Tikkurila Oyj
Stock Exchange Release
August 2, 2012 at 9:00 a.m. (CET+1)
April-June 2012 highlights
* Revenue increased by 5.6 percent to EUR 209.5 million (4-6/2011: EUR 198.3
million).
* Operating profit (EBIT) excluding non-recurring items was EUR 34.8 (27.5)
million, i.e. 16.6 (13.8) percent of revenue.
* Operating profit (EBIT) was EUR 33.3 (27.5) million, i.e. 15.9 (13.8)
percent of revenue.
* Non-recurring items for the second quarter were EUR -1.5 (0.0) million.
* EPS was EUR 0.52 (0.39).
* Tikkurila reiterates its outlook for 2012. In 2012, Tikkurila expects the
revenue growth to exceed the average GDP growth in Tikkurila's main market
areas. Tikkurila expects EBIT in euro to stay at the same level as in 2011.
January-June 2012 highlights
* Revenue for the first year-half increased by 7.7 percent to EUR 358.4
million (1-6/2011: EUR 332.8 million).
* Operating profit (EBIT) excluding non-recurring items was EUR 44.9 (34.0)
million, i.e. 12.5 (10.2) percent of revenue.
* Operating profit (EBIT) was EUR 39.1 (34.0) million, i.e. 10.9 (10.2)
percent of revenue.
* Non-recurring items for the first year-half were EUR -5.9 (0.0) million.
* EPS was EUR 0.51 (0.42).
Key figures
(EUR million) 4-6/ 4-6/ Change % 1-6/ 1-6/ Change % 1-12/
2012 2011 2012 2011 2011
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Income statement
Revenue 209.5 198.3 5.6% 358.4 332.8 7.7% 643.7
Operating profit (EBIT),
excluding non-recurring items 34.8 27.5 26.9% 44.9 34.0 32.2% 62.7
Operating profit (EBIT)
margin, excluding non-
recurring items, % 16.6% 13.8% 12.5% 10.2% 9.7%
Operating profit (EBIT) 33.3 27.5 21.3% 39.1 34.0 15.0% 61.2
Operating profit (EBIT)
margin, % 15.9% 13.8% 10.9% 10.2% 9.5%
Profit before taxes 31.0 23.9 30.0% 33.0 27.3 21.0% 50.7
Net profit 23.0 17.0 35.2% 22.5 18.5 21.6% 35.5
Other key indicators
EPS, EUR 0.52 0.39 35.2% 0.51 0.42 21.6% 0.80
ROCE, %, rolling 20.6% 18.8% 20.6% 18.8% 19.4%
Cash flow after capital
expenditure -0.7 1.7 -23.5 -26.0 9.6% 13.3
Net interest-bearing debt at
period-end 155.2 137.7 12.7% 99.4
Gearing, % 84.0% 77.1% 51.9%
Equity ratio, % 35.0% 34.4% 44.1%
Personnel at period-end 3,555 3,794 -6.3% 3,551
Comments by Erkki Järvinen, President and CEO:
"We can be very pleased with our second quarter result, which improved
considerably. Our relative profitability was on a very good level. However, the
re-escalated problems in the euro region began to show towards the end of the
review period. The decrease in the oil price increased the caution among Russian
consumers. Increased uncertainty related to the economic development reflected
broadly in retail and in paint sales in all our markets as well at the end of
the review period. In addition, reduced construction starts, slower home sales
and tax deduction cuts implemented in certain markets affected sales to
professionals, in particular.
Our revenue growth rate declined in the second quarter due to negative sales
volume development. The volume development took a downward turn in all our
markets after a promising beginning of the year. Weather conditions, which
affect the exterior painting season, were not favorable in Finland and
Scandinavia during the early summer. On the other hand, growth was supported by
increases in sales prices, which were implemented both last year and at the
beginning of this year to compensate for the increased raw material costs.
Our operating profit and relative profitability improved considerably in the
second quarter as a result of revenue growth and the streamlining measures.
Restructuring and cost savings were reflected in a lower fixed expenses level.
The situation with raw materials seems to have stabilized. We estimate that raw
material prices will remain close to the current level throughout the remainder
of the year and that the availability outlook is somewhat better.
Despite the fairly favorable beginning of the year, we reiterate our outlook for
the entire year. The crisis in the euro region makes the situation gloomier, and
there is considerable uncertainty in the economic development in the remainder
of the year."
Outlook for 2012
Tikkurila reiterates its outlook for 2012.
In 2012, the GDP is expected to remain close to the 2011 levels or the GDP
growth is expected to be low in the key market areas of Tikkurila. Further raw
material cost increases are predicted, even though it is assumed that the raw
material and packaging material cost inflation will be clearly lower than in
2011.
In 2012, Tikkurila expects the revenue growth to exceed the average GDP growth
in Tikkurila's main market areas. Tikkurila expects EBIT in euro to stay at the
same level as in 2011.
The estimates presented above are based on internal assessment reflecting
management's most recent forecasts for full-year 2012 financial performance.
These estimates are based on the assumption that foreign exchange rates would
stay at the same level as the actual exchange rates on December 31, 2011. The
estimates are also based on Tikkurila's current distribution network and
business structure. The main market areas referred above include Russia, Sweden,
Finland and Poland. Moreover, as announced during the fourth quarter of 2011, a
group-wide efficiency program aiming at increasing competitiveness was launched
in 2011 and it will be continued in 2012, and therefore the impact of the non-
recurring expenses linked to the implementation of the efficiency program or of
any potential major restructuring actions, regardless of their timing, are not
taken into account in the guidance.
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 Interim Report with this Stock Exchange
Release. Tikkurila's Interim Report for January-June 2012 is attached to this
release and is also available on company's website at www.tikkurilagroup.com.
Press Conference
Tikkurila will hold a press conference regarding its January-June 2012 Interim
Report for the media and analysts today on August 2, 2012, 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
Interim Report 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.
www.tikkurilagroup.com
[HUG#1631238]
Tikkurila's Interim Report for January-June 2012 - Streamlining operations improves results
| Source: Tikkurila Oyj
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