2010-08-11 08:00:00 CEST
2010-08-11 08:01:51 CEST
REGULATED INFORMATION
Tikkurila Oyj - Interim report (Q1 and Q3)
Tikkurila Oyj's Interim Report January−June 2010 - Result improved, exchange rates boosted revenue growth
Tikkurila Oyj Stock Exchange Release, August 11, 2010 at 9.00 am (CET +1)
April−June 2010 highlights
* Revenue for the second quarter increased by 12.3 percent in comparison to
the previous year and totaled EUR 182.5 million (4−6/2009: EUR 162.4
million).
* Operating profit (EBIT) excluding non-recurring items was EUR 28.4 (24.5)
million, i.e. 15.5 (15.1) percent of revenue.
* Non-recurring items totaled EUR 0.7 (-2.4) million.
* EPS was EUR 0.46 (0.32).
* Tikkurila upgrades its outlook for the full year 2010 due to the good start
of the year. Tikkurila's revenue and operating profit (EBIT) excluding
non-recurring items are expected to exceed the corresponding 2009 level. The
revenue and operating profit estimates do not take into consideration
possible effects from exchange rate fluctuations, which may have a
significant impact on the revenue development, in particular. Previously
Tikkurila estimated that its revenue and operating profit (EBIT) excluding
non-recurring items for 2010 are expected to remain at the same level as in
2009.
January−June 2010 highlights
* Revenue for the first half of the year increased by 10.3 percent in
comparison to the previous year and was EUR 301.8 million (1−6/2009: EUR
273.6 million).
* Operating profit (EBIT) excluding non-recurring items was EUR 35.9 (28.6)
million, i.e. 11.9 (10.4) percent of revenue.
* Non-recurring items totaled EUR 0.7 (-2.4) million.
* EPS was EUR 0.55 (0.30).
* Gearing decreased clearly.
Key Figures
(EUR million) 4-6/2010 4-6/2009 Change 1-6/2010 1-6/2009 Change 1−12/2009
% %
--------------------------------------------------------------------------------
Income statement
Revenue 182.5 162.4 12.3% 301.8 273.6 10.3% 530.2
Operating profit
(EBIT),
excluding
non-recurring
items 28.4 24.5 15.7% 35.9 28.6 25.6% 50.2
Operating profit
(EBIT) margin,
excluding
non-recurring
items, % 15.5% 15.1% 11.9% 10.4% 9.5%
Operating profit
(EBIT) 29.1 22.1 31.6% 36.6 26.1 40.1% 47.7
Operating profit
(EBIT) margin, % 15.9% 13.6% 12.1% 9.5% 9.0%
Profit before tax 27.9 18.8 48.8% 33.8 19.0 77.6% 35.7
Net profit 20.5 14.0 46.7% 24.1 13.4 80.1% 27.8
Other key
indicators
EPS*, EUR 0.46 0.32 43.8% 0.55 0.30 83.3% 0.63
ROCE, % p.a. 18.5% 14.2% 18.5% 14.2% 17.7%
Free cash flow
after
investments, EUR
million 5.0 6.3 -20.0% -25.1 -22.6 -11.0% 45.3
Net
interest-bearing
debt at
period-end, EUR
million 155.3 222.4 -30.2% 129.5
Gearing, % 87.0% 235.6% 90.0%
Equity ratio, % 34.2% 19.7% 35.7%
Personnel at
period-end 3,946 3,968 -0.6% 3,538
* As calculated by using the amount of shares outstanding of 44,108,252.
Comments by President and CEO Erkki Järvinen"Our revenue growth during the review period was mainly boosted by changes in
foreign exchange rates. Our profitability also developed favorably. Though the
volume growth has been quite modest so far, the relatively high level of
consumer confidence and low market interest rates in our key markets form a
solid base for the demand of decorative paints in general. Our sales developed
favorably in all our market areas, with the exception of Central Eastern Europe,
where the tightened competitive situation in Poland hampered our sales volumes.
We are especially pleased with the good volume growth of our biggest market
area, the East.
We upgrade our full year 2010 outlook due to the good start of the year.
However, there are no visible signs of a strong recovery in our market
environment. The most significant short-term uncertainties in our industry are
related both to the availability and prices of our raw materials. The
consolidation development within the chemical industry has clearly decreased the
paint industry's sourcing alternatives.
Based on our strategy, our aim is to continuously make our operations more
efficient and unified. The new unified Tikkurila will be in an excellent
position to increase its market shares further as the market conditions improve.
During 2010, our capital expenditures have been focused on replacing and
maintaining the existing infrastructure. No short-term capacity-related
investment needs can be seen even though the demand would pick up further."
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
Susanna Aaltonen, Group Vice President, Communications & IR
Mobile +358 40 593 4221,susanna.aaltonen@tikkurila.com
Press conference today at 12.00 pm and conference call at 2.00 pm
Tikkurila will hold a press conference about its January-June 2010 result for
the media and analysts today on August 11, 2010 starting at 12.00 noon Finnish
time at the Hotel Kämp, Akseli Gallén-Kallela cabinet; address Pohjoisesplanadi
29, Helsinki. The conference will be held in Finnish. Attendees will be served
lunch in connection with the conference, starting at 11.30 am Finnish time. The
interim report will be presented by Erkki Järvinen, President and CEO.
A conference call in English will be held at 2.00 pm Finnish time. Participants
will be asked for their full name and conference ID, which is 89183666. In order
to participate in the conference call, please dial in 5-10 minutes before the
beginning of the event as follows:
From Finland (free call): 0800 112 363
From Russia (free call): 8108 002 097 2044
From Sweden (free call): 0200 890 171
From UK (free call): 0800 694 0257
From USA (free call): 1866 966 9439
UK Standard International: +44 (0) 1452 555 566
A stock exchange release and presentation material will be available before the
conference call at www.tikkurilagroup.com/investors. A recording of the
conference call will be available later on Tikkurila's website.
Tikkurila will publish its January-September 2010 interim report on Friday,
October 29, 2010 at around 9.00 am Finnish time.
Tikkurila provides consumers, professionals and the industry with user-friendly
and environmentally sustainable solutions for protection and decoration.
Tikkurila is a strong regional player that aims to be the leading paint company
in the Nordic area and Eastern Europe including Russia. - Tikkurila inspires you
to color your life.
Tikkurila Oyj, Interim Report, January 1-June 30, 2010
This interim report has been prepared in accordance with IAS 34. The disclosed
information is unaudited except for the 2009 full year data. The figures in the
tables are independently rounded.
All forward-looking statements in this review are based on the management's
current expectations and beliefs about future events, and actual results may
differ from the expectations and beliefs such statements contain.
In case there are any discrepancies between the language versions of the interim
report, the Finnish version shall prevail.
Tikkurila's business activities are organized in four reportable segments, of
which Tikkurila uses the name Strategic Business Unit. Tikkurila's reporting
segments are SBU East, SBU Finland, SBU Scandinavia, and SBU Central Eastern
Europe. SBU East consists of Russia, Ukraine, Central Asian countries and
Belarus. SBU Finland covers Tikkurila's business in Finland. SBU Scandinavia
consists of Sweden, Denmark and Norway. SBU Central Eastern Europe consists of
the following countries: the Baltic countries, Poland, Czech Republic, Slovakia,
China, Germany, Hungary and Romania. Furthermore, this SBU is responsible for
export sales in approximately 20 additional countries that are not included in
the SBUs' operational areas.
Financial Performance in April−June 2010
Tikkurila Group's revenue for April-June 2010 totaled EUR 182.5 (162.4) million,
i.e. 12.3 percent (EUR 20.1 million) more than in the second quarter of 2009.
Exchange rate changes significantly contributed to the growth, while volume
growth remained moderate. Of the total growth, about EUR 12.3 million was based
on the foreign exchange rate translation effect, EUR 5.5 million on sales volume
increases and EUR 2.1 million on changes in the product mix and average sales
prices. Decorative paints generated about 86 percent and industrial coatings
about 14 percent of the total revenue for the second quarter of 2010.
Operating profit (EBIT) excluding non-recurring items for April−June 2010 was
EUR 28.4 (24.5) million, which equals 15.5 (15.1) percent of revenue. In the
Group's operations there is intra-year seasonality, and hence the second and
third quarters typically generate most of Tikkurila's annual profits. The
relative profitability improved compared to the previous year, with only minor
changes in the geographical presence and product mixes.
The non-recurring items recognized in the second quarter of 2010 were related to
the following: Firstly, a Russian insurance compensation (EUR 1.5 million
positive impact on EBIT as well as cash flow) due to a court ruling on a fire
accident in 2006 at one of the Group's production sites, and secondly, a fine
set by Polish competition authorities (EUR 0.8 million negative impact on 2010
EBIT, with no immediate cash flow effect). The non-recurring cost of EUR 2.4
million in the comparison period in 2009 was caused by personnel reductions in
the Group's Finnish and Swedish operations.
Operating profit (EBIT) for April-June 2010 was EUR 29.1 (22.1) million.
Net finance expenses for April-June totaled EUR 1.1 (3.3) million. Profit before
tax was EUR 27.9 (18.8) million. Taxes totaled EUR 7.4 (4.8) million,
representing an effective tax rate of 26.6 (25.6) percent. Earnings per share
were EUR 0.46 (0.32).
The revenue and profitability by reporting segments for the second quarter is
presented below.
April-June
(EUR million) Revenue Operating profit (EBIT)
excluding non-recurring items
4−6/2010 4−6/2009 4−6/2010 4−6/2009
SBU East 64.3 54.0 11.2 8.3
SBU Finland 34.5 33.4 7.9 7.2
SBU Scandinavia 53.6 46.0 8.3 6.6
SBU Central Eastern Europe 30.0 29.1 2.3 3.2
Group common and eliminations 0.0 0.0 -1.2 -0.8
Consolidated Group 182.5 162.4 28.4 24.5
Financial Performance in January−June 2010
Tikkurila Group's revenue for January-June 2010 totaled EUR 301.8 (273.6)
million, i.e. 10.3 percent (EUR 28.2 million) more than in the first half of
2009. Of the total growth, about EUR 20.5 million was based on the foreign
exchange rate translation effect, EUR 7.1 million on sales volume increases and
EUR 0.6 million on changes in the product mix and average sales prices.
Decorative paints accounted for about 85 percent, and industrial coatings for
about 15 percent, of the total revenue of the first half of 2010.
Operating profit (EBIT) excluding non-recurring items for January-June 2010 was
EUR 35.9 (28.6) million, which equals 11.9 (10.4) percent of revenue. The
non-recurring items were related to the second quarter of 2010 and 2009, and
have been described above.
Operating profit (EBIT) for January-June 2010 was EUR 36.6 (26.1) million. The
key factors contributing to the increase in euro-denominated EBIT relate to the
following: Firstly, variable cost level still being at reasonably low in the
first half, and secondly, benefits reaped from the rationalization program and
increased productivity. In addition, higher sales volumes and, to some extent,
exchange rate changes also had a positive impact on the result. The exchange
rate changes had a EUR 2.0 million positive impact on the operating profit.
Net finance expenses for January-June totaled EUR 2.8 (7.1) million. Profit
before tax was EUR 33.8 (19.0) million. Taxes totaled EUR 9.7 (5.6) million,
representing an effective tax rate of 28.6 (29.6) percent. Earnings per share
were EUR 0.55 (0.30).
The revenue and profitability by reporting segments for the first year half is
presented below.
January-June
(EUR million) Revenue Operating profit (EBIT)
excluding non-recurring items
1−6/2010 1−6/2009 1−6/2010 1−6/2009
SBU East 92.7 79.6 11.2 8.0
SBU Finland 63.7 62.6 12.7 10.3
SBU Scandinavia 93.5 82.2 11.2 8.7
SBU Central Eastern Europe 51.9 49.2 2.6 2.9
Group common and eliminations 0.0 0.0 -1.8 -1.3
Consolidated Group 301.8 273.6 35.9 28.6
Financial Performance by Reporting Segments
SBU East
SBU East, Income Statement
(EUR million) 4−6/2010 4−6/2009 Change 1-6/2010 1-6/2009 Change 1-12/2009
% %
--------------------------------------------------------------------------------
Revenue 64.3 54.0 19.2% 92.7 79.6 16.5% 167.1
Operating profit
(EBIT), excluding
non-recurring items 11.2 8.3 35.7% 11.2 8.0 39.6% 17.7
Operating profit
(EBIT) margin,
excluding
non-recurring items,
% 17.4% 15.3% 12.0% 10.0% 10.6%
Operating profit 12.7 8.3 53.7% 12.6 8.0 58.2% 17.7
(EBIT)
Operating profit
(EBIT) margin, % 19.7% 15.3% 13.6% 10.0% 10.6%
Capital expenditure
excl. acquisitions 1.2 2.4 -51.3% 1.8 4.5 -59.6% 7.2
SBU East's revenue for April−June 2010 grew by 19.2 percent from the comparison
period and totaled EUR 64.3 (54.0) million. The increased revenue was mainly due
to exchange rate changes and increased sales volumes. The exchange rate changes
improved the revenue by EUR 4.8 million and sales volumes by EUR 3.9 million.
The demand picked up noticeably from the beginning of the year due to better
weather conditions, stronger consumer confidence and a positive overall
development of the economies in the region.
SBU East's operating profit (EBIT) excluding non-recurring items for April−June
2010 grew by 35.7 percent from the comparison period and totaled EUR 11.2 (8.3)
million. The operating profit was mainly improved by the lower relative share of
variable costs of the revenue, as compared to the previous year, as well as
increases in sales prices and volume. There were already some problems in the
availability of some key raw materials, which had an adverse effect on product
deliveries. In addition, the crisis in Kyrgyzstan hampered the sales in Central
Asia. The exchange rate changes improved the operating profit by EUR 0.6
million.
The non-recurring items recognized in the second quarter of 2010 were related to
a Russian insurance compensation, which had a positive effect of EUR 1.5 million
on SBU East's EBIT. There were no non-recurring items in the comparison period.
SBU East's revenue for January−June 2010 grew by 16.5 percent from the
comparison period and totaled EUR 92.7 (79.6) million. The increased revenue was
mainly due to exchange rate changes and increased sales volumes. The exchange
rate changes improved the revenue by EUR 7.2 million and sales volumes by EUR
4.5 million. The operating profit (EBIT) excluding non-recurring items for
January−June 2010 grew by 39.6 percent from the comparison period and totaled
EUR 11.2 (8.0) million. The operating profit was mainly improved by the positive
sales development and variable costs remaining at a relatively low level.
There are signs of the demand in SBU East's operating area shifting from economy
products to premium products, which indicates an improvement in consumer
purchasing power. SBU East employed new personnel during the second quarter due
to the reorganization and development activities in the production.
SBU Finland
SBU Finland, Income Statement
(EUR million) 4−6/2010 4−6/2009 Change 1-6/2010 1-6/2009 Change 1-12/2009
% %
--------------------------------------------------------------------------------
Revenue 34.5 33.4 3.3% 63.7 62.6 1.8% 106.8
Operating profit
(EBIT),
excluding
non-recurring items 7.9 7.2 9.9% 12.7 10.3 23.3% 14.2
Operating profit
(EBIT) margin,
excluding
non-recurring items,
% 22.8% 21.4% 19.9% 16.5% 13.3%
Operating profit 7.9 5.2 51.9% 12.7 8.3 52.6% 12.2
(EBIT)
Operating profit
(EBIT) margin, % 22.8% 15.5% 19.9% 13.3% 11.4%
Capital expenditure
excl. acquisitions 0.7 0.6 5.4% 1.2 1.4 -14.4% 2.1
SBU Finland's revenue for April−June 2010 grew by 3.3 percent from the
comparison period and totaled EUR 34.5 (33.4) million. The improved revenue was
due to increased sales volume of mainly decorative paints. In addition, the
feedback for new product launches has been positive.
SBU Finland's operating profit (EBIT) excluding non-recurring items for
April−June 2010 grew by 9.9 percent from the comparison period and totaled EUR
7.9 (7.2) million. The improvement was mainly due to increased sales volumes and
lower fixed cost levels in comparison to the previous year.
SBU Finland's revenue for January−June 2010 grew by 1.8 percent and totaled EUR
63.7 (62.6) million. The improved revenue was due to increased sales volume. SBU
Finland's operating profit (EBIT) excluding non-recurring items for January−June
2010 grew by 23.3 percent from the comparison period and totaled EUR 12.7 (10.3)
million. The improvement was mainly due to sales volume development, as well as
cost savings.
SBU Scandinavia
SBU Scandinavia, Income
Statement
(EUR million) 4−6/2010 4−6/2009 Change 1-6/2010 1-6/2009 Change 1-12/2009
% %
--------------------------------------------------------------------------------
Revenue 53.6 46.0 16.7% 93.5 82.2 13.7% 157.8
Operating profit
(EBIT),
excluding
non-recurring items 8.3 6.6 26.2% 11.2 8.7 29.2% 16.1
Operating profit
(EBIT) margin,
excluding
non-recurring items,
% 15.4% 14.3% 12.0% 10.6% 10.2%
Operating profit 8.3 6.3 30.7% 11.2 8.3 34.5% 15.7
(EBIT)
Operating profit
(EBIT) margin, % 15.4% 13.8% 12.0% 10.2% 10.0%
Capital expenditure
excl. acquisitions 0.6 0.5 21.5% 1.0 1.0 2.1% 2.1
SBU Scandinavia's revenue for April−June 2010 grew by 16.7 percent from the
comparison period and totaled EUR 53.6 (46.0) million. The increase was mainly
due to changes in exchange rates, the impact of which was EUR 5.2 million. In
addition, the favorable GDP development of the Scandinavian countries, as well
as improved consumer confidence had a positive effect on the development of
Tikkurila's sales volume and prices.
SBU Scandinavia's operating profit (EBIT) excluding non-recurring items in
April−June 2010 grew by 26.2 percent and totaled EUR 8.3 (6.6) million. The
improvement was mainly due to lower raw material costs than in the previous
year, as well as changes in the product mix. The exchange rate changes improved
the operating profit by EUR 0.6 million.
SBU Scandinavia's revenue for January−June 2010 grew by 13.7 percent from the
comparison period and totaled EUR 93.5 (82.2) million. The increase was mainly
due to changes in exchange rates, the impact of which was EUR 9.3 million. SBU
Scandinavia's operating profit (EBIT) excluding non-recurring items in
January−June 2010 grew by 29.2 percent and totaled EUR 11.2 (8.7) million. The
improvement was mainly due to lower relative share of variable costs.
SBU Central Eastern Europe (CEE)
SBU CEE, Income Statement
(EUR million) 4−6/2010 4−6/2009 Change 1-6/2010 1-6/2009 Change 1-12/2009
% %
--------------------------------------------------------------------------------
Revenue 30.0 29.1 3.1% 51.9 49.2 5.4% 98.5
Operating profit
(EBIT),
excluding
non-recurring items 2.3 3.2 -28.9% 2.6 2.9 -10.9% 5.0
Operating profit
(EBIT) margin,
excluding
non-recurring items,
% 7.5% 10.9% 4.9% 5.8% 5.1%
Operating profit 1.5 3.2 -53.6% 1.8 2.9 -38.3% 5.0
(EBIT)
Operating profit
(EBIT) margin, % 4.9% 10.9 % 3.4% 5.8% 5.1%
Capital expenditure
excl. acquisitions 0.4 0.6 -31.7% 0.8 1.3 -33.5% 2.1
SBU Central Eastern Europe's revenue for April−June 2010 grew by 3.1 percent
from the comparison period and totaled EUR 30.0 (29.1) million. The revenue
improvement was due to exchange rate changes.
SBU Central Eastern Europe's operating profit (EBIT) excluding non-recurring
items for April−June 2010 declined by 28.9 percent from the comparison period
and totaled EUR 2.3 (3.2) million. The profitability was hampered mainly by a
decline in sales volume, tightened price competition, as well as by a higher
fixed cost level than in the comparison period. The exchange rate changes had a
EUR 0.3 million positive impact on the EBIT.
The non-recurring items recognized in the second quarter of 2010 were related to
a fine set by Polish competition authorities, which had a negative effect of EUR
0.8 million on SBU East's EBIT. There were no non-recurring items in the
comparison period.
SBU Central Eastern Europe's revenue for January−June 2010 grew by 5.4 percent
from the comparison period and totaled EUR 51.9 (49.2) million. The revenue
improvement was due to exchange rate changes. SBU Central Eastern Europe's
operating profit (EBIT) excluding non-recurring items for January−June 2010
declined by 10.9 percent from the comparison period and totaled EUR 2.6 (2.9)
million. The profitability was hampered mainly by tightened price competition as
well as by higher fixed cost levels than in the comparison period.
A gradual recovery can be seen in the SBU Central Eastern Europe's operating
area after a challenging start of the year, which was hampered especially by
fierce weather conditions and economic recession.
Group Operations
Group functions support the SBUs in their operations as well as take care of the
responsibilities of the listed parent company. No major changes took place in
the Group common items during the review period.
Cash flow, Financing Activities and Financial Risk Management
Tikkurila's financial position and liquidity remained at a good level during the
review period.
Cash flow from operations totaled EUR -20.6 (-10.3) million in January-June. Net
cash flow from investing activities totaled EUR -4.5 (-12.3) million, of which
corporate acquisitions accounted for EUR 0.0 (-3.7) million. Free cash flow
after investments was EUR -25.1 (-22.6) million. Net working capital totaled EUR
135.3 (123.8) million at the end of the review period.
The Group's interest-bearing debt was EUR 187.9 (249.2) million on June
30, 2010. The average interest rate of the interest-bearing debt was 4.7 (6.6)
percent. Cash and cash equivalents totaled EUR 32.6 (26.8) million at the end of
June. A total of EUR 48.9 million of the Tikkurila Group's short- and long-term
loans will mature during the latter half of 2010. The Group had a net debt of
EUR 155.3 (222.4) million on June 30. The Group's equity ratio was 34.2 (19.7)
percent at the end of June and gearing was 87.0 (235.6) percent. The Group's net
financial expenses totaled EUR 2.8 (7.1) million, of which currency exchange
rate changes accounted for EUR 1.3 (0.2) million.
In conjunction with its listing, Tikkurila restructured its financial position
and rearranged its debt portfolio. Already at the end of 2009, Tikkurila Oyj's
equity was increased by EUR 40.0 million by Kemira Oyj, its then parent company.
During the first quarter of 2010, Tikkurila negotiated and implemented a new
debt package with which loans taken from Kemira Oyj were paid back in full. As
part of the funding package a long-term pension (so-called "TyeL") loan for EUR
40.0 million was taken, and a total of 180 million facility package was also
agreed on with a bank consortium, including a EUR 100 million long-term loan
facility and a EUR 80 million revolving credit facility, both for a fixed three
year period with an extension option for a maximum of an additional two years.
Finally, during the second quarter, an additional EUR 5.0 million bank overdraft
facility has been put in place. At the end of June 2010 the Group had a total of
EUR 46.0 million of unused committed credit facilities.
In March 2010, Tikkurila's Board of Directors accepted the principles for
financial risk management, which were described in the Q1/2010 interim report.
At the end of the review period, the nominal value of Tikkurila's forward
exchange agreements was EUR 68.6 million, and the market value was EUR 0.0
million. At the end of June 2010, Tikkurila had no interest rate derivatives in
place.
Capital Expenditure
Gross capital expenditure in the review period, excluding acquisitions, amounted
to EUR 4.9 (8.3) million. No major single investment was carried out during the
review period.
Depreciation amounted to EUR 10.1 (9.2) million in January-June. The Group
carries out impairment tests according to IAS 36.
Research and Development
During January-June 2010, the Tikkurila Group's research and product development
expenses totaled EUR 5.1 (5.2) million, corresponding to 1.7 (1.9) percent of
revenue.
Human Resources
On June 30, the Tikkurila Group employed 3,946 (3,968) people. The average
number of employees during January-June 2010 was 3,715 (3,832).
The number of employees by SBUs at the end of Junewas as follows: East 1,794
(1,768), Finland 857 (869), Scandinavia 774 (788), Central Eastern Europe 485
(512). Moreover, the Group operations employed a total of 36 (31) employees.
Changes in Group Management
Hannamari Kuosa, Group Vice President, Strategy Development, was appointed Group
Vice President, Human Resources, as of September 1, 2010. Hannamari Kuosa's
current strategy development responsibilities will be transferred to Markku
Immonen, Group Vice President with responsibility for Tikkurila's Business
Development. At the same time, the Group Strategy Development and Business
Development functions were combined.
Jukka Havia, CFO of the Tikkurila Group, bears responsibility for the Corporate
Office functions of the Tikkurila Group as of July 1, 2010. The Corporate Office
includes Communications and IR, Finance and Accounting, Human Resources,
Information Technology and Legal Matters. The Group Vice Presidents of each of
these functions report to Jukka Havia. Jukka Havia reports to Erkki Järvinen,
President and CEO of Tikkurila.
Legal Proceedings
On May 25, 2010 the Polish Office of Competition and Consumer Protection set a
fine of approximately PLN 9.3 million (equivalent to approximately EUR 2.2
million) on Tikkurila Oyj's Polish subsidiary Tikkurila Polska S.A. for breach
of competition law. The court decision was related to a case concerning
regulation of retail prices in Poland in 2000−2006, and the legal proceedings
commenced in 2007. Based on this ruling a non-recurring expense of EUR 0.8
million was recognized in the second quarter results. Tikkurila has appealed
against the decision.
During the second quarter of 2010, based on the Russian court ruling, a Russian
subsidiary of Tikkurila Group received an insurance payment of about EUR 1.5
million, related to an accident of fire in 2006. The insurance payment was
reported as a non-recurring income in its entirety for the second quarter
result.
The Group's Russian subsidiary OOO Tikkurila is currently engaged in a dispute
against the Russian company OOO Decolor in relation to "Finncolor" trademark. On
June 9, 2010 the Arbitration Court of St. Petersburg confirmed Tikkurila's
property right to the "Finncolor" trademark. OOO Decolor has appealed against
the decision.
On June 29, 2010, Tikkurila Coatings (Ireland) Ltd. and Permafix Construction
Solution Ltd. reached a settlement, which has insignificant financial impact, on
a legal dispute which was started in 2004.
Shares and Shareholders
Trading of Tikkurila Oyj's shares began on NASDAQ OMX Helsinki Ltd on March
26, 2010, and Tikkurila was separated from Kemira Oyj. At the end of June,
Tikkurila's share capital was EUR 35.0 million, from a total of 44,108,252
registered shares. At the end of June 2010, Tikkurila held no treasury shares.
According to Euroclear Finland Oy's register, Tikkurila had a total of 28,530
shareholders on June 30, 2010. A list of the largest shareholders is updated
regularly on Tikkurila's website at www.tikkurilagroup.com.
At the end of June, the closing price for the Tikkurila share was EUR 15.40. The
volume-weighted average share price for the review period (for the trading
period Mar 26-Jun 30) was EUR 15.68, the highest price being EUR 16.95, and the
lowest EUR 14.17. At the end of June, the market value of Tikkurila's shares,
valued at the closing price, was EUR 679.3 million. During January−June 2010
(Mar 26-Jun 30), a total of close to 8.1 million Tikkurila shares, which is
about 18.3 percent of the registered amount of shares, were traded on NASDAQ OMX
Helsinki Ltd, and the value of the traded volume was EUR 126.6 million.
Tikkurila's Extraordinary General Meeting ("EGM"), held on March 4, 2010,
authorized the Tikkurila Board of Directors of to decide on the repurchase of a
maximum of 4,410,825 treasury shares ("Repurchase authorization"). Based on this
authorization, the Tikkurila Board of Directors decided on its meeting held on
April 28, 2010, to acquire own shares and to grant those shares in order to
effect the payment of Board members' fees. The annual fee of the Board is paid
as a combination of the Company's shares and cash in such a manner that 40
percent of the annual fee is paid with the Company's shares purchased from the
market, and 60 percent is paid in cash. Based on these decisions, the Company
purchased 4,639 of its own shares from the market on May 10, 2010. The average
price of the purchased shares was EUR 15.52 per share, and the total cost was
EUR 71,983.77. The shares were transferred to the members of the Board by May
19, 2010.
Events after the Reporting Period
In August 10, 2010, the Board of Directors resolved to establish a Nomination
Committee, which will prepare the nomination and remuneration proposals to the
Annual General Meeting. The Nomination Committee shall consist of five members
being the representatives of the four largest shareholders of Tikkurila Oyj as
of August 31, 2010 and the Chairman of the Board of Directors of Tikkurila Oyj
who is acting as an expert member. The expert member shall not have the right to
participate in the decision making.
Short-term Business Risks and Uncertainties
In addition to the risk factors highlighted earlier in the interim report
published at the end of April for the first quarter of 2010, the Company sees
the following developments and uncertainties potentially affecting the Group and
the markets in which it operates:
The availability of some key raw materials used for paint production has become
more difficult and there are pressures to increase the raw material prices.
Therefore, the short-term risks have increased, and could have a major adverse
effect on the Group's financial performance, if and when customer demand cannot
be fully met, or if additional resources have to be spent on finding alternative
raw materials to replace those in tight demand, or if the average unit cost of
the raw materials would increase because of changes in the supply-demand
equilibrium. Moreover, as there are changes in regulatory environment, for
example due to the REACH regulation, the Group may have to restructure its
product portfolio.
Competitive positions can change rapidly in the paint industry, and since there
has been some recent corporate activity in the paint industry in Scandinavia,
the relative competitiveness of the Group can change even due to the actions of
other players in the industry.
Outlook for 2010
The most significant part of Tikkurila's revenue and operating profit is accrued
during the second and the third quarter of the year. A great majority of the
revenue improvement for the second quarter was due to exchange rate changes. The
operating profit increased mainly due to a lower variable costs share of the
revenue than in the previous year. In addition, volume growth and exchange rate
changes contributed to the result improvement.
The markets of Tikkurila's operating area seem to be recovering slowly from the
recession. Consumer confidence has strengthened, although the employment
situation remains relatively weak. In addition, the new construction production
activity is picking up. Despite the good start of the year there are no visible
signs of a strong recovery. Furthermore, the poor availability of raw materials
and possible price increases may hamper Tikkurila's profitability towards the
year-end.
Tikkurila upgrades its outlook for the full year 2010 due to the good start of
the year. Tikkurila's revenue and operating profit (EBIT) excluding
non-recurring items are expected to exceed the corresponding 2009 level. The
revenue and operating profit estimates do not take into consideration possible
effects from exchange rate fluctuations, which may have a significant impact on
the revenue development, in particular.
Previous outlook for 2010:
In 2010, Tikkurila's revenue and operating profit (EBIT) excluding non-recurring
items are expected to remain at the same level as in 2009. The revenue and
operating profit estimates do not take into consideration possible effects from
exchange rate fluctuations.
Vantaa, August 10, 2010
TIKKURILA OYJ
BOARD OF DIRECTORS
Summary Financial Statements and Notes
The financial information presented in this interim report is prepared in
accordance with IAS 34 standard. Tikkurila applies the same accounting
principles as applied in the 2009 financial statements. The figures presented in
the tables have been rounded to one decimal, which shall be taken into account
when analyzing the numbers. The interim report information is unaudited except
for the full year 2009 data.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR '000 4-6/2010 4-6/2009 1-6/2010 1-6/2009 1-12/2009
Revenue 182,451 162,419 301,848 273,649 530,166
Other operating income 1,868 411 2,271 692 1,451
Expenses -150,102 -136,063 -257,437 -239,068 -465,122
Depreciation, amortization and
impairment losses -5,153 -4,684 -10,117 -9,167 -18,780
--------------------------------------------------------------------------------
Operating profit 29,064 22,083 36,565 26,106 47,715
Total financing income and
expenses -1,149 -3,340 -2,755 -7,132 -12,048
Share of profit or loss of
associates 5 25 20 73 75
--------------------------------------------------------------------------------
Profit before tax 27,921 18,768 33,830 19,047 35,742
Income tax -7,429 -4,797 -9,692 -5,643 -7,952
--------------------------------------------------------------------------------
Net profit for the period 20,492 13,971 24,138 13,404 27,790
Other comprehensive income
Available-for-sale financial
assets 0 0 1,168 0 0
Foreign currency translation
differences for foreign operations 817 2,910 9,277 -5,343 -1,774
--------------------------------------------------------------------------------
Total comprehensive income for the
period 21,309 16,881 34,583 8,061 26,016
Net profit attributable to:
Owners of the parent 20,492 13,956 24,138 13,373 27,759
Minority interest 0 15 0 31 31
--------------------------------------------------------------------------------
Net profit for the period 20,492 13,971 24,138 13,404 27,790
Total comprehensive income
attributable to:
Owners of the parent 21,309 16,956 34,583 8,125 26,080
Minority interest 0 -75 0 -64 -64
--------------------------------------------------------------------------------
Total comprehensive income for the
period 21,309 16,881 34,583 8,061 26,016
Earnings per share of the net
profit attributable to owners of
the parent
--------------------------------------------------------------------------------
Basic earnings per share (EUR) 0.46 0.32 0.55 0.30 0.63
--------------------------------------------------------------------------------
Diluted earnings per share (EUR) 0.46 0.32 0.55 0.30 0.63
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR '000
ASSETS Jun 30, 2010 Jun 30, 2009 Dec 31, 2009
Non-current assets
Goodwill 69,119 68,144 68,261
Other intangible assets 34,593 34,419 33,713
Property, plant and equipment 118,173 115,914 114,857
Investment in associates 657 729 774
Available-for-sale financial assets 2,686 908 929
Non-current receivables 6,315 4,054 5,860
Defined benefit pension assets 267 800 439
Deferred tax assets 2,970 2,037 2,368
--------------------------------------------------------------------------------
Total non-current assets 234,780 227,005 227,201
--------------------------------------------------------------------------------
Current assets
Inventories 86,079 75,037 73,499
Interest-bearing receivables 189 1,005 288
Non-interest-bearing receivables 168,316 149,237 77,578
Cash and cash equivalents 32,615 26,833 24,543
--------------------------------------------------------------------------------
Total current assets 287,199 252,112 175,908
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total assets 521,979 479,117 403,109
EQUITY AND LIABILITIES Jun 30, 2010 Jun 30, 2009 Dec 31, 2009
Share capital 35,000 35,000 35,000
Other reserves 1,527 359 359
Reserve for invested unrestricted equity 40,000 0 40,000
Translation differences -11,154 -24,000 -20,431
Retained earnings 113,073 83,008 88,935
--------------------------------------------------------------------------------
Equity attributable to owners of the
parent 178,446 94,367 143,863
--------------------------------------------------------------------------------
Minority interest 0 0 0
--------------------------------------------------------------------------------
Total equity 178,446 94,367 143,863
--------------------------------------------------------------------------------
Non-current liabilities
Interest-bearing non-current liabilities 139,024 172,842 115,085
Pension obligations 15,659 13,691 14,567
Provisions 408 359 411
Deferred tax liabilities 10,539 9,052 9,607
--------------------------------------------------------------------------------
Total non-current liabilities 165,630 195,944 139,670
--------------------------------------------------------------------------------
Current liabilities
Interest-bearing current liabilities 48,860 76,342 38,996
Non-interest-bearing current liabilities 128,812 110,492 80,181
Provisions 231 1,972 399
--------------------------------------------------------------------------------
Total current liabilities 177,903 188,806 119,576
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total equity and liabilities 521,979 479,117 403,109
CONSOLIDATED FINANCIAL STATEMENT OF CASH FLOWS
EUR '000
4-6/2010 4-6/2009 1-6/2010 1-6/2009 1-12/2009
CASH FLOW FROM OPERATING
ACTIVITIES
Net profit for the period 20,492 13,971 24,138 13,404 27,790
Adjustments for:
Non-cash transactions 5,367 6,337 10,810 10,399 20,146
Interest and other financing
expenses 2,421 3,602 4,475 7,762 12,925
Interest income -156 -150 -385 -396 -865
Income tax 7,430 4,797 9,692 5,643 7,952
--------------------------------------------------------------------------------
Funds from operations before
change in net working capital 35,554 28,557 48,730 36,812 67,948
--------------------------------------------------------------------------------
Change in net working capital -24,318 -6,163 -60,664 -37,507 11,590
Interest paid -4,230 -5,783 -4,756 -8,201 -14,603
Interest received 156 150 385 396 865
Income tax paid 466 -1,800 -4,280 -1,817 -3,346
--------------------------------------------------------------------------------
Total cash flow from operations 7,628 14,961 -20,585 -10,317 62,454
--------------------------------------------------------------------------------
CASH FLOW FROM INVESTING
ACTIVITIES
Acquisitions of subsidiaries, net
of cash acquired 0 -2,502 0 -3,664 -3,708
Other capital expenditure -2,813 -4,081 -4,936 -8,255 -13,483
Proceeds from sale of assets 119 36 309 73 418
Change in non-current loan
receivables decrease (+), increase
(-) 36 -2,188 30 -530 -413
Dividends received 62 61 62 61 61
--------------------------------------------------------------------------------
Net cash used in investing
activities -2,596 -8,674 -4,535 -12,315 -17,125
--------------------------------------------------------------------------------
Cash flow before financing 5,032 6,287 -25,120 -22,632 45,329
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING
ACTIVITIES
Change in non-current borrowings,
increase (+), decrease (-) 58 -345 24,478 -445 -18,904
Current financing, increase (+),
decrease (-) 10,332 11,247 9,759 38,125 1,489
Profit distribution 0 -18,357 0 -18,357 -33,975
Other -1,356 1,838 -281 -305 -1,623
--------------------------------------------------------------------------------
Net cash used in financing
activities 9,034 -5,617 33,956 19,018 -53,013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net change in cash and cash
equivalents 14,066 670 8,836 -3,614 -7,684
Cash and cash equivalents at the
beginning of period 18,847 25,835 24,201 30,851 30,851
Effect of exchange rate
fluctuations
on cash held 298 -4 422 728 -1,034
Cash and cash equivalents in the
end of period 32,615 26,509 32,615 26,509 24,201
--------------------------------------------------------------------------------
Net change in cash and cash
equivalents 14,066 670 8,836 -3,614 -7,684
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
EUR '000
Minor- Total
Equity attributable to the owners of the parent ity equity
inter-
est
--------------------------------------------------------------------
Share Other Reserve Trans- Re- Total
capital re- for lation tained
serves invested differ- earn-
unre- ences ings
stricted
equity
--------------------------------------------------------------------------------
Equity
at Jan 1,
2009 35,000 359 0 -18,752 69,986 86,593 144 86,737
--------------------------------------------------------------------------------
Total
compre-
hensive
income for
the period 0 0 0 -5,248 13,373 8,125 -64 8,061
Changes
arising from
business
arrange-
ments 0 0 0 0 -351 -351 -80 -431
--------------------------------------------------------------------------------
Equity
at Jun 30,
2009 35,000 359 0 -24,000 83,008 94,367 0 94,367
--------------------------------------------------------------------------------
Equity
at Jan 1,
2010 35,000 359 40,000 -20,431 88,935 143,863 0 143,863
--------------------------------------------------------------------------------
Total
compre-
hensive
income for
the period 0 1,168 0 9,277 24,138 34,583 0 34,583
Profit
distribution 0 0 0 0 0 0 0 0
--------------------------------------------------------------------------------
Equity
at Jun 30,
2010 35,000 1,527 40,000 -11,154 113,073 178,446 0 178,446
Based on the decision of the Annual General Meeting of Tikkurila Oyj on February
8, 2010 and Extraordinary General Meeting on March 4, 2010, Tikkurila Oyj has
repurchased 4,639 Tikkurila Oyj shares on May 10, 2010, and transferred 4,639
shares to the members of the Board of Directors as part of the remuneration of
the Board. After the transfer on May 19, 2010, the Company holds no treasury
shares.
NEW IFRS STANDARDS
The Group has adopted the following standards, interpretations and their
amendments as of January 1, 2010.
* Revised IFRS 3 Business Combinations (effective for financial years
beginning on or after July 1, 2009). The amendments made to the standard are
substantial.
* Amended IAS 27 Consolidated and Separate Financial Statements (effective for
financial years beginning on or after July 1, 2009). The amendments affect
the accounting treatment of acquisitions and sales achieved in stages.
* Amendments to IAS 39 Financial Instruments: Recognition and Measurement -
Eligible Hedged Items (effective for financial years beginning on or after
July 1, 2009).
* IFRIC 17 Distributions of Non-cash Assets to Owners (effective for financial
years beginning on or after July 1, 2009).
* IFRIC 18 Transfers of Assets from Customers (effective on financial years
beginning on or after July 1, 2009).
* Improvements to IFRSs (April 2009, effective mainly on financial years
beginning on or after January 1, 2010).
* Amendments to IFRS 2 Share-based Payment - Group Cash-settled Share-based
Payment Transactions (effective on financial years beginning on or after
January 1, 2010).
The Group's view is that the adoption of the standards and interpretations above
did not have any significant effect on the financial statements of the reporting
period.
The adoption of the amendments would cause changes to Tikkurila Group financial
statements 2010 if new subsidiaries would be acquired (IFRS 3) or if share-based
payments would be taken into use (IFRS 2).
OPERATING SEGMENTS
Tikkurila's business activities are organized in four reportable segments as per
its strategy to be a long-standing operator in Europe and its neighboring areas.
The differences in these operating environments and overall management of each
area have been taken into account while establishing these reporting segments.
Segments' revenue arises from the sales of various paints and related products
that are sold to retailers, industrial customers and for professional use.
Insignificant revenue is received from the sales of auxiliary services related
to paints. Tikkurila common section includes the items related to the Group
headquarters.
The evaluation of profitability and decision making concerning resource
allocation are based on segmental operating profit. Reportable segment assets
are items of the statement of financial position that the segment employs in its
business activities or which can reasonably be allocated to a segment. Segments'
revenue is presented based on the location of the customers, whereas reportable
segment assets are presented according to the location of the assets.
Inter-segment pricing is based on market prices. External revenue accumulates
from a large number of customers.
Revenue by segment 4-6/2010 4-6/2009 1-6/2010 1-6/2009 1-12/2009
EUR '000
SBU East 64,322 53,960 92,734 79,634 167,109
SBU Finland 34,488 33,392 63,715 62,573 106,809
SBU Scandinavia 53,629 45,966 93,499 82,223 157,774
SBU Central Eastern
Europe 30,012 29,101 51,900 49,218 98,474
--------------------------------------------------------------------------------
Total 182,451 162,419 301,848 273,649 530,166
EBIT by segment 4-6/2010 4-6/2009 1-6/2010 1-6/2009 1-12/2009
EUR '000
SBU East 12,681 8,252 12,631 7,986 17,748
SBU Finland 7,870 5,182 12,700 8,325 12,205
SBU Scandinavia 8,279 6,333 11,223 8,346 15,722
SBU Central Eastern
Europe 1,472 3,175 1,766 2,863 5,045
Tikkurila common -1,248 -612 -1,765 -1,148 -2,235
Eliminations 11 -247 11 -266 -770
--------------------------------------------------------------------------------
Total 29,064 22,083 36,565 26,106 47,715
Non-allocated items:
Total financing
income and expenses -1,149 -3,340 -2,755 -7,132 -12,048
Share of profit or
loss of associates 5 25 20 73 75
--------------------------------------------------------------------------------
Profit before tax 27,921 18,768 33,830 19,047 35,742
Assets by segment Jun 30, 2010 Jun 30, 2009 Dec 31, 2009
EUR '000
SBU East 143,886 125,084 108,702
SBU Finland 124,962 108,403 79,212
SBU Scandinavia 175,048 162,890 139,900
SBU Central Eastern
Europe 84,120 84,299 77,486
Assets, non-allocated
to segments 64,566 0 0
Eliminations -70,604 -1,559 -2,191
--------------------------------------------------------------------------------
Total reportable
segments assets 521,979 479,117 403,109
CHANGES IN PROPERTY, PLANT AND EQUIPMENT 1-6/2010 1-6/2009 1-12/2009
EUR '000
Carrying amount at the beginning of period 114,857 118,249 118,249
Acquisition of subsidiaries 0 0 91
Other additions 4,242 7,889 12,006
Other reductions - 149 - 86 - 461
Depreciation, amortization and impairment losses -7,572 -6,899 -14,368
Exchange rate differences and other changes 6,795 -3,239 - 660
----------------------------------------------------------------------------
Carrying amount at the end of period 118,173 115,914 114,857
CHANGES IN INTANGIBLE ASSETS 1-6/2010 1-6/2009 1-12/2009
EUR '000
Carrying amount at the beginning of period 101,974 103,378 103,378
Acquisition of subsidiaries -20 2,409 2,402
Other additions 706 413 1,569
Other reductions -125 0 -5
Depreciation, amortization and impairment losses -2,545 -2,267 -4,614
Exchange rate differences and other changes 3,722 -1,370 -756
----------------------------------------------------------------------------
Carrying amount at the end of period 103,712 102,563 101,974
INVENTORIES
Write-down of EUR 1.0 (1.2) million was recognized in relation to the inventory
on June 30, 2010.
RELATED PARTY TRANSACTIONS
Transactions with related parties have not changed materially after quarterly
closing on March 31, 2010.
MORTGAGES AND CONTINGENT LIABILITIES Jun 30, 2010 Jun 30, 2009 Dec 31, 2009
EUR '000
Mortgages given as collateral for liabilities in the statement of
financial position
Loans from pension institutions, loans
from the parent company 40,000 0 0
Mortgages given, on behalf of the
parent company 53,000 34,000 0
Other loans 100 100 100
Mortgages given 102 102 102
--------------------------------------------------------------------------------
Total loans 40,100 100 100
--------------------------------------------------------------------------------
Total mortgages given 53,102 34,102 102
Contingent liabilities
Assets pledged
On behalf of own commitments 33 36 32
Guarantees
On behalf of own commitments 1,958 1,754 2,123
On behalf of group companies'
commitments 20,493 0 0
On behalf of others 2,427 3,724 2,483
Other obligations
On behalf of own commitments 3 2 2
--------------------------------------------------------------------------------
Total contingent liabilities 24,914 5,516 4,640
EVENTS AFTER THE END OF REPORTING PERIOD
In August 10, 2010, the Board of Directors resolved to establish a Nomination
Committee, which will prepare the nomination and remuneration proposals to the
Annual General Meeting. The Nomination Committee shall consist of five members
being the representatives of the four largest shareholders of Tikkurila Oyj as
of August 31, 2010 and the Chairman of the Board of Directors of Tikkurila Oyj
who is acting as an expert member. The expert member shall not have the right to
participate in the decision making.
KEY PERFORMANCE INDICATORS
4-6/2010/ 4-6/2009/ 1-6/2010/ 1-6/2009/ 1-12/2009/
Jun Jun Jun Jun
30, 2010 30, 2009 30, 2010 30, 2009 Dec 31, 2009
Earnings per share
/ basic and
diluted, EUR 0.46 0.32 0.55 0.30 0.63
Cash flow from
operations,
EUR '000 7,628 14,961 -20,585 -10,317 62,454
Cash flow from
operations / per
share, EUR 0.17 0.34 -0.47 -0.23 1.42
Capital
expenditure, EUR
'000 2,813 6,583 4,936 11,919 17,191
of revenue % 1.5% 4.1% 1.6,% 4.4% 3.2%
Shares (1,000),
average 44,108 44,108 44,108 44,108 44,108
Shares (1,000), at
the end of the
reporting period 44,108 44,108 44,108 44,108 44,108
Equity attributable
to the owners of
the parent / per
share, EUR 4.05 2.14 4.05 2.14 3.26
Equity ratio, % 34.2% 19.7% 34.2% 19.7% 35.7%
Gearing, % 87.0% 235.6% 87.0% 235.6% 90.0%
Interest-bearing
financial
liabilities (net),
EUR '000 155,269 222,351 155,269 222,351 129,538
Return on capital
employed (ROCE), %
p.a. 18.5% 14.2% 18.5% 14.2% 17.7%
Personnel (average) 3,826 3,891 3,715 3,832 3,757
DEFINITIONS OF KEY FIGURES
Earnings per share (EPS)
Net profit of the period attributable to the owners of the parent
--------------------------------------------------------------------------------
Shares on average
Equity per share
Equity attributable to the owners of the parent at the end of the reporting
period
--------------------------------------------------------------------------------
Number of shares at the end of the reporting period
Cash flow from operations / per share
Cash flow from operations
--------------------------------------------------------------------------------
Shares on average
Equity ratio, %
Total equity x 100
--------------------------------------------------------------------------------
Total assets - advances received
Gearing, %
Net interest-bearing financial liabilities x 100
--------------------------------------------------------------------------------
Total equity
Interest-bearing financial liabilities (net)
Interest-bearing net liabilities - money market investments - cash and cash
equivalents
Return on capital employed (ROCE), % p.a. **
Operating profit + share of profit or loss of associates x 100
--------------------------------------------------------------------------------
(Net working capital + property, plant and equipment ready for use
+ investments in associates)*
* average during the period
** actual operating profit and share of profit or loss of associates taken into
account for a rolling twelve month period ending at the end of the review period
PREVIOUS YEAR SEGMENT INFORMATION BY QUARTER
Revenue by
segment 1-3/2009 4-6/2009 7-9/2009 10-12/2009 1-3/2010 4-6/2010
EUR '000
SBU East 25,675 53,960 55,691 31,784 28,412 64,322
SBU Finland 29,181 33,392 28,270 15,966 29,228 34,488
SBU Scandinavia 36,258 45,966 44,638 30,912 39,870 53,629
SBU Central
Eastern Europe 20,116 29,101 29,484 19,772 21,887 30,012
--------------------------------------------------------------------------------
Total 111,230 162,419 158,083 98,434 119,397 182,451
EBIT by segment 1-3/2009 4-6/2009 7-9/2009 10-12/2009 1-3/2009 4-6/2010
EUR '000
SBU East -266 8,252 9,482 280 -51 12,681
SBU Finland 3,143 5,182 5,940 -2,060 4,830 7,870
SBU Scandinavia 2,013 6,333 8,009 -633 2,944 8,279
SBU Central
Eastern Europe -312 3,175 3,383 -1,201 294 1,472
Tikkurila
common -536 -612 -528 -559 -516 -1,248
Eliminations -19 -247 -41 -463 0 11
--------------------------------------------------------------------------------
Total 4,023 22,083 26,245 -4,636 7,501 29,064
Non-allocated
items:
Total
financing
income and
expenses -3 792 -3 340 -3 142 -1 774 -1 606 -1 149
Share of
profit or loss
of associates 48 25 1 1 15 5
--------------------------------------------------------------------------------
Profit before
tax 279 18,768 23,104 -6,409 5,909 27,921
Assets by Mar Jun Sep Dec Mar Jun
segment 31, 2009 30, 2009 30, 2009 31, 2009 31, 2010 30, 2010
EUR '000
SBU East 106,168 125,084 119,477 108,702 123,350 143,886
SBU Finland 101,043 108,403 95,898 79,212 102,898 124,962
SBU Scandinavia 159,168 162,890 150,060 139,900 155,784 175,048
SBU Central
Eastern Europe 78,786 84,299 86,898 77,486 86,045 84,120
Assets,
non-allocated
to segments 0 0 0 0 57,845 64,566
Eliminations -1,182 -1,559 -2,323 -2,191 -69,870 -70,604
--------------------------------------------------------------------------------
Total
reportable
segments assets 443,983 479,117 450,010 403,109 456,052 521,979
[HUG#1436943]
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