Tikkurila Oyj - Interim report (Q1 and Q3)

Tikkurila's Business Review for January-March 2016

Tikkurila Oyj
Stock Exchange Release
April 29, 2016 at 9:00 a.m. (CET+1)

Tikkurila's Business Review for January-March 2016

Tikkurila's revenue for the first quarter decreased by 2.1 percent to EUR 130.4
million (1-3/2015: EUR 133.2 million). Operative EBIT* totaled EUR 12.5 (15.3)
million, i.e. 9.6 (11.5) percent of revenue.

"The slight decline in revenue was due to weak foreign exchange rates and lower
pre-season deliveries of outdoor paints in the western operating area. The
importance of pre-season orders seems to be diminishing and the deliveries take
place closer to start of the actual outdoor painting season in the Nordic
countries as well. In the east, the favorable development of our Chinese
operations kept SBU East's revenue at the comparison period level. Group
profitability was decreased by the decline in revenue and higher raw material
expenses in the east, caused by the weak ruble. In 2015, our market share
strengthened or remained stable in all key markets with the exception of Russia
where our market share decreased by one percentage point," says Erkki Järvinen,
President and CEO.

 Key figures

(EUR million)                                    1-3/2016 1-3/2015 Change %
---------------------------------------------------------------------------
Group data

Revenue                                             130.4    133.2    -2.1%

Operative EBIT*                                      12.5     15.3   -18.3%

Operative EBIT margin, %                             9.6%    11.5%

EPS, EUR                                             0.23     0.30   -25.4%

Net Interest-bearing liabilities (at period-end)     75.5     57.3    31.7%

Total equity (at period-end)                        205.5    174.6    17.7%

Total assets (at period-end)                        452.6    443.8     2.0%

Segment data

SBU West revenue                                     99.6    102.2    -2.5%

SBU West operative EBIT                              14.3     16.9   -15.6%

SBU East revenue                                     30.8     31.0    -0.6%

SBU East operative EBIT                              -0.6      0.1

Revenue by country

Sweden                                               38.4     39.2    -1.9%

Russia                                               18.5     20.3    -8.8%

Finland                                              28.3     30.7    -7.8%

Poland                                               16.9     15.4     9.4%


*"Operative EBIT" corresponds to "operating profit (EBIT) excl. non-recurring
items"

Financial development in January-March 2016

Tikkurila Group's revenue decreased in the first quarter of 2016 due to weak
foreign exchange rates and lower sales volumes. Sales price increases had a
positive effect on revenue.

Profitability was weakened by the decrease in revenue, raw material costs that
were higher in Russia due to the weak ruble, as well as clearly higher sales and
marketing expenses in Sweden.

The increase in net interest-bearing liabilities was due to the termination of
factoring financing, which has led to an intra-year timing difference.

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, Director, Investor Relations and Brand Concept Development
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.

www.tikkurilagroup.com


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