Tikkurila Oyj - Interim report (Q1 and Q3)

Tikkurila's Interim Report for January-September 2013 - Record-high third quarter profitability

Tikkurila Oyj
Stock Exchange Release
November 7, 2013 at 9:00 a.m. (CET+1)

July-September 2013 highlights

  * Revenue decreased by one percent to EUR 189.6 million (7-9/2012: EUR 191.3
    million).
  * Operating profit (EBIT) excluding non-recurring items was EUR 33.3 (32.1)
    million, i.e. 17.6 (16.8) percent of revenue.
  * Operating profit (EBIT) was EUR 33.1 (31.4) million, i.e. 17.4 (16.4)
    percent of revenue.
  * EPS was EUR 0.55 (0.51).

January-September 2013 highlights

  * Revenue decreased by 2.3 percent to EUR 536.3 million (1-9/2012: EUR 549.0
    million).
  * Operating profit (EBIT) excluding non-recurring items was EUR 76.8 (76.9)
    million, i.e. 14.3 (14.0) percent of revenue.
  * Operating profit (EBIT) was EUR 76.7 (70.4) million, i.e. 14.3 (12.8)
    percent of revenue.
  * EPS was EUR 1.25 (1.02).

Outlook for 2013

  * Tikkurila reiterates its outlook for 2013. Tikkurila expects its revenue and
    EBIT in euro excluding non-recurring items for the financial year 2013 to
    remain on 2012 level.

Key figures

(EUR million)    7-9/2013 7-9/2012 Change % 1-9/2013 1-9/2012 Change % 1-12/2012
--------------------------------------------------------------------------------
Income statement

Revenue             189.6    191.3    -0.9%    536.3    549.0    -2.3%     670.4

Operating profit
(EBIT),
excluding non-
recurring items      33.3     32.1     3.8%     76.8     76.9    -0.1%      73.7

Operating profit
(EBIT) margin,
excluding non-
recurring items,
%                   17.6%    16.8%             14.3%    14.0%              11.0%

Operating profit
(EBIT)               33.1     31.4     5.4%     76.7     70.4     8.9%      66.3

Operating profit
(EBIT) margin, %    17.4%    16.4%             14.3%    12.8%               9.9%

Profit before
taxes                31.6     30.4     3.8%     73.1     63.5    15.2%      59.3

Net profit           24.4     22.6     8.0%     54.9     45.2    21.5%      40.7

Other key
indicators

EPS, EUR             0.55     0.51     8.0%     1.25     1.02    21.5%      0.92

ROCE, %, rolling                               23.7%    20.9%              21.0%

Cash flow after
capital
expenditure          64.9     64.1     1.2%     55.5     40.5    37.2%      50.3

Net interest-
bearing debt at
period-end                                      60.1     89.2   -32.7%      80.8

Gearing, %                                     28.0%    43.6%              40.6%

Equity ratio, %                                46.4%    42.0%              45.9%

Personnel at
period-end                                     3,253    3,355    -3.0%     3,223



Comments by Erkki Järvinen, President and CEO:"Our revenue remained nearly at the comparison period level in the third quarter
of the year, although the clear decline of the ruble reduced SBU East's euro-
denominated revenue. The situation in retail and construction continued to be
difficult in our operating area. Demand was weak and our sales volumes declined
in all our largest markets, with the exception of Russia. Our sales mix
developed favorably, but total demand in the paint market showed signs of
slowing down in all our main markets. Marketing measures supported our good
development. In addition, the sales price increase implemented in Russia at the
beginning of October had a positive impact on September order volumes.

Our profitability was at a record-high level in the third quarter. Operating
profit and relative profitability improved considerably in Finland and in the
Central Eastern Europe segment, where the business operations developed well in
Poland and the Baltic area, in particular. The improved profitability was due to
the continuous improvement efforts and the expense level which was lower than in
the comparison period. SBU East's profitability was weakened by marketing
investments and the weakening of the ruble.

We maintain our earlier guidance; in other words, we estimate that our revenue
and operating profit, excluding non-recurring items, will remain at last year's
level."

Outlook for 2013

Tikkurila reiterates its guidance for 2013.

Economic development in Europe is expected to be weak in 2013. The overall
uncertainty and increasing unemployment are expected to have a negative impact
on consumers' willingness to purchase and on the demand for Tikkurila's
products. The outlook of the economic development of Russia, which is one of the
key markets of Tikkurila, has weakened in comparison to the publishing date of
Tikkurila's Financial Statement Release. The average GDP growth of Russia,
Sweden, Finland, and Poland, is estimated to be slightly over one percent in
2013. Raw material prices are estimated to remain stable or to decrease
slightly.

Tikkurila expects its revenue and EBIT in euro excluding non-recurring items for
the financial year 2013 to remain on 2012 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-September 2013 is attached to
this release and is also available on company's website at
www.tikkurilagroup.com.

Press Conference

Tikkurila will hold a press conference regarding its January-September 2013
Interim Report for the media and analysts today on November 7, 2013, at 12:00
noon (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 a.m. (CET+1). The Interim Report will be presented by Erkki Järvinen,
President and CEO, and Jukka Havia, CFO.

The stock exchange release 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#1741108]

Attachments:

Tikkurila Interim Report Q3/2013.pdf