           -1,024       -1,202        -2,301              

CASH FLOW FROM                                                                  
INVESTING ACTIVITIES             -1,024       -1,202        -2,301              

CASH FLOW FROM                                                                  
FINANCING ACTIVITIES                                                            

Short-term loans drawn            4,000        3,000         3,000              
Short-term loans repaid            -400         -500        -3,100              
Long-term loans repaid             -471         -471          -946              
Finance leasing debts paid          -60          -27           -55              
Dividends paid                   -5,226       -5,226        -5,226              

CASH FLOW FROM                                                                  
FINANCING ACTIVITIES             -2,157       -3,224        -6,327              

Change in cash and                                                              
cash equivalents                 -2,446       -4,282        -1,726              

Cash and cash equivalents                                                       
 at the beginning of the period   5,789        7,515         7,515              
Cash and cash equivalents                                                       
 at the end of the period         3,343        3,233         5,789              

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY                       

       Equity attributable to equity holders of the parent company              

(EUR 1,000)               Transla-                          Share-              
                              tion  Fair value            holders'              
                  Share    differ-   and other  Retained   equity,              
                capital      ences    reserves  earnings     total              

Adjusted                                                                        
 shareholders'                                                                  
 equity                                                                         
 1 Jan. 2006      8,040                           16,097    24,137              

Net profit for                                                                  
 the period                                        2,631                        

Dividends paid                                    -5,226                        

Shareholders'                                                                   
 equity                                                                         
 30 June 2006     8,040          3                13,505    21,545              

       Equity attributable to equity holders of the parent company              

(EUR 1,000)               Transla-                          Share-              
                              tion  Fair value            holders'              
                  Share    differ-   and other  Retained   equity,              
                capital      ences    reserves  earnings     total              


Adjusted share-                                                                 
 holders' equity                                                                
 1 Jan. 2007      8,040                           18,861    26,901              

Net profit for                                                                  
 the period                                        2,319                        

Dividends paid                                    -5,226                        

Shareholders'                                                                   
 equity                                                                         
 30 June 2007     8,040          4                15,958    23,998              

KEY INDICATORS                                                                  
                            1-6/     1-6/     Change, %     1-12/               
                            2007     2006                    2006               

Earnings per                                                                    
 share, EUR                 0.29     0.33        -11.9       1.00               
Equity per share, EUR       2.98     2.68         11.4       3.35               
Share of exports and                                                            
 international operations,                                                      
 % of net sales             27.9     24.0                    24.6               
Return on equity                                                                
 (ROE), %                   18.2     23.0                    31.3               
Return on                                                                       
 investment (ROI), %        21.8     26.5                    38.2               
Equity ratio, %             62.9     62.2                    70.5               
Gross investments,                                                              
 EUR 1,000                 1,024    1,202       -14.8       2,455               
Gross investments,                                                              
 % of net sales              3.0      3.5                     3.4               
Contingent liabilities,                                                         
 EUR 1,000                14,990   15,594        -3.7      14,513               
Average personnel            402      392         2.6         393               
Personnel at the end                                                            
 of the period               400      396         1.1         396               
Number of shares                                                                
 at the end of                                                                  
 the period (1,000)        8,040    8,040                   8,040               
Number of shares                                                                
 outstanding                                                                    
 average (1,000)           8,040    8,040                   8,040               


NET SALES BY MARKET AREA AND PRODUCT LINE                                       

BY MARKET AREA, APRIL-JUNE                                                      

(EUR 1,000)             4-6/2007   4-6/2006   Change, %                         

Finland                   12,834     12,993        -1.2                         
Other Nordic countries     1,796      1,548        16.0                         
Rest of Europe               861        759        13.5                         
North America                814        649        25.5                         
Other countries              692        802       -13.7                         
TOTAL                     16,997     16,751         1.5                         

BY PRODUCT LINE, APRIL-JUNE                                                     

(EUR 1,000)             4-6/2007   4-6/2006   Change, %                         

Clothing                   7,395      7,673        -3.6                         
Interior decoration        7,029      6,515         7.9                         
Bags                       2,574      2,563         0.4                         
TOTAL                     16,997     16,751         1.5                         

BY MARKET AREA, JANUARY-JUNE                                                    

(EUR 1,000)            1-6/2007   1-6/2006   Change, %   1-12/2006              

Finland                  24,443     25,037        -2.4      53,826              
Other Nordic countries    3,865      3,328        16.1       7,373              
Rest of Europe            2,424      1,718        41.1       3,655              
North America             1,713      1,288        33.0       3,410              
Other countries           1,464      1,554        -5.8       3,160              
TOTAL                    33,909     32,925         3.0      71,424              

BY PRODUCT LINE, JANUARY-JUNE                                                   

(EUR 1,000)            1-6/2007   1-6/2006   Change, %   1-12/2006              

Clothing                 15,102     15,279        -1.2      30,309              
Interior decoration      13,827     13,124         5.4      30,716              
Bags                      4,980      4,522        10.1      10,399              
TOTAL                    33,909     32,925         3.0      71,424              

SEGMENT INFORMATION                                                             

(EUR 1,000)                       1-6/2007   1-6/2006   1-12/2006               

Net sales                                                                       
 Finland                            24,443     25,037      53,826               
 Other countries                     9,466      7,888      17,598               
Total                               33,909     32,925      71,424               

Assets                                                                          
 Finland                            37,962     34,389      36,662               
 Other countries                     1,663      1,646       2,228               
 Eliminations                       -1,483     -1,370        -720               
Total                               38,142     34,665      38,170               

Investments                                                                     
 Finland                               972      1,132       2,365               
 Other countries                        52         70          90               
Total                                1,024      1,202       2,455               

QUARTERLY TREND IN NET SALES AND EARNINGS                                       

(EUR 1,000)              II/2007    I/2007    IV/2006    III/2006               

Net sales                16,997     16,912     20,142      18,357               
Operating profit          1,643      1,497      3,776       3,492               
Earnings per share, EUR    0.15       0.14       0.35        0.32               

(EUR 1,000)             II/2006    I/2006                                       

Net sales                16,751     16,174                                      
Operating profit          2,144      1,452                                      
Earnings per share, EUR    0.20       0.13