2010-04-29 07:30:00 CEST
2010-04-29 07:31:18 CEST
REGULATED INFORMATION
Tikkurila Oyj - Interim report (Q1 and Q3)
Tikkurila Oyj's Interim Report January-March 2010 - Profitability improved significantly
Tikkurila Oyj Stock Exchange Release April 29, 2010 at 8.30 am (CET +1)
January-March 2010 highlights:
* Revenue EUR 119.4 million (Q1/2009: 111.2), increased by 7.3% compared to
Q1/2009
* Operating profit (EBIT) EUR 7.5 (4.0) million
* EBIT margin 6.3% (3.6%)
* EPS EUR 0.08 (-0.01)
* No non-recurring items during the review period
* Trading of Tikkurila shares on the Helsinki Stock Exchange started on March
26, 2010
* Revenue grew mainly due to exchange rate changes
* Cost savings improved profitability
Key figures
(EUR million) 1-3/2010 1-3/2009 Change-% 1-12/2009
Income statement
Revenue 119.4 111.2 7.3% 530.2
Operating profit (EBIT), excluding 7.5 4.0 86.5% 50.2
non-recurring items
Operating profit (EBIT) margin,
excluding non-recurring items, % 6.3% 3.6% 9.5%
Operating profit (EBIT) 7.5 4.0 86.5% 47.7
Operating profit (EBIT) margin, % 6.3% 3.6% 9.0%
Profit before tax 5.9 0.3 35.7
Net profit 3.6 -0.6 27.8
Other key indicators
EPS*, EUR 0.08 -0.01 0.63
ROCE, % p.a. 16.6% 16.2% 17.7%
Free cash flow after investments -30.2 -28.9 -4.3% 45.3
Net interest-bearing debt at period-end 158.7 212.1 -25.2% 129.5
Gearing, % 101.0% 272.3% 90.0%
Equity ratio, % 34.5% 17.6% 35.7%
Personnel at period-end 3,695 3,779 -2.2% 3,538
* As calculated by using the amount of shares outstanding of 44,108,252.
Outlook for 2010
Despite the good start on the year, the market situation in Tikkurila's
operating areas is still challenging. General economic development and the
pick-up in construction and renovation markets in particular are not yet highly
visible in paint sales volumes. The employment situation has remained weak.
Demand for industrial paints has been at the levels of the previous year. The
importance of the first quarter is low for Tikkurila's operations, because a
majority of revenue and earnings are generated during the second and third
quarter. The approaching summer season and outdoor painting season have a strong
impact on the full-year result.
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.
President and CEO Erkki Järvinen:"Tikkurila was listed on NASDAQ OMX Helsinki and trading of Tikkurila shares
began on March 26, 2010. Due to the listing, Tikkurila has good possibilities to
develop its business. At the end of March, Tikkurila had more than 30,000
shareholders. We are pleased to offer our investors an opportunity to
participate in the growth of a strong Finnish brand company.
We can be satisfied with the result in the first quarter, but its importance for
the full year results is relatively small. In consumers and professionals
sectors we can already see positive signs, but industrial demand has not
recovered much. Decisive in terms of full year results will be the approaching
summer season and outdoor painting season, which was very successful last year
considering the economic circumstances.
In terms of Tikkurila's competitiveness, it was essential to specify our
strategy and initiate a structural reorganization in 2009. Implementation of the
new organization started at the end of 2009. Savings related in particular to
raw material costs improved profitability in the first quarter. For the rest of
the year, raw material prices are not expected to remain as low as now.
In times of economic uncertainty, the importance of strong brands is heightened.
We support the distribution chain by, in addition to offering high-quality
products, offering marketing support, training and advice. Grafia's Hopeahuippu
(Silver Award given by the Association of Professional Graphic Designers in
Finland) recognition that was awarded for service design of Tikkurila's Vision
shop-in-shop store concept is a proof of Tikkurila's professionalism and
innovativeness when it comes to retail marketing as well."
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<mailto:erkki.jarvinen@tikkurila.com>
Jukka Havia, CFO
Mobile +358 50 355 3757,jukka.havia@tikkurila.com<mailto:jukka.havia@tikkurila.com>
Susanna Aaltonen, Group Vice President, Communications & IR
Mobile +358 40 593 4221,susanna.aaltonen@tikkurila.com<mailto: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-March 2010 results for
the media and analysts starting at 12.00 pm Finnish time at Hotel Kämp, Paavo
Nurmi cabinet; address Pohjoisesplanadi 29, second floor. 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 70583335. 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 112 469
From Russia (free call): 8108 002 223 2044
From Sweden (free call): 0200 899 157
From UK (free call): 0800 694 8039
From USA (free call): 1866 616 1744
UK Standard International +44 (0) 1452 560 706
A stock exchange release and presentation material will be available before the
conference call at www.tikkurilagroup.com/investors<http://www.tikkurilagroup.com/investors>. A recording of the conference call
will be available on Tikkurila's website later.
Tikkurila will publish its January-June 2010 interim report on Wednesday, August
11, 2010 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's Interim Report January 1-March 31, 2010
This interim report has been prepared in accordance with IAS 34. The disclosed
information is unaudited. 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.
Financial performance, January-March
Tikkurila Group's revenue for January-March 2010 totaled EUR 119.4 (111.2)
million, an increase of 7.3% compared to Q1/2009. When comparing Q1/2010 revenue
to Q1/2009, the translation of foreign subsidiaries' currency denominated income
statements into euro had a EUR 7.3 million positive impact on revenue via
changes in exchange rates. Change in sales volumes increased the revenue by EUR
1.7 million. The net impact of all other factors reduced the revenue by EUR 0.8
million. Acquisitions did not have an impact on review period revenue.
Seasonality affects Tikkurila's business, and hence, the first quarter revenue
is typically lower than the revenue for the second and third quarters.
Decorative paints generated about 84% and industrial coatings about 16% of the
total revenue.
Tikkurila has four reporting segments: SBU East, SBU Finland, SBU Scandinavia,
and SBU Central Eastern Europe.
Revenue by SBU
(EUR million) 1-3/2010 % of total 1-3/2009 Change, % 1-12/2009
SBU East 28.4 23.8% 25.7 10.7% 167.1
SBU Finland 29.2 24.5% 29.2 0.2% 106.8
SBU Scandinavia 39.9 33.4% 36.3 10.0% 157.8
SBU Central Eastern Europe 21.9 18.3% 20.1 8.8% 98.5
Group total 119.4 100.0% 111.2 7.3% 530.2
Operating profit (EBIT) for January-March 2010 clearly increased as compared to
the first quarter of 2009 and totaled EUR 7.5 (4.0) million. The key contributor
to the positive change was the reduction in the relative share of production
costs. In addition, the effect of changes in foreign exchange rates as well as
higher sales volume slightly increased EBIT.
Operating profit (EBIT) by SBU
(EUR million) 1-3/2010 1-3/2009 Change, % 1-12/2009
SBU East -0.1 -0.3 80.8% 17.7
SBU Finland 4.8 3.1 53.7% 12.2
SBU Scandinavia 2.9 2.0 46.2% 15.7
SBU Central Eastern Europe 0.3 -0.3 194.2% 5.0
Other, eliminations -0.5 -0.5 0.0% -3.0
Group total 7.5 4.0 86.5% 47.7
There were no non-recurring items in the operating profit for the review period
or for the comparative period, but in full year 2009 a total of EUR 2.4 million
of non-recurring expenses were recognized in the second quarter in relation to
the implementation of the cost savings procedures. SBU Finland's EBIT included
EUR 2.0 million of those non-recurring expenses and SBU Scandinavia EUR 0.4
million. The full-year 2009 operating profit excluding non-recurring items
totaled EUR 50.2 million.
Net finance expenses for January-March totaled EUR 1.6 (3.8) million.
Profit before tax for the review period was EUR 3.6 (-0.6) million. Earnings per
share were EUR 0.08 (-0.01).
Quarterly financial performance, financial year 2009
Quarterly revenue and operating profit (EBIT) are presented below for the
financial year 2009. As can be seen from the table below, typically the second
and third quarters have played a central role in determining the full financial
year financial results:
(EUR million) 1-3/2009 4-6/2009 7-9/2009 10-12/2009
Revenue 111.2 162.4 158.1 98.4
Operating profit (EBIT) 4.0 22.1 26.2 -4.6
Financial performance by SBU, January-March
Tikkurila has four reporting segments: SBU East, SBU Finland, SBU Scandinavia,
and SBU Central Eastern Europe.
SBU East
Russia, Ukraine, Central Asian countries and Belarus belong to Strategic
Business Unit East. SBU East is headed by Senior Vice President Janno Paju.
SBU East, key figures
(EUR million) 1-3/2010 1-3/2009 Change, % 1-12/2009
Revenue 28.4 25.7 10.7% 167.1
Operating profit (EBIT) -0.1 -0.3 80.8% 17.7
Operating profit (EBIT) margin -0.2% -1.0% 10.6%
Capital expenditure excl. acquisitions 0.7 2.1 -68.8% 7.2
SBU East's revenue for January-March totaled EUR 28.4 (25.7), an increase by
10.7%. The revenue was mainly increased by currency exchange rate changes and by
sales volumes. The exchange rates had a positive EUR 1.7 million effect on
revenue. In March demand picked up compared to the beginning of the year due to
warmer weather. Moreover, signs of recovery in the demand for industrial
coatings could be seen.
SBU East's operating profit (EBIT) for January-March 2010 was EUR -0.1 (-0.3)
million, an increase by 80.8%. The operating profit was mainly improved by sales
price and volume increases. The currency exchange rates did not have a material
effect on operating profit.
In December 2009, new production lines came on-stream for water-borne paints in
St. Petersburg. Tikkurila's water-borne products are now made on a single site
in St. Petersburg instead of the former two. The production conditions improved
clearly and the capacity of water-borne production increased. Production in the
St. Petersburg area will be actively developed in the future as well.
SBU Finland
Strategic Business Unit Finland covers Tikkurila's business in Finland. SBU
Finland is headed by Senior Vice President Arto Lehtinen.
SBU Finland, key figures
(EUR million) 1-3/2010 1-3/2009 Change, % 1-12/2009
Revenue 29.2 29.2 0.2% 106.8
Operating profit (EBIT) 4.8 3.1 53.7% 12.2
Operating profit (EBIT) margin 16.5% 10.8% 11.4%
Capital expenditure excl. acquisitions 0.6 0.8 -29.7% 2.1
SBU Finland's revenue for January-March 2010 stayed at the same level as in
Q1/2009 and totaled EUR 29.2 (29.2) million. Pre-order volumes for exterior
paints developed favorably, but a more reliable forecast for the outcome of the
final volumes will not be seen until after the summer season, i.e. only in the
third quarter. In interior paints, volumes are slightly above the 2009 levels,
but the demand for industrial coatings is weaker compared to the same period
last year.
SBU Finland's operating profit (EBIT) for January-March 2010 was EUR 4.8 (3.1)
million, an increase by 53.7%. The total increase of EUR 1.7 million was mainly
due to lower fixed cost levels compared to the previous year.
SBU Scandinavia
Sweden, Norway and Denmark belong to the Strategic Business Unit Scandinavia.
SBU Scandinavia is headed by Senior Vice President Niklas Frisk.
SBU Scandinavia, key figures
(EUR million) 1-3/2010 1-3/2009 Change, % 1-12/2009
Revenue 39.9 36.3 10.0% 157.8
Operating profit (EBIT) 2.9 2.0 46.2% 15.7
Operating profit (EBIT) margin 7.4% 5.6% 10.0%
Capital expenditure excl. acquisitions 0.4 0.5 -17.1% 2.1
SBU Scandinavia's revenue for January-March 2010 was EUR 39.9 (36.3) million, an
increase by 10.0%. The increase was mainly due to the currency exchange effect
which had a EUR 3.7 million positive impact on revenue.
SBU Scandinavia's operating profit (EBIT) for January-March 2010 was EUR 2.9
(2.0), an increase by 46.2% compared to Q1/2009. The improvement was mainly due
to the lower raw material prices compared to the same period last year. The
currency exchange effect had a EUR 0.3 million positive impact.
In Sweden, Tikkurila is actively seeking new solutions to develop the
distribution chain. The extent and the profitability of the business have
remained close to last year's level.
SBU Central Eastern Europe
The following countries belong to the SBU Central Eastern Europe: the Baltic
countries, Poland, Czech Republic, Slovakia, China, Germany, Hungary and
Romania. Furthermore, SBU Central Eastern Europe is responsible for export sales
in approximately 20 additional countries that are not included in the SBU
operational areas. SBU Central Eastern Europe is headed by Senior Vice President
Ilpo Jousimaa.
SBU Central Eastern Europe, key figures
(EUR million) 1-3/2010 1-3/2009 Change, % 1-12/2009
Revenue 21.9 20.1 8.8% 98.5
Operating profit (EBIT) 0.3 -0.3 194.2% 5.0
Operating profit (EBIT) margin 1.3% -1.6% 5.1%
Capital expenditure excl. acquisitions 0.5 0.7 -34.9% 2.1
SBU Central Eastern Europe's revenue for January-March 2010 totaled EUR 21.9
(20.1) million, an increase by 8.8%. The increase was mainly due to the currency
exchange rate changes which had a EUR 1.8 million positive impact on revenue.
Sales volumes increased slightly but on the contrary sales prices decreased. The
cold winter affected demand in January and February, but the weather conditions
improved in March which increased sales.
SBU Central Eastern Europe's operating profit (EBIT) for January-March 2010 was
EUR 0.3 (-0.3) million, an increase by 194.2% compared to Q1/2009. The total EUR
0.6 million improvement was mainly due to the lower raw material prices compared
to the same period last year. The currency exchange effect had a EUR 0.1 million
positive impact.
Financing and cash flow
Tikkurila's financial standing and liquidity remained at a good level.
Cash flow from operations totaled EUR -28.2 (-25.3) million in January-March.
Net cash flow from investing activities totaled EUR -1.9 (-3.6) million, of
which corporate acquisitions accounted for EUR 0.0 (-1.2) million. Free cash
flow after investments was EUR -30.2 (-28.9) million. The effect on cash flow of
investments related to improvement and maintenance was EUR -1.1 (-1.7) million.
The net working capital totaled EUR 112.5 (117.1) million at the end of March.
Due to the seasonality of the business, customers' pre-orders for the summer
season affect the production for the first months of the year. Therefore,
typically the level of working capital tied into the operations is high at the
end of the first quarter.
The group's interest-bearing debt stood at EUR 177.9 (238.3) million on March
31, 2010. The average interest rate of the interest-bearing debt was 4.8% (7.3%)
at the end of the review period. The change in the average interest rate of the
group was to major extent caused by the decline in the reference rates of the
loans as the general market interest rate level changed.
Cash and cash equivalents totaled EUR 19.2 (26.2) million on March 31. A total
of EUR 38.7 million of the Tikkurila Group's short- and long-term loans will
mature.
The group had net debt of EUR 158.7 (212.1) million on March 31. The reduction
in net debt was due mostly to a EUR 40.0 million increase in equity made by
Kemira Oyj in December 2009. The increase was used for debt repayments by
Tikkurila. During the first quarter of 2010, net debt increased by a EUR 29.1
million compared to the year end 2009 (31.12.2009: 129.5). This is due to the
seasonality of business, which caused higher levels of working capital.
The group's equity ratio was 34.5% (17.6%) on March 31. The gearing ratio was
101.0% (272.3%) at the end of March. Equity was significantly boosted by the EUR
40.0 million equity increase by Kemira Oyj in December 2009, which had a
positive impact on balance sheet, equity ratio and gearing.
The group's net financial expenses totaled EUR 1.6 (3.8) million, of which
currency exchange accounted for EUR 0.2 (0.1) million.
In connection with Tikkurila's listing, the group's financing was rearranged. In
addition to the EUR 40.0 million TyEL (TyEL=Employees Pension Act in Finland)
loan signed in December 2009 and drawn in January 2010, Tikkurila signed a loan
arrangement of EUR 180.0 million in March 2010. The arrangement is divided into
a EUR 100.0 million term loan and a EUR 80.0 million revolving credit facility.
The term of maturity for the TyEL loan is six years of which the two first years
are amortization-free, and the term of the maturity for the EUR 180.0 million
loan arrangement is three years. The EUR 180.0 million loan arrangement includes
an option to extend the loan period with two one-year periods. In connection
with the listing, Tikkurila drew down a total of EUR 130.0 million via the loan
arrangement. Tikkurila used the money to repay its loans from Kemira totaling
EUR 148.1 million.
Financial risk management
Tikkurila's Board of Directors accepted the principles for financial risk
management in March 2010, and the policy has been adopted after the company was
listed on the stock exchange. The financing policy defines the risk positions
and how much open risk the company can have. Tikkurila's principle is that
derivatives are only used for hedging, and the market value of all derivatives
must be reliably determinable in the treasury system the company is using.
In accordance with the financing policy, currency risk can also be hedged with
forward exchange agreements and options as well as foreign currency credit and
deposits. At the end of the review period, the nominal value of Tikkurila's
forward exchange agreements was EUR 54.3 million, and the market value was EUR
0.1 million.
Tikkurila monitors the interest rate risk of loans based on duration. The loan
portfolio's duration can be between 6 and 24 months. At the end of the period,
the duration of the loan portfolio was approximately one year. Interest rate
swaps and interest rate options can be used to manage the interest rate risk. In
the end of March, Tikkurila had no interest rate derivatives in place.
Capital expenditure
Gross capital expenditure in the review period, excluding acquisitions, amounted
to EUR 2.1 (4.2) million. There was no major single investment carried out
during the review period. Expansion investments represented 47.3% of capital
expenditure excluding acquisitions, while improvement and maintenance
investments accounted for 52.7%.
Depreciation amounted to EUR 5.0 (4.5) million in January-March. No impairments
on non-current assets were recognized in the review period.
Research and Development
In January-March 2010, Tikkurila's research and product development expenses
totaled EUR 2.5 (2.6) million, corresponding to 2.1% (2.3 %) of revenue.
Kenneth Sundberg, Doctor of Technology, joined Tikkurila on January 1, 2010 in
the position of Group Vice President, Research and Development.
Human resources
On March 31, the Tikkurila Group employed 3,695 (3,779) people. The average
number of employees during January-March 2010 was 3,605 (3,772).
The number of employees by SBU on March 31 were as follows: East 1,702 (1,657),
Finland 781 (861), Scandinavia 465 (479) and Central Eastern Europe 747 (782).
Short-term business risks and uncertainties
Tikkurila's most significant short-term business risks and uncertainties are
related to the economy in general and its effect on demand for Tikkurila
products. In decorative paints, demand is significantly affected by weather
conditions in the outdoor painting season.
Due to the international nature of Tikkurila's operations, the group's income
statement and balance sheet are subject to currency risk. The main currency
risks are linked to the United States dollar, the Swedish krona, the Polish
zloty and the Ukrainian hryvnia. The company's equity is also subject to
currency risk when foreign currency equity items are translated into euro.
The selling of paints to consumer customers is crucial for Tikkurila's
operations. Therefore, changes in consumers' spending power and consumption
behavior can considerably affect the demand of company products. This can be
negatively affected by recent economic uncertainty and high unemployment rates
in many of the company's operating areas. In addition, possible changes in the
company's distribution channels, for instance due to changes in the competitive
environment, can cause financial losses for the company.
If the general economic situation and demand on the company's raw material and
end product markets improve, it can increase the costs of the production or
increase the costs of the company's debt financing through changes in market
rates, and thus weaken profitability. Changes in oil market prices will be
reflected in Tikkurila's cost structure via changes in raw material prices.
The competitive situation can also change, in particular through changes in
market entrants and market structures. Because developing central Eastern
European countries play an important role in the company's operations, changes
in the competitive situation on these markets or changes in the demand for
different paint brands can weaken Tikkurila's position.
Tikkurila's risk management principles can be found on the Tikkurila website at
www.tikkurilagroup.com <http://www.tikkurilagroup.com/>. A review of financing
risks is published in the notes to the 2009 financial statements. Materialized
environmental and hazard risks are discussed in the notes to the 2009 financial
statements.
The Tikkurila Group has taken out comprehensive insurance against damages
related to group companies' operational risks.
Significant legal proceedings
OOO Tikkurila is currently engaged in a dispute against a Russian company OOO
Decolor in relation to "Finncolor" trademark. OOO Tikkurila's former managing
director transferred the rights to the trademark "Finncolor" in Russia to a
Russian limited liability company OOO Fincolor, who, in turn, transferred its
rights to the trademark to OOO Decolor. Tikkurila has requested that the court
shall declare the transfer of the trademark invalid. Decolor has in turn
presented Tikkurila with a claim for unauthorized use of the Finncolor
trademark. According to Tikkurila's management's view, the claim is unfounded.
In 2007, the Polish competition authority initiated antimonopoly proceedings in
Poland against Tikkurila Polska S.A. According to the Polish competition
authority, certain distribution agreements of Tikkurila Polska contained an
illegal clause, and hence Tikkurila was given a fine of about EUR 0.6 million.
Tikkurila has filed an appeal against the decision. Furthermore, since early
2007, Tikkurila Polska has been involved in a case concerning regulation of
retail prices in Poland. These matters are still pending, but it is estimated
that the resolutions will be received during 2010.
Significant related party transactions
During the review period the company did not have any other significant related
party transactions than the restructuring of finance carried out with the
previous parent company Kemira Oyj. Those transactions have been described
above.
Shares and shareholders
Trading of Tikkurila Oyj's shares began on NASDAQ OMX Helsinki Ltd on March
26, 2010, and Tikkurila was demerged from Kemira Oyj.
On March 16, 2010, Kemira Oyj's general meeting decided that for every four
Kemira shares, their holder was entitled to receive one share of Tikkurila Oyj
as a dividend. In total, Kemira distributed 37,933,097 Tikkurila shares as
dividend to its shareholders which corresponds to 86% of Tikkurila's shares and
votes. Kemira maintained a 14.00% minority share in Tikkurila.
The taxation value and purchase price of Tikkurila Oyj shares distributed as
dividend is the volume-weighted average of the prices paid for Tikkurila's share
during the first trading day, March 26, 2010, which was EUR 15.80.
At the end of March, Tikkurila's share capital was EUR 35.0 million, from a
total of 44,108,252 registered shares. At the end of March 2010, Tikkurila held
no treasury shares.
According to Euroclear Finland Oy's register, Tikkurila had 30,374 shareholders
on March 31, 2010. A list of the largest shareholders is updated regularly on
Tikkurila's website at www.tikkurilagroup.com <http://www.tikkurilagroup.com/>.
Shareholders whose share of Tikkurila Oyj's shares and votes exceeded 5% on
March 31, 2010 were: Oras Invest Ltd (14.70%), Solidium Oy (14.68%) owned by the
Finnish State, Kemira Oyj (14.00%), Varma Mutual Pension Insurance Company
(8.61%) and Ilmarinen Mutual Pension Insurance Company (5.19%).
At the end of March, the closing price for the Tikkurila share was EUR 15.23.
The average share price in the first quarter 2010 (Mar 26-Mar 31) was EUR
15.58, the highest price was EUR 16.73, and the lowest was EUR 14.93. At the end
of March, the market value of Tikkurila's shares was EUR 671.8 million. During
the first quarter (Mar 26-Mar 31), a total of 2.4 million Tikkurila shares were
traded on NASDAQ OMX Helsinki Ltd, and the value of the volume was EUR 38.0
million.
Decisions of the Annual General Meeting
Tikkurila's Annual General Meeting was held on February 8, 2010.
The AGM confirmed the company's income statement and balance sheet for the
period January 1-December 31, 2009, decided in accordance with the proposal of
the Board of Directors that no dividend will be distributed for 2009, and
discharged the members of the Board and the CEO from responsibility in terms of
the financial year 2009.
The AGM made the following decisions concerning Board remuneration: The Chairman
of the Board, EUR 54,000 per year; Deputy Chairman of the Board, EUR 36,000 per
year; and other members, EUR 30,000 per year. In addition, a meeting-specific
fee of EUR 600 is paid to members living in Finland, EUR 1,200 to members living
in other EU countries and EUR 2,400 to members living outside the EU. The
meeting-specific fee is also paid for board committee meetings. Members' travel
expenses related to meetings are compensated in accordance with the company
travel policy. The annual remuneration for the Board is paid as a combination of
shares and cash if the company is listed on the stock exchange in early
2010. 40% of the annual remuneration is paid as shares; either from shares
already owned by the company or if this is not possible in shares acquired from
the market, and 60% is paid in cash. The shares are transferred to the Board
members and if necessary acquired directly from the market on behalf of the
members within in two weeks from the publication of the company's interim review
for the period January 1-March 31, 2010. The meeting-specific fee is paid in
cash.
The AGM decided on electing five members for the Board of Directors. Eeva
Ahdekivi, Ove Mattsson, Jari Paasikivi, Pia Rudengren and Petteri Walldén were
re-elected to the Board of Directors. The Board of Directors elected Jari
Paasikivi as the Chairman and Petteri Walldén as the Deputy Chairman.
The AGM decided that the auditor's reasonable fee and travel costs will be paid
based on a bill. The AGM selected the authorized public accounting firm KPMG Oy
Ab as the company's auditor, with Pekka Pajamo APA as the principal auditor.
The AGM decided that the company will become a public limited company, and thus
the company name was changed to Tikkurila Oyj.
The AGM decided that all company shares are included in the book-entry system.
The AGM decided that the articles of association shall be revised. The articles
of association can be viewed at the company headquarters and on the company's
website at www.tikkurilagroup.com <http://www.tikkurilagroup.com/>.
The AGM decided to issue 43,083,252 new shares to Kemira in a directed share
issue without payment.
Decisions by the Extraordinary General Meeting
Tikkurila Oyj's Extraordinary General Meeting was held on March 4, 2010.
The EGM authorized the Board to decide on the repurchase of a maximum of
4,410,825 treasury shares ("Repurchase authorization"). The repurchase
authorization is valid until April 30, 2011.
Shares will be repurchased by using unrestricted equity, either through a direct
offer with equal terms to all shareholders at a price determined by the Board of
Directors, or otherwise than in proportion to the existing shareholdings of the
company's shareholders in public trading on the Helsinki Stock Exchange at the
market price quoted at the time of the repurchase. Shares will be acquired and
paid for in accordance with the Rules of the Helsinki Stock Exchange and
Euroclear Finland Ltd. The price paid for the shares repurchased through a
tender offer under the authorization shall be based on the market price of the
company's shares in public trading. The minimum price to be paid would be the
lowest market price of the share quoted in public trading during the
authorization period, and the maximum price would be the highest market price
quoted during the authorization period.
Shares may be repurchased to be used in implementing or financing mergers and
acquisitions, developing the company's capital structure, improving the
liquidity of the company's shares or to be used for the payment of the annual
fee payable to the members of the Board of Directors or implementing the
Company's share-based incentive plans. In order to realize the aforementioned
purposes, the shares acquired may be retained, transferred further or cancelled
by the company.
The EGM authorized the Board to decide on the transfer of a maximum of
4,410,825 treasury shares ("Share issue authorization"). The share issue
authorization is valid until April 30, 2011.
The company's own shares held by the company may be transferred either for
consideration or without consideration.
The company's own shares held by the company may be transferred to the company's
shareholders by not applying the shareholders' pre-emption right, through a
directed share issue, if the company has a weighty financial reason to do so,
such as financing or implementing mergers and acquisitions, developing the
capital structure of the company, improving the liquidity of the company's
shares or if this is justified for the payment of the annual fee payable to the
members of the Board of Directors or implementing the company's share-based
incentive plans. The directed share issue may be carried out without
consideration only in connection with the payment of the annual fee payable to
the members of the Board of Directors or implementation of the company's
share-based incentive plan. The amount payable upon the transfer of treasury
shares shall be recognized under unrestricted equity.
The EGM decided to clarify the AGM's decision regarding the Board remuneration
so that payment of monthly fees, in accordance with the company's earlier
practice, will continue to be paid in cash in previously agreed amounts until
the end of the month in which the company is listed on the Helsinki Stock
Exchange. The monthly fees are: Chairman EUR 4,500 per month, Deputy Chairman
EUR 3,000 per month and other members EUR 2,500 per month.
Board Committees
In February, the Board of Directors appointed the members of the Audit Committee
from amongst themselves. The Audit Committee consists of Eeva Ahdekivi, Jari
Paasikivi and Pia Rudengren. The Chairman of the Audit Committee is Eeva
Ahdekivi.
Dividend policy
In February, the Board of Directors decided on the company's dividend policy.
Tikkurila aims to distribute a dividend of at least 40 percent of its annual
operative net income. Operative net income means net profit for the period
excluding non-recurring items and adjusted for tax effects.
Financial targets
In February 2010, the Board of Directors set the following medium-term financial
targets:
* An annual organic revenue growth of over 5%
* Operating profit (EBIT) excluding non-recurring items level of over 10% of
Tikkurila's revenue
* A continuous improvement of return on capital employed ROCE (% p.a.)
* Gearing under 100%
Changes in corporate structure and management appointments
No corporate acquisitions or divestments or major changes in corporate structure
were completed during January-March 2010.
Kenneth Sundberg, Doctor of Technology, joined Tikkurila on January 1, 2010 in
the position of Group Vice President, Research and Development, and a member of
the management board.
M.Sc. (Finance) Jukka Havia joined Tikkurila Oyj on April 16, 2010 as the Chief
Financial Officer, and he will be a member of the management board.
Outlook
Historically, the first quarter of the year has been of little importance for
Tikkurila's business as a significant part of revenue and operating profit is
accrued during the second and the third quarter. In the Nordic countries,
Tikkurila uses an advance order system of exterior paints for the summer season.
Orders received through the system do not show any significant change as
compared to the corresponding date in 2009. In addition, no significant changes
in Tikkurila's production, sales, inventories, costs or sales process have
occurred between the end of the previous financial year and the date of
publishing this interim report.
Despite the good start on the year, the market situation in Tikkurila's
operating areas is still challenging. General economic development and the
pick-up in construction and renovation markets in particular are not yet highly
visible in paint sales volumes. The employment situation has remained weak.
Demand for industrial paints has been at the levels of the previous year. The
importance of the first quarter is low for Tikkurila's operations, because a
majority of revenue and earnings are generated during the second and third
quarter. The approaching summer season and outdoor painting season have strong
impact on the full-year result.
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.
The current outlook and profit forecast described above are based on the
following key assumptions regarding the company which the management of
Tikkurila considers well-founded. In relation to the industrial customers of
Tikkurila Group, no significant increase in demand is seen in the near future.
Weather conditions during the outdoor painting season contribute to the demand
for Tikkurila's paints, and hence do have a major impact on company's
profitability. Currently, based on the general recovery of many commodities and
raw material markets, there are pressures for the suppliers to increase certain
raw material prices. The above mentioned factors are outside the control of the
management of Tikkurila but it can take them into account by, for example,
developing actively its product and service offering, ensuring good distribution
reliability, preparing for changes in demand in its production, aiming to hedge
risks and continuing to increase the efficiency of its operations.
Events after the Reporting Period
On April 28, 2010 the Board of Directors decided to acquire own shares and to
grant those shares in order to effect the payment of Board members' fees. This
resolution was based on the authorization granted by the general meeting of the
shareholders.
In April, Grafia, the Association of Professional Graphic Designers in Finland,
gave out a Silver Award (Hopeahuippu) in service design for Tikkurila's retail
concept Vision. The Best of the Year competition is the most important marketing
communication and design competition in Finland. Tikkurila introduced its Vision
shop-in-shop store concept in autumn 2009 in conjunction with the launch of the
Avatint tinting system, various new products and Feel the Colour collection.
Vantaa, April 28, 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.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR '000 1-3/2010 1-3/2009 1-12/2009
Revenue 119,397 111,230 530,166
Other operating income 403 281 1,451
Expenses -107,335 -103,005 -465,122
Depreciation, amortisation and impairment losses -4,964 -4,483 -18,780
--------------------------------------------------------------------------------
Operating profit 7,501 4,023 47,715
Total financing income and expenses -1,606 -3,792 -12,048
Share of profit or loss of associates 15 48 75
--------------------------------------------------------------------------------
Profit before tax 5,909 279 35,742
Income tax -2,263 -846 -7,952
--------------------------------------------------------------------------------
Net profit for the period 3,646 -567 27,790
Other comprehensive income
Available-for-sale financial assets 1,168 0 0
Foreign currency translation differences for
foreign operations 8,460 -8,253 -1,774
--------------------------------------------------------------------------------
Total comprehensive income for the period 13,274 -8,820 26,016
Net profit attributable to:
Owners of the parent 3,646 -583 27,759
Minority interest 0 16 31
--------------------------------------------------------------------------------
Net profit for the period 3,646 -567 27,790
Total comprehensive income attributable to:
Owners of the parent 13,274 -8,831 26,080
Minority interest 0 11 -64
--------------------------------------------------------------------------------
Total comprehensive income for the period 13,274 -8,820 26,016
Earnings per share of the net profit attributable to owners
of the parent
--------------------------------------------------------------------------------
Basic earnings per share (EUR) 0.08 -0.01 0.63
--------------------------------------------------------------------------------
Diluted earnings per share (EUR) 0.08 -0.01 0.63
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
EUR '000
ASSETS Mar 31,2010 Mar 31, 2009 Dec 31, 2009
Non-current assets
Goodwill 68,837 67,604 68,261
Other intangible assets 34,722 32,958 33,713
Property, plant and equipment 118,050 113,994 114,857
Investment in associates 639 691 774
Available-for-sale financial assets 2,716 885 929
Non-current receivables 5,401 3,956 5,860
Defined benefit pension assets 455 801 439
Deferred tax assets 2,726 2,046 2,368
--------------------------------------------------------------------------------
Total non-current assets 233,546 222,935 227,201
--------------------------------------------------------------------------------
Current assets
Inventories 82,429 77,529 73,499
Interest-bearing receivables 258 1,092 288
Non-interest-bearing receivables 120,604 116,239 77,578
Cash and cash equivalents 19,215 26,188 24,543
--------------------------------------------------------------------------------
Total current assets 222,506 221,048 175,908
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total assets 456,052 443,983 403,109
EQUITY AND LIABILITIES Mar 31, 2010 Mar 31, 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 -11,971 -27,000 -20,431
Retained earnings 92,581 69,403 88,935
--------------------------------------------------------------------------------
Equity attributable to owners of the
parent 157,137 77,762 143,863
--------------------------------------------------------------------------------
Minority interest 0 155 0
--------------------------------------------------------------------------------
Total equity 157,137 77,917 143,863
--------------------------------------------------------------------------------
Non-current liabilities
Interest-bearing non-current liabilities 139,172 173,547 115,085
Pension obligations 15,340 13,535 14,567
Provisions 425 341 411
Deferred tax liabilities 10,414 8,380 9,607
--------------------------------------------------------------------------------
Total non-current liabilites 165,351 195,803 139,670
--------------------------------------------------------------------------------
Current liabilities
Interest-bearing current liabilities 38,714 64,772 38,996
Non-interest-bearing current liabilities 94,517 105,132 80,181
Provisions 333 359 399
--------------------------------------------------------------------------------
Total current liabilities 133,564 170,263 119,576
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total equity and liabilities 456,052 443,983 403,109
CONSOLIDATED FINANCIAL STATEMENT OF CASH FLOWS 1-3/2010 1-3/2009 1-12/2009
EUR '000
CASH FLOW FROM OPERATING ACTIVITIES
Net profit for the period 3,646 -567 27,790
Adjustments for:
Non-cash transactions 5,443 4,062 20,146
Interest and other financing expenses 2,054 4,160 12,925
Interest income -229 -246 -865
Income tax 2,262 846 7,952
--------------------------------------------------------------------------------
Funds from operations before change in net working
capital 13,176 8,255 67,948
--------------------------------------------------------------------------------
Change in net working capital -36,346 -31,344 11,590
Interest paid -526 -2,418 -14,603
Interest received 229 246 865
Income tax paid -4,746 -17 -3,346
--------------------------------------------------------------------------------
Total cash flows from operations -28,213 -25,278 62,454
--------------------------------------------------------------------------------
CASH FLOW FROM INVESTING ACTIVITIES
Acquisitions of subsidiaries, net of cash acquired 0 -1,162 -3,708
Other capital expenditure -2,123 -4,174 -13,483
Proceeds from sale of assets 190 37 418
Change in non-current loan receivables decrease (+),
increase (-) -6 1,658 -413
Dividends received 0 0 61
--------------------------------------------------------------------------------
Net cash used in investing activities -1,939 -3,641 -17,125
--------------------------------------------------------------------------------
Cash flow before financing -30,152 -28,919 45,329
--------------------------------------------------------------------------------
CASH FLOW FROM FINANCING ACTIVITIES
Change in non-current borrowings, increase (+),
decrease (-) 24,420 -100 -18,904
Current financing, increase (+), decrease (-) -573 26,878 1,489
Profit distribution 0 0 -33,975
Other 1,075 -2,143 -1,623
--------------------------------------------------------------------------------
Net cash used in financing activities 24,922 24,635 -53,013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net change in cash and cash equivalents -5,230 -4,284 -7,684
Cash and cash equivalents at the beginning of period 24,201 30,851 30,851
Effect of exchange rate fluctuations on cash held 124 732 -1,034
Cash and cash equivalents in the end of period 18,847 25,835 24,201
--------------------------------------------------------------------------------
Net change in cash and cash equivalents -5,230 -4,284 -7,684
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
EUR '000
Mino- Total
Equity attributable to the owners of the parent rity equity
inte-
rest
-------------------------------------------------------------------
Share Other Reserve for Trans- Retained Total
capital reser- invested lation earnings
ves unrestric- diffe-
ted equity rences
--------------------------------------------------------------------------------
Equity at
Jan 1, 2009 35,000 359 0 -18,752 69,986 86,593 144 86,737
--------------------------------------------------------------------------------
Total
comprehensive
income for
the period 0 0 0 -8,248 -583 -8,831 11 -8,820
--------------------------------------------------------------------------------
Equity at
Mar 31, 2009 35,000 359 0 -27,000 69,403 77,762 155 77,917
--------------------------------------------------------------------------------
Equity at
Jan 1, 2010 35,000 359 40,000 -20,431 88,935 143,863 0 143,863
--------------------------------------------------------------------------------
Total
comprehensive
income for
the period 0 1,168 0 8,460 3,646 13,274 0 13,274
--------------------------------------------------------------------------------
Equity at
Mar 31, 2010 35,000 1,527 40,000 -11,971 92,581 157,137 0 157,137
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 neighbouring
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 also 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 1-3/2010 1-3/2009 1-12/2009
EUR '000
SBU East 28,412 25,675 167,109
SBU Finland 29,228 29,181 106,809
SBU Scandinavia 39,870 36,258 157,774
SBU Central Eastern Europe 21,887 20,116 98,474
------------------------------------------------------------------------------
Total 119,397 111,230 530,166
EBIT by segment 1-3/2010 1-3/2009 1-12/2009
EUR '000
SBU East -51 -266 17,748
SBU Finland 4,830 3,143 12,205
SBU Scandinavia 2,944 2,013 15,722
SBU Central Eastern Europe 294 -312 5,045
Tikkurila common -516 -536 -2,235
Eliminations 0 -19 -770
------------------------------------------------------------------------------
Total 7,501 4,023 47,715
Non-allocated items:
Total financing income and expenses -1,606 -3,792 -12,048
Share of profit or loss of associates 15 48 75
------------------------------------------------------------------------------
Profit before tax 5,909 279 35,742
Assets by segment Mar 31, 2010 Mar 31, 2009 Dec 31, 2009
EUR '000
SBU East 123,350 106,168 108,702
SBU Finland 102,898 101,043 79,212
SBU Scandinavia 155,784 159,168 139,900
SBU Central Eastern Europe 86,045 78,786 77,486
Assets, non-allocated to segments 57,845 0 0
Eliminations -69,870 -1,182 -2,191
------------------------------------------------------------------------------
Total assets 456,052 443,983 403,109
BUSINESS COMBINATIONS
On September 1, 2009 Tikkurila acquired the remaining 50% of the share capital
of Tikkurila JUB Romania s.r.l. The acquired company was a joint venture
established in May 2008 by Tikkurila and the Slovenian paint company JUB for
marketing, selling and distributing Tikkurila's and JUB's decorative paints in
Romania.
The final purchase price allocation shows a negative goodwill of EUR 52,000, of
which EUR 32,000 was recognized as income in the year 2009 and EUR 20,000 in the
year 2010. Both items have been presented as other operating income. No expenses
were related to this acquisition. All cash flows related to this acquisition
occurred in the year 2009.
The final purchase price allocation of the acquisition is presented below:
Fair values Carrying
recognised amounts prior
PURCHASE PRICE ALLOCATION on business to business
EUR '000 combinations combinations
Intangible assets 3 3
Property, plant and equipment 91 91
Inventories 269 269
Trade and other receivables 242 242
Cash and cash equivalents 46 46
--------------------------------------------------------------------------------
Total assets 651 651
--------------------------------------------------------------------------------
Other liabilities 509 509
--------------------------------------------------------------------------------
Total liabilities 509 509
GOODWILL AND CASH FLOW IMPACT
EUR '000
Net assets 142
Purchase price 90
-------------------------------------------------------------------
Goodwill -52
-------------------------------------------------------------------
Purchase price 90
Cash and cash equivalents at the subsidiary
acquired -46
-------------------------------------------------------------------
Cash flow impact 44
-------------------------------------------------------------------
CHANGES IN PROPERTY, PLANT AND EQUIPMENT 1-3/2010 1-3/2009 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 1,726 3,965 12,006
Other reductions -55 -46 -461
Depreciation, amortization and impairment losses -3,745 -3,364 -14,368
Exchange rate differences and other changes 5,267 -4,810 -660
----------------------------------------------------------------------------
Carrying amount at the end of period 118,050 113,994 114,857
CHANGES IN INTANGIBLE ASSETS 1-3/2010 1-3/2009 1-12/2009
EUR '000
Carrying amount at the beginning of period 101,974 103,378 103,378
Acquisition of subsidiaries 0 0 2,402
Other additions 397 264 1,569
Other reductions -121 0 -5
Depreciation, amortization and impairment losses -1,219 -1,119 -4,614
Exchange rate differences and other changes 2,528 -1,961 -756
----------------------------------------------------------------------------
Carrying amount at the end of period 103,559 100,562 101,974
INVENTORIES
Write-down of EUR 0.6 (0.7) million was recognised in relation to the inventory
on March 31, 2010.
RELATED PARTY TRANSACTIONS
Tikkurila Group has related party relationships amongst the parent company, the
subsidiaries, the associates and the joint ventures. In addition, Tikkurila's
former parent company Kemira Oyj and other Kemira Group companies were
considered to be related parties until March 26, 2010. Related parties include
members of Board of Directors and the Group's Board of Management, including
CEO.
Related party transactions are presented below:
EUR '000 Sales Purchases Receivables Liabilities
------------------------------------------------------------------
1-3/2010
Associates 403 0 167 20
Joint ventures 81 255 -13 9
Subsidiaries of Kemira Oyj 74 1,603 0 0
1-3/2009
Associates 463 0 662 15
Joint ventures 20 141 146 8
Subsidiaries of Kemira Oyj 0 2,304 8,950 258,455
------------------------------------------------------------------
No loans, guarantees or other collaterals have been granted to the management of
the parent company or of the subsidiaries in 2010 or in 2009.
MORTGAGES AND CONTINGENT
LIABILITIES Mar 31, 2010 Mar 31, 2009 Dec 31, 2009
EUR '000
Mortgages given as collateral for liabilities in the statement of
financial position
Loans from pension institutions,
parent company loans 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 19 21 32
Guarantees
On behalf of own commitments 1,954 1,763 2,123
On behalf of others 1,911 4,226 2,483
Other obligations
On behalf of own commitments 3 2 2
--------------------------------------------------------------------------------
Total contingent liabilities 3,887 6,012 4,640
EVENTS AFTER THE END OF REPORTING PERIOD
On April 28, 2010 the Board of Directors decided to acquire own shares and to
grant those shares in order to effect the payment of Board members' fees. This
resolution was based on the authorization granted by the general meeting of the
shareholders.
In April, Grafia, the Association of Professional Graphic Designers in Finland,
gave out a Silver Award (Hopeahuippu) in service design for Tikkurila's retail
concept Vision. The Best of the Year competition is the most important marketing
communication and design competition in Finland. Tikkurila introduced its Vision
shop-in-shop store concept in autumn 2009 in conjunction with the launch of the
Avatint tinting system, various new products and Feel the Colour collection.
1-3/2010/ 1-3/2009/ 1-12/2009/
KEY PERFORMANCE INDICATORS Mar 31, 2010 Mar 31, 2009 Dec 31, 2009
Earnings per share / basic and diluted,
EUR 0.08 -0.01 0.63
Cash flow from operations, EUR '000 -28,213 -25,278 62,454
Cash flow from operations / per share,
EUR -0.64 -0.57 1.42
Capital expenditure, EUR '000 2,123 5,336 17,191
of revenue % 1.8% 4.8% 3.2%
Shares (1,000), average 44,108 44,108 44,108
Shares (1,000), at the end of the
reporting period 44,108 44,108 44,108
Equity attributable to the owners of the
parent / per share, EUR 3.56 1.76 3.26
Equity ratio, % 34.5% 17.6% 35.7%
Gearing, % 101.0% 272.3% 90.0%
Interest-bearing financial liabilities
(net), EUR '000 158,671 212,131 129,538
Return on capital employed (ROCE), % p.a. 16.6% 16.2% 17.7%
Personnel (average) 3,605 3,772 3,757
DEFINITIONS OF KEY INDICATORS
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 FINANCIAL INFORMATION BY QUARTER
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR '000 1-3/2009 4-6/2009 7-9/2009 10-12/2009 1-12/2009
Revenue 111,230 162,419 158,083 98,434 530,166
Other operating income 281 411 429 330 1,451
Expenses -103,005 -136,063 -127,244 -98,810 -465,122
Depreciation, amortisation and
impairment losses -4,483 -4,684 -5,023 -4,590 -18,780
--------------------------------------------------------------------------------
Operating profit 4,023 22,083 26,245 -4,636 47,715
Total financing income and
expenses -3,792 -3,340 -3,142 -1,774 -12,048
Share of profit or loss of
associates 48 25 1 1 75
--------------------------------------------------------------------------------
Profit before tax 279 18,768 23,104 -6,409 35,742
Income tax -846 -4,797 -6,544 4,235 -7,952
--------------------------------------------------------------------------------
Net profit for the period -567 13,971 16,560 -2,174 27,790
Other comprehensive income
Foreign currency translation
differences for foreign
operations -8,253 2,910 837 2,732 -1,774
--------------------------------------------------------------------------------
Total comprehensive income
for the period -8,820 16,881 17,397 558 26,016
Net profit attributable to:
Owners of the parent -583 13,956 16,560 -2,174 27,759
Minority interest 16 15 0 0 31
--------------------------------------------------------------------------------
Net profit for the period -567 13,971 16,560 -2,174 27,790
Total comprehensive income attributable
to:
Owners of the parent -8,831 16,956 17,397 558 26,080
Minority interest 11 -75 0 0 -64
--------------------------------------------------------------------------------
Total comprehensive income for
the period -8,820 16,881 17,397 558 26,016
Earnings per share of the net profit attributable to owners
of the parent
--------------------------------------------------------------------------------
Basic earnings per share (EUR) -0.01 0.32 0.38 -0.05 0.63
--------------------------------------------------------------------------------
Diluted earnings per share (EUR) -0.01 0.32 0.38 -0.05 0.63
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR '000
ASSETS Mar 31, 2009 Jun 30, 2009 Sept 30, 2009 Dec 31,2009
Non-current assets
Goodwill 67,604 68,144 68,139 68,261
Other intangible assets 32,958 34,419 34,424 33,713
Property, plant and
equipment 113,994 115,914 115,244 114,857
Investment in associates 691 729 770 774
Available-for-sale financial
assets 885 908 922 929
Non-current receivables 3,956 4,054 4,054 5,860
Defined benefit pension
assets 801 800 805 439
Deferred tax assets 2,046 2,037 2,091 2,368
--------------------------------------------------------------------------------
Total non-current assets 222,935 227,005 226,449 227,201
--------------------------------------------------------------------------------
Current assets
Inventories 77,529 75,037 70,294 73,499
Interest-bearing receivables 1,092 1,005 1,039 288
Non-interest-bearing
receivables 116,239 149,237 108,169 77,578
Cash and cash equivalents 26,188 26,833 44,059 24,543
--------------------------------------------------------------------------------
Total current assets 221,048 252,112 223,561 175,908
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total assets 443,983 479,117 450,010 403,109
EQUITY AND LIABILITIES Mar 31, 2009 Jun 30, 2009 Sept 30, 2009 Dec 31,2009
Share capital 35,000 35,000 35,000 35,000
Other reserves 359 359 359 359
Reserve for invested
unrestricted equity 0 0 0 40,000
Translation differences -27,000 -24,000 -23,163 -20,431
Retained earnings 69,403 83,008 101,726 88,935
--------------------------------------------------------------------------------
Equity attributable to
owners of the parent 77,762 94,367 113,922 143,863
--------------------------------------------------------------------------------
Minority interest 155 0 0 0
--------------------------------------------------------------------------------
Total equity 77,917 94,367 113,922 143,863
--------------------------------------------------------------------------------
Non-current liabilities
Interest-bearing non-current
liabilities 173,547 172,842 173,243 115,085
Pension obligations 13,535 13,691 14,407 14,567
Provisions 341 359 378 411
Deferred tax liabilities 8,380 9,052 9,364 9,607
--------------------------------------------------------------------------------
Total non-current liabilites 195,803 195,944 197,392 139,670
--------------------------------------------------------------------------------
Current liabilities
Interest-bearing liabilities 64,772 76,342 37,477 38,996
Non-interest-bearing
liabilities 105,132 110,492 100,347 80,181
Provisions 359 1,972 872 399
--------------------------------------------------------------------------------
Total current liabilities 170,263 188,806 138,696 119,576
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total equity and liabilities 443,983 479,117 450,010 403,109
[HUG#1409615]
© 2024 Nasdaq, Inc. All Rights Reserved |