Tikkurila's Interim Report for January-December 2012 - A record year 2012

Tikkurila Oyj
Stock Exchange Release
February 15, 2013 at 9:00 a.m. (CET+1)
Full-year 2012 highlights

  * Revenue increased by 4.4 percent to EUR 671.8 million (2011: EUR 643.7
  * Operating profit (EBIT) excluding non-recurring items was EUR 73.9 (62.7)
    million, i.e. 11.0 (9.7) percent of revenue.
  * Operating profit (EBIT) was EUR 66.6 (61.2) million, i.e. 9.9 (9.5) percent
    of revenue.
  * Non-recurring items were EUR -7.4 (-1.5) million.
  * EPS was EUR 0.92 (0.80).
  * The Board proposes a dividend of EUR 0.76 (0.73) per share, which
    corresponds to about 82.6 (90.7) percent of the Group's 2012 earnings per
  * Cash flow after capital expenditure was EUR 50.3 (13.3) million.

October-December 2012 highlights

  * Revenue increased by 2.2 percent to EUR 121.8 million (10-12/2011: EUR
    119.1 million).
  * Operating loss (EBIT) excluding non-recurring items was EUR -3.2 (-2.3)
    million, i.e. -2.6 (-1.9) percent of revenue.
  * Operating loss (EBIT) was EUR -4.0 (-3.8) million, i.e. -3.3 (-3.2) percent
    of revenue.
  * EPS was EUR -0.10 (-0.11).

Revenue and EBIT estimates for 2013

  * Tikkurila expects its revenue and EBIT in euro excluding non-recurring items
    for the financial year 2013 to remain on 2012 level.

 Key Figures

 (EUR million)      10-12/2012 10-12/2011 Change % 1-12/2012 1-12/2011 Change %
 Income statement

 Revenue                 121.8      119.1     2.2%     671.8     643.7     4.4%

 Operating profit

 excluding non-           -3.2       -2.3   -40.6%      73.9      62.7    17.8%
 recurring items

 Operating profit
 (EBIT) margin,          -2.6%      -1.9%              11.0%      9.7%
 excluding non-
 recurring items, %

 Operating profit         -4.0       -3.8    -5.6%      66.6      61.2     8.7%

 Operating profit        -3.3%      -3.2%               9.9%      9.5%
 (EBIT) margin, %

 Profit before            -4.2       -5.3    20.5%      59.2      50.7    16.9%

 Net profit               -4.6       -5.0     9.5%      40.6      35.5    14.3%

 Other key

 EPS*, EUR               -0.10      -0.11     9.5%      0.92      0.80    14.3%

 ROCE, % rolling         21.0%      19.4%              21.0%     19.4%

 Cash flow after
 capital                   9.8        0.8               50.3      13.3   278.7%

 Net interest-
 bearing debt at                                        80.6      99.4   -18.9%


 Gearing, %                                            39.1%     51.9%

 Equity ratio, %                                       47.7%     44.1%

 Personnel at                                          3,227     3,551    -9.1%

Comments by Erkki Järvinen, President and CEO:

"Last year was a record-breaking year for us in many ways. In honor of our
company's 150th anniversary, we attained a record-high revenue, operating
profit, and cash flow from operations, although the overall macro-economic
development did little to support our business operations. The euro region
suffered from a debt crisis and drifted into recession as the year progressed.
The growth rate of the Russian economy also waned towards the end of the year.
Our revenue growth was moderate as sales volumes decreased in all markets in the
second half of the year, in particular, as a result of the weak market
atmosphere and declining consumer confidence. Our excellent operative
profitability was, in particular, based on the cost savings generated by the
restructuring and the streamlining of operations we launched a year ago. Our
relative profitability increased particularly in the east, where the relative
share of our premium brand Tikkurila in sales grew, against the general market
trend. In addition, we improved the management of net working capital, which had
a positive impact on our cash flow.

In addition to the debt crisis in the euro region, the year 2012 was
characterized by high raw material prices, although the upward trend started to
stabilize over the course of the year, as the outlook for the global economy
weakened. Thus, our revenue growth was mainly due to the sales price increases,
which we had to carry out in order to compensate for the higher raw material

Traditionally, the last quarter of the year is clearly less significant for us
than the summer season in terms of both sales and results. We have begun
increasing our product inventories for the upcoming exterior painting season.
Despite our lighter cost structure, loss in the last quarter remained at the
previous year's level due to the sales and marketing investments, which were
greater than in the comparison period. Our objectives are organic growth and
stronger positions in our most important markets in the increasingly tighter
competitive situation.

It seems that the macroeconomic situation continues to be challenging. The
average economic growth in our key markets is likely to be no more than a couple
of percent. In the light of this outlook, we estimate our revenue and operating
profit excluding non-recurring items in the 2013 financial year to remain at the
same level as last year".

Outlook for 2013

Economic development in Europe is expected to be weak in 2013. The overall
uncertainty and increasing unemployment are expected to have a negative impact
on consumers' willingness to purchase and on the demand for Tikkurila's
products. The GDPs in Tikkurila's key markets, in other words Russia, Sweden,
Finland, and Poland, are estimated to grow an average of approximately two
percent in 2013. Raw material prices are estimated to remain stable or to
decrease slightly.

Tikkurila expects its revenue and EBIT in euro excluding non-recurring items for
the financial year 2013 to remain on 2012 level.

Board of Directors' proposal for the distribution of profit

Tikkurila Oyj's retained earnings totaled EUR 91.1 million on December
31, 2012. The Board proposes to the Annual General Meeting that a dividend of
EUR 0.76 per share will be distributed for the year ended on December 31, 2012,
and that the rest be retained in the unrestricted equity. The proposed dividend
totals about EUR 33.5 million, which corresponds to approximately 82.6 percent
of the Group's net profit for 2012. It is proposed that the record date for the
payment of the dividend will be April 15, 2013, and that the dividend will be
paid on April 24, 2013.

Disclosing procedures of financial reviews

Tikkurila Oyj follows the disclosure procedure enabled by Standard 5.2b
published by the Finnish Financial Supervision Authority, and discloses relevant
information (i.e. information likely to have a material effect on the value of
Tikkurila's share price) related to its Financial Statement Release with this
Stock Exchange Release. Tikkurila's Financial Statement Release for 2012 is
attached to this release and is also available on company's website at

Press Conference

Tikkurila will hold a press conference regarding its Financial Statement Release
for 2012 for the media and analysts today on February 15, 2013, at 12:00 p.m.
(CET+1) in the Akseli Gallén-Kallela Cabinet at the Hotel Kämp, (address
Pohjoisesplanadi 29, 00100 Helsinki). The conference will be held in Finnish
language. Attendees will be served lunch at the conference premises starting at
11:30 (CET+1). The result will be presented by Erkki Järvinen, President and
CEO, and Jukka Havia, CFO.

The stock exchange release and presentation materials will be available before
the event at www.tikkurilagroup.com/investors.

Tikkurila Oyj
Erkki Järvinen, President and CEO

For further information, please contact:

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

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

Minna Avellan, Manager, Investor Relations
Mobile +358 40 533 7932, minna.avellan@tikkurila.com

For 150 years already, Tikkurila has provided consumers and professionals with
user-friendly and sustainable solutions for surface protection and decoration.
Tikkurila wants to be the leading paint company in the Nordic area as well as in
Russia and other selected Eastern European countries. - Tikkurila inspires you
to color your life.


About Us

Sustainable NordicnessTikkurila is a leading Nordic paint company with expertise that spans decades. We develop premium products and services that provide our customers with quality that will stand the test of time and weather. We operate in around ten countries and our 2,700 dedicated professionals share the joy of building a vivid future through surfaces that make a difference. In 2018, our revenue totaled EUR 562 million. The company is listed on Nasdaq Helsinki. Nordic quality from start to finish since 1862. www.tikkurilagroup.com