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Tikkurila Oyj: Tikkurila's Interim Report for January-March 2015 - Strong profitability despite lower revenue

Tikkurila Oyj

Stock Exchange Release
April 29, 2015 at 9:00 a.m. (CET+1)
Tikkurila's Interim Report for January-March 2015
- Strong profitability despite lower revenue

January-March 2015 highlights

* Revenue for the first quarter decreased by 5.8 percent to EUR 133.2 million
(1-3/2014: EUR 141.5 million).
* Operating profit (EBIT) excluding non-recurring items was EUR 15.3 (13.0)
million, i.e. 11.5 (9.2) percent of revenue.
* Operating profit (EBIT) was EUR 15.2 (13.8) million, i.e. 11.4 (9.8)
percent of revenue.
* EPS was EUR 0.30 (0.17).

Guidance for 2015 intact

* Tikkurila expects its revenue and EBIT excluding non-recurring items for
the financial year 2015 to be below the 2014 level.

| Key figures |
| (EUR million) 1-3/2015 1-3/2014 Change % 1-12/2014 |
| Income statement |
| Revenue 133.2 141.5 -5.8% 618.4 |
| Operating profit (EBIT), excluding non-recurring items 15.3 13.0 17.6% 64.2 |
| Operating profit (EBIT) margin, 11.5% 9.2% 10.4% |
| |
|excluding non-recurring items, % |
| Operating profit (EBIT) 15.2 13.8 10.4% 63.7 |
| Operating profit (EBIT) margin, % 11.4% 9.8% 10.3% |
| Profit before taxes 17.5 11.8 47.3% 63.3 |
| Net profit 13.3 7.3 81.4% 48.3 |
| |
| Other key indicators |
| EPS, EUR 0.30 0.17 81.7% 1.10 |
| ROCE, %, rolling 23.5% 25.4% 22.9% |
| Cash flow after capital expenditure -13.6 -4.8 -182.2% 49.9 |
| Net interest-bearing debt at period-end 57.3 53.8 6.5% 47.4 |
| Gearing, % 32.8% 30.6% 24.6% |
| Equity ratio, % 39.4% 39.1% 49.5% |
| Personnel at period-end 3,215 3,186 0.9% 3,142 |
Comments by Erkki Järvinen, President and CEO:

"The beginning of the year was characterized by duality. We had a strong
result in SBU West with good volume development. However, in SBU East the
turbulence continued, and foreign exchange rate changes decreased our
euro-denominated revenue but also lowered our cost base.

Group's sales volumes did not quite reach the comparison period level due to
the lower demand in Russia. Demand for both Tikkurila and Teks brand products
declined in Russia, where we increased the prices of decorative paints at the
beginning of this year. Our main challenges are associated with Russia, where
the market situation will probably remain weak for a long time.

In the west, our volumes grew, driven primarily by the active pre-season
deliveries of exterior paints in Sweden. Favorable development of the sales
mix in Poland, in particular, had a positive effect on revenue. The
development in our Western markets is steady, but the general growth rate in
the paint markets is low.

We will continue our measures according to plan to strengthen our market
position and to streamline operations in all of our countries of operation.
The full-year guidance remains unchanged since the most crucial months are
still ahead of us."
Outlook for 2015

The geopolitical tensions, low oil prices and the weak ruble will make a
difficult operating environment for 2015. The Russian economy is anticipated
to weaken considerably, and the EU region is expected to see a slow recovery.
The demand for paint is anticipated to reduce in Russia, with a relative
increase expected in the market share of the lower price and quality grade
products. Demand in the EU region is expected to remain close to last year's
level. Tikkurila will increase sales prices mainly in Russia to partly, not
fully, compensate for the effects of the weak ruble. As in the previous
years, Tikkurila will continue investing in sales and marketing in order to
strengthen its market position. The level of costs is being continuously

Guidance for 2015

Tikkurila expects its revenue and EBIT excluding non-recurring items for the
financial year 2015 to be below the 2014 level.

Press Conference and webcast

Tikkurila will hold a press conference regarding the Interim Report for
January-March for 2015 for the media and analysts today on April 29, 2015, at
12:00 p.m. (CET+1) in the Paavo Nurmi 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 byErkki Järvinen
, President and CEO, andJukka Havia
, CFO.

A live webcast, conducted in English, will be organized on April 29, 2015, at
3:00 p.m. The live webcast will be available 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 2313 9201 (Finnish callers)
+44 20 7162 0077 (UK callers)
+1 334 323 6201 (US callers)
Participant code: 952609
An on-demand version of the webcast will be available during the same day.

The Interim Report and presentation materials will be available before the

Tikkurila Oyj
Erkki Järvinen, President and CEO

For further information, please contact:

Erkki Järvinen, President and CEO
Mobile +358 400 455 913,

Jukka Havia, CFO
Mobile +358 50 355 3757,

Minna Avellan, Manager, Investor Relations
Mobile +358 40 533 7932,

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.

Attached please find the full version of Tikkurila's Q1 2015 Interim Report:

Tikkurila Interim Report Q1/2015


This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Tikkurila Oyj via Globenewswire


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