Tikkurila Oyj - Interim report (Q1 and Q3)

Tikkurila's Interim Report for January-March 2014 - Strong start to the year

Tikkurila Oyj
Stock Exchange Release
May 8, 2014 at 9:00 a.m. (CET+1)

Tikkurila's Interim Report for January-March 2014
- Strong start to the year

January-March 2014 highlights

  * Revenue for the first quarter increased by 2.2 percent to EUR 141.5 million
    (1-3/2013: EUR 138.4 million).
  * Operating profit (EBIT) excluding non-recurring items was EUR 13.0 (10.1)
    million, i.e. 9.2 (7.3) percent of revenue.
  * Operating profit (EBIT) was EUR 13.8 (10.2) million, i.e. 9.8 (7.4) percent
    of revenue.
  * EPS was EUR 0.17 (0.15).

Revenue and EBIT estimates for 2014 intact

  * Tikkurila expects its revenue and EBIT excluding non-recurring items for the
    financial year 2014 to remain at the 2013 level.

 Key figures

 (EUR million)                           1-3/2014 1-3/2013 Change % 1-12/2013

 Income statement

 Revenue                                    141.5    138.4     2.2%     653.0

 Operating profit (EBIT), excluding non-     13.0     10.1    28.5%      72.6
 recurring items

 Operating profit (EBIT) margin,
 excluding non-recurring items, %            9.2%     7.3%              11.1%

 Operating profit (EBIT)                     13.8     10.2    35.0%      71.5

 Operating profit (EBIT) margin, %           9.8%     7.4%              10.9%

 Profit before taxes                         11.8     10.5    12.7%      67.0

 Net profit                                   7.3      6.6    11.2%      50.1



 Other key indicators

 EPS, EUR                                    0.17     0.15    11.2%      1.14

 ROCE, %, rolling                           25.4%    22.6%              23.5%

 Cash flow after capital expenditure         -4.8    -13.7    64.8%      66.9

 Net interest-bearing debt at period-end     53.8     94.0   -42.8%      48.6

 Gearing, %                                 30.6%    45.5%              23.4%

 Equity ratio, %                            39.1%    43.4%              50.1%

 Personnel at period-end                    3,186    3,231    -1.4%     3,133




Comments by Erkki Järvinen, President and CEO:"Our year got off to a good start, we achieved a strong result in the
challenging market situation. Our profitability was improved by not only the
increased revenue but also by the determined streamlining of our operations,
improvement of productivity, and strict cost management.

Our euro-denominated revenue grew slightly from the comparison period despite
the negative exchange rates development of the key currencies. The good
development was based on higher sales volumes, favorable development of the
sales mix, and the sales price increases implemented in Russia. Moreover, the
early arrival of spring had a positive effect on demand.

The crisis in Ukraine increased uncertainty associated with economic
development, and this resulted in considerable cuts in Russian growth forecasts.
Despite the crisis, our sales volumes grew from the comparison period in Russia,
as well. The majority of our paints sold in Russia are manufactured locally, and
a considerable portion of raw materials is also procured from local suppliers.
The ruble risks are especially associated with products exported from Finland to
Russia and raw materials procured from the West.

We will continue to further develop our operations, and simultaneously we will
increase investments in sales and marketing especially in Russia. Slight
positive signs could be seen in the macroeconomic development in Sweden, Poland,
and the Baltic countries. On the other hand, the exchange rates relevant to
Tikkurila are generally expected to remain at a weak level, which will have a
negative effect particularly on our revenue development also during the
remainder of the year."

Outlook for 2014

Tikkurila reiterates its guidance for 2014.

The economic situation in Europe is expected to improve moderately in 2014.
Considerable regional differences are forecasted between Tikkurila's different
markets in private consumption and construction volumes in 2014, but overall
growth is estimated to remain low. No considerable change is expected in the
demand for Tikkurila's products compared to last year. Cost inflation is
expected to continue, and investments in sales, marketing and innovation
activities are forecasted to increase the fixed cost level. Raw material prices
are forecasted to remain stable.

Tikkurila expects its revenue and EBIT excluding non-recurring items for the
financial year 2014 to remain at the 2013 level.

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 Interim Report with this Stock Exchange
Release. Tikkurila's Interim Report for January-March 2014 is attached to this
release and is also available on company's website at www.tikkurilagroup.com.

Press conference and webcast

Tikkurila will hold a press conference regarding the Interim Report for January-
March 2014 for the media and analysts today on May 8, 2014, 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 result will be presented by Erkki Järvinen, President and
CEO, and Jukka Havia, CFO.

A live webcast, conducted in English, will be organized on May 8, 2014 at 3:00
p.m. The live webcast will be available at www.tikkurilagroup.com. The
participants can also join a telephone conference that will be arranged in
conjunction with the live webcast. The telephone conference details are set out
below:

+358 9 2313 9201 (Finnish callers)
+44 20 7162 0077 (UK callers)
+1 334 323 6201 (US callers)
Participant code: 943094

An on-demand version of the webcast will be available at
www.tikkurilagroup.com/investors later during the same day.

The Interim Report and presentation materials will be available before the event
at www.tikkurilagroup.com/investors.


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, Investor Relations
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#1783523]

Attachments:

Tikkurila Interim Report Q1/2014.pdf