interim report | q1 january–march 2013mb.cision.com/main/16979/2528307/846218.pdfcold spring in...

Interim Report | Q1January–March 2013

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TIKKURILA INSPIRES YOU TO COLOR YOUR LIFE.TM

TIKKURILA OYJ

P.O. BOX 53, KUNINKAALANTIE 1, FI-01301 VANTAA, FINLAND

TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900

VAT FI01970674, BUSINESS IDENTITY CODE 0197067-4

REGISTERED OFFICE VANTAA, WWW.TIKKURILA.COM

Tikkurila Oyj Interim Report April 24, 2013 at 12:00 noon (CET+1)

Tikkurila's Interim Report for January−March 2013 – Good profitability despite weak market development January–March 2013 highlights

- Revenue for the first quarter decreased by 6.9 percent to EUR 138.4 million (1–3/2012: EUR 148.6 million).

- Operating profit (EBIT) excluding non-recurring items was EUR 10.1 (10.1) million, i.e. 7.3 (6.8) percent of revenue.

- Operating profit (EBIT) was EUR 10.2 (5.8) million, i.e. 7.4 (3.9) percent of revenue. - EPS was EUR 0.15 (-0.01).

Tikkurila reiterates its guidance 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) 1–3/2013 1–3/2012 Change % 1–12/2012 Income statement Revenue 138.4 148.6 -6.9% 670.4 Operating profit (EBIT), excluding non-recurring items 10.1 10.1 0.6% 73.7 Operating profit (EBIT) margin, excluding non-recurring items, % 7.3% 6.8%

11.0%

Operating profit (EBIT) 10.2 5.8 77.3% 66.3 Operating profit (EBIT) margin, % 7.4% 3.9% 9.9% Profit before taxes 10.5 2.0 59.3 Net profit 6.6 -0.5 40.7 Other key indicators EPS, EUR 0.15 -0.01 0.92 ROCE, %, rolling 22.6% 19.0% 21.0% Cash flow after capital expenditure -13.7 -22,8 39.8% 50.3 Net interest-bearing debt at period-end 94.0 121.0 -22.3% 80.8 Gearing, % 45.5% 76.4% 40.6% Equity ratio, % 43.4% 32.1% 45.9% Personnel at period-end 3,231 3,438 -6.0% 3,223

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TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900



Comments by Erkki Järvinen, President and CEO: “The economic situation in Europe continued to be extremely challenging at the beginning of the year. The level of consumer confidence was low, and construction declined. These combined with the exceptionally cold spring in all of Tikkurila's key markets resulted in a decline in our sales volumes. For exterior paints, the pre-season orders in use in the Nordic countries were lower in Sweden than in the corresponding period last year. However, this is at least partly due to a transition caused by the cold spring. In Russia, economic development weakened and uncertainty increased at the beginning of the year, which manifested as both lower sales volumes and increased popularity of lower price and quality grade paints. Despite the decline in revenue, our operating profit remained at the comparison period’s excellent level. Profitability was supported by continuous improvement, streamlining measures completed last year and stabilization in the prices of raw materials. Our market share declined slightly in Russia and Sweden at the end of last year. Lower price and lower quality products increased their relative share of the total volume of the paint market in Russia. In Sweden, the decline was due to aggressive sales and marketing investments by certain competitors. We increased our own marketing efforts in these areas at the beginning of the year and will continue them as needed in the coming months. The weak development of sales at the beginning of the current year has burdened the entire industry, and according to Tikkurila's understanding, there have been no significant changes in market shares in comparison to the situation at year-end. Nevertheless, it would seem that the weak market atmosphere is resulting in tighter price competition in the industry. The significance of the first quarter is fairly minor to us. Traditionally, the approaching exterior painting season is decisive in terms of sales and result for the entire year. Economic growth in both developed and emerging markets may be modest in the current year. We will maintain our earlier guidance; in other words, we estimate that our revenue and operating profit, excluding non-recurring items, will remain at last year's level.”

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TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900



Press Conference Today at 2:00 p.m.

Tikkurila will hold a press conference regarding its January–March 2013 Interim Report for the media and analysts today on April 24, 2013, at 2:00 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. 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 will publish its Interim Report for January−June 2013 on Thursday July 25, 2013 at around 9:00 a.m. (CET+1). Tikkurila Oyj Erkki Järvinen, President and CEO For further information, please contact: Erkki Järvinen, President and CEO Mobile +358 400 455 913, [email protected] Jukka Havia, CFO Mobile +358 50 355 3757, [email protected] Minna Avellan, Manager, Investor Relations Mobile +358 40 533 7932, [email protected] 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

http://www.tikkurilagroup.com/investors

mailto:[email protected]



http://www.tikkurilagroup.com/

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TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900



Tikkurila Oyj Interim Report January 1–March 31, 2013 This Interim Report has been prepared in accordance with the IAS 34 standard and other valid regulations. The information disclosed is unaudited. The same accounting policies have been applied in this Interim Report as in the annual Financial Statement for 2012, with the exception of the new or revised or amended standards and interpretations which have been applied from the beginning of 2013 and which are described in the Summary Financial Statements and Notes section of this report. Some of the standards and interpretations are applied retrospectively and therefore comparison information is changed accordingly. The figures presented in the Interim Report are independently rounded. Fluctuations in exchange rates in this Interim Report refer to the translation effect of the exchange rates. In this Report all forward-looking statements in relation to the company or its business are based on the management judgment, and macroeconomic or general industry data are based on third-party sources. If there are any discrepancies between the language versions of the Interim Report, the Finnish version shall prevail. Tikkurila’s business operations are organized in four reporting segments, or Strategic Business Units (SBU). Tikkurila’s reporting segments are SBU East, SBU Scandinavia, SBU Finland, and SBU Central Eastern Europe. SBU East consists of Russia, Ukraine, Central Asian countries and Belarus. SBU Scandinavia covers Sweden, Denmark, and Norway. SBU Finland covers Tikkurila’s business operations in Finland. SBU Central Eastern Europe includes Estonia, Latvia, Lithuania, Poland, China, Germany, Serbia and Macedonia. Furthermore, this SBU is responsible for the exports to approximately 25 countries that are not included in the operating areas of the other SBUs. Market Review

The general economic situation continued to be challenging at the beginning of the year. Confidence continued to be at a low level due to the uncertainty related to economic development. Retail and construction shrank in Tikkurila's markets, compared to the situation a year ago. The euro region is in recession, and it is estimated that its GDP will decline slightly during the current year. Economic growth in Russia was also small in the first quarter. In addition, the exceptionally cold spring in Tikkurila's key markets of Russia, Sweden, Finland, and Poland weakened demand for paints and affected the timing of the pre-season orders. Economic growth is anticipated to be small in Tikkurila's operating area in the current year. It is estimated that GDP growth in Russia will not be more than 2–3 percent. GDP growth in Sweden and Poland is anticipated to amount to 1–2 percent. Economic development in Finland is estimated to be zero or slightly negative. Tikkurila’s market share in decorative paints in Russia was approximately 17 percent in 2012 (approximately 19% in 2011, volume, source: ChemCourier), in Sweden approximately 38 percent (approximately 40% in 2011, value, source: SVEFF), in Finland more than 50 percent (more than 50% in 2011, value, source: VTY) and approximately 15 percent in Poland (approximately 16% in 2011, volume, source: IBP Research). In Russia, the relative share of lower price and quality grade paints in the total sales in the market grew. In Sweden, decline in the market share was mainly due to the tighter competitive situation. Among Tikkurila's key currencies, the Russian ruble weakened, and the Polish zloty and Swedish krona strengthened. Prices of raw materials stabilized.

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TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900



Financial Performance in January–March 2013

Revenue and operating result by reporting segment in January–March are presented in the table below. January–March

(EUR million) Revenue

Operating result (EBIT)

excluding non-recurring items

1–3/2013 1–3/2012

1–3/2013 1–3/2012 SBU East 35.6 40.3

-1.1 0.2

SBU Scandinavia 46.9 49.6

5.8 5.2 SBU Finland 30.1 31.4

5.0 5.3

SBU Central Eastern Europe 25.8 27.4

1.2 0.0 Group common and eliminations 0.0 0.0

-0.8 -0.6

Consolidated Group 138.4 148.6

10.1 10.1

Tikkurila Group's revenue in the first quarter of 2013 decreased by 7 percent. Volume development was negative in all markets, which reduced revenue by 10 percent. Increases in sales prices and changes in the sales mix increased revenue by 2 percent, and exchange rate fluctuations increased it by one percent.

Operating profit (EBIT) excluding non-recurring items totaled EUR 10.1 (10.1) million, which accounts for 7.3 (6.8) percent of revenue. Operating profit (EBIT) totaled EUR 10.2 (5.8) million, equaling 7.4 (3.9) percent of revenue. The considerable non-recurring items of the comparison period were related to the implementation of the streamlining program underway in the Group and divestments. Operating profit was improved by the streamlining measures and stabilization in the prices of raw materials. Marketing expenses were higher than in the comparison period as investments were increased in Scandinavia, in particular. Decline in revenue also had a negative impact on operating profit. The net financial income in January–March 2013 were EUR 0.4 (-3.7) million. Profit before taxes was EUR 10.5 (2.0) million. Taxes totaled 3.9 (2.5) million, equaling an effective tax rate of 37.1 (122.2) percent. Earnings per share were EUR 0.15 (-0.01) in the review period.

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TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900



Financial Performance by Reporting Segments SBU East (EUR million) 1–3/2013 1–3/2012 Change % 1–12/2012

Revenue 35.6 40.3 -11.5% 242.8 Operating result (EBIT), excluding non-recurring items -1.1 0.2 32.5 Operating result (EBIT) margin, excluding non-recurring items, % Operating result (EBIT) Operating result (EBIT) margin, %

-3.0%

-1.1 -3.0%

0.5%

-0.3 -0.7%

13.4%

29.9 12.3%

Capital expenditure excluding acquisitions

1.2

1.2

3.9%

5.6

SBU East’s first quarter revenue decreased by 12 percent from the comparison period. Lower sales volumes declined revenue by 15 percent due to the weakened economic development in Russia and the cold weather in the spring. Sales development was weak in Ukraine and Belarus as well. Increases in sales prices, and changes in the sales mix increased revenue by 5 percent. The negative impact of exchange rate fluctuations was one percent. SBU East's first quarter operating profit, excluding non-recurring items, decreased to EUR -1.1 (0.2) million. Profitability was weakened by the decrease in revenue and increase in fixed costs caused by salary inflation, in particular. SBU Scandinavia

(EUR million) 1–3/2013 1–3/2012 Change % 1–12/2012

Revenue 46.9 49.6 -5.3% 194.2 Operating profit (EBIT), excluding non-recurring items

5.8

5.2

12.7%

24.3

Operating profit (EBIT) margin, excluding non-recurring items, % Operating profit (EBIT) Operating profit (EBIT) margin, %

12.4%

5.4 11.5%

10.4%

5.0 10.0%

8.8%

12.5%

23.6 12.2%


0.1

0.7

-80.1%

3.4

SBU Scandinavia's first quarter revenue decreased by 5 percent from the comparison period. Lower sales volumes decreased revenue by 11 percent. The decline is due to the general macroeconomic situation and the exceptionally cold spring, which had a negative impact on advance deliveries of paint for the summer season. Increases in sales prices and changes in the sales mix increased revenue by one percent, and exchange rate fluctuations increased it by 4 percent. SBU Scandinavia's first quarter operating profit, excluding non-recurring items, increased, and relative profitability improved from the comparison period. Profitability was primarily improved by increased operational efficiency. Decreased revenue and higher marketing expenses had a negative impact on profitability.

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TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900



SBU Finland



5.0

5.3

-6.4%

12.6


16.5%

5.4 18.1%

16.9%

3.4 10.7%

61.6%

11.7%

10.6 9.8%


0.6

1.9

-71.1%

5.3

SBU Finland’s first quarter revenue decreased by 4 percent from the comparison period. The decline in revenue was due to interior paint sales volumes, which were lower than in the comparison period. The reduced sales volume was caused by a weak macroeconomic situation and Easter falling in March, which reduced the number of sales days in the first quarter. SBU Finland's first quarter operating profit, excluding non-recurring items, decreased from the comparison period, but relative profitability remained almost at the comparison period level. Decreased revenue had a negative impact on profitability, whereas the streamlining of operations affected it positively. The considerable non-recurring items in the comparison period were related to the Group-wide streamlining actions.

SBU Central Eastern Europe (CEE)



1.2

0.0

7.3


4.8%

1.3 4.9%

0.2%

-1.5 -5.5%

5.8%

5.4 4.3%


0.6

0.8

-21.3%

3.9

SBU Central Eastern Europe’s first quarter revenue decreased by 6 percent from the comparison period. Lower sales volumes decreased revenue by 9 percent. In Poland, the exceptionally long winter weakened paint sales during the period under review. Sales were also affected by the economic uncertainty and declining consumer confidence. Increases in sales prices increased revenue by 3 percent and exchange rate fluctuations increased it by one percent. SBU Central Eastern Europe's first quarter operating profit, excluding non-recurring items and relative profitability, increased clearly from the comparison period. Profitability was improved, in particular, by the restructuring measures carried out in the area and the streamlining of operations. The considerable non-recurring items in the comparison period were related to the streamlining program underway in the Group.

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TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900



Cash Flow, Financing Activities, and Financial Risk Management

Tikkurila’s financial position and liquidity remained at a good level during the review period. Cash flow from operations in January–March totaled EUR -9.2 (-16.5) million. Net working capital totaled EUR 112.7 (117.0) million at the end of the review period. The net cash flow from the investing activities was EUR -4.5 (-6.3) million, when taking into account the acquisitions and divestments. Cash flow after capital expenditure totaled EUR -13.7 (-22.8) million during the review period. The increase in cash flow was based on lower investments and lower income tax payments than those of the comparison period. Interest-bearing debt amounted to EUR 106.5 (134.4) million at the end of the review period, and net debt was EUR 94.0 (121.0) million. At the end of the review period, cash and cash equivalents amounted to EUR 12.5 (13.4) million, and short-term interest-bearing debt totaled EUR 46.0 (73.7) million, including the company’s issued commercial papers for a total nominal amount of EUR 43.5 (16.0) million. Moreover, the Group had long-term interest-bearing debt totaling EUR 60.6 (60.7) million. At the end of March, the Group had a total of EUR 155.7 (96.5) million of unused committed credit facilities or credit limits. During the first quarter of 2013, net financial income was EUR 0.4 (-3.7) million, and interest expenses and other financing expenses totaled EUR 0.3 (1.5) million. The average capital-weighted interest rate of interest-bearing debt was 1.7 (2.4) percent. The net profit was positively affected by a total of EUR 0.7 (-2.2) million during the review period based on the impact of realized and unrealized exchange rate differences recognized. At the end of March, the equity ratio was 43.4 (32.1) percent, and gearing was 45.5 (76.4) percent. The Annual General Meeting of Tikkurila Oyj decided after the review period, on April 10, 2013 to distribute EUR 33.5 million dividends based on 2012 results, which affects Group's financial position and which will increase the gearing from April 2013. At the end of the review period, the nominal value of open foreign exchange rate forward agreements was EUR 32.8 (68.2) million and the corresponding market value was EUR 0.0 (-2.4) million. On March 31, 2013, the average nominal hedge ratio, based on those non-euro currencies that have cost-efficient hedging instruments and that are not tied to euro, was about 51 percent.

Capital Expenditure In January–March 2013, the gross capital expenditure excluding acquisitions amounted to EUR 2.6 (4.6) million. No major single investments were carried out during the review period. Capital expenditures in the period under review were related to, among others, the introduction of ERP system and filling automation in Russia, the modernization investments of crane systems and forklifts in the production site in Sweden, the modernization of palletizing robots in Finland, and the construction of new warehouse for packaging materials in Poland. The Group’s depreciation, amortization and impairment losses amounted to EUR 5.2 (5.4) million in January−March. The Group performs impairment tests in accordance with the IAS 36 standard. Research and Development In January–March 2013, Tikkurila’s research and development expenses totaled EUR 2.7 (2.7) million, corresponding to 2.0 (1.8) percent of revenue.

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TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900



During the first quarter, the research and development function focused on the preparation work for product launches, harmonization of product portfolio and finding alternatives for certain raw materials.

Human Resources At the end of March 2013, the Tikkurila Group employed 3,231 (3,438) people. The average number of employees in January–March was 3,216 (3,459). Tikkurila Group’s number of employees at the end of each quarter is presented below split by SBU, starting from the first quarter of 2012.

Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013

SBU East 1,522 1,534 1,500 1,437 1,420

SBU Scandinavia 410 444 412 404 398

SBU Finland 624 685 562 558 562

SBU CEE 848 853 845 788 820

Group functions 34 36 36 36 31

Total 3,438 3,552 3,355 3,223 3,231

Shares and Shareholders At the end of March 2013, Tikkurila’s share capital was EUR 35.0 million, and the total number of registered shares was 44,108,252. At the end of March 2013, Tikkurila held no treasury shares. According to Euroclear Finland Oy’s register, Tikkurila had a total of some 22,500 shareholders on March 31, 2013. A list of the largest shareholders registered in the book-entry account system is regularly updated and is available on Tikkurila’s website at www.tikkurilagroup.com/investors/share_information/shareholders. At the end of March, the closing price of Tikkurila’s share was EUR 16.40. In January–March, the volume-weighted average share price was EUR 15.80, the highest price EUR 16.59, and the lowest EUR 14.77. At the end of March, the market value of Tikkurila Oyj’s shares was EUR 723.4 million. During January–March, a total of 3.1 million Tikkurila shares, corresponding to approximately 7.0 percent of the number of registered shares, were traded on NASDAQ OMX Helsinki Ltd. The value of the traded volume was EUR 48.6 million.

Share-based Commitment and Incentive Plan In order to commit and motivate key personnel, the Board of Directors of Tikkurila Oyj decided on a new share-based plan in February 2012. This share-based plan includes three performance periods. The Board of Directors of the company decides the performance criteria of the plan and their targets at the beginning of each performance period. The Board of Directors of Tikkurila Oyj decided in March 2013 that the potential reward from the performance period 2013–2015 is based on the Tikkurila Group’s Operative Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Net Debt for financial years 2013–2015, and target scale based on those indicators. If and to the extent that the pre-set financial criteria will be met, rewards will be paid in 2016 partly in the company’s shares and partly in cash. No reward will be paid, even of financial targets would be reached, if a key employee’s employment or service contract terminates before the reward payment. The

http://www.tikkurilagroup.com/investors/share_information/shareholders

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TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900



target group of the share-based plan consists of ten key persons, which are members of the Group or significant business area management. The key persons were chosen by the Board of Directors. Based on the commitment and incentive plan, and stemming from both the performance period 2012–2014 as well as the performance period 2013–2015, during the first quarter a total of EUR 0.2 (during the first quarter 2012: 0.0) million was recognized as personnel expenses in the Group income statement according to IFRS 2 standard. Correspondingly, the estimated total value of the plan for the performance period of 2012–2014 totaled approximately EUR 2.4 million, and the total value for the performance period 2013–2015 about EUR 0.2 million, at the end of the review period. The total value will be expensed over a three-year period until when the potential payments will take place if the terms and conditions of the plan are met. Half of the payments will be in shares, and a half will be settled in cash. Share price changes as well as the terms and conditions of the plan will determine the value and corresponding liability in relation to the cash-settled portion.

Decisions of the Annual General Meeting The Annual General Meeting of Tikkurila Oyj held on April 10, 2013, approved the Financial Statements for 2012 and decided to discharge the members of the Board of Directors and the President and CEO from liability. The Annual General Meeting approved a EUR 0.76 dividend per share for the financial year 2012. The rest will be retained and carried further in the company's unrestricted equity. The dividend will be paid to a shareholder who is registered in the company's shareholder register maintained by Euroclear Finland Ltd on the dividend record date, April 15, 2013. The dividend will be paid on April 24, 2013. The Annual General Meeting decided that the Board of Directors consists of seven members. Eeva Ahdekivi, Harri Kerminen, Riitta Mynttinen, Jari Paasikivi, Pia Rudengren, Aleksey Vlasov and Petteri Walldén were re-elected to the Board of Directors until the end of the next Annual General Meeting. The Annual General Meeting decided that the remuneration to the members of the Board of Directors will stay at the previous level. The annual remuneration to the members of the Board of Directors will be as follows: EUR 57,000 for the Chairman, EUR 37,000 for the Vice Chairman and EUR 31,000 for other members of the Board of Directors. Approximately 40 percent of the annual remuneration will be paid in Tikkurila Oyj's shares acquired from the market and the rest in cash. The shares will be acquired directly on behalf of the Board members within two weeks from the release of the interim report for January 1−March 31, 2013. Furthermore, a meeting fee for each meeting of the Board and its Committees (excluding decisions without a meeting) will be paid to the members of the Board of Directors as follows: EUR 600 for meetings held in the home state of a member and EUR 1,200 for meetings held outside the home state of a member. The remuneration paid for telephone or video meetings shall be EUR 600. Travel expenses will be paid according to the travel policy of the company. The Annual General Meeting decided that the Auditor's fees will be paid against an invoice approved by the company. KPMG Oy Ab was re-elected as the company's auditor until the end of the next Annual General Meeting, with APA Toni Aaltonen nominated by KPMG as the principal auditor.

The Annual General Meeting authorized the Board of Directors to decide upon the repurchase of a maximum of 4,400,000 company's own shares. The shares may be repurchased to be used for financing or implementing possible mergers and acquisitions, developing the company's equity structure, improving the liquidity of the company's shares or to be used for the payment of the annual fees payable to the members of the Board of Directors or for implementing the share-based incentive programs of the company. The repurchase authorization will be valid until the end of the next Annual General Meeting, however, no longer than until June 30, 2014.

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TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900



The Annual General Meeting authorized the Board of Directors to decide to transfer company's own shares held by the company or to issue new shares limited to a maximum of 8,800,000 shares. The company's own shares held by the company may be transferred and the new shares may be issued either against payment or without payment. The new shares may be issued and the company's own shares held by the company may be transferred to the company's shareholders in proportion to their current shareholdings in the company or deviating from the shareholders' pre-emptive 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 company's equity structure, improving the liquidity of the company's shares or to be used for the payment of the annual fees payable to the members of the Board of Directors. The authorization will be valid until the end of the next Annual General Meeting, however, no longer than until June 30, 2014.

Chairman of the Tikkurila Board and Committee members The Board of Directors of Tikkurila elected from among its members Jari Paasikivi as Chairman and Petteri Walldén as Vice Chairman of the Board of Directors. Eeva Ahdekivi was elected as Chairman and Riitta Mynttinen and Pia Rudengren as members of the Audit Committee. Jari Paasikivi was elected as Chairman and Harri Kerminen and Petteri Walldén as members of the Remuneration Committee.

Short-term Risks and Uncertainties Tikkurila’s business involves a number of strategic, operational, financial and hazard risks. Tikkurila strives to recognize, assess and react to risks as proactively as possible, and restrict their possible adverse effects. Tikkurila’s Financial Statement Release for the 2012 financial year describes the key short-term risk areas, where no significant changes have taken place compared to the situation stated in the release. The key risk areas are related to the overall macroeconomic situation, the competitive situation and possible changes in the value chain and product distribution. Tikkurila's risk management principles are available on Tikkurila's website at www.tikkurilagroup.com. Additional information is available for example in the corporate governance statement and Board of Directors review in relation to risks applicable and relevant to Tikkurila's business in both short term and long term. Moreover, financial risks are described in the Notes to the 2012 Financial Statements.

Outlook for 2013 Tikkurila reiterates its guidance 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 outlook of the economic development of Russia, which is one of the key markets of Tikkurila, has weakened in comparison to the publishing date of Tikkurila’s Financial Statement Release. The average GDP growth of Russia, Sweden, Finland, and Poland, is estimated to be slightly over one 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.

http://www.tikkurilagroup.com/

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TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900



Summary Financial Statements and Notes This interim financial report is prepared in accordance with IAS 34 Interim Financial Reporting standard. The same accounting policies have been applied in this interim financial report as in the annual financial statements for 2012, with the exception of the following new or revised or amended standards and interpretations which have been applied from the beginning of 2013. Some of them are applied retrospectively and therefore comparison information is changed accordingly. The effect of restatements on the Group's cumulative financial information of each four quarter 2012, full year information 2012 as well as restated consolidated statement of financial position as of Jan 1, 2012 is disclosed in Note 1 in this interim report. This interim financial report is unaudited. As a result of rounding differences, the figures presented in the tables may not add up to the total. The following new or revised or amended standards and interpretations have been applied from January 1, 2013:

− Amendments to IAS 1 Presentation of Items of Other Comprehensive Income − IFRS 13 Fair Value Measurement − IFRS 10 Consolidated Financial Statements − IAS 27 (revised 2011) Separate Financial Statements − IAS 28 (revised 2011) Associates and Joint Ventures − IFRS 11 Joint Arrangements − IAS 19 (revised 2011) Employee Benefits − IFRS 12 Disclosures of Interest in Other Entities − Amendments to IFRS 7 Financial Instruments: Disclosures - Offsetting Financial Assets and

Financial liabilities − Annual Improvements to IFRSs 2009-2011, May 2012

Above mentioned revised IAS 19 and new standard IFRS 11 Joint Arrangements have had a significant effect on Tikkurila Group's figures. According the revised IAS 19 the actuarial gains and losses on defined benefit pension plans are to be recognized immediately in other comprehensive income and the possibility of corridor method approach was eliminated. The finance cost is calculated on net funding basis according the revised IAS 19. Tikkurila Group applied according the earlier accounting principles the corridor method. The actuarial gains or losses were recognized in profit or loss over the average remaining working lives of the participating employees to the extent that they exceeded the higher of the following: 10% of the pension obligation or 10% of the fair value of plan assets. Tikkurila Group had at year-end 2012 unrecognized actuarial losses on defined benefit pensions and therefore revised IAS 19 had a negative effect on the Group's equity. As revised IAS 19 was applied retrospectively, the Group has adjusted the numbers presented in annual report 2012 accordingly. As a result the equity attributable to owners of the parent decreased EUR 4.2 million, net of tax and defined benefit pension liability increased EUR 5.0 million. In this context, the Group reviewed more closely other long-term employee benefits and as following to this, the liability related to long-service benefits, EUR 3.9 million was recognized. This decreased equity attributable to owners of the parent EUR 2.9 million, net of tax. The Group has used the proportionate consolidation for its joint venture, Alcro Parti AB in which the Group's ownership is 50%. According the new standard IFRS 11 the joint ventures are required to be accounted for using the equity method. This change in accounting principles decreased Revenue 2012 EUR 1.4 million and EBIT EUR 0.3 million. The change however has no impact on net profit for the year 2012. Due to the change, the Group's total assets decreased EUR 0.3 million and the change had an impact on Group's consolidated

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cash flows, which earlier included the cash flows of the joint venture according the Group's ownership percent. Effect of restatements due IFRS 11, revised IAS 19 and other long-service benefit are disclosed in Note 1. Amendments to IAS 1 had an impact on presentation of other comprehensive income: items recognized in other comprehensive income (OCI) are classified as items that may subsequently be reclassified in profit or loss and as items that will not be reclassified in profit or loss. At the same time with new standard IFRS 13, amendments were done in IAS 34 and due these amendments the fair value hierarchy information is disclosed in interim report. In addition the IFRS 12 standard will have effect on notes to be disclosed in forthcoming annual financial statements.

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

EUR 1,000 1-3/2013

Restated 1-3/2012

Restated 1-12/2012

Revenue 138,424 148,614 670,439

Other operating income 734 430 3,266

Expenses -123,727 -137,858 -582,237

Depreciation, amortization and impairment losses -5,199 -5,414 -25,140

Operating profit 10,232 5,772 66,328

Total financial income and expenses 445 -3,705 -7,380

Share of profit or loss of associates and joint ventures -168 -24 316

Profit before taxes 10,509 2,043 59,264

Income taxes -3,904 -2,497 -18,599

Net result for the period 6,605 -454 40,665

Other comprehensive income Items that will not be reclassified to profit or loss Defined benefit plan actuarial gains (+) / losses (-) - - -130

Income taxes relating to items that will not be reclassified to profit or loss - - -173

Total items that will not be reclassified to profit or loss - - -303

Items that may be reclassified subsequently to profit or loss

Available-for-sale financial assets 24 222 237

Foreign currency translation differences for foreign operations 1,204 6,212 6,082 Income taxes relating to items that may be reclassified subsequently to profit or loss -10 -84 -68

Total items that may be reclassified subsequently to profit or loss 1,218 6,350 6,251

Total comprehensive income for the period 7,823 5,896 46,613

Net result attributable to: Owners of the parent 6,605 -454 40,665

Non-controlling interest - - -

Net result for the period 6,605 -454 40,665

Total comprehensive income attributable to: Owners of the parent 7,823 5,896 46,613


Total comprehensive income for the period 7,823 5,896 46,613

Earnings per share of the net profit attributable to owners of the parent

Basic earnings per share (EUR) 0.15 -0.01 0.92

Diluted earnings per share (EUR) 0.15 -0.01 0.92

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION EUR 1,000

ASSETS Mar 31, 2013

Restated Mar 31, 2012

Restated Dec 31, 2012

Restated Jan 1, 2012

Non-current assets

Goodwill 67,066 68,958 66,971 68,696

Other intangible assets 26,656 30,752 26,922 30,155

Property, plant and equipment 111,820 114,316 112,785 112,570

Investment in associates and joint ventures 1,739 1,634 1,859 1,646

Available-for-sale financial assets 3,285 3,262 3,281 3,028

Non-current receivables 8,986 10,769 9,870 6,846

Deferred tax assets 9,751 8,236 8,772 7,264

Total non-current assets 229,303 237,927 230,460 230,205

Current assets Inventories 95,464 100,937 84,766 94,690

Interest-bearing receivables 701 624 332 63

Non-interest-bearing receivables 138,978 140,498 102,051 95,870

Cash and cash equivalents 12,503 13,376 15,739 10,301

Non-current assets held for sale - - - 4,894

Total current assets 247,646 255,435 202,888 205,818

Total assets 476,949 493,362 433,348 436,023

EQUITY AND LIABILITIES Mar 31, 2013

Restated Mar 31, 2012

Restated Dec 31, 2012

Restated Jan 1, 2012

Share capital 35,000 35,000 35,000 35,000

Other reserves 359 359 359 359

Fair value reserve 1,833 1,804 1,815 1,636

Reserve for invested unrestricted equity 40,000 40,000 40,000 40,000

Translation differences -6,818 -10,099 -8,018 -16,281

Retained earnings 136,280 91,226 129,753 123,992

Equity attributable to owners of the parent 206,654 158,290 198,909 184,706

Non-controlling interest - - - -

Total equity 206,654 158,290 198,909 184,706

Non-current liabilities Interest-bearing non-current liabilities 60,575 60,659 60,628 60,345

Other non-current liabilities 1,334 1,160 1,160 2,382 Defined benefit pension and other long-term employee benefit liabilities 27,175 25,485 26,432 25,153

Provisions 907 960 924 534

Deferred tax liabilities 11,303 11,154 11,607 10,980

Total non-current liabilities 101,294 99,418 100,751 99,394

Current liabilities Interest-bearing current liabilities 45,956 73,700 35,925 49,504

Non-interest-bearing current liabilities 122,814 161,713 97,592 101,579

Provisions 231 241 171 222

Liabilities classified as held for sale - - - 618

Total current liabilities 169,001 235,654 133,688 151,923

Total equity and liabilities 476,949 493,362 433,348 436,023

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CONSOLIDATED FINANCIAL STATEMENT OF CASH FLOWS 1-3/2013 Restated 1-3/2012

Restated 1-12/2012

EUR 1,000

CASH FLOW FROM OPERATING ACTIVITIES Net result for the period 6,605 -454 40,665

Adjustments for: Non-cash transactions 6,916 8,506 31,120

Interest and other financial expenses 666 3,985 8,775

Interest income and other financial income -1,111 -280 -1,394

Income taxes 3,904 2,497 18,600

Funds from operations before change in net working capital 16,980 14,254 97,766

Change in net working capital -20,792 -20,030 262

Interest and other financial expenses paid -937 -1,786 -6,636

Interest and other financial income received 236 902 755

Income taxes paid -4,657 -9,869 -26,370

Total cash flow from operations -9,170 -16,529 65,777

CASH FLOW FROM INVESTING ACTIVITIES Other capital expenditure -5,307 -6,287 -16,827

Proceeds from sale of assets 756 165 714

Non-current loan receivables decrease (+), increase (-) 4 -134 283

Dividends received - - 310

Net cash used in investing activities -4,547 -6,256 -15,520

Cash flow before financing -13,717 -22,785 50,257

CASH FLOW FROM FINANCING ACTIVITIES Non-current borrowings, increase (+), decrease (-) - - -

Current financing, increase (+), decrease (-) 10,225 23,957 -13,989

Dividends paid - - -32,199

Other 270 1,872 1,420

Net cash used in financing activities 10,495 25,829 -44,768

Net change in cash and cash equivalents -3,222 3,044 5,489

Cash and cash equivalents at the beginning of period 15,739 10,301 10,301

Effect of exchange rate fluctuations on cash held 14 305 387

Cash and cash equivalents transferred in assets held for sale - -336 -336

Cash and cash equivalents at the end of period 12,503 13,376 15,739

Net change in cash and cash equivalents -3,222 3,044 5,489

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

EUR 1,000

Equity attributable to the owners of the parent

Non-controlling

interest

Total equity

Share capital

Other reserves

Fair value reserve

Reserve for invested

unrestricted equity

Translation differences

Retained earnings

Total

Equity before restatements at Jan 1, 2012

35,000

359

1,636

40,000

-16,281

130,786

191,500

-

191,500

Effect of restatements to equity

-

-

-

-

-

-6,794

-6,794

-

-6,794

Equity at Jan 1, 2012 35,000 359 1,636 40,000 -16,281 123,992 184,706 - 184,706

Total comprehensive income for the period - - 168 - 6,182 -454 5,896 - 5,896 Adjustment arising from hyperinflation - - - - - -113 -113 - -113

Dividends paid - - - - - -32,199 -32,199 - -32,199

Equity at Mar 31, 2012 35,000 359 1,804 40,000 -10,099 91,226 158,290 - 158,290

Equity at Jan 1, 2013 35,000 359 1,815 40,000 -8,018 129,753 198,909 - 198,909

Total comprehensive income for the period - - 18 - 1,200 6,605 7,823 - 7,823

Share-based compensation - - - - - 95 95 - 95

Adjustment arising from hyperinflation - - - - - -173 -173 - -173

Dividends paid - - - - - - - - -

Equity at Mar 31, 2013 35,000 359 1,833 40,000 -6,818 136,280 206,654 - 206,654

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OPERATING SEGMENTS

Tikkurila's business activities are organized in four reporting segments based on its strategy to be the leading provider of paint-related architectural solutions for consumers and professionals in the Nordic area as well as in Russia and other selected Eastern European countries. 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 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. 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 1-3/2013 1-3/2012 1-12/2012

EUR 1,000

SBU East 35,625 40,254 242,840

SBU Scandinavia 46,922 49,551 194,154

SBU Finland 30,096 31,378 107,906

SBU Central Eastern Europe 25,781 27,432 125,539

Total 138,424 148,614 670,439

EBIT by segment 1-3/2013 1-3/2012 1-12/2012

EUR 1,000

SBU East -1,063 -296 29,897

SBU Scandinavia 5,416 4,978 23,646

SBU Finland 5,433 3,363 10,595

SBU Central Eastern Europe 1,251 -1,517 5,355

Tikkurila common -805 -757 -3,164

Eliminations 0 0 0

Total 10,232 5,772 66,328

Non-allocated items: Total financial income and expenses 445 -3,705 -7,380

Share of profit or loss of associates and joint ventures -168 -24 316

Profit before taxes 10,509 2,043 59,264

Assets by segment Mar 31, 2013 Mar 31, 2012 Dec 31, 2012

EUR 1,000

SBU East 134,766 137,800 127,062

SBU Scandinavia 169,083 165,228 161,860

SBU Finland 87,025 92,904 74,674

SBU Central Eastern Europe 85,911 96,087 82,231

Assets, non-allocated to segments 83,641 89,354 47,054

Eliminations -83,477 -88,012 -59,532

Total assets 476,949 493,362 433,348

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Non-recurring items by segment

EUR 1,000 SBU East SBU

Scandinavia SBU Finland SBU Central

Eastern Europe Tikkurila common

Total 1-3/2013

Personnel related - -413 - - - -413

Divestments and restructuring of Group organization - - - 20 - 20

Gain on sale of available-for-sale financial assets - - 478 - - 478

Total - -413 478 20 - 85




Total 1-3/2012

Personnel related -505 -193 -1,933 -524 -124 -3,279 Divestments and restructuring of Group organization - - - -1,039 - -1,039

Total -505 -193 -1,933 -1,563 -124 -4,318




Total 1-12/2012

Personnel related -532 -518 -2,011 -728 -131 -3,919 Divestments and restructuring of Group organization - -38 - -1,208 - -1,246

Impairment losses -2,100 -85 - -1,853 - -4,038 Change in fair value of contingent consideration - - - 1,853 - 1,853

Total -2,632 -640 -2,011 -1,936 -131 -7,350

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CHANGES IN PROPERTY, PLANT AND EQUIPMENT 1-3/2013 1-3/2012 1-12/2012

EUR 1,000

Carrying amount at the beginning of period 112,785 112,570 112,570

Additions 1,933 3,556 14,640

Disposal of subsidiaries and businesses - -112 -110

Disposals -32 -224 -449


Exchange rate differences and other changes 1,110 2,660 3,580

Carrying amount at the end of period 111,820 114,316 112,785

Tikkurila Group had contractual commitments for purchase of property, plant and equipment EUR 0.9 (2.4) million at the end of March 2013.

CHANGES IN INTANGIBLE ASSETS 1-3/2013 1-3/2012 1-12/2012

EUR 1,000

Carrying amount at the beginning of period 93,892 98,850 98,850

Additions 647 1,090 3,475

Disposal of subsidiaries and businesses - -1 -1

Disposals - -3 -3


Exchange rate differences and other changes 406 1,054 -735

Carrying amount at the end of period 93,722 99,710 93,892

Tikkurila Group had contractual commitments for intangible assets EUR 0.2 (0.0) million at the end of March 2013.

INVENTORIES

Write-down of inventory for a total amount of EUR 0.4 (0.8) million was recognized until end of March 2013.

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RELATED PARTY TRANSACTIONS

Parties are considered as each other’s related parties if one party is able to control or has significant influence over financial and operating decision making of another party. Tikkurila Group has related party relationships with the parent company of the Group (Tikkurila Oyj), subsidiaries, associates and joint ventures. Related parties include members of Board of Directors and the Group’s Board of Management, CEO as well as their family members.

Related party transactions are presented below

EUR 1,000 1-3/2013 1-3/2012 1-12/2012

Joint ventures

Sales 1,046 996 4,702

Receivables 439 342 238

Liabilities 43 40 26

Associates Sales 4,589 5,639 20,724

Purchases 253 177 1,261

Receivables 5,597 7,190 3,151

Liabilities - 4 - Share-based Commitment and Incentive Plan

In order to commit and motivate key personnel, the Board of Directors of Tikkurila Oyj decided on a new share-based plan in 2012, and it also selected ten key persons, each of which has a right to participate in this plan. In order to participate, each person has to buy Tikkurila Oyj's shares from the market. The maximum amount of shares under this plan has been individually defined for each participant. Based on the commitment and incentive plan, and stemming from both the performance period 2012-2014 as well as the performance period 2013-2015, during the first quarter a total of EUR 0.2 (during the first quarter 2012: 0.0) million was recognized as personnel expenses in the Group income statement according to IFRS 2 standard. Correspondingly, the estimated total value of the plan for the performance period of 2012–2014 totaled approximately EUR 2.4 million, and the total value for the performance period 2013-2015 about EUR 0.2 million, at the end of the review period. The total value will be expensed over a three-year period until when the potential payments will take place if the terms and conditions of the plan are met. Half of the payments will be in shares, and a half will be settled in cash. Share price changes as well as the terms and conditions of the plan will determine the value and corresponding liability in relation to the cash-settled portion.

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COMMITMENTS AND CONTINGENT LIABILITIES Mar 31, 2013 Mar 31, 2012 Dec 31, 2012

EUR 1,000

Mortgages given as collateral for liabilities in the statement of financial position

Other loans - - -

Mortgages given 102 102 102

Total loans - - -

Total mortgages given 102 102 102

Contingent liabilities

Guarantees On behalf of own commitments 311 508 230

On behalf of others 2,528 2,957 2,436

Lease obligations 41,831 37,449 41,152

Total contingent liabilities 44,670 40,914 43,818

DERIVATIVE INSTRUMENTS

EUR 1,000 Mar 31, 2013 Mar 31, 2012 Dec 31, 2012

Nominal value Fair value Nominal value Fair value Nominal value Fair value

Currency derivatives

Currency forwards 32,811 -4 68,203 -2,444 47,919 -206

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FAIR VALUE HIERARCHY

EUR 1,000

31.3.2013 Level 1 Level 2 Level 3 Total

Recurring fair value measurements

Available-for-sale financial assets - 2,512 773 3,285

Derivatives (in assets) - 358 - 358

Recurring fair value measurements

Derivatives (in liabilities) - 362 - 362

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: inputs other than quoted prices included within Level 1 that are observable for the assets or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: inputs for the assets or liability that are not based on observable market data (unobservable inputs).

Reconciliation of Level 3 fair value measured financial assets

Available-for-sale financial

assets

Carrying amount at Jan 1 776

Translation differences in other comprehensive income -3

Carrying amount at Mar 31 773

In review period no gains or losses of available-for-sale financial assets in fair value hierarchy level 3 were recognized. Available-for-sale financial assets in level 3 include unquoted shares that are measured at amortized cost. These shares are of business supportive nature and personnel’s recreational activities related long-term investments that Tikkurila is not intending to sell. These shares have no quoted market price in an active market and their fair values cannot be measured reliably as the change range for reasonable measurements is significant and the probabilities of various measurements cannot be reasonably estimated.

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KEY PERFORMANCE INDICATORS 1-3/2013/ 1-3/2012/ 1-12/2012/

Mar 31, 2013 Mar 31, 2012 Dec 31, 2012

Earnings per share / basic, EUR 0.15 -0.01 0.92

Earnings per share / diluted, EUR 0.15 -0.01 0.92

Cash flow from operations, EUR 1,000 -9,170 -16,529 65,777

Cash flow from operations / per share, EUR -0.21 -0.37 1.49

Capital expenditure, EUR 1,000 5,307 6,287 16,827

of revenue % 3.8% 4.2% 2.5%

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 Weighted average number of shares, adjusted for dilutive effect (1,000)

1) 44,204 44,108 44,179

Number of shares at the end of period, adjusted for dilutive effect (1,000)

1) 44,214 44,108 44,218

Equity attributable to the owners of the parent / per share, EUR 4.69 3.59 4.51

Equity ratio, % 43.4% 32.1% 45.9%

Gearing, % 45.5% 76.4% 40.6%

Interest-bearing financial liabilities (net), EUR 1,000 94,028 120,983 80,814

Return on capital employed (ROCE), % p.a. 22.6% 19.0% 21.0%

Personnel (average) 3,216 3,459 3,422 1) When calculating the dilution effect for the number of shares, it has been assumed that all the remuneration to be paid in shares would be issued as new shares, even though it is also possible that those shares might be acquired from the markets. Moreover, the number of shares adjusted for dilutive effect is based on estimates for Tikkurila Group’s future financial performance, and its impact on the outcome of the share-based commitment and incentive plan.

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DEFINITIONS OF KEY FIGURES

Earnings per share (EPS), basic

Net profit of the period attributable to the owners of the parent

Shares on average

Earnings per share (EPS), diluted

Net profit of the period attributable to the owners of the parent

Weighted average number of shares, adjusted for dilutive effect

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 liabilities - money market investments - cash and cash equivalents

Net working capital

Inventories + interest-free receivables, excluding current tax assets, accrued interest income and other prepaid financial items - interest-free liabilities, excluding current tax liabilities, accrued interest expenses and other accrued financial items

Return on capital employed (ROCE), % p.a. **

Operating profit + share of profit or loss of associates and joint ventures x 100

(Net working capital + property, plant and equipment ready for use + intangible assets ready for use '+ investments in associates and joint ventures)* * 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

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SEGMENT INFORMATION BY QUARTER

Revenue by segment 1-3/2012 4-6/2012 7-9/2012 10-12/2012 1-3/2013

EUR 1,000

SBU East 40,254 82,392 75,592 44,603 35,625

SBU Scandinavia 49,551 55,451 52,182 36,969 46,922

SBU Finland 31,378 34,346 26,444 15,738 30,096

SBU Central Eastern Europe 27,432 36,873 37,072 24,162 25,781

Total 148,614 209,061 191,290 121,473 138,424

EBIT by segment 1-3/2012 4-6/2012 7-9/2012 10-12/2012 1-3/2013

EUR 1,000

SBU East -296 14,276 13,836 2,080 -1,063

SBU Scandinavia 4,978 8,391 11,120 -843 5,416

SBU Finland 3,363 6,933 3,404 -3,106 5,433

SBU Central Eastern Europe -1,517 4,320 3,649 -1,098 1,251

Tikkurila common -757 -733 -612 -1,062 -805

Eliminations 0 0 0 0 0

Total 5,772 33,186 31,398 -4,028 10,232

Non-allocated items: Total financial income and

expenses -3,705 -2,367 -1,052 -256 445 Share of profit or loss of associates and joint ventures -24 185 67 88 -168

Profit / loss before taxes 2,043 31,005 30,413 -4,196 10,509

Assets by segment Mar 31, 2012 Jun 30, 2012 Sep 30, 2012 Dec 31, 2012 Mar 31, 2013

EUR 1,000

SBU East 137,800 153,437 148,257 127,062 134,766

SBU Scandinavia 165,228 176,734 169,329 161,860 169,083

SBU Finland 92,904 88,408 83,850 74,674 87,025

SBU Central Eastern Europe 96,087 101,880 100,742 82,231 85,911

Assets, non-allocated to segments 89,354 100,368 51,360 47,054 83,641

Eliminations -88,012 -91,456 -66,912 -59,532 -83,477

Total assets 493,362 529,373 486,626 433,348 476,949

Vantaa, April 24, 2013 TIKKURILA OYJ BOARD OF DIRECTORS

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Note 1 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

before restatement

effect of restatement restated

EUR 1,000 1-12/2012

1-12/2012

Revenue 671,836 -1,397 670,439

Other operating income 3,266 - 3,266

Expenses -583,409 1,172 -582,237

Depreciation, amortization and impairment losses -25,140 - -25,140

Operating profit 66,553 -225 66,328

Total financial income and expenses -7,373 -7 -7,380

Share of profit or loss of associates and joint ventures 62 254 316

Result before taxes 59,242 22 59,264

Income taxes -18,664 65 -18,599

Net result for the period 40,578 87 40,665

Other comprehensive income

Items that will not be reclassified to profit or loss Defined benefit plan actuarial gains (+) / losses (-) - -130 -130

Income taxes relating to items that will not be reclassified to profit or loss - -173 -173

Total items that will not be reclassified to profit or loss - -303 -303

Items that may be reclassified subsequently to profit or loss

Available-for-sale financial assets 237 - 237

Foreign currency translation differences for foreign operations 6,248 -166 6,082 Income taxes relating to items that may be reclassified subsequently to profit or loss -68 - -68

Total items that may be reclassified subsequently to profit or loss 6,417 -166 6,251

Total comprehensive income for the period 46,995 -382 46,613

Net profit attributable to: Owners of the parent 40,578 87 40,665



Total comprehensive income attributable to: Owners of the parent 46,995 -382 46,613




Basic earnings per share (EUR) 0.92 0.00 0.92

Diluted earnings per share (EUR) 0.92 0.00 0.92

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

EUR 1,000

before restatement


before restatement


ASSETS Dec 31, 2012

Dec 31, 2012 Jan 1, 2012

Jan 1, 2012

Non-current assets

Goodwill 66,971 - 66,971 68,696 - 68,696

Other intangible assets 26,922 - 26,922 30,155 - 30,155 Property, plant and equipment 112,785 - 112,785 112,570 - 112,570 Investment in associates and joint ventures 1,070 789 1,859 971 675 1,646 Available-for-sale financial assets 3,281 - 3,281 3,028 - 3,028

Non-current receivables 10,631 -761 9,870 7,564 -718 6,846 Defined benefit pension assets 467 -467 - 491 -491 -

Deferred tax assets 6,627 2,145 8,772 4,932 2,332 7,264

Total non-current assets 228,754 1,706 230,460 228,407 1,798 230,205

Current assets Inventories 84,766 - 84,766 94,690 - 94,690

Interest-bearing receivables 332 - 332 63 - 63 Non-interest-bearing receivables 102,236 -185 102,051 96,023 -153 95,870 Cash and cash equivalents 15,927 -188 15,739 10,426 -125 10,301 Non-current assets held for sale - - - 4,894 - 4,894

Total current assets 203,261 -373 202,888 206,096 -278 205,818

Total assets 432,015 1,333 433,348 434,503 1,520 436,023

EQUITY AND LIABILITIES Dec 31, 2012

Dec 31, 2012 Jan 1, 2012

Jan 1, 2012

Share capital 35,000 - 35,000 35,000 - 35,000

Other reserves 359 - 359 359 - 359

Fair value reserve 1,815 - 1,815 1,636 - 1,636 Reserve for invested unrestricted equity 40,000 - 40,000 40,000 - 40,000

Translation differences -7,852 -166 -8,018 -16,281 - -16,281

Retained earnings 136,763 -7,010 129,753 130,786 -6,794 123,992

Equity attributable to owners of the parent 206,085 -7,176 198,909 191,500 -6,794 184,706

Non-controlling interest - - - - - -

Total equity 206,085 -7,176 198,909 191,500 -6,794 184,706

29 (44)


TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900



Non-current liabilities Interest-bearing non-

current liabilities 60,628 - 60,628 60,345 - 60,345 Other non-current liabilities 1,160 - 1,160 2,382 - 2,382 Defined benefit pension and other long-term employee benefit liabilities 17,772 8,660 26,432 16,743 8,410 25,153

Provisions 924 - 924 534 - 534

Deferred tax liabilities 11,678 -71 11,607 10,980 - 10,980

Total non-current liabilities 92,162 8,589 100,751 90,984 8,410 99,394

Current liabilities Interest-bearing current

liabilities 35,925 - 35,925 49,504 - 49,504 Non-interest-bearing current liabilities 97,672 -80 97,592 101,675 -96 101,579

Provisions 171 - 171 222 - 222 Liabilities classified as held for sale - - - 618 - 618

Total current liabilities 133,768 -80 133,688 152,019 -96 151,923

Total equity and

liabilities 432,015 1,333 433,348 434,503 1,520 436,023

30 (44)


TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900



CONSOLIDATED FINANCIAL STATEMENT OF CASH FLOWS

EUR 1,000

before restatement


before restatement


1-12/2012

1-12/2012 1-12/2011

1-12/2011 CASH FLOW FROM OPERATING ACTIVITIES

Net result for the period 40,578 87 40,665 35,487 - 35,487

Adjustments for: Non-cash transactions 31,509 -389 31,120 25,437 -266 25,171

Interest and other financial expenses 8,782 -7 8,775 12,051 -7 12,044 Interest income and other financial income -1,409 15 -1,394 -1,219 13 -1,206

Income taxes 18,664 -64 18,600 15,185 -70 15,115

Funds from operations before change in net working capital 98,124 -358 97,766 86,941 -330 86,611

Change in net working capital 240 22 262 -25,421 -46 -25,467 Interest and other financial expenses paid -6,645 9 -6,636 -12,700 7 -12,693 Interest and other financial income received 770 -15 755 1,070 -13 1,057

Income taxes paid -26,465 95 -26,370 -12,790 96 -12,694

Total cash flow from operations 66,024 -247 65,777 37,100 -286 36,814

CASH FLOW FROM INVESTING ACTIVITIES

Business combinations - - - -11,930 - -11,930

Other capital expenditure -16,827 - -16,827 -15,600 - -15,600

Proceeds from sale of assets 714 - 714 3,335 - 3,335 Non-current loan receivables decrease (+), increase (-) 283 - 283 263 - 263

Dividends received 132 178 310 120 166 286

Net cash used in investing activities -15,698 178 -15,520 -23,812 166 -23,646

Cash flow before financing 50,326 -69 50,257 13,288 -120 13,168

31 (44)


TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900



CASH FLOW FROM FINANCING ACTIVITIES

Non-current borrowings, increase (+), decrease (-) - - - -80,000 - -80,000 Current financing, increase (+), decrease (-) -14,032 43 -13,989 40,008 213 40,221

Dividends paid -32,199 - -32,199 -30,876 - -30,876

Other 1,457 -37 1,420 -1,264 -4 -1,268

Net cash used in financing activities -44,774 6 -44,768 -72,132 209 -71,923

Net change in cash and cash equivalents 5,552 -63 5,489 -58,844 89 -58,755

Cash and cash equivalents at the beginning of period 10,426 -125 10,301 69,328 -211 69,117 Effect of exchange rate fluctuations on cash held 387 0 387 -278 3 -275 Cash and cash equivalents transferred in assets held for sale -336 - -336 336 - 336 Cash and cash equivalents at the end of period 15,927 -188 15,739 10,426 -125 10,301

Net change in cash and cash equivalents 5,552 -63 5,489 -58,844 89 -58,755

32 (44)


TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900



before restatement


before restatement


1-12/2012/

1-12/2012/ 1-12/2011/

1-12/2011/ KEY PERFORMANCE INDICATORS

Dec 31, 2012

Dec 31, 2012

Dec 31, 2011

Dec 31, 2011

Earnings per share / basic, EUR 0.92 0.00 0.92 0.80 - 0.80 Earnings per share / diluted, EUR 0.92 0.00 0.92 0.80 - 0.80

Cash flow from operations, EUR 1,000 66,024 -247 65,777 37,100 -286 36,814 Cash flow from operations / per share, EUR 1.50 -0.01 1.49 0.84 -0.01 0.83 Capital expenditure, EUR 1,000 16,827 - 16,827 27,530 - 27,530

of revenue % 2.5% 0.0% 2.5% 4.3% - 4.3%

Shares (1,000), average 44,108 - 44,108 44,108 - 44,108 Shares (1,000), at the end of the reporting period 44,108 - 44,108 44,108 - 44,108 Weighted average number of shares, adjusted for dilutive effect (1,000) 44,179 - 44,179 44,108 - 44,108 Number of shares at the end of period, adjusted for dilutive effect (1,000) 44,218 - 44,218 44,108 - 44,108

Equity attributable to the owners of the parent / per share, EUR 4.67 -0.16 4.51 4.34 -0.15 4.19

Equity ratio, % 47.7% -1.8% 45.9% 44.1% -1.7% 42.4%

Gearing, % 39.1% 1.5% 40.6% 51.9% 2.0% 53.9% Interest-bearing financial liabilities (net), EUR 1,000 80,626 188 80,814 99,423 125 99,548 Return on capital employed (ROCE), % p.a. 21.0% 0.0% 21.0% 19.4% 0.0% 19.4%

Personnel (average) 3,425 -3 3,422 3,676 - 3,676

33 (44)


TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900



CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

before restatement


EUR 1,000 1-9/2012

1-9/2012

Revenue 550,051 -1,085 548,966

Other operating income 1,421 - 1,421

Expenses -463,523 918 -462,605





Profit before taxes 63,449 11 63,460

Income taxes -18,300 44 -18,256



Items that will not be reclassified to profit or loss Defined benefit plan actuarial gains (+) / losses (-) - - -

Income taxes relating to items that will not be reclassified to profit or loss - - -

Total items that will not be reclassified to profit or loss - - -

Items that may be reclassified subsequently to profit or loss Available-for-sale financial assets 162 - 162













34 (44)


TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900




EUR 1,000 before

restatement effect of

restatement restated

ASSETS Sep 30, 2012

Sep 30, 2012

Non-current assets

Goodwill 68,589 - 68,589

Other intangible assets 28,373 - 28,373

Property, plant and equipment 113,069 - 113,069

Investment in associates and joint ventures 1,064 729 1,793

Available-for-sale financial assets 3,207 - 3,207

Non-current receivables 12,939 -769 12,170

Defined benefit pension assets 345 -345 -

Deferred tax assets 7,276 2,385 9,661

Total non-current assets 234,862 2,000 236,862

Current assets Inventories 91,899 - 91,899

Interest-bearing receivables 343 - 343

Non-interest-bearing receivables 140,696 -223 140,473

Cash and cash equivalents 17,207 -158 17,049

Non-current assets held for sale - - -

Total current assets 250,145 -381 249,764

Total assets 485,007 1,619 486,626

EQUITY AND LIABILITIES Sep 30, 2012

Sep 30, 2012

Share capital 35,000 - 35,000

Other reserves 359 - 359

Fair value reserve 1,758 - 1,758

Reserve for invested unrestricted equity 40,000 - 40,000

Translation differences -6,880 -217 -7,097

Retained earnings 141,294 -6,739 134,555

Equity attributable to owners of the parent 211,531 -6,956 204,575


Total equity 211,531 -6,956 204,575

Non-current liabilities Interest-bearing non-current liabilities 60,665 - 60,665

Other non-current liabilities 1,431 - 1,431 Defined benefit pension and other long-term employee benefit liabilities 17,985 8,748 26,733

Provisions 902 - 902

Deferred tax liabilities 11,437 - 11,437

Total non-current liabilities 92,420 8,748 101,168

Current liabilities Interest-bearing current liabilities 45,615 - 45,615

Non-interest-bearing current liabilities 135,246 -173 135,073


Liabilities classified as held for sale - - -

Total current liabilities 181,056 -173 180,883

Total equity and liabilities 485,007 1,619 486,626

35 (44)


TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900



before restatement


CONSOLIDATED FINANCIAL STATEMENT OF CASH FLOWS 1-9/2012

1-9/2012

EUR 1,000

CASH FLOW FROM OPERATING ACTIVITIES Net result for the period 45,149 55 45,204

Adjustments for: Non-cash transactions 24,638 -291 24,347

Interest and other financial expenses 7,794 - 7,794

Interest income and other financial income -683 11 -672

Income taxes 18,300 -44 18,256

Funds from operations before change in net working capital 95,198 -269 94,929

Change in net working capital -14,083 -18 -14,101

Interest and other financial expenses paid -5,802 - -5,802

Interest and other financial income received 528 -11 517

Income taxes paid -22,739 79 -22,660

Total cash flow from operations 53,102 -219 52,883

CASH FLOW FROM INVESTING ACTIVITIES Business combinations - - -

Other capital expenditure -13,191 - -13,191

Proceeds from sale of assets 567 - 567

Non-current loan receivables decrease (+), increase (-) -100 - -100

Dividends received 132 178 310

Net cash used in investing activities -12,592 178 -12,414

Cash flow before financing 40,510 -41 40,469


Current financing, increase (+), decrease (-) -5,286 51 -5,235

Dividends paid -32,199 - -32,199

Other 2,338 -41 2,297

Net cash used in financing activities -35,147 10 -35,137

Net change in cash and cash equivalents 5,363 -31 5,332

Cash and cash equivalents at the beginning of period 10,426 -125 10,301


Cash and cash equivalents transferred in assets held for sale -336 - -336

Cash and cash equivalents at the end of period 16,009 -158 15,851


36 (44)


TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900



before restatement


1-9/2012/

1-9/2012/

KEY PERFORMANCE INDICATORS Sep 30, 2012

Sep 30, 2012

Earnings per share / basic, EUR 1.02 0.00 1.02

Earnings per share / diluted, EUR 1.02 0.00 1.02

Cash flow from operations, EUR 1,000 53,102 -219 52,883

Cash flow from operations / per share, EUR 1.20 0.00 1.20

Capital expenditure, EUR 1,000 13,191 - 13,191

of revenue % 2.4% 0.0% 2.4%

Shares (1,000), average 44,108 - 44,108

Shares (1,000), at the end of the reporting period 44,108 - 44,108 Weighted average number of shares, adjusted for dilutive effect (1,000) 44,168 - 44,168 Number of shares at the end of period, adjusted for dilutive effect (1,000) 44,207 - 44,207

Equity attributable to the owners of the parent / per share, EUR 4.80 -0.16 4.64

Equity ratio, % 43.6% -1.6% 42.0%

Gearing, % 42.1% 1.5% 43.6%

Interest-bearing financial liabilities (net), EUR 1,000 89,073 158 89,231


Personnel (average) 3,472 -3 3,469

37 (44)


TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900



CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME before



EUR 1,000 1-6/2012

1-6/2012

Revenue 358,393 -718 357,675

Other operating income 899 - 899

Expenses -308,477 597 -307,880






Income taxes -10,516 32 -10,484






Items that may be reclassified subsequently to profit or loss Available-for-sale financial assets -3 - -3













38 (44)


TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900




EUR 1,000 before



ASSETS Jun 30, 2012

Jun 30, 2012

Non-current assets

Goodwill 68,548 - 68,548



Investment in associates and joint ventures 1,016 819 1,835










Non-current assets held for sale 598 - 598


Total assets 527,778 1,595 529,373

EQUITY AND LIABILITIES Jun 30, 2012

Jun 30, 2012









Total equity 184,715 -6,834 177,881









Liabilities classified as held for sale 42 - 42



39 (44)


TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900



before restatement



1-6/2012

EUR 1,000

CASH FLOW FROM OPERATING ACTIVITIES Net result for the period 22,529 34 22,563


Interest and other financial expenses 6,568 - 6,568


Income taxes 10,516 -31 10,485


Change in net working capital -49,261 31 -49,230

Interest and other financial expenses paid -4,143 - -4,143



Total cash flow from operations -13,825 -103 -13,928





Dividends received 132 - 132

Net cash used in investing activities -9,693 - -9,693

Cash flow before financing -23,518 -103 -23,621


Current financing, increase (+), decrease (-) 57,780 19 57,799

Dividends paid -32,199 - -32,199

Other 698 -14 684

Net cash used in financing activities 26,279 5 26,284







40 (44)


TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900



before restatement


1-6/2012/

1-6/2012/

KEY PERFORMANCE INDICATORS Jun 30, 2012

Jun 30, 2012

Earnings per share / basic, EUR 0.51 0.00 0.51

Earnings per share / diluted, EUR 0.51 0.00 0.51

Cash flow from operations, EUR 1,000 -13,825 -103 -13,928

Cash flow from operations / per share, EUR -0.31 0.00 -0.32


of revenue % 2.8% 0.0% 2.8%

Shares (1,000), average 44,108 - 44,108



Equity ratio, % 35.0% -1.4% 33.6%

Gearing, % 84.0% 3.4% 87.4%




41 (44)


TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900



CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME before



EUR 1,000 1-3/2012

1-3/2012

Revenue 148,928 -314 148,614

Other operating income 430 - 430

Expenses -138,169 311 -137,858




Share of profit or loss of associates and joint ventures -48 24 -24


Income taxes -2,495 -2 -2,497

Net result for the period -470 16 -454





Items that may be reclassified subsequently to profit or loss Available-for-sale financial assets 222 - 222




Net profit attributable to: Owners of the parent -470 16 -454


Net result for the period -470 16 -454





Basic earnings per share (EUR) -0.01 0.00 -0.01

Diluted earnings per share (EUR) -0.01 0.00 -0.01

42 (44)


TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900




EUR 1,000 before



ASSETS Mar 31, 2012

Mar 31, 2012

Non-current assets

Goodwill 68,958 - 68,958



Investment in associates and joint ventures 929 705 1,634










Non-current assets held for sale - - -


Total assets 491,816 1,546 493,362

EQUITY AND LIABILITIES Mar 31, 2012

Mar 31, 2012









Total equity 165,106 -6,816 158,290









Liabilities classified as held for sale - - -



43 (44)


TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900



before restatement



1-3/2012

EUR 1,000

CASH FLOW FROM OPERATING ACTIVITIES Net result for the period -470 16 -454


Interest and other financial expenses 3,986 -1 3,985


Income taxes 2,495 2 2,497


Change in net working capital -20,073 43 -20,030

Interest and other financial expenses paid -1,787 1 -1,786



Total cash flow from operations -16,555 26 -16,529





Dividends received - - -

Net cash used in investing activities -6,256 - -6,256

Cash flow before financing -22,811 26 -22,785


Current financing, increase (+), decrease (-) 23,948 9 23,957

Dividends paid - - -

Other 1,879 -7 1,872

Net cash used in financing activities 25,827 2 25,829

Net change in cash and cash equivalents 3,016 28 3,044


Effect of exchange rate fluctuations on cash held 306 -1 305



Net change in cash and cash equivalents 3,016 28 3,044

44 (44)


TIKKURILA OYJ


TEL. +358 (0)9 857 71, FAX +358 (0)9 8577 6900



before restatement


1-3/2012/

1-3/2012/

KEY PERFORMANCE INDICATORS Mar 31, 2012

Mar 31, 2012

Earnings per share / basic, EUR -0.01 0.00 -0.01

Earnings per share / diluted, EUR -0.01 0.00 -0.01

Cash flow from operations, EUR 1,000 -16,555 26 -16,529

Cash flow from operations / per share, EUR -0.38 0.00 -0.37


of revenue % 4.2% 0.0% 4.2%

Shares (1,000), average 44,108 - 44,108



Equity ratio, % 33.6% -1.5% 32.1%

Gearing, % 73.2% 3.2% 76.4%




interim report | q1 january–march 2013mb.cision.com/main/16979/2528307/846218.pdfcold spring in...

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