Tikkurila Oyj - Financial Statement Release

Tikkurila's Financial Statement Release for January-December 2015 - Relative profitability was good and stable despite the market challenges

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

Tikkurila's Financial Statement Release for January-December 2015
- Relative profitability was good and stable despite the market challenges

Full-year 2015 highlights

  * Revenue decreased by 5.5 percent to EUR 584.1 million (2014: EUR 618.4
    million).
  * Operating profit (EBIT) excluding non-recurring items was EUR 58.9 (64.2)
    million, i.e. 10.1 (10.4) percent of revenue.
  * Operating profit (EBIT) was EUR 61.7 (63.7) million, i.e. 10.6 (10.3)
    percent of revenue.
  * EPS was EUR 0.94 (1.10).
  * Cash flow after capital expenditure was EUR 32.6 (49.9) million.

October-December 2015 highlights

  * Revenue decreased by 0.9 percent to EUR 103.4 million (10-12/2014: EUR
    104.4 million).
  * Operating result (EBIT) excluding non-recurring items was EUR -11.1 (-13.2)
    million, i.e. -10.7 (-12.6) percent of revenue.
  * Operating result (EBIT) was EUR -10.3 (-13.9) million, i.e. -9.9 (-13.3)
    percent of revenue.
  * EPS was EUR -0.25 (-0.19).

Dividend proposal

  * The Board proposes a dividend of EUR 0.80 (0.80) per share, which
    corresponds to about 85 (73) percent of the Group's 2015 earnings per share.

Revenue and EBIT estimates for 2016

  * Tikkurila expects its revenue for the financial year 2016, with exchange
    rates as of the publication date of the financial statement release, to be
    at the same level as in 2015. EBIT excluding non-recurring items is expected
    to stay at 2015 level.

 Key figures

 (EUR million)                       10-12  10-12 Change %  1-12  1-12 Change %
                                     /2015  /2014          /2015 /2014
-------------------------------------------------------------------------------
 Income statement

 Revenue                             103.4  104.4    -0.9% 584.1 618.4    -5.5%

 Operating profit (EBIT), excluding
 non-recurring items                 -11.1  -13.2    16.1%  58.9  64.2    -8.2%

 Operating profit (EBIT) margin,
 excluding non-recurring items, %   -10.7% -12.6%          10.1% 10.4%

 Operating profit (EBIT)             -10.3  -13.9    25.9%  61.7  63.7    -3.2%

 Operating profit (EBIT) margin, %   -9.9% -13.3%          10.6% 10.3%

 Profit before taxes                 -13.7   -9.7   -41.9%  52.8  63.3   -16.6%

 Net profit for the period           -11.0   -8.2   -33.3%  41.5  48.3   -14.0%

 Other key indicators

 EPS, EUR                            -0.25  -0.19   -33.1%  0.94  1.10   -14.1%

 ROCE, %, rolling                    22.2%  22.9%          22.2% 22.9%

 Cash flow after capital
 expenditure                          -1.6    7.6           32.6  49.9   -34.5%

 Net interest-bearing debt at
 period-end                                                 46.2  47.4    -2.4%

 Gearing, %                                                23.7% 24.6%

 Equity ratio, %                                           51.1% 49.5%

 Personnel at period-end                                   3,100 3,142    -1.3%


Comments by Erkki Järvinen, President and CEO:

"Revenue in the last quarter of the year was at the comparison period level and
operating loss decreased. This improvement was due to the sales price increases
implemented in Russia and the good development in China.

The last quarter did not change the overview for the full year. The performance
of markets which experienced a boost during the year, such as Sweden, Poland,
the Baltic countries and China, continued to be strong. Growth in the national
economies of Sweden and Poland is among the strongest in the EU region, which
also reflected favorably in the paint market. Our growth in these countries has
also been supported by our own efforts to boost market demand. Our sales volumes
grew strongly in China, where we extended the retail network with 100 new stores
opened during the year by our partners. We believe that the strong development
will continue in these markets also in the future.

The euro-denominated revenue for the entire year decreased by six percent, but
the comparable revenue grew. Our relative profitability remained at the previous
year's level. We have to be satisfied with this achievement, considering the
difficult market conditions in the east. No turn for the better is to be
expected in the Russian situation in the near future. The exchange rate of the
ruble continued to decline at the beginning of the current year, consumers'
purchasing power shrank and the market shares of import products have decreased.
In light of these factors, we will work to further increase local manufacturing
and raw material purchasing in Russia and its neighboring regions in the future
in order to secure sales and profitability.

Despite the challenges related to the market environment, our aim is to grow.
Growth is being actively sought in different geographical areas and various
product groups. To support our growth objective, we have modified the structure
of the company and streamlined our operating methods in the recent years. We
expect 2016 revenue, with exchange rates as of the publication date of the
financial statement release, to remain at the same level as in 2015. EBIT
excluding non-recurring items is expected to stay at 2015 level."

Outlook for 2016

Growth in the EU region is forecasted to be steady but fairly low. The
importance of the Western markets, particularly Sweden and Poland, is expected
to increase further. The weak economic situation in Russia and the low level of
ruble will make the operating environment difficult in 2016. In Russia, paint
demand is expected to decrease and the relative market share of the lower price
and quality grade products is expected to grow. Tikkurila is planning to
increase its prices primarily in Russia, as well as to increase local
manufacturing and raw material purchasing. Sales and marketing investments will
continue in the previous years' manner in order to strengthen the market
position. At the same time, increased operational efficiency and cost savings
will be actively sought in all operations.

Guidance for 2016

Tikkurila expects its revenue for the financial year 2016, with exchange rates
as of the publication date of the financial statement release, to be at the same
level as in 2015. EBIT excluding non-recurring items is expected to stay at
2015 level.

Board of Directors' proposal for the distribution of profit

Tikkurila Oyj's distributable equity totaled EUR 157.8 million on December
31, 2015: reserve for invested unrestricted equity totaled EUR 40.0 million and
retained earnings totaled EUR 117.8 million. The Board proposes to the Annual
General Meeting that a dividend of EUR 0.80 per share will be distributed for
the year ended on December 31, 2015, and that the rest be retained in the
unrestricted equity. The proposed dividend totals about EUR 35.3 million, which
corresponds to approximately 85 percent of the Group's net profit for 2015. It
is proposed that the record date for the payment of the dividend will be April
8, 2016, and that the dividend will be paid on April 15, 2016.

Press Conference and webcast

Tikkurila will hold a press conference regarding the Financial Statement Release
for 2015 for the media and analysts today on February 9, 2016, at 12:00 p.m.
(CET+1) in the Akseli Gallén-Kallela Cabinet at the Hotel Kämp (address
Pohjoisesplanadi 29, 00100 Helsinki). The conference will be held in Finnish
language. Attendees will be served lunch at the conference premises starting at
11:30 (CET+1). The Financial Statement Release will be presented by Erkki
Järvinen, President and CEO and Jukka Havia, CFO.

A live webcast, conducted in English, will be organized on February 9, 2016, at
3:00 p.m. The live webcast will be available at www.tikkurilagroup.com. The
participants can also join a telephone conference that will be arranged in
conjunction with the live webcast. The telephone conference details are set out
below:

+358 9 6937 9590 (Finnish callers)
+44 20 3427 1919 (UK callers)
+1212 444 0412 (US callers)
Participant code: 2434440

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

The Financial Statement Release and presentation materials will be available
before the event at www.tikkurilagroup.com/investors.


Tikkurila Oyj
Erkki Järvinen, President and CEO


For further information, please contact:

Erkki Järvinen, President and CEO
Mobile +358 400 455 913, erkki.jarvinen@tikkurila.com

Jukka Havia, CFO
Mobile +358 50 355 3757, jukka.havia@tikkurila.com

Minna Avellan, Director, Investor Relations and Brand Concept Development
Mobile +358 40 533 7932, minna.avellan@tikkurila.com


Tikkurila is the leading paints and coatings professional in the Nordic region
and Russia. With our roots in Finland, we now operate in 16 countries. Our high-
quality products and extensive services ensure the best possible user experience
in the market. Sustainable beauty since 1862.

www.tikkurilagroup.com




[HUG#1984542]

Attachments:

Tikkurila Financial Statement Release 2015.pdf