Tikkurila Oyj - Financial Statement Release

Tikkurila's Interim Report for January-December 2013 - Continued solid financial performance

Tikkurila Oyj
Stock Exchange Release
February 10, 2014 at 9:00 a.m. (CET+1)

Tikkurila's Interim Report for January-December 2013
- Continued solid financial performance

Full-year 2013 highlights

  * Revenue decreased by 2.6 percent to EUR 653.0 million (2012: EUR 670.4
    million).
  * Operating profit (EBIT) excluding non-recurring items was EUR 72.6 (73.7)
    million, i.e. 11.1 (11.0) percent of revenue.
  * Operating profit (EBIT) was EUR 71.5 (66.3) million, i.e. 10.9 (9.9) percent
    of revenue.
  * EPS was EUR 1.14 (0.92). Diluted EPS was EUR 1.13 (0.92).
  * The Board proposes a dividend of EUR 0.80 (0.76) per share, which
    corresponds to about 70.5 (82.4) percent of the Group's 2013 earnings per
    share.
  * Cash flow after capital expenditure was EUR 66.9 (50.3) million.

October-December 2013 highlights

  * Revenue decreased by 4.0 percent to EUR 116.7 million (10-12/2012: EUR
    121.5 million).
  * Operating loss (EBIT) excluding non-recurring items was EUR -4.2 (-3.2)
    million, i.e. -3.6 (-2.7) percent of revenue.
  * Operating loss (EBIT) was EUR -5.2 (-4.0) million, i.e. -4.4 (-3.3) percent
    of revenue.
  * EPS was EUR -0.11 (-0.10).

Revenue and EBIT estimates for 2014

  * 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)      10-12/2013 10-12/2012 Change % 1-12/2013 1-12/2012 Change %
-------------------------------------------------------------------------------
 Income statement

 Revenue                 116.7      121.5    -4.0%     653.0     670.4    -2.6%

 Operating profit
 (EBIT),

 excluding non-           -4.2       -3.2   -30.5%      72.6      73.7    -1.5%
 recurring items

 Operating profit
 (EBIT) margin,                                        11.1%     11.0%
 excluding non-          -3.6%      -2.7%
 recurring items, %

 Operating profit         -5.2       -4.0   -28.6%      71.5      66.3     7.7%
 (EBIT)

 Operating profit        -4.4%      -3.3%              10.9%      9.9%
 (EBIT) margin, %

 Profit before           -6.1%       -4.2   -44.8%      67.0      59.3    13.1%
 taxes

 Net profit               -4.8       -4.5    -6.7%      50.1      40.7    23.1%

 Other key
 indicators

 EPS*, EUR               -0.11      -0.10    -6.7%      1.14      0.92    23.1%

 ROCE, % rolling         23.5%      21.0%              23.5%     21.0%

 Cash flow after
 capital                  11.4        9.8   16.6 %      66.9      50.3    33.2%
 expenditure

 Net interest-
 bearing debt at

 period-end                                             48.6      80.8   -39.8%

 Gearing, %                                            23.4%     40.6%

 Equity ratio, %                                       50.1%     45.9%

 Personnel at                                          3,133     3,223    -2.8%
 period-end




Comments by Erkki Järvinen, President and CEO:"There were no significant changes in the market environment in the last quarter
of the year. Demand continued to be fairly weak, which manifested as lower sales
volumes in all our main markets, compared to the comparison period. In Russia,
consumer confidence weakened during the last months of the year, whereas in our
other markets, confidence strengthened slightly. The decrease in sales
throughout the year was due to the uncertain economic situation, decline in
construction, slower home sales, and cautious spending by consumers. Economic
growth in our key markets was fairly weak, estimated at less than one percent.
Furthermore, weakened currencies reduced our euro-denominated revenue. On the
other hand, the favorable development of the sales mix and price increases
implemented in certain markets had a positive impact on our revenue which in
total was slightly lower than the level of the comparison period.

In 2013, operative profitability was at the same, excellent level than in the
comparison period. Profitability was supported, in particular, by the
restructuring measures in recent years, streamlining of operations and the
expense level which was lower than in the comparison period. In Russia and
Scandinavia, marketing investments were higher than in the comparison period.
The operating profit margin improved clearly in all reporting segments, with the
exception of SBU East where the result was burdened by decreased revenue, a
higher expense level and weaker ruble.

We will continue measures to increase revenue and the reorganization of the
distribution channel solutions in Russia in 2014. In addition, we will invest in
improving the service level and increasing cost effectiveness, which may call
for additional investments in production capacity modernization, among other
things. We will also pursue increased innovativeness, faster lead times, and
increased utilization of digital solutions in all our operations.

We have been modifying and simplifying our structures in recent years. These
measures have also supported good profitability in our operations in the
challenging economic situation. We also have the necessary financial
prerequisites to develop our business operations through mergers, acquisitions
and joint ventures. Due to the weak short-term economic outlook and recent
adverse development in foreign exchange rates, we expect our revenue and EBIT
excluding non-recurring items for the financial year 2014 to remain at the 2013
level."

Outlook 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 rather weak. The GDPs in Tikkurila's key markets,
i.e. Russia, Sweden, Finland, and Poland, are expected to grow approximately two
percent, on average, in 2014. Based on these estimates, 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.

Board of Directors' proposal for the distribution of profit

Tikkurila Oyj's retained earnings totaled EUR 100.3 million on December
31, 2013. The Board proposes to the Annual General Meeting that a dividend of
EUR 0.80 per share will be distributed for the year ended on December 31, 2013,
and that the rest be retained in the unrestricted equity. The proposed dividend
totals about EUR 35.3 million, which corresponds to approximately 70.5 percent
of the Group's net profit for 2013. It is proposed that the record date for the
payment of the dividend will be March 28, 2014, and that the dividend will be
paid on April 9, 2014.

Press conference and webcast

Tikkurila will hold a press conference regarding its Financial Statement Release
for 2013 for the media and analysts today on February 10, 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 February 10, 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: 940697

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

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#1760276]

Attachments:

Tikkurila Financial Statement Release 2013.pdf