Marimekko - Company Announcement

CONSULTATIVE NEGOTIATIONS ON MARIMEKKO'S OPERATIONS IN FINLAND HAVE ENDED

Marimekko Corporation, Stock Exchange Release, 27 March 2014 at 8:30 AM

The targeted savings will be achieved with considerably fewer job terminations
than anticipated. 

The consultative negotiations started by Marimekko in February 2014, which
applied to all operations in Finland with the exception of the staff at the
textile printing factory in Helsinki, have been concluded. At the outset of the
negotiations, the overall downsizing requirement was estimated at a maximum of
55 employees. The negotiations, however, reached the conclusion that the
targeted savings can be achieved with considerably fewer job terminations. A
reorganisation of functions and operational streamlining will lead to the
elimination of 22 jobs. It was also decided to convert at most 35 employees'
jobs in company-owned stores to a part-time basis or to reduce the agreed
number of working hours. Work will also reduce when fixed-term employment
contracts will not be renewed. The scope of the negotiations covered 378
employees, 151 of whom were working in stores in Finland. Support will be given
for the re-employment of those losing their jobs, and Marimekko will offer
training for job-seeking and other services. "The actions to be taken will boost our competitiveness in the long term and we
will improve our operations in such a way that in the future we will be able to
respond to the challenges of a changing business climate and the needs of our
international clientele even better than before. Our aim is to update processes
linked in particular to design, product development and procurement. At the
heart of it all are more attractive products and getting them from the drawing
board into the stores more easily and quickly," says Mika Ihamuotila, President
and CEO. "It is always hard to reduce personnel. However, through the shared creativity
and willpower of the management and employees, we were able to avoid
large-scale redundancies and we succeeded in making savings through
arrangements of working hours," Ihamuotila continues. 

With the downsizing and working hour arrangements in Finland, the aim is to
achieve annual cost savings of an estimated total of EUR 1.5 million. The
savings will be realised gradually as of the second quarter of 2014, and the
full impact of the profit improvement will show as of the last quarter of this
year. In connection with the downsizing, the company will post a nonrecurring
cost provision of EUR 0.4 million for the first quarter of 2014. 

The company has also assigned some new key positions in design, product
development and sales as part of the operational reorganisation. Efforts will
be made as far as possible to fill the positions through internal transfers
within the Group. The international recruitment process started in February
2014 for a new Creative Director for the company is still in progress. 

Reorganisations in the United States still to some extent in progress
In February 2014, Marimekko also reported reorganisations concerning its
operations in the United States. In respect of these, negotiations on the
termination of the lease for the Beverly Hills store and on the possible
relocation of the store are still in progress. The previously implemented
actions on the country organisation as well as the store closure or relocation
are aimed at a total of about EUR 1.0 million in annual savings. The company
will report the progress on arrangements concerning the United States in its
interim reports. 

MARIMEKKO CORPORATION
Corporate Communications

Piia Kumpulainen
Tel. +358 9 758 7293
piia.kumpulainen@marimekko.com

DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Key media

Marimekko is a Finnish textile and clothing design company, renowned first and
foremost for its original prints and colours. The company designs and
manufactures high-quality household goods ranging from interior decoration
textiles to tableware as well as clothing, bags, and other accessories. When
Marimekko was founded in 1951, its unprecedented printed fabrics gave it a
strong and unique identity. Marimekko products are sold in about 40 countries.
In 2013, sales of the company's brands were some EUR 191 million with net sales
of EUR 94 million. At the end of 2013, there were 133 Marimekko stores. The key
markets are Northern Europe, North America and the Asia-Pacific region. The
Group has about 500 employees. Marimekko's shares are quoted on NASDAQ OMX
Helsinki Ltd. www.marimekko.com