Published:

2015-04-29 08:00:00 CEST

Registered:

2015-04-29 08:01:06 CEST

REGULATED INFORMATION

English

Tikkurila Oyj - Interim report (Q1 and Q3)

Tikkurila's Interim Report for January-March 2015 - Strong profitability despite lower revenue

Tikkurila Oyj
Stock Exchange Release
April 29, 2015 at 9:00 a.m. (CET+1)

Tikkurila's Interim Report for January-March 2015
- Strong profitability despite lower revenue

January-March 2015 highlights

* Revenue for the first quarter decreased by 5.8 percent to EUR 133.2 million
(1-3/2014: EUR 141.5 million).
* Operating profit (EBIT) excluding non-recurring items was EUR 15.3 (13.0)
million, i.e. 11.5 (9.2) percent of revenue.
* Operating profit (EBIT) was EUR 15.2 (13.8) million, i.e. 11.4 (9.8) percent
of revenue.
* EPS was EUR 0.30 (0.17).

Guidance for 2015 intact

* Tikkurila expects its revenue and EBIT excluding non-recurring items for the
financial year 2015 to be below the 2014 level.

Key figures

(EUR million) 1-3/2015 1-3/2014 Change % 1-12/2014

Income statement

Revenue 133.2 141.5 -5.8% 618.4

Operating profit (EBIT), excluding non-
recurring items 15.3 13.0 17.6% 64.2

Operating profit (EBIT) margin,
excluding non-recurring items, % 11.5% 9.2% 10.4%

Operating profit (EBIT) 15.2 13.8 10.4% 63.7

Operating profit (EBIT) margin, % 11.4% 9.8% 10.3%

Profit before taxes 17.5 11.8 47.3% 63.3

Net profit 13.3 7.3 81.4% 48.3

Other key indicators

EPS, EUR 0.30 0.17 81.7% 1.10

ROCE, %, rolling 23.5% 25.4% 22.9%

Cash flow after capital expenditure -13.6 -4.8 -182.2% 49.9

Net interest-bearing debt at period-end 57.3 53.8 6.5% 47.4

Gearing, % 32.8% 30.6% 24.6%

Equity ratio, % 39.4% 39.1% 49.5%

Personnel at period-end 3,215 3,186 0.9% 3,142

Comments by Erkki Järvinen, President and CEO:"The beginning of the year was characterized by duality. We had a strong result
in SBU West with good volume development. However, in SBU East the turbulence
continued, and foreign exchange rate changes decreased our euro-denominated
revenue but also lowered our cost base.

Group's sales volumes did not quite reach the comparison period level due to the
lower demand in Russia. Demand for both Tikkurila and Teks brand products
declined in Russia, where we increased the prices of decorative paints at the
beginning of this year. Our main challenges are associated with Russia, where
the market situation will probably remain weak for a long time.

In the west, our volumes grew, driven primarily by the active pre-season
deliveries of exterior paints in Sweden. Favorable development of the sales mix
in Poland, in particular, had a positive effect on revenue. The development in
our Western markets is steady, but the general growth rate in the paint markets
is low.

We will continue our measures according to plan to strengthen our market
position and to streamline operations in all of our countries of operation. The
full-year guidance remains unchanged since the most crucial months are still
ahead of us."

Outlook for 2015

The geopolitical tensions, low oil prices and the weak ruble will make a
difficult operating environment for 2015. The Russian economy is anticipated to
weaken considerably, and the EU region is expected to see a slow recovery. The
demand for paint is anticipated to reduce in Russia, with a relative increase
expected in the market share of the lower price and quality grade products.
Demand in the EU region is expected to remain close to last year's level.
Tikkurila will increase sales prices mainly in Russia to partly, not fully,
compensate for the effects of the weak ruble. As in the previous years,
Tikkurila will continue investing in sales and marketing in order to strengthen
its market position. The level of costs is being continuously monitored.

Guidance for 2015

Tikkurila expects its revenue and EBIT excluding non-recurring items for the
financial year 2015 to be below the 2014 level.

Press Conference and webcast

Tikkurila will hold a press conference regarding the Interim Report for January-
March for 2015 for the media and analysts today on April 29, 2015, at 12:00 p.m.
(CET+1) in the Paavo Nurmi 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
Interim Report will be presented by Erkki Järvinen, President and CEO, and Jukka
Havia, CFO.

A live webcast, conducted in English, will be organized on April 29, 2015, 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: 952609

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

Tikkurila is the leading paints and coatings professional in the Nordic region
and Russia. With our roots in Finland, we now operate in 16 countries. Our high-
quality products and extensive services ensure the best possible user experience
in the market. Sustainable beauty since 1862.